27/02/2014 - 12:09

Peet lifts half-year profit on sales rise

27/02/2014 - 12:09

Bookmark

Save articles for future reference.

Property developer Peet has posted stronger half-year results amid improved conditions in the housing market.

Peet lifts half-year profit on sales rise

Property developer Peet has posted stronger half-year results amid improved conditions in the housing market.

Peet posted a net profit of $13.2 million in the six months to December 2013, a solid improvement on the previous corresponding period when it posted a narrow $1 million profit.

Its revenue was up 13 per cent to $104 million, driven by stronger lot sales and settlements.

The state's third-biggest land developer, according to Business News IQ data, achieved 1,735 sales and 1,507 settlements in the half-year period.

Peet managing director Brendan Gore said there were signs of further improvement ahead in the second-half of the year.

"Our performance during the first half of FY14 reflects a broadening market improvement after challenging conditions endured through the first half of FY13," he said.

"In the context of the market improvement through the second half of FY13 and into FY14, the group has invested in building its inventory to take advantage of these positive trends."

Mr Gore said conditions remained robust in the Perth housing market, despite prices easing off recent highs.

The company has turned its focus towards selling non-core assets to improve its capital position in recent months.

However the developer's debt grew during the six-month period to $332.9 million at a gearing level of 33 per cent, despite aiming to keep gearing below 30 per cent.

The company did not pay an interim dividend but has flagged that it will reinstate a full-year dividend for the 2014 financial year.

Peet shares were trading half a cent lower at $1.35 at 12:05pm WST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options