GWA CUTS A $25M PROFIT

GWA CUTS A $25M PROFIT

HOUSEHOLD products distributor GWA International Limited (ASX: GWT) has recorded a 3.9 per cent profit fall for the last half, despite the sale of its iconic lawnmower business to a US-based company.

GWA announced the sale of Rover Mowers yesterday to MTD Products’ Australian arm for a sum expected between $10 million and $12 million, but this resulted in a $3.4 million loss from discontinued operations.

The $25.5 million net profit result comes despite a 9 per cent surge in revenue in the half ended December 31, with the company’s building fixtures and fittings segment growing by 11 per cent.

Managing director Peter Crowley, doesn’t see any signs of underlying improvement in a difficult market, but still expects profit growth this financial year.

“We expect sales to reduce in the second half due to lower sales of environmental products,” says Crowley.

“We will be working to improve the business to offset this anticipated decline in revenue. Our focus for the next half year is to improve supply chain management and overhead efficiency through systems optimisation, to reduce working capital, and to search for growth opportunities.”

Don’t miss the full wrap-up of Brisbane’s top public companies in the March edition of Brisbane Business News.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Operating the board collaboratively, efficiently and securely
Partner Content
'Digitisation' and 'digitalisation' are two words that are frequently t...
OnBoard
Advertisement

Related Stories

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Although Myer (ASX: MYR) has reported a strong period of trade in t...

Demand for local travel sees Camplify flourish despite lockdowns

Demand for local travel sees Camplify flourish despite lockdowns

Despite widespread lockdowns restricting movement across Australia,...

Consumer confidence bounces back after hitting 15-month low

Consumer confidence bounces back after hitting 15-month low

Australian consumer confidence rose 2.2 per cent last week after dr...

December retail sales bolstered by eased COVID-19 restrictions

December retail sales bolstered by eased COVID-19 restrictions

Australian consumers were unafraid to splurge during the holiday se...