Building products manufacturer Wesbeam posted an improved result in financial year 2009-10, but remains short of being profitable, according to its latest accounts.
Wesbeam, an unlisted public company chaired by timber industry veteran and former Wesfi chairman Denis Cullity, posted a $1.2 million loss for the year ended 30 June 2010, an improvement from its $5.4 million loss in 2008-09.
The company lifted sales to $53.1 million, after recording $41.7 million in sales in financial year 2008-09, according to accounts lodged with the Australian Securities and Investments Commission.
Wesbeam also raised $1.5 million from the issue of ordinary shares in 2009-10, after raising $8.2 million in 2008-09.
The firm credited its improved sales results to a recovery in housing starts since the GFC.
Wesbeam manufactures laminated veneer lumber at a $100 million purpose-built plant at Neerabup.
The manufactured lumber holds a number of advantages over traditional building products such as steel, including a high strength to weight ratio and its availability in longer lengths.
Since 2008, Wesbeam has been supplying manufactured lumber products for roofing to major builders such as Dale Alcock Homes.
Wesbeam sources its timber from pine plantations at Gnangara and Yanchep under a 25-year agreement between Wesbeam and the Western Australian state government.
The company believes it is well placed as the only manufacturer of laminated veneer lumber in Australia to take advantage of further growth in demand for housing in 2011.
Wesbeam recorded its only profit – $12,000 in financial year 2006-07 – in its second full year of operation at Neerabup, with sales of $41.5 million, up from $36.1 million in the 2005-06 financial year.
The 2006-07 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.