Not that long ago I made the basic fundamental analysis of GUD’s last full year financial report. On 29 January 2007 the company released their results for the 6 following months so let’s quickly look at them.

Results for half year ended 31 December 2006

• Revenue up 10.17% to $265.8mil
• Restructuring expenses up 100% to $3.5mil
• Profit down 26.44% to $14.9mil
• Interim dividend 27 cents (same as this time last year)
• Balance sheet: Working capital of $89mil versus total debt of $129mil ($50mil increase in total debt)

Reasons given by the management

1. Restructuring expenses were associated with closure of the New Zealand automotive filter business
2. Weaker demand for Victa’s mowers due to drought
3. Oats Clean business experienced delay in contribution from the Bissell product range and competitive conditions in cleaning products range
4. Loss of $2mil due to forward valuation of foreign exchange contracts

PROS AND CONS
— Earned only 24.8 cents per share yet paying 27 cents dividend
— Increase in the total debt
— No longer a GROWTH stock but rather it is now a cyclical performer
+++ Balance sheet remains sound

This entry was posted on Monday, February 5th, 2007 at 9:10 pm and is filed under Australian stock. You can follow any responses to this entry through the RSS feed. You can leave a response, or trackback from your own site.