Developer Cedar Woods Properties has announced a record net profit and is maintaining a positive outlook, despite overall softness in consumer confidence and the residential market.
The Perth-based company posted a net profit of $28 million for financial year 20010-11, an increase of 63 per cent on the previous year.
Cedar Woods also reported earnings per share of 45.8 cents, 58 per cent up on FY2010-11.
The company paid a fully franked final dividend of 12 cents per share, taking its full year dividend to a record 23 cents per share.
Managing director Paul Sadleir said the strong result reflected the improved profitability of its projects, particularly in Melbourne.
“This result confirms the strength and diversity of our property portfolio, and importantly, the success of our business strategy to offer residential housing across a range of price points in Western Australia and Melbourne,” Mr Sadleir said.
“The company maintains modest gearing, with a net debt-to-equity ratio of 43% as at 30 June 2011, comfortably within our stated 20-75% target range.
“Our financial position remains strong, with a $110 million corporate facility in place until August 2013, drawn down to only $60.5 million at year end.”
Mr Sadleir said the company was forecasting further profit growth in FY2012, tipping a 21 per cent jump on FY2011, to $34 million.
At 9:22AM (WST) Cedar Woods’ stock had gained just over 1 per cent, to trade at $3.67.