Skydome: 1H 2005/06 loss, but strong 2H order book

Australian skylight manufacturer Skydome Holdings Ltd reported a AUD 59,000 loss for the six months to 31 December 2005 compared to a AUD 259,152 profit in the previous year. Skydome attributed the re…

Australian skylight manufacturer Skydome Holdings Ltd reported a AUD 59,000 loss for the six months to 31 December 2005 compared to a AUD 259,152 profit in the previous year. Skydome attributed the result to a decline in gross profit margin as the company undertook work which was more competitive and less profitable. The company described sales for the period as disappointing and below expectations, and forecast tough 2H trading conditions. A decline in domestic skylight sales on the previous year was blamed on low consumer confidence. Overheads were contained. Revenue increased 16.5% to AUD 13.4 million. The company did not declare an interim dividend, in keeping with the previous period. EPS was negative AUD 0.005 compared with AUD 0.021. NTA increased to AUD 0.554 from AUD 0.262. Skydome expects to decide on a dividend payment at the end of the financial year. The firm“s commercial division began the year with large contracts, however gross profit margins were down as many projects involved ordinary glazing, as opposed to higher margin specialist glazing design. Cashflow was affected when new contracts required longer settlement times and by the net cash outflow to developing Fluorosolar. On a more positive note, sales rebounded slightly in January 2006 and Skydome said it had a strong order book for the 2H. The company received additional bank standby facilities to accommodate higher future working capital.