This article is from the Australian Property Journal archive
A RECORD number of residential project completions and settlements have delivered Finbar with a 320% profit increase.
Finbar has recorded a record after tax profit of $12.23 million for the 12 period ended June 30.
During the period, settlements of the sales on projects including Sol, Altair, Soho, and Infinity are now fully complete. Settlements at the Del Mar project have also occurred with 84% of the 49 unit project sold and settled.
And Construction of Horizon on 6th, Reflections, Circle, and Royale continued without interruption, and work commenced on Horizon on Central, Code, The Saint, and Verve, the completion of which will support the future earnings of the company over the next three years.
Chief executive Darren Pateman said the company has seen a softening in the Perth real estate market in the second half of the reporting period as interest rate increases, the tightening of the credit market, and global economic uncertainty have had an effect on home owners and development competitors.
“This has had a negative impact on price of raw development land and positive impact on the level of stock available for development consideration by the company.
“The company is very well positioned to take advantage of this situation, with its strong cash position, market leading margins, and strong pre-sale support underpinning existing projects, and as such will be actively seeking acquisition and joint venture opportunities over the next 12 months to bolster the project pipeline for 2011 and beyond,” he added.
Looking ahead, Pateman said the company’s profit is determined by the timing of settlements of the sold lots in completed projects and to date FY2009 is a year that has already seen the completion of two major projects with three further completions expected in the second half of the financial year.
“With this level of completions the company is anticipating a further improvement on currently levels of profitability in FY2009,” he concluded.
The company has announced a final dividend will be 4 cents per share fully franked.
Finbar shares closed 1.5 cents higher at 71.5 cents.
Australian Property Journal
