Cedar Woods records $24.2m H1 profit

Residential developer Cedar Woods has increased its full year profit guidance after lodging a first half profit of $24.2 million, up from $9.9 million in the previous half-year.

Cedar Woods said it was now forecasting a full-year net profit of $27 million, an increase of 57 per cent over the previous 12 months.

The Perth-based company will pay a fully franked interim dividend of 11 cents per share, more than double the 5 cents interim dividend paid a year ago.

"A significant number of development projects were completed during the first half and Cedar Woods is confidenc that $30 million in presales already in place will underpin second-half earnings," a statement released by Cedar Woods said.

Cedar Woods managing director Paul Sadlier said the group's outlook remained positive with its Perth projects improving and a sustained good performance from its Melbourne developments.

"We are pleased to report a strong first-half result that underpins our full-year forecast and which has allowed us to more than double the interim dividend," Mr Sadlier said.

"With over 95% of our sales budget achieved for this financial year, we have already started to lock away a significant number of presales for the 2012 financial year."

"In addition, our debt came down significantly in the first half. The company has a $110m corporate facility in place until August 2013 which was drawn to only $21m at the end of the first half, providing a low net debt-to-equity ratio of 16 per cent.

"With a diverse portfolio of projects, the necessary approvals in place and ample funding, Cedar Woods is well placed to comfortably exceed its 10 per cent per annum growth target in coming years, assuming reasonable market conditions."