23/10/2007 - 22:00

Wesbeam breaks even

23/10/2007 - 22:00

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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.

Wesbeam breaks even

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.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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