In its first year after listing on the Australian Stock Exchange, Western Australian-based developer Peet & Company has announced a profit of $31.6 million for the year to June 30.
In its first year after listing on the Australian Stock Exchange, Western Australian-based developer Peet & Company has announced a profit of $31.6 million for the year to June 30.
The result is ahead of the prospectus forecast of $31.1 million and represents a 10 per cent increase on the previous year.
Peet chairman Tony Lennon said the company was pleased with the results, which reflected continued steady growth for the group since listing in August 2004.
Managing director Warwick Hemsley said expansion and diversification of the group’s business activities was on track, with a range of business initiatives, successful capital raisings and acquisitions during the 2005 financial year.
“During the financial year the company sold more than 2,000 lots from its syndicated, joint venture and owned business grossing in excess of $400 million in sales,” Mr Hemsley said.
“From this the syndicate and joint venture projects divisions earned ongoing management and perfor-mance fees and the owned projects division earned development profits.”
As a result, he said, the company had experienced strong demand for residential land in WA as a result of buoyant market conditions.
“Market conditions in Queensland and Victoria, while reasonable, have eased from previous levels and therefore contributed to a reduction in syndicated land sales revenue,” Mr Hemsley told WA Business News.
Another local listed developer, Cedar Woods, returned a record profit of $12.4 million to June 2005, up 21 per cent from the profit achieved in the previous year.
Cedar Woods managing director Paul Sadlier attrbuted the company’s result to strong sales at existing residential projects at Mariners Cove, Mandurah, The Rivergums at Baldivis, and The Kestrels in Waneroo, combined with contributions from its new commercial project at Balcatta and the beach front Aria and Nautilus Apartments in Rockingham.
“The company finished the year with a net bank debt/equity ratio of 68 per cent, which is within the company’s preferred range of 20 to 75 per cent,” Mr Sadlier said.
The company’s share price has appreciated 36 per cent through the financial year and its market capitalisation is about $140 million.
News was not so rosy for embattled construction and development group Multiplex, which recorded a $148.1 million net profit for the year to June 30 2005.
This includes a $165.4 million con-tribution from the Multiplex Property Trust and an after-tax loss from Multiplex Limited of $17.3 million.
CEO Andrew Roberts in part blamed the group’s problem-plagued Wembley Stadium for the poor result.
“The result is very disappointing and has been significantly impacted by the substantial losses experienced at Wembley National Stadium,” Mr Roberts said.
He said the company was still on schedule to hand over at the end of March 2006 after an accelerated works program had been introduced, and on the day of the profit announcement also provided a further $8.6 million as a contingency against residual risks that remain until project completion.
Multiplex’s construction division incurred a before-tax loss of $62 million in 2005 compared with a before-tax profit of $73.2 million in 2004.
