Coated with success
Chairman’s Report
The 2006/07 financial year saw the
completion of the major restructure
program which re-established a
sound foundation for the Group.
The business is now much better
positioned to focus on its market
strategy and growth opportunities.
Result
The profit after tax from continuing
operations (before ‘non recurring’
items) for the year was $16.4 million
an improvement of 24% over the
previous year against a continued
backdrop of subdued housing
conditions both in Australia and
New Zealand. This is a very pleasing
result and shows the benefit of
the restructure program which
commenced in October 2005.
Reported net profit for the year
was $16.6 million compared with
$4.1 million in FY2006.
I am very pleased to confirm that
the restructure program, which was
announced in October 2005 and
targeted total savings of $22 million
by 30 June 2007, has successfully
been completed with total actual
savings of $24 million.
During this financial year, in addition
to the successful completion of the
restructure program, the management
team have continued to focus on the
strategic direction of our key brands
and channels to market.
Dividend
Your directors declared a fully franked
final ordinary dividend of 7 cents per
share, bringing fully franked ordinary
declared dividends for the year to
15 cents per share, approximately
80% of net profit after tax before
non recurring items.
Cashflow
Prudent balance sheet management
led to a net debt position of
$48 million, representing a gearing
ratio (net debt : net debt plus equity)
of 26.9%.
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