Diversified property group Peet & Company Ltd has posted a half year net profit of $17.1 million.
Diversified property group Peet & Company Ltd has posted a half year net profit of $17.1 million, with managing director Warwick Hemsley saying the result sees the company well on track to deliver its previously advised full year net profit growth of 10 per cent ($34.8 million).
An interim dividend of 7.5 cents per share fully franked has been declared, which represents a 50 per cent increase on the previous interim dividend. The record date for the interim dividend is 20 March 2006 and the payment date is 19 April 2006.
The company has not activated its Dividend Reinvestment Program. It remains focussed on its capital efficient business model and is committed to earnings per share growth as the key driver of value for shareholders.
Other highlights include:
- First half earnings per share of 8.5 cents.
- Low gearing (Net Bank Debt/Total Tangible Assets, adjusted for market value) of 30 per cent.
- Sold more than 1,300 lots (a record) across the group, including managed entities for the half-year.
- Strong acquisition activity for the period.
- Strong positive cash flows are anticipated for the balance of the year based on current sales contracts alone.
- Successful syndication of a new $22 million land parcel in record time.
Mr Hemsley said that the group had continued to build on the FY2005 result over this half-year.
"Expansion and diversification of the group's business activities are on track. A range of new land acquisitions have been made and new syndicate capital raisings are among key drivers of business activity in the coming 12 months," he said.
"We continue to deliver quality returns to investors based on the long proven strength and diversity of our business model and our highly experienced management team.
"We have a sound business platform which is underpinned by conservative gearing well within the Board's target range, leaving ample scope for expansion as opportunities arise."