West Perth-based residential property developer Cedar Woods Properties Ltd has announced a net profit of $16.2m, a 31 per cent increase on last year's total.
West Perth-based residential property developer Cedar Woods Properties Ltd has announced a net profit of $16.2m, a 31 per cent increase on last year's total.
The company has increased earnings per share by 30% to 30.3 cents, compared to 23.3 cents reported in the previous year, and plans to pay a final fully franked divident of 9c in October.
Market capitalisation reached $240m by the end of the financial year on the back of strong share price appreciation.
The company recently announced the creation of a new funds management business and launched its first wholesale land development fund, Cedar Woods Wellard Limited, with the purchase of a 47 hectare land parcel at Wellard for $36m. Cedar Woods holds a 25% interest in CWWL and will manage the development of the land, deriving management fees over the seven year life of the project.
The net bank debt / equity ratio of 42% (72% excluding CWWL), is within the company's preferred range of 20 - 75%. Since 30 June, the company has renegotiated its bank financing arrangements and has $82.75m in finance facilities available.
Based on the current strong sales performance and strength of the booming Western Australian economy, the company is optimistic of achieving its earnings per share growth target of 10% p.a. and achieving a forecast net profit of approximately $18m for the 2007 financial year.
The full announcement is pasted below
Cedar Woods Properties Limited (Cedar Woods) today announced a record net profit of $16.2m on record revenues of $81m, for the year to 30 June 2006, an increase of 31% over the $12.4m profit reported for the previous financial year.
The company has increased earnings per share by 30% to 30.3 cents, compared to 23.3 cents reported in the previous year.
A final fully franked dividend of 9 cents per share will be paid on 20 October 2006. When combined with the interim dividend of 6 cents, total full year dividends increased 25% over the previous year. The Dividend Reinvestment Plan will remain available to shareholders for the forthcoming dividend.
The record revenue and profit result for FY06 was achieved through continued strong sales at the company's residential development projects in Perth's growth corridors of Mandurah, Baldivis and Wanneroo. Second half earnings were enhanced by strong contributions from the company's commercial project at Balcatta, beach front Aria Apartments in Rockingham, and the newly established residential project at Canning Vale.
Market capitalisation reached $240m by the end of the financial year on the back of strong share price appreciation.
The company recently announced the creation of a new funds management business and launched its first wholesale land development fund, Cedar Woods Wellard Limited (CWWL), with the purchase of a 47 hectare land parcel at Wellard, in Perth's booming southern growth corridor, for $36m. Cedar Woods holds a 25% interest in CWWL and will manage the development of the
Wellard land, deriving significant management fees over the seven year life of the project. The funds management business is anticipated to grow with the introduction of more land development funds in the future.
Cedar Woods has supplemented its property portfolio, making several key acquisitions in Perth and Melbourne during the financial year.
The net bank debt / equity ratio of 42% (72% excluding CWWL), is within the company's preferred range of 20 - 75%. Since 30 June, the company has renegotiated its bank financing arrangements and has $82.75m in finance facilities available.
With bank finance facilities in place and the new funds management business, Cedar Woods is well positioned to fund its ongoing development and acquisition program through a more diverse range of capital raising options.
Based on the current strong sales performance and strength of the booming Western Australian economy, the company remains cautiously optimistic of achieving its earnings per share growth target of 10% p.a. and achieving a forecast net profit of approximately $18m for FY2007.
