PWR PROFIT RACES TO A STRONG FINISH
Written on the 26 August 2016 by Nick Nichols
PWR Holdings (ASX:PWH) has topped prospectus forecasts with a $10.76 million net profit for its first full year as a listed company.
The pro forma result is 2.9 per cent better than expected, as was the bottom-line profit of $8.75 million.
The pro forma profit effectively strips out the company's IPO costs of about $2.9 million from the result, and comes despite a strengthening Australian dollar in the second half.
The Gold Coast-based PWR, which manufactured cooling systems for some of the world's biggest car racing teams, posted a 0.8 per cent lift in revenue to $47.3 million and announced that organic growth of its business had exceeded expectations.
The rising dollar is estimated to have hit revenue by about $1.1 million, with the US accounting for PWR's biggest share of revenue, followed by the UK and Italy.
PWR managing director and company co-founder Kees Weel (pictured) says the team is chuffed with the company's maiden annual result as an ASX public company.
"We have worked hard in our first year as a listed company to position PWH to take advantage of future growth opportunities," he says.
Weel says stronger than expected organic growth in the motorsports and automotive aftermarket sectors had been key to driving the result higher.
Among the year's highlights were two new original equipment manufacturer contracts in Australia and Europe.
The company, which supplies cooling systems to V8 Supercars, NASCARS and F1 teams, has also developed new channels into the auto aftermarket in the US and started selling to the mining and construction industry.
"This is an important validation of the group's strategy to expand into other markets including industrial cooling applications," says Weel.
PWR is paying a final dividend of 3.78c per share, for an annual dividend of 4.4c per share, up from a forecast 4,2c a share.
Author: Nick Nichols