This article is from the Australian Property Journal archive
BUILDING contractor Watpac has posted a strong half year profit rise of 20.65%.
Watpac made a profit of $10.45 million for the six months to December 31 2009.
Chairman Kevin Seymour said this as a good result in light of continued challenging trading conditions in the market.
“The contracting business again was a major contributor to the group’s profitability at the half,” he added.
The board has confirmed a fully franked dividend of 4.5 cents per share for the six-month period.
Managing director Greg Kempton said the board continues to apply a conservative accounting policy in respect of property values and has not capitalised any further development costs into projects since June 30 2009, except where assets are under construction.
“Forward work at acceptable margins in the contracting business and increased activity in the property sector requires the level of private sector investment in Australia to improve.
“We are cautiously optimistic that we are seeing signs of self-sustaining economic recovery, however we do not expect these to be fully realised until the 2011 financial year,” he added.
Seymour has forecast full-year earnings to be in the range of $25 to $30 million after tax – this will be a significant improvement on the after-tax result in the prior year of $11.2 million, which was impacted by asset write-downs.
Australian Property Journal
