This article is from the Australian Property Journal archive
SERVICED offices provider Servcorp has downgraded its net profit before tax forecast, to exceed $27 million for the full 2013 financial year down from the previous guidance of $33 million.
The company said in a statement that whilst its mature business continues to perform in line with expectations, the immature business revenue growth is lower than originally anticipated.
“In particular, management notes that performance in Australia, Singapore and Hong Kong has disappointed.
“We now expect net profit before tax to exceed $14.5 million in the second half of FY2013, which represents growth of at least 16% compared to the first half of FY 2013 (first half net profit before tax was $12.5 million),” Servcorp said.
According to the company, office sales for the first four months of the 2013 calendar year were robust, and are in line with our stated objective of increasing mature occupancy to 85% – 90% in the 2013 calendar year.
Management confirms that cash balances remain strong at $99 million, after paying dividends of 15 cents per share so far this financial year.
Property Review
