The GWA Group Ltd (ASX: GWA) share price has fallen 10.47% today after the company released its results for the year to 30 June 2020. At the time of writing, the GWA share price has slumped to $2.48 from Friday's closing price of $2.77.
What was in the announcement?
According to the company, revenue was up 4% in the year to 30 June 2020 to $398,704,000. This was against revenue of $381,730,000 in the year to 30 June 2019.
Earnings before interest and tax from normal activities were down 41% to $70,297,000 in the year to June 30 from $119,440,000 in the year to 30 June 2019.
Net profit after tax was down 53% to $43,886,000 in the year to 30 June 2020, compared to $94,044,000 in the year prior. Net profit in the year to 30 June 2019 included profit from the sale of the company's door and access systems business, which contributed $50.8 million to net profit after tax in that year.
GWA announced a final dividend of 3.5 cents per share, taking dividends for the full year to 11.5 cents, fully franked. The company also resumed its dividend reinvestment plan with shares offered at a 1.5% discount under the plan.
GWA Group CEO and Managing Director, Tim Salt, commented on the results stating;
"In a very challenging year, with significant uncertainty and a strong focus on the health and wellbeing of our people, GWA delivered a disciplined result in FY20.
Our top line was significantly impacted by lower construction activity, merchant destocking in the first half, and the impact of the COVID-19 pandemic and lower than expected merchant restocking in the last quarter of the year.
Our continued focus on operational and cost discipline across the business resulted in a resilient EBIT margin of 18.0 per cent compared to 18.5 per cent in the prior year.
While markets were challenging and compounded by the unforeseen impact of COVID-19, our focus continues to be on controlling those elements within our control."
About the GWA share price
GWA Group is a supplier of fittings and fixtures to households and commercial premises in Australia and New Zealand. It has been listed on the ASX since 1993.
The GWA share price is up 10.22% since its 52-week low of $2.25, however, it has fallen 26.63% since the beginning of the year. The GWA share price is down 27.06% since this time last year.
