Ormeau company PWR Holdings Ltd FY18 results reveal $11m profit and 6.2c shareholder dividend

A LOW-profile company on the northern Gold Coast is emerging as one of the city’s biggest success stories, posting a multimillion-dollar profit, with more on the cards.

Gold Coast company PWR Holdings make cooling systems for F1, Nascar and V8 Supercars.

GOLD Coast engineering powerhouse PWR Holdings has motored to an $11 million net profit, up from $7.3 million the previous year.

The Ormeau outfit, which develops and builds cooling systems for Formula One and V8 race cars and military vehicles, will pay shareholders a 6.2c final dividend for FY18, up from 4.2c.

The group made revenue of $51.9 million, a 7.8 per cent increase on last year, according to the results released at 6pm Thursday.

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PWR boss Kees Weel with a cooling system at his /ASX-listed company PWR Performance Products at Ormeau, which makes cooling systems for NASCAR and V8 Supercar teams, is branching out into cooling systems for 4WD vehicles. Picture: Mike Batterham

Founding shareholder and Managing Director, Kees Weel, said the full year result reflected a solid performance and was the result of the investment made by the company in resources and manufacturing capability.

“We have continued to invest in both people and equipment over the past year and will continue to do so over the next 12-18 months to ensure we have both the capacity and capability to deliver on future growth opportunities,” he said.

“Our recently announced capital investment program for FY18 and FY19 is not only focused on capacity increases but also technology innovations in manufacturing capability.”

The company said growth in sales in Europe and Australia were offset by lower sales in the USA and that the result included the recognition of $1.1 million (after tax) of non-recurring restructuring expenses in its US division, C & R.

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PWR Performance Products headquarters at Ormeau.

PWR logged pre-tax earnings of $16.3 million, citing stronger sales at consistent margins; constant costs despite higher sales volumes; and largely neutral impact of foreign exchange rate movements.

PWR chairwoman Teresa Handicott said the company had zero net debt and $12 million in cash at 30 June 2018.

“On the back of this strong result, the Board has declared a final, fully franked dividend for FY18 of 6.2 cents per share, taking the full year dividend to 7.3 cents per share, an increase of over 30% on the prior period.”