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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.
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