This article is from the Australian Property Journal archive
HOMEBUILDER Simonds Group has returned to black, booking a modest interim statutory profit of $1.1 million.
The result is an improvement from the $0.7 million loss recorded in the previous period. The group’s pro forma profit result, which reflects the underlying performance, was $2.2 million – up from $1.3 million in the pcp.
No interim dividend was declared.
Chairman Iain Kirkwood said the turnaround has re-stabilised the business and created a solid working capital basis to ensure sustainable growth for the business in future years.
Revenue increased from $285.9 million to $291.7 million
“The increase is largely due to changes in product mix combined with a strengthening of business rules and a shift away from highly customised, low margin product,” he added.
The group’s net assets at 31 December 2017 were negative $1.6 million, an improvement on the position at 30 June 2017, and significant improvement on the position at 31 December 2016 of negative $4.6 million.
At 31 December 2017 the group had drawn debt under its corporate finance facility arrangements with Commonwealth Bank of Australia of $4.8 million, with facility headroom (including cash) available of $33.7 million as at 31 December 2017.
“The board remains optimistic about the group’s future trading performance but acknowledges there are certain factors that may pose a risk to the achievement of the group’s business strategies and future performance.
“There are some risks, both specific to the Group’s home building, provision of training courses, and land and project management services, and external risks, for example the economic environment, over which the group has no control.” Kirkwood said.
Australian Property Journal
