Property developer and fund manager Aspen Group says its review of operations is on track despite the company recording a statutory loss of $18.3 million for the half-year to December 31.
Revenue for the six months was down 17.8 per cent, to $31.4 million, but the group’s net operating profit came in at $10.4 million, up from $7.5 million in the previous corresponding half-year.
The statutory loss was the result of impairments taken against several of the company’s development assets, and deteriorating property values.
Interim chief executive Hugh Martin said while the impairments had a disappointing impact on statutory profit, the company’s underlying performance was strong.
“The last six months has been an extremely active period in the history of Aspen so it is pleasing to report that we have made significant inroads into executing our strategic plan articulated at the annual general meeting,” Mr Martin said in a statement.
“We are committed to transforming the company by simplifying the business and de-risking the balance sheet and earnings, through a capital raising in conjunction with a non-core asset disposal program, debt reduction strategy and overhead rationalisation.
“We are making progress on this regard on all fronts – raising $101 million under an entitlement offer, completion of a number of non-core asset disposals, the commencement of cost cutting and an increase in operating efficiency.”
Mr Martin said Aspen was currently compliant with all of its banking covenants and on track to meet its debt reduction targets.
Aspen paid a distribution of 0.75 cents per share for the half-year.
At 1:00PM, WST, Aspen shares were down 5.6 per cent, trading at 21.7 cents.
