Gowing Bros Posts $3.29m FY25 Loss, Declares 3c Dividend, Advances Sawtell Commons

Financial Performance and Dividend

Gowing Bros. Limited reported a loss after tax of $3.29 million for the year ended 31 July 2025, a notable increase from the previous year’s near break-even result. Despite this, the company declared a final fully franked dividend of 3 cents per share, maintaining a prudent dividend policy amid ongoing capital requirements. Revenue remained steady at $58.3 million excluding sales from the Sawtell Commons residential development, which saw a sharp decline due to the near exhaustion of Stage 3 lots.

Sawtell Commons Development Progress

The residential development at Sawtell Commons remains a key focus, with Stage 4 comprising 31 lots now under construction and expected to complete by early 2026, weather permitting. The housing market in the region remains buoyant, and the company has secured financing and key civil contracts to support the project. Notably, Gowings is advancing a "Build to Rent" fund initiative, aiming to retain control over future lots and incorporate sustainable technologies such as geothermal heating and community battery systems.

Operational Highlights and Strategic Investments

Investment properties, particularly the Pacific Coast Shopping Centre portfolio, performed well with stable retail sales despite broader economic pressures. The company’s domestic investment portfolio saw a 30% valuation increase, with Cobram Estate Olives standing out as a strong performer. Meanwhile, Gowings Surf Hardware International (GSHI) faced challenges from global economic conditions and tariffs but is undergoing supply chain restructuring and operational cost reductions to improve margins and profitability in FY26.

Sustainability Initiatives

Gowing Bros. continues to embed sustainability across its operations. Completed projects include rooftop solar installations at Kempsey Central and Coffs Central, organic waste composting, and EV charging stations. The company is also engaged in biodiversity and carbon capture projects at Logie Farm, with 35,000 trees planted as part of an agricultural stewardship program. Efforts to implement estate-wide energy-saving technologies at Sawtell Commons have faced local council hurdles, prompting a strategic pivot towards integrating these features within the build-to-rent initiative.

Outlook

Looking ahead, Gowings expresses cautious optimism driven by easing inflation, interest rate cuts, and positive consumer sentiment in its core regions. However, global geopolitical uncertainties and the ongoing challenges in international markets, particularly for GSHI, temper expectations. The company remains focused on operational improvements, strategic asset management, and sustainability to navigate the evolving landscape.