Finbar to return capital

Property developer Finbar Group has announced an on-market share buy-back under which the company can buy back up to 12 million shares within a year.

Finbar managing director Darren Pateman said in a statement the company was in a strong position with current cash reserves and ongoing cash flow from projects.

“We consider an on-market share buy-back scheme to be an effective method of returning capital to shareholders where Finbar’s shares are trading at a significant discount to the intrinsic value of the company,” he said.

The company said the scheme would not affect its ongoing capital requirements for existing projects.

Finbar received the green light in October to construct a $60 million, 14-storey, 112-apartment mixed-use tower in Northbridge, as well as a joint venture to develop a $150 million, 200-apartment complex in East Perth.

The company announced a 17 per cent increase in net profit to $36.5 million for the year ending June 30 2014, and a 5 per cent increase in fully franked dividends to 10 cents per share.

It had a cash position of $60.9 million at the end of the financial year.

Finbar shares closed down 2.7 per cent, to $1.265 at the close of trade.