This article is from the Australian Property Journal archive
WESTERN Australian developer Cedar Woods Properties has notched up a net profit of $17.2 million for the year to June 30, up 86%.
The company has recorded earnings per share of 29.0 cents, compared to 16.2 cents reported in the previous year, up 79%. And the company will pay a fully franked final dividend of 8 cents per share taking the total dividend to 13 cents up from 7 cents last year.
Managing director Paul Sadleir said that the result confirmed that the company had performed strongly during a period when the property market in Australia was recovering from the global financial crisis.
Revenue was $108 million, 1% higher than the previous year, but an improvement in margins was achieved as a result of improving prices in Melbourne and a lower proportion of sales to first home buyers in Perth.
Total write downs of $2 million were made whereas in the previous year the result was impacted by asset write downs and impairment adjustments totalling $9.3 million.
During the year, the company continued to operate at modest gearing levels. Total net bank borrowings were $39.7 million compared to $47.9 million last year. The net bank debt/equity ratio improved from 51% at June 2009 to 36%, being comfortably within the company’s target range of 20-75%.
“This result confirms that our business strategy remains appropriate during difficult economic conditions. We are well positioned, with an excellent product range across two states and strong pre-sales in place for FY2011.
“We also have a strong balance sheet, ample funding and we are anticipating contributions from new projects going into FY2011,” Sadleir said.
Looking ahead, Sadleir said the timing of settlements of significant projects is anticipated to be weighted largely to the first half in FY11. The second half will see continued development although associated settlements will occur in FY12.
Presales of over $100 million are in place across the portfolio and due for settlement in FY11.
The company is forecasting a full year net profit for FY11 of $22 million, the majority of which will be recorded in the first half.
Australian Property Journal
