Finbar lowers FY profit forecast

Finbar Group has lowered its profit guidance by up to $5 million for this financial year, following delays at its Vue and Palmyra Apartments Estate projects.

Finbar previously forecast a profit of between $15 million and $17 million for this financial year, but today announced it revised that figure to $12 million.

It said its $147.5 million, 32-level Vue project in East Perth was now completed.

As a result of the practical completion and issuance of strata titles, $98.6 million in terms of units sold to date will commence in mid-June 2019

“However, the timing of settlements being midway through June as indicated now makes it indefinite as to the total number of settlements that will fall into the current financial year,” Finbar said.

“It is therefore anticipated that a proportion of those settlements and corresponding profits for those settlements will now fall into July and therefore the 2020 financial year.”

Finbar also said construction of the first stage of its Palmyra Apartments Estate project was expected to occur in July 2019 and would therefore not be a contributor to its current financial year earnings.