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Brisbane-based Tamawood (ASX: TWD), known for building under the Dixon Homes brand, has today reported an expected 167.5 per cent lift in profit before tax to more than $8 million in FY24.
The group attributes the unaudited positive result to several factors, including its Project DeRisk project management software system that has allowed it to "adjust prices to ensure margins were maintained despite continued price fluctuations from suppliers and subcontractors".
Tamawood also attributes the performance to the continuity of supply in fittings like tapware, solar hot water, sinks, basins and more, aided as well by its acquisition of Brisbane-based bathwares and appliances importer and distributor Astivita in mid-2022.
Tamawood, founded by its now non-executive director Lev Mizikovsky in 1989 and bolstered by the acquisition of Dixon Homes in December 2000 shortly after listing on the ASX, also notes the role played by its strong base of subcontractors and suppliers in achieving the result.
The company remains debt free with cash on hand of more than $6 million at the end of June, compared to $5.2 million at the end of FY23.
The group said it would be "impossible" to predict performance for FY25 due to several issues in the Queensland housing market and general economy, including upcoming state elections in October, the effects of inflation and interest rates on home buyers and builders, the shortage of land in Southeast Queensland due to complex approval processes and land banking, and unpredictable weather conditions.
The uncertainty failed to dampen the mood of investors however, with TWD shares rising 14.11 per cent today to $2.75.
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