Cedar Woods tips profit lift

Land developer Cedar Woods Properties has foreshadowed a net profit after tax for the year to June 2014 of approximately $40 million.

Managing director Paul Sadleir said in a statement the guidance represented a 10 per cent increase on the $36.3 million net profit it made last financial year.

Mr Sadleir said prevailing market conditions in Western Australia remained positive and Cedar Woods had received strong demand for its current range of projects.

In WA, Cedar Woods recently settled on its purchase of residential project Byford on the Scarp (30 km south east of Perth) which led to an increase in pre-sales, and it expects to begin selling blocks at nearby development The Brook on Byford soon.

Mr Sadleir said its Victorian portfolio had enjoyed good sales momentum, in large part due to its Williams Landing residential project and shopping centre (20 km south west of Melbourne).

Cedar Woods' settlements and presales have already made up more than 70 per cent of its financial year budget.

Mr Sadleir said sales and presales had increased from $175 million reported from the 12 months in last financial year to $205 million in the past four months, with the majority due to settle in the current financial year.

Mr Sadleir said Cedar Woods was well positioned to pursue further growth options and it would be releasing more project stages in the second half of the financial year.

"Current positive market conditions are underpinned by population growth, low interest rates and relatively low unemployment," he said.

"As the company's portfolio has many projects in the country's fastest growing municipalities, Cedar Woods is well placed to benefit from these conditions."