Parent firm’s hot year sees it pick up Narva but local conditions seen as cool
Storage systems provider Dexion has had a pleasing financial year performance, owner GUD Holdings has disclosed, with lower transport costs helping the group to a bumper result.
Dexion recorded a modest 6 per cent rise in sales to $212.2 million but delivered a 27 per cent rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to $8.8 million and an underlying EBIT up 72 per cent to $5.4 million.
“It is pleasing to see the benefits of the various profit improvement initiatives that were put in place across GUD’s businesses, especially Davey, Dexion and Sunbeam,” GUD managing director Jonathan Ling says, of a result that saw an 88 per cent in group net profits to $33.2 million.
“The principal drivers of the profit uplift were the cost savings we identified and secured on freight, logistics and warranty cost along with cost-to-serve.”
Dexion’s second half saw sales growth on 12 per cent on the previous year’s first half, following a flat first half.
The closure of Dexion Commercial’s factory in Sunshine in Victoria and outsourcing of the product range along with the closure of its Kings Park racking factory in Sydney and relocation to Malaysia helped as did the timing of restructuring costs.
Ling expects Dexion to continue the last half’s momentum with further cost savings in Australian and growing demand overseas.
“Revenue growth is expected as conditions remain favourable in the Asian and New Zealand racking markets and as the Commercial business seeks growth offshore,” he says.
The year also saw GUD buy Brown & Watson, owner of Narva and Projecta, last month.
This was placed in its automotive segment, which also houses the Ryco filters brand, and which saw sales up 6 per cent to $101.4 million and EBITDA up the same to $32.9 million.