This article is from the Australian Property Journal archive
BUILDER Tamawood (ASX: TWD) has posted a 167.5% improvement to its profit results for the FY24, amidst ongoing price challenges from suppliers and subcontractors.
Based on unaudited management accounts, Tamawood posted a profit before tax of $8.083 million, up from $3.021 million in FY23.
The group’s cash on hand at the close of the financial year is at $6.114 million, up from $5.231 million in FY23. The group also remains debt free.
Tamawood attributed this improvement to itsProject DeRisk (integrated enterprise project management software system), which allowed for price adjustments in against a backdrop of price fluctuations.
This in addition to the continuity of many products that remained at constant prices, which being purchased in local currencies and without shipment delay, due to the group’s acquisition of Astivita Pty Ltd.
This as the March quarter saw all major construction material costs rise, with concrete up by 1.31%, structural steel up 0.50%, plasterboard up 3.61%, brick up 1.12% and copper pipe up 0.32%, according to Altus Group’s Australian Construction Material Price Outlook.
Tamawood also credited the staff at Dixon Homes and its base of subcontractors and suppliers, many of which have longstanding relationships with Dixon Homes.
The board expects to pay a final dividend in December, returning the group to two dividend payments per year.
Tamawood cited current issues with the Queensland housing market and with the general economy as making forecasts for FY25 “impossible”.
