Cedar Woods interim on track

Cedar Woods Properties Ltd has reported an interim net profit of $4.6 million, maintaining its full year net profit forecast of approximately $20m, which will be a record for the company.

The company said its development stream remained on track and the lumpy nature of its business was the reason for the big difference between the half and expected full-year results.

Below is the full release from Cedar Woods:

- Maintains guidance of record full year net profit of approximately $20.0m
- Interim dividend declared of 8.0 cents per share, up 14%
- Development to commence at Melbourne projects in second half
- Melbourne's leading builders commit to Williams Landing display village
- Selected by Landcorp as preferred partner for a major urban redevelopment project
- Extension of core bank facility to 3 year evergreen
Cedar Woods Properties Limited has reported a net profit of $4.6 m for the half year to 31 December
2007 and has maintained its full year net profit forecast of approximately $20m, which will be a record
for the company.
The company expects the second half earnings to be much higher than the first half, as previously
advised to the market. The company's development and settlement program will often cause half year
results to be uneven. Management's focus is primarily on the achievement of full year results and the
company expects a stronger second half as programmed developments are completed and presales
are crystallised. In the previous financial year the second half result was significantly lower than the
first, although a record full year profit was achieved.
As a consequence, the directors are pleased to declare a fully franked interim dividend of 8 cents per
share, payable on 18 April 2008. The dividend reinvestment plan will be suspended for the
forthcoming dividend but is expected to be reinstated when financial markets stabilise and then
continue on an ongoing basis.
During the second half the company expects to complete the townhouse development, 'The Fairways'
at Mandurah Country Club and the prestigious 'Waterline Apartments' at Halls Head. Settlement of
significant presales at these projects and the second stage of Cambridge Waters are also expected.
Earnings from these projects will bolster second half earnings.
Development is expected to commence at the company's Melbourne projects in the second half. The
first stage of Williams Landing is expected to commence late in the second half with the first earnings
from the project delivered in FY2009. Many of the state's most prestigious builders have confirmed
their participation in a new 50 home display village.
Recently the company announced that together with the St Ives group, it had been selected by the WA
State Government as the preferred consortium for the redevelopment of the former Carine TAFE
campus. In conjunction with Landcorp, the State government's land development arm, the consortium
will develop a range of dwellings and facilities to meet the needs of the community.
During the first half the company's financiers extended the $76m corporate finance facility to a 3 year
evergreen facility. This provides the company with credit support until at least 30 September 2010.
With a diverse portfolio of projects and a strong balance sheet the company is well positioned to
continue to deliver earnings growth and shareholder value.