Perth-based land developer Peet Ltd announced a 13.6 per cent profit after tax increase to $19.4 million for the half year ended December 31.
Perth-based land developer Peet Ltd announced a 13.6 per cent profit after tax increase to $19.4 million for the half year ended December 31.
The company increased its earnings per share by 11.8 per cent to 9.5 cents each, with earnings before interest and tax up 16 per cent to 28.4 million.
But revenue was down 7 per cent for the half, to 51.2 million, from $55.3 million in the previous period.
Peet managing director Warwick Hemsley said in an announcement that 56% of the period's EBIT came from Victoria and Queensland while growth in WA was underpinned by the resources sector and rises in the population.
The full text of a company announcement is pasted below
Peet Limited has announced an after tax profit of $19.4 million for the half year ended 31 December 2006 - up 13.6% on the same period last year.
Peet Limited Chairman Tony Lennon said an interim dividend of 9.0 cents per share fully franked will be paid in April - up 20% on last year's interim dividend.
"The solid result, achieved in a mixed trading environment, underlined the value of the Company's diverse operational and geographical business model and its ability to respond to changing market cycles," he said.
"The Company is well positioned to leverage off its existing platform to achieve growth across its increasingly diversified divisions," he said.
Commenting on the results, Peet Limited Managing Director and Chief Executive Officer, Warwick Hemsley, said more than half of this period's EBIT (56%) came from Victoria and Queensland while the resources sector and population growth underpinned the profit from Western Australia.
"Within Peet's funds management business, land syndicates continued to perform well across the country and made a pleasing contribution to the half-year results," he said. "The first half of the financial year saw the Company syndicate a 64-hectare parcel of land at Cranbourne in Melbourne's south-east (Peet Botanic Village Syndicate Limited) and a further 145-hectare land parcel in Mundijong, Western Australia (Peet Mundijong Syndicate Limited)."
Those two syndicates were particularly successful in increasing syndicate investor participation, adding significantly to Peet's existing group of investors. Revenue from Peet's core funds management and land syndication business recorded a solid 26% increase to $23.4 million over the half year.
Peet Limited has continued to build on its impressive land bank during the six months, acquiring a total of 3,200 well located, potential residential and commercial lots in its key markets of Western Australia, Victoria and Queensland. The company's managed and owned landbank of some 30,300 lots potential now has an estimated on completion value of $5.5 billion if sold at today's prices.
The six months to December 31 also saw further expansion of the Company's Income Property Fund, with the acquisition of two strategically located properties in Perth and Darwin. The Fund finished the period with around 600 members and approximately $37 million in funds under management.
A successful $82 million capital raising, via an underwritten institutional placement completed during the half year, has further strengthened the Company's balance sheet and will also enable the Company to accelerate growth of its funds management business, grow new profit streams by funding diversified development projects and capitalise on larger acquisition opportunities.
"Moving ahead, Peet is in a solid position to take advantage of acquisition and expansion opportunities arising in key property markets around the country," said Mr Hemsley.
The Company is continuing its track record of growth and quality returns for shareholders. Backed by our experience, sound management and diverse operational approach, and despite a soft January, we remain confident of achieving our EPS growth target of 15% for the full year ending 30 June 2007.
SUMMARY: PEET LIMITED HALF YEAR FINANCIAL HIGHLIGHTS
- Net profit after tax increased by 13.6% to $19.4 million
- Earnings per share increased by 11.8% to 9.5 cents per share
- Declared interim dividend of 9.0 cents per share fully franked
- Gearing ratio at 31% (net bank debt/total assets - adjusted for market value)
- Company has operated continuously since 1895
- Target EPS growth for FY07 of 15% to 21.2 cents
