Cedar Woods increases profit forecast

Perth-based residential developer Cedar Woods has announced a profit guidance of $27 million for financial year 2011, an increase of 12.5 per cent on the previous year.

On November 10 Cedar Woods forecast its full year profit would be $24 million, after tax.

Cedar Woods said it had more than $28 million in presales in place for the second half of FY2011, which would underpin earnings.

Cedar Woods managing director Paul Sadleir told the ASX the first half result was strong thanks to a number of strong contributions from completed or near-completed projects.

"Company debt came down significantly in the first half and with its $100 million corporate facility, the company has ample capacity to acquire new projects and fund its development program," Mr Sadleir said.

"We have already turned our attention to the FY2012 year and have almost $100 million presales in place for that year and are expecting a strong first half in FY2012.

Mr Sadleir said the board was expecting to pay an interim dividend close to 50 per cent of the anticipated total dividend.

"When declaring the interim dividend, the board will be cognisant of the strong first half and the high-level of pre sales for the second half, providing confidence in the FY2011 full year result," he said.

Cedar Woods recorded a $17.2 million net profit after tax in FY2010.