This article is from the Australian Property Journal archive
Peet announced an operating net profit after tax of $42.1 million for the year ended June 30 which is 35% higher than $31.1 million recorded in the same period last year. Earnings per share was up 75% to 14.1 cents. The company made a statutory profit of $41.1 million which is a 250% increase on last year’s $12 million.
The directors have declared a final dividend of 4.5 cents per share, fully franked, which takes the total dividends to 8.5 cents per share, fully franked – up 21% on last year.
CEO Brendan Gore said Peet’s full-year results reflect an increase in average sales prices in Victoria and Western Australia, improved cost management and the Kingsford syndicate capital raising.
“Our first half performance was driven by an active first home buyer market responding to the final months of the Federal Government’s First Home Owner Boost and, in the second half, by the strengthening upgrader and investor market.
“While a series of interest rate rises in the second half of the year increased pressure on affordability, continuing state government-administered incentives for first homebuyers (the most generous of which are made available in Victoria) assisted in maintaining a more ‘normal’ level of demand for affordable land throughout the period,” he added.
During the year, Peet increased lot sales by 7% to 2,567 lots. There were a total of 1,270 contracts on hand as at June 30 – at a gross value of $292.3 million, up 21% in the number of contracts and a 49% increase in the total value of those contracts, compared with the same time in 2009.
Peet’s funds management business also performed well, recording an increase of 20% in EBITDA over the previous corresponding period. This result was underpinned by an increase in the EBITDA margin to 70% for the period.
The company also cut interest bearing debt, net of cash, to $179 million whilst gearing was reduced to 29.5%. The weighted average debt maturity profile at June 30 was 1.9 years, compared with 1.3 years.
Gore said although improving economic conditions have seen a solid recovery in the residential market throughout 2010, some challenges remain.
“While there is the possibility of further interest rate rises, there remains an undersupply of housing, and Peet expects ongoing interest from homebuyers seeking affordable product, as well as upgraders and investors who were more active in the second half of the financial year and have continued to be a significant factor since,” he concluded.
Australian Property Journal
