Cedar Woods lifts profit to $9.3m

LISTED Perth property developer Cedar Woods Properties has smashed its forecast profit for the year, booking net earnings of $9.3 million for the 2008-09 financial year.

The unaudited result was almost $2 million better than the $7.5 million estimate predicted by managing director Paul Sadlier three weeks ago. Net debt was also halved to $48 million from $106 million in December.

The company said the improved result reflected higher than expected settlements for June, following the early completion of an additional stage at one of its major development projects.

Cedar Woods had a particularly busy second half in Western Australia and Victoria.

In WA, Stage 1 was completed at 'The Landings' project in Mandurah, along with new stages at 'The Rivergums' and 'The Kestrals' developments in Baldivis and Tapping respectively.

The company said first lots from the syndicated 'Emerald Park' project in Wellard would also be titled early in the current financial year, and would be followed by the release of the first stage of the Harrisdale joint venture with the Department of Housing.

The results also reflected sales at the Williams Landings, Carlingford and Banbury Village projects in Victoria, which would make an increased contribution to future earnings.

Cedar Woods said the first two stages of Banbury Village in Footscray were released in April and were 90 per cent pre-sold by the end of June. First homes at the project would be delivered in the final quarter of the 2010 financial year.

While better than expected, the result still reflected the extreme weakness of property markets due to the global financial crisis, with full year earnings more than 50 per cent lower than the $20.56 million profit booked for 2007-08.