Residential developer Peet has experienced a 61 per cent dip in profit for the half-year ended December 31, illustrating the difficult conditions prevalent in the residential property market.
Peet reported a net profit of $8.7 million for the half year, on revenue of $63.8 million, down 35 per cent on the previous corresponding period.
As of December 31, the group had 1,053 contracts on hand with a gross sales value of $278.7 million,
Managing director Brendan Gore pinned the decreased profit on difficult property market and economic conditions.
“The group’s response to first half market conditions has been to preserve capital, reduce costs across the organisation and position ourselves to respond effectively to improved conditions,” Mr Gore said.
Mr Gore said the company expected conditions to remain challenging throughout the second half, as a result of continued pressure on the economy.
Peet is forecasting operating earnings for the 2012 financial year to be around $15 million to $20 million.
Peet’s stock was steady today on the ASX, trading at 80 cents.