The GUD Holdings Limited (ASX: GUD) share price has fallen 4.2% lower this morning after the company's full-year results failed to meet market expectations.
What were GUD's full-year results?
The Aussie manufacturing group reported revenue up 9% year on year (YoY) to $434.08 million while net profit after tax (NPAT) plunged more than 40% to $59.56 million for the year.
Operating profit from continuing operations before interest and tax climbed 13% higher compared to FY2018 numbers to $87.04 million as GUD's underlying profit after tax on a continuing basis climbed 10% to $60.88 million.
GUD's basic earnings per share (EPS) rose from 58.6 cents per share (cps) to 68.9 cps in FY19 while underlying basic EPS also climbed from 64.1 cps to 70.4 cps in the company's full-year results.
Despite profitability falling lower, the company increased both its interim and final dividend by 1 cps and 3 cps, respectively.
The company's net debt swelled from $93.45 million to $132.72 million during the year while net tangible assets (NTA) fell from $30.52 million to $28.93 million, down 2 cents on a per-share basis.
The biggest factor affecting GUD's profitability differential was a contribution from discontinued operations in FY18, as the Aussie manufacturer reported a $51.5 million gain from the sale of its Oates business.
Management also noted softening business conditions that affected the end of the year, with much of the top-line growth coming from inorganic growth rather than from within existing businesses for the group.
How has the GUD share price performed in 2019?
GUD Holdings owns a number of manufacturing subsidiaries and is broadly an importer, distributor and seller of automative products, pumps, pool and spa systems and water pressure systems.
The company and its subsidiaries operates across Australia, New Zealand, France and Spain and includes such companies as Davey Water Products, Sunbeam NZ and Ryco Group.
The GUD share price is currently trading 10% lower since the start of the year as the tougher operating environment has pressured its sales revenue and ability to generate consistent organic profits.
However, the company still boasts a market cap of $880 million, but its share price is hovering just above its $9.62 per share 52-week low and is facing further selling pressure in morning trade.
