A little-known ASX All Ords share is setting the bar high today.
In afternoon trade on Monday, the All Ordinaries Index (ASX: XAO) is down 0.8%.
But this ASX All Ords share is heading the other way, up 7% at the time of writing to $2.06 per share.
Any guesses?
If you said GWA Group Ltd (ASX: GWA), give yourself a gold star.
GWA, which designs, imports and markets building fixtures and fittings, released its full-year results for the financial year ending 30 June (FY23) this morning.
Read on for the highlights.
GWA share price leaps on profit boost
- Revenue of $411.8 million, down 1.6% from FY22
- Statutory net profit after tax (NPAT) of $43.2 million, up 22.7% year on year
- Operating cash flow of $99.6 million, up 101% from FY22
- Fully franked final dividend of 7.0 cents per share, down from 8.0 cents per share for FY22
What else happened with the ASX All Ords share during the year?
Also likely offering a boost to the ASX All Ords share today was a 15% reduction in net debt, which stood at $117 million on 30 June. The company said this was driven by a reduction in working capital and improved operating cash flow.
While statutory NPAT was up 22.7% from FY22, normalised NPAT slid 6.6% year on year to $44.1 million. Normalised NPAT excludes significant items after tax: for FY23 ($1.1 million) and FY22 ($12.1 million).
Eligible investors can expect the final GWA dividend to land in their bank accounts on 5 September. The full-year dividend payout is 13 cents per share, down from 15 cents per share in FY22. At the current GWA share price, that equates to a yield of 6.4%.
What did management say?
Commenting on the results sending the ASX All Ords share flying higher today, GWA CEO Urs Meyerhans noted that the year "comprised two distinct halves".
According to Meyerhans:
The first half of the year was impacted by the decline in activity in the residential renovation and replacement segment, unexpected higher domestic freight rates somewhat offset by lower ocean freight rates and destocking by one merchant. GWA initiated a rapid and agile response to these conditions.
Revenue in the second half increased in Australia and the UK (on a constant currency basis) but was unfortunately offset by lower sales in New Zealand where the economy is in recession.
Our focus on operational discipline and cost management resulted in an improved second half performance compared to the first half with normalised EBIT [earnings before interest and tax] up 6.5% and normalised EBIT margin up 120 basis points to 17.7%.
What's next?
Looking to what might impact the ASX All Ords share in the year ahead, GWA forecasts increasing demand for new build in health and aged care and its Commercial Repair & Renovation segment.
The company also expects "solid level of completions" to continue into the first half of FY24 in its residential detached business, along with increasing activity in multi residential, social and affordable housing and build to rent.
"Subdued demand" is expected to persist through FY24 in GWA's Repair & Renovation in the Residential segment.
How has this ASX All Ords share been tracking?
The GWA share price is down 5% over the past 12 months, not including the two dividend payouts. The accumulated value of the ASX All Ords share is up 0.5% if we add those dividends back in.
