GWA SUFFERS LOSSES

Written on the 18 February 2014

GWA SUFFERS LOSSES

 BUILDING fixtures supplier GWA (ASX:GWA) has reported an 89 per cent decrease in net profit after tax (NPAT) to $1.7 million over the previous corresponding period.

Revenue of $288 million is down one per cent from this time last year, with earnings before interest and tax (EBIT) also dropping one per cent to $34.1 million.

Managing director Peter Crowley says the loss is a result of uncommon circumstances affecting the business.

“The first half should have been significantly better than the final outcome, however a number of one-off issues impacted trading EBIT in the half.

“In light of this and as the recovery in dwelling commencement activity seen in the first half rolls into completions, which is typically where GWA products are sold, we expect a strong second half performance,” he says.

The decrease in NPAT has been blamed on the $17 million impairment charge in relation to Gliderol goodwill in December, as well as $3.6 million in restructuring costs.

“On the positive side bathrooms and kitchens, excluding hot-water, has performed strongly with market share gains as dwelling completions have been relatively flat during the period.

“Additionally, cost savings across the group which were predominantly driven by the December 2012 restructuring have been slightly above our expectations.

“Our focus is on making sure our current businesses perform at an optimum level to take advantage of the recovery in the building sector.”

GWA won’t pay an interim dividend to shareholders in April, with payments expected to resume for the 2013/2014 year.

At the time of press, GWA shares were trading at $2.88, down 8.5 per cent.

Fraser Coast entices new investors. Read here.


Latest News

GROUPTOGETHER A GIFT FOR TIME-POOR PARENTS

JULIE Tylman and Ali Linz have taken the stress out of gift giving by creating GroupTogether, an online platform whic...

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter