Cedar Woods Properties has maintained its interim dividend of 11 cents per share, despite a 55 per cent drop in net profit for the six months to December 31.
Cedar Woods today announced its net profit came in at $10.9 million for the period, compared to $24.2 million the previous corresponding half year.
The property developer said revenue was down 19 per cent to $77.6 million, from $95.9 million previously.
The company, however, maintained its guidance for a full year net profit of around $34 million, underpinned by nearly $89 million in presales for the second half.
The first half result included an impairment write-down of $700,000 against the eight remaining townhouses and apartments in Mandurah, and an unrealised ‘mark to market’ loss of $1.5 million on derivative financial instruments.
Managing director Paul Sadleir said the outlook remained positive for the group, as its current and future projects in Western Australia and Victoria continue to progress on schedule.
“We are satisfied with the company’s first half result and are confident of delivering a record net profit of $34 million for the full year, comfortably exceeding our 10 per cent per annum earnings growth target,” Mr Sadleir said in a statement.
“Cedar Woods remains in a strong financial position moving into the second half of FY2012.
“The company’s gearing remains modest, with a net debt-to-equity ratio of 45 per cent at 31 December 2011, comfortably within our stated 20 to 75 per cent target range.
“In addition, the company’s $110 million corporate debt facility has been extended by a further 15 months to 30 November 2014, with a reduction in funding costs achieved and available headroom of $42 million.”
At 11:50AM WST, Cedar Woods shares were down slightly, at $3.32.