Gowing Bros reports 150% increase in profit after tax for the half-year ended 31 January 2024

Gowing Bros Limited (ASX: $GOW) has reported a 150% increase in Profit After Tax to $2.40 million for the half-year ended 31 January 2024. The increase in total revenue is largely attributed to the realisation of lot sales from Sawtell Commons. The board has elected to declare an interim 3 cents per share fully franked dividend. The company's net assets per share before tax on unrealised gains on equities, investment properties, and private equities is at $3.92 during the half-year 31 January 2024.

Executive Chairman's report on the financial results and investments

The Executive Chairman reported that the 13 interest rate increases imposed by The Reserve Bank of Australia and associated monetary policy tightening by most of the world's central banks had a significant impact on global consumer sentiment. Despite this, the company was able to refinance its long term debt facility on more flexible terms with St George Bank. The Chairman also highlighted the successful renewal of the lease with Coles at Gowings Kempsey Central, the capital gain from the takeover of long term investment in DICE Therupedics by Eli Lilly, and the continuing sales of lots in stage 3 at Sawtell Commons.

Outlook and corporate strategy

The company continues to live in uncertain times, with the outlook featuring uncertainty. However, the Mid North Coast of NSW, where the company operates, has and continues to be a net beneficiary of the times. The company believes in maintaining a prudent approach to dividends given the capital requirements of the Company across various developments and investment opportunities either underway or under consideration. The outlook also includes the completion of the Coffs Harbour Bypass, which is a positive catalyst for economic activity and skilled employment in the area. The company is also investigating and implementing sustainability initiatives across all areas of its business operations, aiming to have as light an impact as possible on the environment.