This article is from the Australian Property Journal archive
SIMONDS Group (ASX: SIO) returned to profit in FY24, after a $34.7 million increase in earnings against challenging market conditions.
SIO posted a profit after tax of $4.0 million, this follows a loss of $23.3 million in FY23.
EBITDA was at $23.3 million, up from a loss of $11.4 million in FY23, with revenue at $663.5 million, down from $722.4 million in FY23.
This revenue decline of $58.9 million was largely attributed to a lower number of residential jobs on site over the period, which was partially offset by alternative sales channels.
SIO’s net asset position was up from $14.5 million in FY23 to $18.5 million in FY24.
“We are excited to announce our full year results which reflect a $34.7m increase in earnings year on year while trading through tough market conditions. This is the result of the successful implementation of our strategic initiatives, which include the expansion in alternative channels to market and a disciplined focus on cost management,” said David McKeown, group CEO at SIO.
“The positive result, which has been delivered whilst also investing in new capabilities, products and brand initiatives during 2H FY24, has set the foundation for the Group to further improve profitability and growth into the future.”
Over the year, Simonds commenced 1,772 site starts, down 179 starts from the previous corresponding period in FY23.
SIO’s available liquidity was at $26.6 million, comprising of $1.6 million cash on hand and unused banking facilities of $24.9 million.
“Looking ahead, we expect the residential market to remain challenged until cost-of-living pressures moderate and affordability and consumer confidence improve,” added McKeown.
“Underscoring the importance of our new, diversified market offerings, we see a number of emerging opportunities in our Knock Down Rebuild, Speculative Build, Medium Density and Social & Affordable housing channels as both wholesale and retail customers seek alternative housing solutions.”
SIO declared no dividend for the period ended 30 June 2024.
