G.U.D. HOLDINGS LIMITED (GUD)



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General Information
Company Name: GUD Holdings Limited
Stock Code: GUD
Website: www.gud.com.au
GICS Sub-Industry: Household Appliances
Market Cap ($M): 527
Equiv. Shares (M): 71

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 7.360 $ 7.390 $ 7.400 $ 7.340 $ 7.390 44,738 $ -0.030  -0.406 %

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 16th May 2013
12 Month Target Price (average): $7.49
Brokers Surveyed: 6

Company Overview

Business Description:
GUD Holdings Ltd (GUD) is the manager of a diversified portfolio of branded products and services companies. The Group consists of four business segments - Consumer, Automotive, Water and Industrial. Key brands include Sunbeam, Ryco, Wesfil, Davey pumps, Oates, Lock Focus, and Dexion.

Strategy Analysis:
GUD manages a diversified portfolio of businesses which sells products into both wholesale and retail markets. There are four components of the company's strategic direction; a focus on cost competitiveness across the Group, innovation through new products and technologies, growth through sensible acquisitions and consistent application of cash-value-added principles and disciplines. Business units have active plans for new product development and introduction that are the key to future growth. The company continues to search for complementary businesses to acquire with an overall emphasis on maintaining a strong dividend policy. The acquisition of Dexion further diversified GUD´s portfolio of businesses. GUD Holdings reported NPAT down 21% to $18.19m for the half-year ended 31 December 2012. Revenues from ordinary activities were $311.78m, up 0.2% from the same period last year. Diluted EPS was 25.5 cents compared to 33.1 cents last year. Net operating cash flow was $931,000 compared to $6.95m last year. The interim dividend declared was 26 cents compared with 30 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 41.0 56.2 -2.1 13.2 50.0 6.8 100.0
2013  F 41.0 57.4 -8.7 12.9 51.0 6.9 100.0
2012  A 44.1 62.8 -11.7 12.4 65.0 8.3 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
GUD Holdings (GUD) $524 M -0.1159 -0.0821 -0.0163 11.5985 12.6354 12.8452 0.1361 0.0875 0.0708

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
GUD 0.92 12.6 1.91 10.00 0.85
Market 0.84 14.8 1.26 1.90 1.75
Sector 0.61 11.0 1.11 10.00 0.58

Directors
Name Position Start Date
Mr Ian Alistair Campbell Managing Director 05 October 1998
Mr Peter Algernon Franc Hay Non-Executive Director 26 May 2009
David Robinson Non-Executive Director 20 December 2011
Mr Mark Graham Smith Non-Executive Director 26 May 2009
Mr Graeme Billings Non-Executive Director 20 December 2011
Mr Ross M Herron Non-Executive Director,Non-Executive Chairman 17 June 2004

Management
Name Position
Martin Fraser Chief Financial Officer
Malcolm G Tyler Company Secretary

Substantial Shareholders
Holding Name
3,454,773 (5.00%) Westpac Banking Corporation

Calendar of Events
Date Event
22 January 2014 Report (Interim)
21 January 2014 Report (Interim)
27 September 2013 Report (Annual)
26 July 2013 Report (Prelim)
25 July 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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