As it warned a couple of weeks ago in an update, building and home products group, Alesco has reported a loss for the 2009 year after taking impairment charges in the second half to May.
But the company has restored dividend payouts to shareholders, declaring a final of seven cents a share after cancelling its interim dividend to retain cash.
Directors had said in the update earlier this month that they would look at the likelihood of resuming dividend payments, but would decide at a board meeting to be held this week.
The decision came despite the loss and the impairments, which were the subject of an update on July 9.
The shares finished rose 10 cents to $4.25.
The company warned of a loss of around $13 million and yesterday it came in at $12.8 million.
That compares with a net profit of $58 million in the 2008 year.
Alesco booked a write-down of $70 million of intangibles in its Water Products & Services division.
The company’ said net profit before significant items sank to $29.1 million, compared to $65.5 million in 2008 as the slump in the economy took its toll.
But CEO, Justin Ryan says the company is well placed to rebound as recovery comes.
He said Alesco’s business had been significantly affected by difficult economic conditions over the past 12 months, which had led to a sharp fall in earnings.
"The decisive action we took during fiscal 2009 will ensure our businesses are better positioned to face the current challenging environment and improve when market conditions recover," Mr Ryan said.
"Alesco has sound and cash generative businesses and is well positioned to benefit from any recovery in the housing and related sectors," he said.
To meet the challenge of declining sales, he said, the company had reduced its workforce by 17%, lowering the group’s cost base by about $20 million.
The group employed about 2,300 full time-equivalent employees at May 31, it said.
Alesco also had reduced the sites in its continuing businesses from 149 to 125 across Australia, New Zealand and China.
Its Water Products & Services unit and the Functional and Decorative Products division both reported 38% falls in earnings before interest, tax and amortisation (EBITA).
The Construction & Mining unit posted a 25% drop in EBITA, while Garage Doors & Openers posted a 23% drop.
In April the company sold its Scientific & Medical division for $175 million, which "significantly strengthened the company’s balance sheet", Alesco said.
The result therefore had 11 months contribution to which won’t be there in the current financial year.
Mr Ryan said the actions taken by the board to lower costs “have been successful in cushioning the decline in overall trading performance and we expect the benefits to continue in the 2009/10 financial year, with the full impact of the expected $6 million annual savings to be achieved by the 2010/11 financial year.
“The group’s trade working capital continued to be a major focus and our continuing businesses released more than $25 million in trade working capital over the year.
“The sale of our Scientific & Medical division in April 2009 for $175 million significantly strengthened the Company’s balance sheet and delivered an after tax profit of $59.6 million and illustrates our ability to add value for shareholders.
“In addition, last week we announced Alesco had entered into a new unsecured syndicated term debt facility for $240 million in two equal tranches with maturity dates of July 2011 and July 2012.
“Alesco has sound and cash generative businesses and is well positioned to benefit from any recovery in the housing and related sectors.”
