Gowing Bros (ASX:GOW) FY24 Financial Results Overview

Gowing Bros (ASX:GOW) has reported a 5.78% decrease in total revenue for the year ended 31 July 2024. The loss after tax was $0.04 million, and the net assets per share before tax on unrealised gains on equities, investment properties, and private equities was at $3.84. The board has elected to declare a final 3.45 cents per share fully franked LIC dividend with a record date of 18 October 2024 and a payment date of 5 November 2024.

Executive Chairman's Review of Operations

The Executive Chairman highlighted the impact of 13 interest rate increases by the Reserve Bank of Australia and monetary policy tightening by global central banks, causing a reduction in sales and profitability at Gowings Surf Hardware International. However, the company was able to refinance its long-term debt facility with St George Bank. Significant achievements during the year included negotiating the lease renewal with Coles at Gowings Kempsey Central, the takeover of the long-term investment in DICE Molecules by Eli Lilly, and the continuing sales of lots in stage 3 at Sawtell Commons. The Chairman also mentioned the rebound in foot traffic and trading in the Mid North Coast Shopping Centres, with comparable sales growing from $149 million in 2019 to $164 million per annum in 2024.

Outlook and Corporate Strategy

The outlook for Gowing Bros (ASX:GOW) has improved with the reported annual inflation rate in Australia within the RBA's target range, potentially leading to lower interest rates in the near future. The company aims to continue its commitment to sustainability initiatives across all areas of its business operations, with a focus on minimizing its environmental impact and becoming a net zero company. Major construction work on the Raymond Terrace and Coffs Harbour Bypasses is expected to benefit the company's North Coast property holdings. Gowing Bros remains committed to its long-term investment strategy and maintaining a prudent approach to dividends given the capital requirements of the company across various developments and investment opportunities either underway or under consideration.