Perth’s largest listed land developer, Peet, has reinstated its dividend payments after recording a solid lift in net profit on the back of improved performance across all of its core divisions.
Peet today announced its net profit came in at $30.3 million for FY2014, up from $0.9 million in the previous financial year.
Revenue was up 23 per cent, to $296.7 million, while the profit was dented slightly by a $1.3 million write-down relating to the disposal of a non-core asset in Victoria.
Peet will pay a final dividend of 3.5 cents per share, its first payout since 2011.
Managing director Brendan Gore said the FY2014 results reflected improved performance across the company.
For the financial year, Peet recorded 3,525 sales with a gross value of $835.2 million, and 3,491 settlements, which totalled $827.8 million.
The sales and settlement results were 53 per cent and 67 per cent higher than FY2013, respectively.
“A number of factors including the group’s diversified portfolio, a sustained period of low interest rates, continued robust population growth, and a relatively stable employment market combined during the year to lift demand and contribute to moderate price and margin growth in key corridors, particularly in Western Australia and Victoria,” Mr Gore said in a statement to the ASX.
“Peet has responded to improving market demand by continuing to invest in the development of new lots and related infrastructure, while at the same time reducing bank debt by 10 per cent to $247.9 million.”
Mr Gore said Peet was well-positioned for continued earnings growth going into FY2015.
However, he warned housing affordability, a softening labour market and consumer caution would likely result in a subdued lift compared with FY2014.
The company’s strategy for FY2015 includes careful management of its 48,000-lot landbank to achieve further shareholder returns, continued examination of acquisition opportunities, extending built-form activities to boost affordability and maintaining a strong focus on reducing both costs and debt.
At 11:45AM, WST, Peet shares were up 1.15 per cent, trading at $1.32.
