This article is from the Australian Property Journal archive
AUSTRALIAN homebuilder Simonds Group Limited (ASX: SIO) has posted a net loss after tax of $11.9 million from continuing operations, against a challenging backdrop for the residential construction industry.
The loss in HY23 came after a smaller loss in NPAT in the previous corresponding period of $2.9 million.
SIO also posted a net loss after tax on a group level of $12.9 for the period ending 31 December 2022.
Revenue for the period was at $382.2 million, up from $338.1 million in the pcp.
SIO’s EBITDA was posted at a loss of $5.5 million, after a gain of $5.8 million in HY22.
“The residential construction industry continues to see the impact of increased input costs and productivity constraints given weather events and trade labour shortages,” said Rhett Simonds, CEO and executive chair at SIO.
Over the HY23 period, SIO made 1,099 site starts for the period, which was 78 starts below the pcp.
Net asset position was at $25.0 million at 31 December 2022, up from $13.5 million at 30 June 2022.
“Given the prolonged impact of these operational challenges, the Simonds Group raised additional capital to strengthen our balance sheet and position us well to execute on emerging opportunities in the market.”
SIO announced plans to raise an additional $25.5 million in share capital to fund working capital requirements and future strategic initiatives last November, which was successfully completed with all funds received in December 2022.
Leaving SIO’s net cash position as at 31 December 2022 at $32.6 million.
“We believe this places confidence with our key stakeholders, customers, staff and suppliers, assured in continuing a long-term relationship with us knowing they deal with a business that is sustainable and that will be there for the long run,” added Simonds.
SIO’s banking facilities were also extended through to 30 June 2024, ensuring strong available liquidity and also supporting working capital requirements.
Simonds directors determined that no dividend would be declared for the HY23 period.
