GWA Group Ltd (ASX: GWA) is making some of the biggest gains on the ASX200 today, up 7.35% to $2.92 after releasing its half year results, declaring a 7% increase in NPAT to $27.7 million and announcing major strategic changes.
GWA is a supplier of building fixtures and fittings and is structured in two divisions: Bathrooms & Kitchens and Door & Access. In the report issued today, the Door & Access division was re-labelled "non-core" and is now subject to divestment. Despite this move, GWA reported a good result in the segment, with a 68% EBIT growth over the previous corresponding period.
The company will pursue a growth strategy focussed exclusively on the bathrooms and kitchen business, where GWA owns and distributes market-leading brands like Caroma, Clark and Dorf. A 3% increase in sales revenue allowed GWA to maintain an EBIT margin close to 25% while increasing investment in marketing and product development.
On March 6, the company will pay a fully franked 8.5 cents per share dividend to shareholders registered by February 23, compared to a 7.5 cents per share interim dividend last year.
