Strong residential sales have boosted Cedar Woods Properties’ first-half net profit after tax to $20.5 million, up 13 per cent on last mid-financial year.
Revenue increased by 39 per cent from the previous corresponding period to $102.1 million.
Managing director Paul Sadleir said the first-half performance was due to strong sales of residential estates in Perth and Melbourne.
In Perth, Cedar Woods said it had benefited from positive market conditions, with strong buyer activity at Carine Rise, a co-development with the St Ives Group and LandCorp in Carine, and at its Mariners Cove project near Mandurah.
Cedar Woods said its construction of The Rivergums in Baldivis was significantly progressed and it had recorded strong land sales at Emerald Park in Wellard.
Mr Sadleir said it was on track to reach its full-year earnings guidance of $40 million, provided current market conditions continued.
“By maintaining a disciplined approach to project delivery and acquisition, Cedar Woods has enjoyed a strong first-half performance and is well placed to achieve a record full-year net profit in FY2014,” Mr Sadleir said in a statement.
Cedar Woods said the market had slowed in South Hedland where its The Elements project was being constructed, but that sales were continuing at a reasonable rate.
Cedar Woods had to write down the carrying value of its Batavia Coast Marina apartments project in Geraldton by $700,000, to $7.4 million, after delays forced it to accept a longer period than previously anticipated to realise its investment.
Mr Sadleir said forecast income for Batavia Coast Marina, a joint venture with local investors, had not changed.
Cedar Woods will pay an interim dividend of 12 cents per share, up 9 per cent from last period.
Its shares were down 3.62 per cent at $7.19 shortly after announcing its half-year results.
