FY18 profit of $42.6 million, strong profit uplift for FY19.
22 August 2018
Cedar Woods Properties Limited (ASX: CWP) (‘Cedar Woods’ or ‘the Company’) is pleased to report a net profit after tax (NPAT) of $42.6 million for the 2018 financial year
The Board has declared a fully franked final dividend of 18.0 cents per share, bringing total dividends for FY2018 to 30.0 cents per share. This is consistent with the Board’s policy of distributing approximately 50 per cent of full year net profit to shareholders, providing a high-yield return on investment of approximately 5 per cent (fully franked).
Cedar Woods enters FY19 well positioned with presales of more than $320 million, the majority of which are expected to settle in FY19. This compares to $260 million at the same time last year, representing an increase of 23 per cent. In addition, the $58 million sale of the Target Headquarters at Williams Landing, Victoria announced in June 2017, is due to settle in FY19. This activity has substantially de-risked Cedar Woods’ earnings for FY19 and is expected to underpin a strong increase in net profit.
Cedar Woods’ balance sheet remains robust with net bank debt-to-equity of 31 per cent at 30 June 2018, and substantial undrawn capacity under current bank facilities available to fund growth.
Cedar Woods’ Managing Director, Nathan Blackburne, said the solid result was driven by consistent performance across the business. “Today’s results, and our expectations of strong growth in FY19, demonstrate the successful execution of our strategy of growing our portfolio across geography, price point and product mix.”
“We continue to build our presence in Perth, Adelaide, Melbourne and Brisbane and in FY19 we expect to generate revenue from all four states for the first time.”