24/01/2013 - 08:52

Cedar Woods reports solid half-year

24/01/2013 - 08:52

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Cedar Woods reports solid half-year
Cedar Woods managing director Paul Sadleir is anticipating a continued upswing in the housing market in 2013

Perth-based Cedar Woods Properties looks set to keep annual profits in line with 2012 takings after reporting a jump in half-year earnings.

The company has reported unaudited net profit after tax of approximately $18 million for the first half of the 2013 financial year – a 64 per cent increase on the same period last year.

That’s led the company to increase its full year profit guidance from $34 million to $35 million.

Despite the strong first half performance, the full year forecast puts Cedar Woods only $750,000 up on FY2012 earnings, which amounted to $34.25 million.

Managing director Paul Sadleir said recent cuts to interest rates had helped Cedar Woods’ performance in the challenging housing market.

“Recent cuts to interest rates have improved housing affordability and we expect this to further improve consumer confidence and provide a boost to sales in 2013,” Mr Sadleir said.

“We are pleased with projects to date and are confident of delivering our earnings guidance for the full year.”

The strong first half performance has been attributed to completion of settlements in a number of the company’s Western Australian and Victorian projects.

Western Australia’s housing market has picked up in recent months with the house price rising 2.4 per cent in January alone – driven buy improved demand from home buyers.

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