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GWA Group Limited (ASX:GWA) has posted a 43 per cent decline in full year net profit to $18.6 million, following a number of one-off costs.
The fixtures and fittings supplier attributes the loss to the $17 million Gliderol impairment charge in December 2013 and restructuring costs.
Strong sales in GWA’s bathroom and kitchen business delivered a two percent increase in revenue to $578 million, with an eight per cent increase in earnings before interest and tax of $72.3 million – compared to the previous period.
Managing director Peter Crowley says with the exception of its hot water division, bathroom and kitchen sales outperformed the market.
“We have invested in inventory for both businesses to ensure that we meet market demand as dwelling completions continue to improve,” Crowley says.
“The impact of the higher inventory levels can be seen in the cash flow performance in FY14, however this will normalise as we move through FY15.”
The company reported decreased sales in its door and access systems division, while heating and cooling sales were up.
The Gainsborough business was adversely impacted by a supplier issue, Gliderol undergoing major restructuring in the last 18 months.
Crowley says the respective hardware and garage door businesses have since showed signs of improvement.
“We have completed our strategic review and this revised strategy enables us to focus on our core businesses that will deliver growth and enable higher returns for our shareholders.
“The execution of our strategic plans, in conjunction with the forecast growth in dwelling completions activity, should deliver improved sales and profit in the year ahead.”
A fully franked dividend of 5.5 cents per share will be paid in October.
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