Residential land developer Cedar Woods Properties has continued its run of record profits, underpinned by strong earnings growth both in Western Australia and Victoria.
Cedar Woods today said it lodged a net profit of $40.3 million for FY2013-14, up 10.9 per cent on the previous year.
Revenue was up 24 per cent, to 214.4 million, while Cedar Woods will pay a final dividend of 15.5 cents, taking its full-year dividend payout to 27.5 cents per share.
The result was largely in line with guidance released to the market earlier this year.
Managing director Paul Sadleir said the company achieved a number of major project milestones in FY2013-14, as well as completing a $30 million capital raising and an expansion of its portfolio into Queensland.
“Cedar Woods enters the new financial year with confidence,” Mr Sadleir said.
“We have a strong balance sheet with the capacity to fund existing developments as well as explore new acquisition opportunities.
“As a result, we have a positive outlook and will continue to adopt a disciplined and conservative approach to growing the business in order to deliver consistent returns to shareholders.”
Cedar Woods, however, flagged a lower first half profit result for FY2014-15, due to its scheduled timing of project stages and settlements.
Around $139 million in pre-sales are due to settle in FY2014-15.
The company said timing issues often resulted in uneven half-on half results, but it did not appear concerned about delivering year-on-year profit growth.
“Assuming the current level of sales activity continues, the company anticipates delivering a net profit after tax at least in line with last year’s record profit,” Cedar Woods said.
“The company will continue its practice of providing quarterly updates and guidance as the year progresses.”
At 11:00AM, WST, Cedar Woods shares were down 2.5 per cent, trading at $7.70.