Three years after commissioning its $85 million manufactured lumber plant, the Dennis Cullity-chaired Wesbeam Holdings Ltd has scraped into the black with a small profit for the year to June 2007.
Three years after commissioning its $85 million manufactured lumber plant, the Dennis Cullity-chaired Wesbeam Holdings Ltd has scraped into the black with a small profit for the year to June 2007.
Three years after commissioning its $85 million manufactured lumber plant, the Dennis Cullity-chaired Wesbeam Holdings Ltd has scraped into the black with a small profit for the year to June 2007.
The company lifted sales to $41.5 million in its second full year of operation, up from $36.1 million in the 2005-06 financial year.
The lift in sales enabled Wesbeam to record a profit of $12,000, compared with a loss of $7.4 million in the previous year, according to accounts lodged with the Australian Securities and Investments Commission.
The 2007 result was effectively a break even, since the group benefited from a small tax credit and reported an accrued benefit of $1.9 million on settlement of a disputed claim with a supplier.
Wesbeam manufactures laminated veneer lumber at a purpose-built plant at Neerabup, north of Wanneroo.
Commissioning of the plant commenced in 2004 but the company is still seeking financial support from shareholders.
It raised $5.1 million last financial year and agreed to raise a further $1 million this year through a share placement at 60 cents per share “to ensure the company retains adequate working capital”.
Mr Cullity remains the biggest shareholder with a 62 per cent stake.
The group has a wide spread of shareholders, after many investors in Mr Cullity’s previous company, Wesfi, followed him to Wesbeam, and may pursue a stock exchange listing.
Wesbeam’s annual accounts noted that the group made a number of “significant improvements” to the operation of its plant since the start of 2007.
Meanwhile, Subiaco-based Lignor Ltd is continuing to pursue private equity backing for its planned $300 million manufactured lumber plant at Albany.
Chief executive Glyn Denison told WA Business News the company remained hopeful of securing private equity after scrapping its $125 million IPO in July.
Lignor’s plant will manufacture engineered strand lumber, which is an alternative to steel in housing construction, and engineered strand boards, for flooring and decking.