Gowing Bros (GOW) H1 2025 earnings summary

Executive summary

• Revenue for the half-year ended 31 January 2025 was $28.5 million, down 19% year-over-year, mainly due to reduced land sales at Sawtell Commons.

• Loss after tax attributable to members was $2.27 million, a 195% decline compared to the prior period.

• Net assets per share before tax on unrealised gains decreased 2.3% to $3.83.

• Interim fully franked dividend of 3.0 cents per share declared, with payment scheduled for 29 April 2025.

• Shopping centre assets performed in line with expectations, but overall results were impacted by lower land sales and underperformance at Surf Hardware International.

Financial highlights

• Total revenue from ordinary activities was $28.5 million, down from $35.1 million year-over-year.

• Operational income before tax was $2.18 million, down 17% from the prior period.

• Loss before tax was $1.97 million; loss after tax was $2.27 million.

• Net assets before tax on unrealised gains stood at $204.4 million as of 31 January 2025.

• Earnings per share was a loss of 4.27 cents, compared to a profit of 4.50 cents per share in the prior period.

Outlook and guidance

• Inflation and interest rates in Australia are expected to moderate, supporting domestic operations.

• Group performance is expected to remain consistent with previous periods due to diversified industry exposures.

• Multiple development opportunities exist for land banked assets, to be progressed as economic conditions improve.