BGC Australia has reported a net loss of $107 million on revenue of $974 million in the year to June 2019, as the group continues its major restructure.
BGC Australia has reported a net loss of $107 million on revenue of $974 million in the year to June 2019, as the group continues its major restructure.
The company lodged its accounts with the corporate regulator last week.
The accounts reveal that the largest contributor to its ongoing revenue in FY19 was its residential construction division ($355 million), down from $368 million in FY18. BGC has traditionally been WA's largest homebuilder.
Its manufacturing division, titled building products and services, generated $313 million in revenue, slightly up from $309 million in FY18.
The company’s commercial construction division recorded $100 million growth in revenue during the period ($284 million for FY19, up from $185 million in FY18).
Both sets of FY19 and FY18 accounts excluded operations that had been sold, including BGC Contracting and the BGC Centre office building.
NRW Holdings purchased BGC Contracting for $116.4 million in November 2019, following Redhill Partners’ acquisition of the BGC Centre for an undisclosed sum.
BGC Fibre Cement and BGC Plasterboard were also determined to be discontinued operations at June 30 2019, following the director’s decision to sell the businesses, which are understood to still be on the market.
The accounts show that, in the year to June 2018, BGC reported a loss of $139 million on revenue of $881 million.
By comparison, the company’s original FY18 accounts which included all of these operations showed total revenue of $1.97 billion for FY18.
The four “discontinued” operations generated total revenue of $1.05 billion for FY19 but a profit of just $19 million.
Since FY19, BGC has taken some steps to restructure the business, including the consolidation of its residential business.
Last month, the company announced the merger of the BGC Housing Group with Ventura Home Group. The move followed the consolidation of its 11 other homebuilding brands including GO Homes and Aussie Living Homes.
The sale of the BGC Australia empire was prompted by the death of the company’s founder, billionaire Len Buckeridge.
Investment bank Macquarie Capital was appointed in December 2018 as corporate adviser to the family owned business.
The Aloft Perth and The Westin Perth hotel properties, both developed by BGC, were among the first sales to take place.
It’s understood Singaporean group Meteorite Land purchased the Aloft Perth and adjoining office building for $100 million in 2018, and Malaysian-based YTL Group acquiring the Westin Perth for an undisclosed sum.
Business News reached out to BGC Australia for comment.
