Leading building products company, CSR Limited (ASX: CSR) has confirmed the sale of the industrial property at Ingleburn, NSW for $66 million. This sale follows the sale of the Viridian Glass business to Crescent Capital Partners which was completed in January 2019.
Earlier on 28 November 2019, CSR announced it has entered into an agreement to sell its Viridian Glass business to Crescent for a total cash consideration of around $155 million. As part of this transaction, the company was supposed to retain the property at Ingleburn.
The Ingleburn property transaction together with the sale of the Viridian Glass business will be included as a significant item in the accounts for the year ending 31 March 2019 (YEM19). As per the initial sale announcement, CSR is expecting to realize a pre-tax loss of around $20-$30 Mn in the YEM19, mainly due to the disposal of Viridian-related deferred tax assets. YEM19 results are expected to release on 8 May 2019.
It is expected that CSR’s net profit after tax for YEM19 will be around $180 to $187 million as per YEM19 NPAT guidance.
On 25 February 2019, CSR announced an on-market share buy-back of its ordinary shares of up to $100 million, representing a return of surplus capital generated from the sale of the Viridian Glass business and the sale of the industrial property at Ingleburn.
For the half year ended 30 September 2018, the company reported a net profit after tax of $94.0 million, down by 31% as compared to previous corresponding period (pcp), due to the expected decline in earnings from Aluminium. The company reported trading revenue of $1.4 billion which was 6% higher than pcp.
While providing the outlook for six months of the financial year ending 31 March 2019, the company had confirmed that despite moderation in demand from both multi-res and detached housing approvals, particularly in NSW, fundamentals for housing are reasonably strong supported by population growth and a stable environment for employment and interest rates.
Over the last few years, CSR Limited has capitalised on the strength in the housing market and invested in its operations to ensure that its cost structure and operational footprint adapts to changing market conditions, maintaining its position as leading building products company in Australia and New Zealand.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $3.320, up by 0.912% during the day’s trade with a market capitalisation of ~$1.66 billion as on 29 March 2019 (AEST 1:39 PM). The counter opened the day at $3.290 and reached the day’s high of $3.350 and touched a day’s low of $3.270 with a daily volume of ~ 1,263,162. The stock has provided a year till date return of 18.77% & also posted returns of -12.73%, 14.63% & -2.08% over the past six months, three & one-month period respectively. It had a 52-week high price of $5.905 and touched 52 weeks low of $2.620, with an average volume of ~3,432,454.
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