A flat year all round for bathroom and kitchen products supplier GWA Group.
Revenue was all but flat at $446 million, net profit was likewise with a result of $53.7 million and final dividend was steady at 9 cents a share.
Perhaps the only indicator that was higher during the year was the half a cent a share lift in interim dividend. That saw the same sized rise in the full year payout to 16.5 cents a share.
GWA’s tale of the year to June was similar for companies in the building and construction game – solid growth, but expectations of a downturn to bite as 2017-18 rolls on.
As usual, product suppliers like GSW expect a buoyant renovations market to keep demand for its products strong ad GAW is no exception.
The company says the renovations and replacements market, which accounts for just over half of its revenue, will remain "relatively stable" in the current financial year.
“Residential construction activity is expected to slow, however the pipeline of building work yet to be completed remains reasonably strong, supporting continued demand for GWA’s brands into the 2018 financial year,” the company said in its earnings release on Monday.
GWA said revenue growth was ahead of the market, with net sales rising two per cent after an improvement in bathrooms and kitchens product sales offsetting a decline in its sales of doors and locks compared to a year ago.
Revenue growth was strong across the eastern states, with net sales in NSW up 11%, Victoria up 5% and Queensland up 3%.
And while WA was again weak (for GWA and all others in the building sector in that state), there was the smallest glimmer of light. GWA said the rate of decline in sales from WA in 2016-17 slowed from 2015-16, perhaps suggesting the savage downturn in the wake of the collapse of the mining investment boom is exhausting itself.
"GWA continues to focus on selling higher value products, particularly in the renovations and replacements and commercial segments which resulted in improved mix compared to the prior year," the company said.
Shares in GWA fell 3%, to $3.07 in early trading then recovered to close up 0.3% at $3.17.
