Simonds Homes reports a positive $12.1 million EBITDA.
This half yearly announcement marks our second consecutive NPAT quarter, underlining business sustainability and assurance. Keep reading to view the full media release.
Simonds Homes reports a positive $12.1 million EBITDA, marking its second consecutive NPAT quarter and underlining its sustainability and assurance.
As one of Australia’s leading residential volume builders, Simonds Homes in its 75th year, today posted half yearly EBITDA earnings reflecting a $17.6 million (or 320%) turn around on its result at the same time last year.
The $12.1 million EBITDA half year result represents a second positive quarter in a row for Simonds after enduring eight consecutive quarters of losses through the COVID-19 pandemic. This result is a clear indication of Simonds’ underlying strength and liquidity.
Simonds Homes went through a period of restructuring and right-sizing in late 2022 and early 2023. This saw the company reduce its operational workforce by about 15%, focusing sharply on improving internal operational efficiencies and diversifying product channels to ensure it was structured appropriately to achieve a sustainable future.
“This tremendous earnings performance is the direct result of the tough decisions we made a year ago when we recognised the need to look forensically at the way we were operating,” Simonds Homes CEO, David McKeown, said.
“We were coming out of the toughest time our industry had ever experienced and we knew we had to make some difficult, but necessary, decisions to ensure we set our business up for a sustainable and successful future. This result shows we made the right calls.
“And this is just the beginning. We believe the measures we put in place have positioned Simonds in a sustained and strong position and we are optimistic to see the business continue on this path.”
Mr McKeown thanked Simonds staff, suppliers, trades – and importantly customers for putting their faith in Simonds to build their family homes.
“Thank you for putting your trust in us. We hope these results – and our transparency about them – mean you can continue to be assured about the sustainability and strength of the Simonds Homes brand,” he said.
Mr McKeown said the building industry overall was showing small signs of stabilising after a long period of instability which saw price increases, delays and ultimately the collapse of a significant number of builders over the past two years, including Porter Davis. He says this Simonds’ result was a strong reason customers can have confidence in selecting Simonds when they do their due diligence choosing a home builder.
“Simonds Homes is a listed company on the ASX. Our results are fully audited and published. This makes us unique in the building industry. Not even our largest competitors have such transparency,” Mr McKeown said.
“At any time, but particularly now when with the large number of builders that have gone into insolvency in the past year alone, we encourage all customers to do their due diligence when signing with a builder for their dream home.
“Simonds’ strong performance shows the benefit of signing with a builder who not only assures you they can design and build the home you’re dreaming of, but whose proven and public financial strength can provide you with the peace of mind and certainty.”
To view the ASX announcement and half yearly report, visit asx.com.au.
Simonds acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn and work.