Cedar Woods posts H1 profit of $30.8m, on track for strong FY19 profit uplift

26 February 2019

Cedar Woods Properties Limited (Cedar Woods) [ASX:CWP] is pleased to report a net profit after tax (NPAT) of $30.8 million for the first half of the 2019 financial year (FY19). This is up significantly on the $3.2 million profit for the prior corresponding period (pcp) and the Company remains on track for a strong full year profit uplift.

The Board has declared a fully franked interim dividend of 18.0 cents per share, up 50 per cent on pcp. The Board intends to maintain the policy of distributing approximately 50 per cent of full year net profit to shareholders via dividends, with the increased interim dividend reflecting the strong first half result and taking account of available franking credits. The Dividend Reinvestment and Bonus Share Plans will not apply for the interim dividend.

Pre-sales at the end of the first half stood at $358 million, driven by sales activity across the national portfolio, and 6 per cent higher than the pcp. About half of these pre-sales are expected to settle in FY19 with the balance positioning the business well for FY20.

Total presales include $56 million in commercial presales ($11 million in the pcp), across 3 separate projects. The Company will also continue to expand its activities in commercial development in FY19. Cedar Woods’ balance sheet remains robust with net bank debt-to-equity of 37 per cent as at 31 December 2018, and substantial undrawn capacity under current bank facilities available to fund future growth.

Cedar Woods’ Managing Director, Nathan Blackburne said, “We are pleased with our progress across the business in what has been a more challenging market. The pre-sales across our national portfolio will see us generate revenue from four states for the first time in FY19, reflecting our commitment to a strategy of diversification by geography, product and price point. The first half result has laid a strong foundation for the full year.”