Industrial hardware and parts supplier Coventry Group has announced a net profit of $19 million for the year ended June 30, lodging a 6 per cent increase in revenue to push it back into the black.
Perth-based Coventry bounced back from a $17.4 million loss the previous year, with revenue of $242.9 million.
The company said strong performances were achieved in its fluids and gaskets divisions, which delivered a $14.7 million profit, up 43.2 per cent on FY2011.
But Coventry said conditions for its fasteners and hardware divisions remained difficult, with those businesses reporting a $1.3 million loss, down from the $2.5 million loss the previous year.
The group said its cash position at June 30 improved to $55 million, after generating $28.9 million through the sale of its automotive parts business to AHG earlier this year, and raising $20.9 million through the sale of 18 properties.
Coventry declared a final dividend of 11 cents per share.
For FY2013, Coventry said it would continue to seek acquisitions to complement its existing structure, but warned further uncertainty would persist in the market, resulting in a gradual lift in profits.
“Even though the future growth of the economy is hard to predict, the changes made mean the group is better placed to add shareholder wealth in the future,” the company said in a statement.
“Management remain committed to further cost control and delivering greater customer focus across the group.
“The group continues to encounter tough conditions in some if its markets. Given the changes in place and those planned for the year ahead, a gradual increase in the group’s operating profit is likely.”
At 10:30AM, WST, Coventry stocks were up 5.2 per cent, trading at $3.00.
