This article is from the Australian Property Journal archive
Property manager Wentworth Mutual Ltd has upgraded its projections for the 2006 financial year.
WWM’s executive director Kingsley Lamont said the company was not content to merely meet its projected results and has upgraded its projections for earnings before income tax, depreciation and amortisation from ‘break even’ to $800,000.
This is a significant turnaround projection for a company that had recorded a $1.0 million EBITDA loss for the six months to December 31, 2005.
WMM is delighted to announce a projected EBITDA for the full financial year to June 30, 2007 of $6 million.
Lamont said a number of key factors have provided the Group with reasons to be confident of the upgraded EBITDA projection.
“The group’s revised business strategy has seen WWM record an operating cash flow surplus for each month since December 2005. This together with recent capital raisings has significantly improved the balance sheet allowing the normalization of the level of creditors and the repayment of debenture holders.
“WWM have identified a number of acquisition opportunities, both rent roll businesses and property management rights and is confident that these acquisitions will occur and contribute to earnings in the current half.
“The Group will continue its acquisition strategy,” Lamont said.
To date, WWM has invested $10 million in the acquisition of real estate rent rolls in residential property management and $25 million in the acquisition of management rights.
“We have clearly determined the numbers we need to drive economies of scale and increase profitability from our rent roll and management rights businesses and continue toward our goals.
“We are excited by the continuing opportunities that are in the management rights industry and will invest a greater share of our acquisition dollar in this sector. Our aim across both the rent roll and management rights businesses is to maximise income and manage expenditure to increase profitability and shareholder returns,” he added.
By Adam Parsons
