GOWING BROS. LIMITED Investing together for a secure future
Gowing Bros. Limited ABN 68 000 010 471
Suite 21, Jones Bay Wharf
26 - 32 Pirrama Rd, Pyrmont NSW 2009
T: 61 2 9264 6321 F: 61 2 9264 6240
www.gowings.com
R E S U L T S F O R ANNO U N C E M E NT T O T H E M A R K E TF I NANC I A L H I G H L I G H T S
Total shareholder return before tax on unrealised gains was 7.2% for the six month period ended 31 January 2017.
Net assets per share before tax on unrealised gains increased to $4.25 from $4.02 during the six months to 31 January 2017.
The increase in net assets per share was driven by a further appreciation in the Pacific Coast Shopping Centre portfolio and Boundary Bend Limited. The increase in value of the shopping centre portfolio was driven by the successful leasing campaign at Moonee Beach and a further compression in the capitalisation rate applied in Port Central SC valuation.
The equity portfolio also performed strongly with an underlying return of 9.2% compared to the ASX200 Accumulation Index of 3.2% with Boundary Bend Limited being the highlight.
Profit after tax for the half year was $11.9 million compared to the prior corresponding period of $18.6 million which included the capital profit of $18.3 million on the sale of our long term investment in Blackmores Limited.
An interim fully franked LIC capital gains tax dividend of 6 cents per share has been declared.
During December 2016, Gowings purchased Surf Hardware International for $16 million ($6 million deferred settlement) and Sawtell Heights Estate residential sub-division in Lyons Road Coffs harbour for $9 million.
The Port Central loan facility was refinanced from $26 million to $34 million and the term extended from 3 to 7 years on a more competitive interest rate.
The reporting period is the half year ended 31 January 2017 with the previous corresponding period being the half year ended 31 January 2016 unless otherwise stated. The results have been reviewed by the Company's auditors.
DI VI DE N D S | ||
Interim fully franked LIC capital gains tax dividend per share | No change | 6.0 cents |
The record date for the interim dividend The payment date of the interim dividend | 11 April 2017 27 April 2017 |
The interim dividend is classified as a fully franked LIC capital gains tax dividend subject to the Company's full year result.
RE VE N U E Total Revenue from Ordinary Activities | Up | 40% | $15.2 million |
Other Income | Down | 40% | $14.2 million |
EA R N IN G S Profit after tax | Down | 36% | $11.9 million |
Earnings per share | Down | 36% | 22.2c |
N E T T A N G IB LE A SSE T S PE R SHA R E Before provision for tax on unrealised gains | Up 5.7% | $4.25 |
After provision for tax on unrealised gains | Up 4.6% | $3.87 |
The Company meets the definition of a Listed Investment Company ("LIC") for taxation purposes. Certain shareholders of the Company, including individuals, trusts, partnerships and complying superannuation entities may benefit from the Company's LIC status by being able to claim a tax deduction for the part of the dividend that is attributable to LIC capital gains made by the Company. The amount that shareholders can claim as a tax deduction depends on their individual situation.
As an example, an individual, trust (except a trust that is a complying superannuation entity) or partnership who is an Australian resident taxpayer at the date a dividend is paid would be entitled to a tax deduction equal to 50% of the amount attributable to LIC capital gains included in the dividend. In the case of a complying superannuation entity, who is an Australian resident taxpayer at the date a dividend is paid, this deduction would be 33.33% of the amount attributable to LIC capital gains included in the dividend.
Net tangible assets per share does not include any adjustment for any LIC capital gains amount that may be attached to the Company's dividends at the end of the half-year or in future periods.
R E S U L T S F O R ANNO U N C E M E NT T O T H E M A R K E T P R O F I T A N D L O SS ST A T EM EN TFor the half year ended
31 Jan 2017
$'000
31 Jan 2016
$'000
Movement
Net Income from Ordinary Activities Interest income | 351 | 91 | 286% |
Investment properties | 4,491 | 4,460 | 1% |
Equities | 716 | 964 | -26% |
Managed private equities | 108 | 39 | 177% |
Surf Hardware International (1 month) | (70) | - | n/a |
Total Net Income from Ordinary Activities Expenses | 5,596 | 5,554 | 1% |
Administration, public company and other | 1,880 | 2,005 | -6% |
Net Income from Ordinary Activities | 3,716 | 3,549 | 5% |
Income tax expense - ordinary activities | (956) | (1,123) | |
Profit after Tax from Ordinary Activities | 2,760 | 2,426 | 14% |
Unrealised Gains - Investment Properties | 10,400 | 4,615 | 125% |
Realised Gains - Equity | 3,547 | 18,545 | -81% |
Other Income | 223 | 481 | -54% |
Other non-recurring expenditure | (472) | - | n/a |
Unrealised impairment on listed equities | (518) | (431) | -20% |
Profit Before Tax | 15,940 | 25,636 | -49% |
Income tax expense - other activities | (3,996) | (6,995) | |
Profit After Tax | 11,944 | 18,641 | -36% |
Other Comprehensive Income | |||
Items that may be reclassified to profit or loss: | |||
Exchange differences on translation of foreign operations | (97) | - | n/a |
Transfer from unrealised reserves to realised gains after tax | (1,995) | (6,778) | n/a |
Increase / (decrease) in fair value of investments net of tax | 2,381 | (765) | n/a |
Total Comprehensive Income | 12,233 | 11,098 | 10% |
C O M M E NTARY
The Company's focus is on growing Net Income from Ordinary Activities (i.e. interest, rent and dividends received less operating expenses) as the principal source of income used to pay ordinary dividends.
Total Income from Ordinary Activities of $5.6 million was 1% higher than in the prior corresponding period due to increased interest income and distributions from managed private equities. Total Administration Expenses of $1.9 million was 6% lower than the prior corresponding period largely due to a lower bad debts expense in the current half year.Gowing Bros. Limited published this content on 29 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 March 2017 03:05:16 UTC.
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