Port Bouvard more than trebles profit to $50m

Como-based property developer Port Bouvard Limited has today reported an after tax profit of $49.9m for the 12 months to June 30, 2006 - an increase in profit of $36.7m on the previous corresponding period.

This significant profit result was on the back of gross revenue from continuing operations of $101m from the company's fully owned Port Bouvard Residential Resort Estate south of Mandurah and the Princeton Private Estate in Stirling.

The company revised its forecast in November 2005 and quoted it would pay $1.95 - $2.15, by way of dividends and return of capital, as the two current residential projects were completed and revenue received. The company confirms that it intends to pay the remaining $1.10 in fully franked dividends over the next 12 - 24 months and maintain its policy of paying two dividends per annum.

Port Bouvard managing director Ross Neumann said in an announcement that the company's financial performance had been very strong for the period, with both estates experiencing unprecedented sales growth.

"The main focus is laying the groundwork to ensure financial results are in line with the financial year 2006 results plus growth for the next four years, subject to market conditions. We are all very excited with the financial year 2006 profit and can see a big future for the company," he said.

"There are lots sold which are yet to settle and a further 81 well priced lots still to sell from our existing stages at Port Bouvard. Princeton Private Estate sold its last remaining homesite in February 2006, three years ahead of schedule. Of greater interest are new built form projects to be constructed on the Port Bouvard Residential Resort Estate. These projects will enable the Company's revenue stream to continue with anticipated profits and dividends."

In July 2006, Port Bouvard confirmed that it plans to continue as a residential land developer with Directors of the company approving plans to develop three new projects at Port Bouvard, and to regrow its property portfolio through residential broad acre acquisitions.

The first project within the Port Bouvard Residential Resort Estate will be the development and marketing of luxury apartments on the golf course/oceanfront, within the Southport Precinct. This $100 million plus project will see the construction of 67 apartments up to a maximum of eight storeys, which will have panoramic views incorporating the 'The Cut' Golf Course, Indian Ocean, Dawesville Channel and the Darling Scarp.

The company is further investigating the two other adjoining sites in the resort precinct, one for a hotel and the other for apartments.

All three projects are due to be completed within three to four years.

The company is diligently working to achieve ongoing profits comparable to previous financial years and attain growth in market capitalisation as the annual financial results are achieved.

Following confirmation of further residential broad acre acquisitions, the company announced that it had signed a Heads of Agreement with a private landowner to develop a residential canal development in Esperance - located in the Goldfields/ Esperance region of Western Australia.

This project will be developed subject to local and state government approvals, with Port Bouvard Limited acting as the developer. The company is hopeful of achieving all necessary approvals in the next two years and will commence a marketing and sales campaign ahead of development.

The company also said it was pursuing a number of other suitable residential broad acre acquisitions in Western Australia to be evaluated in the coming months. These acquisitions and developments will be via joint ventures or syndicates.