PNE Industries (BDA) H2 2023 earnings summary

Executive summary

• FY23 revenue fell 27% YoY to $53.5m; profit before tax dropped to $0.8m from $4.0m, while net profit declined to $0.753m from $3.604m.

• Gross margin edged up to 19.9% from 19.6% on favourable product mix and tight cost control; cash and bank balances were $28.2m at year-end.

Financial highlights

• Gross profit decreased $3.8m in line with lower sales; distribution costs declined, while higher fixed-deposit interest income was offset by lower FX gains and the absence of prior-year COVID-19 grants.

• Other comprehensive loss was $3.321m, including $2.975m of currency translation losses and a $0.346m fair-value loss on financial assets.

• Net cash from operating activities was $1.184m, versus $1.261m used in FY22; investing activities generated $0.311m, while financing used $4.266m, including $3.357m of dividends paid.

Outlook and guidance

• Priorities include automation and robotics to reduce labour costs and improve quality, alongside lean manufacturing and streamlined processes to manage costs.

• Proposed FY23 final dividend of 2 cents per share would bring the annual payout to 3 cents per share, down from 5 cents in FY22; subject to shareholder approval.