GUD: delivering results in a tough environment

Despite the weird name, GUD Holdings (ASX:GUD) has been a stalwart of the ASX for almost 60 years. That sort of longevity implies it must be doing something right. It has undergone a lot of change over the years, buying and selling businesses. Revenue has almost doubled over the last two years as a result of acquisitions.
GUD is now primarily an automotive parts and accessories business with 89% of revenues in the most recent interim results coming from this segment. The balance comes from the water segment.
The water business consists of Davey Water Products which supplies water-related products for farming and irrigation, home and garden applications, pools and spas, commercial and water treatment purposes. Revenue declined a bit in this segment as export sales were severely impacted by destocking activities, especially in Europe. Margins are also quite low for this part of the business at sub 5%.
The automotive sector consists of a host of different brands and products. It includes APG Group which was acquired in January 2022 and accounted for 27% of total revenue in the most recent half.

Source: GUD, H1 FY23 Financial Results, 15/2/23
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