Record $24.8 million net profit for GUD

Sunbeam’s parent company GUD Holdings Limited has just announced its half year sales results for the year ending 31 December 2009. The company has witnessed a 46 per cent increase in Net Profit After Tax to a record $24.8 million.

According to the report issued to the Australian Securities and Investment Commission, the result is attributed to a sales growth of 6 per cent, tight expense controls and a 46 per cent reduction in interest costs.

EBIT increased 14 per cent to $37.3 million for the period and improvements were made across all business segments.

In terms of its consumer products, EBIT for Sunbeam and Oates was up 5 per cent to $17.1 million. Sales were also up 4 per cent for the half to 132.5 million.

GUD managing director, Ian Campbell commented on the impressive results across all of GUD’s divisions.

“One of the pleasing aspects of these results is a consistent improvement in profitability across all our businesses,” he said.

“This improvement reflects the consequences of management actions taken over the last twelve months in response to the volatile market environment. A combination of selective price increases, product cost reductions and tighter overhead controls were successful implemented across the GUD group.”

“In addition, our focus on tight working capital management led to an improvement in cash flow and to a substantial reduction in net debt, at a time when our debt requirements are at their seasonal peak.”

Campbell was very optimistic about the future of the company in 2010.

“The solid trading conditions we experienced in the first half are expected to continue through the balance of the current financial year,” he said.

“Further increases in interest rates may result in slowing demand for some of our businesses although the relatively stable unemployment position will provide a counter to this.”

Campbell estimates that the full year EBIT will be within the range of $64 million to $68 million.

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