24 Aug 2010

Cedar Woods Properties Limited today announced a net profit of $17.2 million for the year to 30 June 2010, up 86%.

Managing Director Paul Sadleir said that the result confirmed that the company had performed strongly during a period when the property market in Australia was recovering from the global financial crisis. “This result confirms that our business strategy remains appropriate during difficult economic conditions. We are well positioned, with an excellent product range across two states and strong pre-sales in place for FY2011,” Mr. Sadleir said. “We also have a strong balance sheet, ample funding and we are anticipating contributions from new projects going into FY2011.”

The company’s well located residential estates, in the northern and southern coastal corridors of the Perth metropolitan area, continued to deliver during FY2010. The property market in Victoria also performed well during the year and a growing contribution from the company’s Melbourne projects helped to drive the stronger full year result.

The strong trading results have resulted in a substantial improvement in asset values during the year.

The company recently announced a new 3 year, $110m corporate finance facility with ANZ Bank.

The company’s debt position significantly improved in the second half, with gearing (net bank debt / equity) dropping to 36% at 30 June, comfortably within the company’s 20-75% target range. Net bank debt at 30 June was $39.7m, less than half of the company’s total available facilities, thereby leaving ample capacity for funding the company’s activities.