Reduction of losses in North America and steady trading in Australasia saw Waterco post a $3.7m after tax net profit, up 63 per cent on the previous financial year.
Australasian sales growth only accounted for a one per cent increase, but further profitability was achieved through restructuring and better foreign exchange management.
Earnings Before Interest and Tax (EBIT) of $6.62 million before unrealised foreign exchange adjustments and goodwill impairment for the year compares favourably with $5.11m reported the previous period.
“This is a good result for a difficult trading year, with current uncertainties globally, particularly in Europe and a mild recovery in the USA. While forecasts were met, results were hampered and would have been significantly better under normal trading conditions,” says Soon Sinn Goh, Chief Executive Officer, Waterco Ltd.
“While revenue was generally flat, margins were retained and strengthened in some areas from the elimination of products with poor profitability,” says Goh. “We are positive that there will be more improvement ahead, particularly in North America.”