This article is from the Australian Property Journal archive
WEST Australian developer Cedar Woods is on track to deliver a record full year net profit of $20 million for 2008, after posting a strong result for the first half year.
In the six months to December 2007, the company has delivered a net profit of $4.6 million.
Managing director Paul Sadleir said the company expects the second half earnings to be much higher than the first half.
He added that the company’s development and settlement program will often cause half year results to be uneven.
“Management’s focus is primarily on the achievement of full year results and the company expects a stronger second half as programmed developments are completed and presales are crystallised.
“In the previous financial year the second half result was significantly lower than the first, although a record full year profit was achieved,” he continued.
During the second half the company expects to complete the townhouse development, The Fairways, at Mandurah Country Club and the Waterline Apartments at Halls Head.
“Earnings from these projects will bolster second half earnings,” he said.
In addition, development is expected to commence at the company’s Melbourne projects in the second half. The first stage of Williams Landing is expected to commence late in the second half with the first earnings from the project delivered in FY2009.
“With a diverse portfolio of projects and a strong balance sheet the company is well positioned to continue to deliver earnings growth and shareholder value,” Sadleir concluded.
Cedar Woods has declared a fully franked interim dividend of 8 cents per share. Meanwhile, the dividend reinvestment plan will be suspended for the forthcoming dividend but is expected to be reinstated when financial markets stabilise and then continue on an ongoing basis.
Australian Property Journal
