GWA home growth to drive profit

BATHROOM and kitchen fittings supplier GWA Group expects residential construction to slow but is tipping household spending on renovations will remain strong.

The company behind the Caroma, Fowler and Clark brands says the renovations and replacements market, which accounts for just over half of its revenue, will remain “relatively stable” this year.

GWA managing director Tim Salt said residential construction activity was expected to slow but a pipeline of building work yet to be completed remained reasonably strong.

He said that would support continued demand for GWA’s brands after unveiling a flat group net profit of $53.7 million for the year to June.

As for the current year, he said Victoria and NSW were expected to continue to generate further growth despite softness expected from apartment building, which comprises 11 per cent of GWA’s revenue.