I have spent week 2 studying and learning as much as I can about my company GUD Holdings Limited, to be honest at first look at my company’s website : http://www.gud.com.au I was a bit put off, I think it was a combination of factors causing me to stress. From first glance it was not obvious to me what my company actually did; the website also featured its share prices (which I know nothing about) as well as the annual reports all being around 100 pages long! I decided I would leave step three for the moment and try again the next night. I feel that it does really depend on what mood or zone you are in as to whether or not things work for you or fall into place, as the next night I attempted to research what GUD is all about I wasn’t put off at all. I realized that the website is actually very easy to navigate and the home page clearly explains what GUD is as a business. The annual reports all though being extremely long were not as daunting as they first seemed, I was able to look at the information that I found relevant and focus on that. Here is a link to their 2016 annual report if anyone would like to check it out : http://www.gud.com.au/assets/reports/2016-Annual-Report.pdf
I found that GUD is quite a large company that is consists of several different consumer and industrial product companies based in not only Australia but in New Zealand as well. I was quite pleased to have received an Australian company as I was a bit nervous about having to work in a different currency so I was lucky to be allocated GUD. The companies included under GUD are Davey who are Australia’s leading supplier of a quality range of water-related products with use in domestic, farm and community markets, Dexion which manufactures and supplies a extensive range of products that assist industrial and commercial customers in solving storage and material handling issues, Oates which is a well known cleaning product company, Goss, Narva, Projecta, Ryco filters and Wesfil whom are all in the automotive business assisting with different needs varying from parts and general automotive needs to electrical and filtration supplies.
It is through these businesses the GUD is the owner of a premier brand portfolio, with most of GUD’s brands being market leaders in their individual product industries. GUD’s main objectives are to continue to provide shareholders with long term returns that are above the cost of capital and to maximise the net worth of its brand portfolio for the continued benefit of its shareholders. I noted that when I first looked at the GUD website their current share price was $10.95 per share and each day when I have gone back on the amount has increased, currently sitting on $11.32 per share. I thought this is a good sign that currently the business worth is continuing to grow.
When looking through the annual report for 2016 I noted that GUD had acquired 100% of the shares and voting interests of Brown & Watson International Pty Limited on July 1st 2015 while also announcing the sale of their interests in the Sunbeam appliance business and joint ventures. I found this new investment in Brown and Watson to be quite costly with an initial consideration payment of $198 million as well as an additional $19.4 million to be paid in October 2016, along with the Company also incurring $5.5 million worth of acquisition related fees. I then thought to myself that this business must be creating a lot of revenue to be able to invest this amount of money into a new business.
Taking a look at the financial performance review and results for the 2015-2016 financial year ended 30 June it was very easy to see that GUD is continuing to increase its profits with the total revenue for GUD increasing by 16% over the previous year and amounting to just under $710million in total, this was an increase of $98.4 million. Overall the information I got from GUD’s annual report was that this business is thriving and continually taking on new investments with the risks paying off as seen by the increased revenue over previous years. Share holders seem to be receiving good returns on their dividends.
I have found some other information that i thought was quite interesting regarding GUD if anyone would like to have a look.
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Until next time xx