26/02/2014 - 11:14

Finbar eyes new projects

26/02/2014 - 11:14

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Apartment developer Finbar Group says it remains on the lookout for new projects after reporting a record half-year net profit.

Finbar's newly completed Ecco development.

Apartment developer Finbar Group says it remains on the lookout for new projects after reporting a record half-year net profit.

Finbar lifted its net profit by 34 per cent to $18.9 million in the six months to December 2013.

Its revenue more than doubled to $134 million, driven by the settlement of lots at the company's Pelago project in Karratha and St Marks project in Highgate.

Finbar managing director Darren Pateman said the company was in a strong position to fund land settlements and working capital requirements.

"With a robust first half under our belt, a record cash position and cashflow forecast from the settlements of the Ecco project and sold out Au project anticipated within the next six months, we continue to remain in an acquisitive mode to seek new projects that meet our disciplined criteria with a view to strengthening our project pipeline for 2017 onwards and securing our continued long term growth," he said.

Finbar this week achieved practical completion at its Ecco development in East Perth, with $46.3 million in sales achieved from 90 pre-sales at the project to date.

Settlements are expected to commence in April and are set to contribute heavily to the developer's second-half earnings.

The residential component of the project is sold out but its eight commercial lots are yet to be sold.

Mr Pateman said leasing activity for Finbar's commercial property and regional projects in Karratha remained subdued throughout the period.

Despite this, the company remains on track to achieve full-year net profit of about $31 million.

It has announced a fully-franked interim dividend of 4 cents per share.

The company's shares were trading half a cent higher at $1.705 at 11:00am WST.

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