Tamawood (ASX:TWD) announced that its external auditors have completed a review of the company's work in progress calculation methodology, confirming that the recently implemented software now accurately captures WIP for all Dixon projects in line with AASB15 standards.
Based on unaudited management accounts, the company reported a 36.5% increase in sales revenue for the five months ended Nov. 30 compared to the prior corresponding period, with no significant rise in operating costs.
Tamawood's management anticipates that the current product mix could boost profit before tax per build by 6%–9% in FY26, translating to a first-half profit before tax expected to surpass FY25's $4.765 million by roughly 40%–50%, contingent on stable market conditions and no major disruptions.
While second-half margins may be impacted by rising construction costs, improvements in productivity and quality—supported by new AI-enabled components—are expected to provide ongoing benefits.
The company also confirmed that directors will remain in a trading blackout until the release of the reviewed half-year financial results.
At the time of reporting, Tamawood's share price was $2.80.