This article is from the Australian Property Journal archive
WESTERN Australian property developer Port Bouvard (ASX: PBD) said it has cash reserves to last until November and at the same time, it delivered a net loss of $103.46 million for the FY2012 compared to a profit of $771k last year.
Revenue declined from $68.57 million to $17.68 million over the year, the only material trading activity conducted by the company during the 12 months was the continued sell-down of the luxury Oceanique apartments south of Mandurah. Ten apartments were settled during the year, leaving 31 unsold at June 30.
The other property assets held by the company are not yet in development; these comprise the Point Grey project, a development site at Esperance, and two smaller sites in close proximity to Oceanique. In recognition of the current difficult conditions that prevail in the residential property sector, Directors have resolved to recognise additional impairments on the carrying values of these assets in the second half accounts, as foreshadowed to the market earlier this week.
The total additional impairment made in the second half is $56.9 million, of which $47.0 million relates to Point Grey and the remaining $9.9 million relates to the smaller assets. Total impairments over the year are therefore $76.1 million.
Largely as a result of these impairments, the company’s NTA at June 30, 2012 is 8.0 cents per share.
The company’s bank facilities were drawn to $43.6 million at June 30 2012 and expire in December 31 2012.
Port Bouvard said proceeds of sales of Oceanique apartments (or any assets) are required to be applied to bank debt reduction, there is no ability for the company to generate increased cash/working capital from operating activity.
“Expenditures are being rigidly controlled, and at this stage the company believes that the cash reserves will prove sufficient until November rather than October,” Port Bouvard said.
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