PWR GETS ON THE GRID WITH MAIDEN PROFIT
Written on the 26 February 2016
PWR Holdings (ASX:PWH) has shifted up a gear after listing on the ASX in November 2015, driving earnings 45 per cent higher and putting it on track to meet its full-year profit target.
The Gold Coast-based company, which provides cooling solutions to some of the world's hottest cars, reported revenue for the six months ending December 31 of $18.47 million, up from $12.7 million a year earlier.
However, net profit of $1.2 million was down from $4.2 million, which is in line with expectations taking into account the impact of $2.67 million in one-off expenses related to the company's IPO.
PWR, which has worked with leading racing teams including F1, NASCAR and V8 Supercars, says the latest result was mainly driven by the contribution of the C&R Racing business which was acquired in March 2015, in addition to favourable exchange rates.
C&R, a North American manufacturer which has dominated the NASCAR series for the past 25 years with its cooling products, has helped the group achieve its goal of penetrating the US market.
Managing director Kees Weel says C&R and PWR have been linked for a number of years.
"We see this acquisition as bringing together two like-minded, dominant businesses to create a much larger footprint in the USA, says Weel. "The opportunities available to the combined PWR/C&R group in the USA are significant."
EBITDA (earnings before interest, tax, depreciation and amortisation) was $5.32 million compared to $5.81 million for the first-half of FY15.
"We are on track for the full-year after a good performance in the first half and the progress we have made with strategic initiatives to position PWR for growth," says Weel.
PWR has reaffirmed its full-year prospectus forecast, predicting FY16 revenue of $46.994 million and EBITDA of $16.162 million, up 44 per cent and 34 per cent respectively.
PWR was founded in 1998 by father-and-son team Kees and Paul Weel, and since inception has developed a skilled workforce at its Ormeau factory where it develops, manufactures and wind-tunnel tests its high-tech cooling systems.
The board has declared an interim dividend of 6.2c.