Industrial building company CSR Group (ASX:CSR) showed a 43 per cent increase in profits in its Preliminary Final Report for the year up to 31 March 2015. Net profit after tax from ordinary activities, after significant items, attributable to members came in at $125.5m compared to the previous corresponding period, a 43 per cent increase. Revenue for the same period was $2,023.4m, a 16 per cent increase. Net tangible assets per share came to $2.17, unchanged from the previous period. The report noted that increased homebuilding in Australia, benefitting from the lower interest rates, helped to boost underlying profit for the company.
The company also posted an unfranked interim dividend of 8.5c, up from 5c from the previous year. The unfranked final dividend was 11.5c, also up from 5c from the previous year. CSR posted earnings per share (EPS) of 24.9c for the year. The company’s liabilities increased slightly to $913.3m and its total equity ticked up marginally to $1,206m. Part of the improved profits was attributed to a $33m pre-tax reduction in asbestos liabilities, the report said.
Managing Director Rob Sindel also attributed the success of the company to strong performances across all sectors of the company. “The hard work over the last few years to improve our customer service and the efficiency of our operations has strengthened CSR’s foundations and positioned us to increase returns as construction markets improve,” he said. Shares of the company are up 27c, or 7.2 per cent, at $4.02 per share around 12:50pm on Tuesday. CSR has advanced 15.19 per cent in the last 12 months and 3.08 per cent so far this year.
Author: Imran Valibhoy
May 12, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.