Finbar reports record unaudited net profit

Perth's most prolific apartment developer, Finbar Group Ltd, has announced a record unaudited after tax profit of $8.0 million for the half year ended 31 December 2007.

Finbar said its concentration on built form apartment projects near the Perth city centre was now reaping substantial rewards, with a solid sales and completion pipeline now stretching many years ahead.

The company has seen a number of project completions and settlements including, Altair, Soho, and Infinity Apartments in East Perth, which has resulted in increased sales revenue.

In total, 307 apartments were completed during the period, with the company also settling all remaining lots in the Sol and Avena projects, which were completed in June 2007.

The company's Del Mar project was also completed in the reporting period with settlements due to commence this month.

As such, the revenues from sold apartments in the Del Mar project are expected to be recognised in the second half of the current financial year.

Finbar said it had continued to capitalise on the state's economic strength by bolstering sales in upcoming developments, with the company now having only 4 per cent of its current sales stock unsold.

The value of these sold lots represents gross sales of approximately $530 million, all of which are secured by unconditional pre-sale contracts.

Finbar chief executive and company secretary, Darren Pateman, said the recent completions, and the return of equity and profit from these projects, had placed the company in a good position to seek new development opportunities to augment the future pipeline.

"We are mindful, however, that a strong Western Australian economy has created upward pressure on raw development land values in the state," he said in a statement.

"We believe that as interest rate pressure and capital market volatility begin to reassert downward pressure on property values, the company will see an increase in acquisition opportunities, and we are poised to take advantage of these opportunities as they present themselves."