Merger boosts TWG result

TERRY White Group’s (TWG) merger with Chemmart in Oct 2016 (PD 27 Oct 16) has delivered a “substan al increase” to revenue and earnings, according to its financial statements for the half year to 31 Dec 2017.

Total revenue was up 96% to $66.5m pushing EBITDA up 24% to $4.2m.

However net profit after tax decreased 17% to $1.1 million after accoun ng for merger and integra on costs of $0.8 million.

“The merger has created a solid founda on for our future growth, and we are now very focused on harnessing the synergies and leveraging the increased customer recogni on from the re‐brand to deliver enhanced earnings and improved shareholder returns in the future,” the company said.

The full integra on of the businesses across marke ng and merchandising, opera ons, store development and corporate func ons is now complete.

“We are focused on delivering improved earnings in future periods by harnessing the synergies of the two groups and by leveraging the increased customer recogni on from our rebrand to drive growth,” the report added.

As well as rebranding and a major consumer campaign, TWC has introduced a new loyalty program.

No interim dividend was declared, and the board also said it was “ac vely inves ga ng op ons to provide liquidity for shareholders”.