GWA, Australia’s leading supplier of fixtures and fittings to households and commercial premises, has announced a major restructuring initiative to drive greater focus across its businesses, re-align its cost base and capture supply chain efficiencies.
The restructure, which is expected to cost $7-9 million, will likely result in further jobs loss across GWA’s non-core businesses as the company moves forward with its plan to focus on the key bathrooms and kitchens, and door and security systems divisions.
Last week the company agreed to sell its Gliderol garage doors business to Reliance Doors in a deal worth approximately $7 million. The company said it expects to record an impairment charge against the Gliderol business of about $25 million in its 2015 accounts. In February, GWA sold its Brivis Climate Systems business.
According to the ASX Announcement, the company’s financial position is solid and the remaining businesses generate strong cash flow.
The $655 million group, which sells Caroma, Dorf and Fowler brands, also said that it expects full-year earnings of between $67 million and $69 million, down from $70 million in its February forecast.
The Group has well over 1,500 employees and manufacturing, sales and distribution facilities located across Australia. GWA also has a branch office in New Zealand.