This article is from the Australian Property Journal archive
QUEENSLAND based developer Devine has notched a strong 28% increase in underlying earnings after tax of $21.4 million for the full year, underpinned by record residential settlements.
The earnings were underpinned by a 33% increase in total revenue to $571 million, from $428 million previously. Statutory net profit after tax fell to $8.2 million (2009: $16.7 million) as a result of previously reported realised and unrealised impairments to commercial and property assets which were sold or reassessed during the year. No further one-off charges were realised in the second half.
However, the company’s dividend fully franked fell to 1 cent from 3 cents last year.
Managing director David Keir said the result underscores the strength of the company’s core residential housing and land business and was achieved on a record 2,200 residential land settlements for the year, up 32% on 2009, and 1,057 housing starts, up 14%.
“Devine has undergone a period of significant change over the last 12 months and it is a credit to the organisation that we have remained focused on delivering on our promise to consumers of building quality homes and great communities,” he said.
During the year Devine undertook a number of initiatives to stabilise and enhance its capital position, including a successful capital raising in March 2010 and the renegotiation of a new debt facility which does not mature until July 2012. The company lifted its operating cash flow by 101% to $139 million.
Divine also bought three new projects which, combined, increase its development pipeline by approximately 2,700 lots, to more than 11,000 dwellings. All new projects are in high growth corridors and have a combined end value of approximately $500 million.
Keir said the company is well positioned for the current financial year with strong carry forward contracts for land and housing with approximately 40% of the FY11 target having already been secured.
He forecasts the company’s underlying earnings in FY11 to be inline with FY10.
Australian Property Journal
