Tamawood (TWD) H2 2024 earnings summary

Executive summary

• Profit before tax for FY24 was $8.03 million, up 165.7% from $3.02 million in FY23, with net profit after tax at $5.54 million, more than double the prior year.

• Revenue increased to $85.09 million from $76.94 million year-over-year, reflecting improved home building conditions and supply chain stability.

• Cash on hand at year-end was $6.11 million, up from $5.23 million, and the company remains debt free.

• The board plans to restore two dividend payments per year, with a final dividend anticipated in December 2024.

Financial highlights

• Revenue rose 10.6% year-over-year to $85.09 million.

• Net profit attributable to members was $5.54 million, up from $2.11 million in FY23.

• Net assets increased to $33.21 million from $32.22 million at June 2023.

• Dividends paid totaled $9.72 million (16c unfranked and 11c fully franked per share).

• Earnings per share were 15.3 cents, up from 6.01 cents in FY23.

Outlook and guidance

• The company expects continued demand due to housing shortages, but forecasts for FY25 are uncertain due to unpredictable weather, inflation, interest rates, and industry insolvencies.

• Project DeRisk software is expected to help mitigate weather-related disruptions.

• Expansion and development of construction and franchise operations in NSW, Victoria, and South Australia are planned.