Ormeau-based PWR Performance Products races to 1H18 profit

GOLD Coast business PWR Holdings — which makes cooling systems for the world’s fastest vehicles — has released a massive profit boost for the second half of last year.

PWR Performance Products makes cooling systems for Formula One race cars like this one. Photo: Mark Thompson/Getty Images

GOLD Coast performance car parts company PWR Holdings has unveiled a 13 per cent boost to its first-half net profit following revenue growth at its European and Australian operations.

PWR, which makes cooling systems for the fastest vehicles on Earth, including Formula One and NASCAR, listed in 2015 with a share price offer of $1.50.

Investors responded positively to this morning’s results, sending the shares up 9c, or 3.7 per cent, to $2.48 in early trade.

The company said net profit for 1H18 was $2.059 million, up 13.6 per cent on the previous period. Revenue was $20.37 million, up 9.4 per cent.

PWR boss Kees Weel with a cooling system at his ASX-listed company PWR Performance Products at Ormeau. Picture: Mike Batterham

The Ormeau-based company declared an interim dividend of 1.10c a share.

Former motor mechanic and co-founder Kees Weel said the company was in a sound position, with operating cash flow up 90 per cent, and capital investment funded from cash reserves.

PWR’s US division, C & R Racing, which designs and builds racing components for top professional teams in motorsport, saw a decrease in revenue for the first half.

However, Mr Keel said it expects the business to improve as it transitions to focus on “core activities” and invests in new production facilities.

“PWR has now completed and commissioned the new aluminium heat exchanger core furnace line at C & R Racing and this is now operational,” he said.

PWR boss Kees Weel says changes to the US division will flow through to improved results in the second half of FY18. Picture: Mike Batterham

“The benefits from this investment will commence form the second half of this year and the pipeline of both prospective customers and signed agreements is encouraging.”

Mr Weels said the company has also signed a new lease for a building adjacent to its headquarters at Ormeau.

“This facility will also be a centre of excellence for our specialised designed, test and manufacturing program including for the Formula 1 teams.”