ABN 69 009 205 261
Preliminary Final ReportYear ended 30 June 2016
Results for Announcement to the Market
Change Amount
$'000
Revenue from ordinary activities | Up | 5% | to | 287,257 |
Loss from continuing operations after tax attributable to members | Up | 589% | to | - 11,019 |
Net loss attributable to members of Fleetwood Corporation Limited | Down | 16011% | to | - 28,004 |
Dividends
Amount per
security Franked %
Final dividend Nil ¢ N/A
Interim dividend Nil ¢ N/A
Nil ¢
Total dividend for period
For further information contact: Brad Denison
Managing Director 08 9323 3300
Review of OperationsThe following tables demonstrate how statutory revenue and EBIT reconcile to underlying trading results.
Revenue$ million | 2016 | 2015 | Change |
Statutory revenue | 287.3 | 272.8 | |
One off adjustment related to capital value of Osprey village | - | (9.4) | |
Underlying revenue | 287.3 | 263.4 | 9% |
$ million | 2016 | 2015 | Change |
Statutory EBIT | (9.6) | 2.3 | |
One off adjustment related to capital value of Osprey village | - | (9.4) | |
Asset impairment | 10.3 | 3.2 | |
Underlying EBIT | 0.7 | (3.9) | 115% |
Excluding asset impairment, results from discontinued operations and one off adjustments related to the capital value of Osprey village, revenue increased by 9% to $287.3m and EBIT improved by 115% to
$0.7m.
The company generated very strong operating cash flows during the year and reported a net cash position of $3m at 30 June.
Significant changes have been made to the board, senior management team and business operations in the last two years. The operational changes have seen the company become debt free, focus on growth markets and significantly reduce operating costs.
RV Manufacturing
$ million | 2016 | 2015 | % change |
Revenue | 29.6 | 34.0 | -13.0% |
Operating EBIT | - 8.1 | - 7.6* | -6.5% |
*excludes impairment charge of $3.2m in 2015.
Since the global financial crisis heavily impacted the recreational vehicles industry in 2009, Fleetwood RV has been significantly restructured.
This included consolidating manufacturing into a single facility, updating the company's product range and expanding the dealer network.
The new product range was demonstrated to consumers at major capital city caravan and camping shows between February and June 2016. The effect has been a substantial increase in the order book and production run rates are now being increased to meet the demand.
The dealer network is also being expanded. Two new dealers have been appointed in New South Wales and an additional dealer has been appointed in Victoria.
While this is very encouraging it is not expected that the business will return to profitability during the first half of the 2017 financial year. However given how orders are trending, the board has confidence in the direction the business is taking.
Parts and Accessories
$ million | 2016 | 2015 | % change |
Revenue | 82.1 | 78.2 | 5.0% |
Operating EBIT | 0.9* | 0.6 | 46.7% |
*excludes impairment charge of $10.3m in 2016.
Fleetwood's parts and accessories segment is comprised of Camec which is a major supplier of components to the RV manufacturing industry and Flexiglass which supplies fibreglass canopies and aluminium trays for utility vehicles.
In the last three years, Flexiglass' operations have been restructured, resulting in the cessation of manufacturing in Australia and the importation of product from Thailand, where nine of the eleven global top selling utility vehicles are manufactured.
The directors have taken the conservative approach of recognising an impairment charge against the goodwill in Flexiglass, however notwithstanding this revenue and earnings growth is expected to gradually improve.
Fleetwood Corporation Limited published this content on 30 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 August 2016 07:18:01 UTC.
Public permalinkhttp://www.publicnow.com/view/B990DE968721F7C712BCF291AB2E276A5354E1AC