02/11/2020 - 15:00

ABN profit down 5%

02/11/2020 - 15:00

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Dale Alcock's ABN Group recorded a decrease in revenue from its Western Australian operations over the past financial year, while revenue from its Victoria operations increased.

ABN Group’s WA home starts accounted for 47 per cent of its total 3,247 dwelling starts for 2019-20. Photo: Gabriel Oliveira

Dale Alcock's ABN Group recorded a decrease in revenue from its Western Australian operations over the past financial year, while revenue from its Victoria operations increased.

The building group reported $531 million in revenue from its contracts with WA customers for the year to June 30 2020 – down 5.1 per cent on the previous financial year.

Meanwhile, revenue from ABN’s Victoria-based contracts increased by 15.7 per cent for FY19, recording $454 million.

Overall, total revenue (consolidated) for the business was up 3 per cent at $985 million.

Pre-tax profit fell by 32 per cent to $14 million, while net profit fell by just 5 per cent to $7.6 million, reflecting a significant reduction in ABN's tax bill. 

No dividends were recommended for the end of FY19, but ABN paid out a fully franked dividend of $24.6 million during the financial year. 

ABN Group is led by two directors - co-founder and managing director Dale Alcock as well as chief executive Andrew Roberts. 

Mr Alcock told Business News the results were reflective of the two markets the business operated in.

According to the annual Housing Industry Association 100 survey, ABN Group is the largest WA-based builder, with 3,247 total dwelling starts for the 2019-20 financial year.

However, most of those builds represented its Victoria business, with 47 per cent (1,540) of its homes starts based in WA, positioning the business in second place for most WA housing starts.

BGC Housing Group delivered the most WA home starts for FY19, with a total of 2,332.

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