Image – Cedar Woods, Finbar, Peet.
  • CWP: NPAT $32.8M; dividends 13.5 cents
  • FRI: NPAT $8.86M; full year dividend of 4 cents
  • PPC: operating profit and statutory profit $28.5 million

Developers delight, and given the circumstances it all makes sense – the pandemic made light work of FY20 results and with a building boom that is stretching on, strong FY21 results for home developers are almost to be expected.

Cedar Woods (ASX: CWP)

CWP noted that demand was good across the year despite many not qualifying for the government stimulus due to their price point and timing.

The company reported presales contracts at 30 June 2021 were at a record $478 million, 33% up from the previous financial year.

FY21 Change Direction
NPAT $32.8 million 61%
Presales contracts $478 million 33%
Revenue $299.8 million 15%
Gross margin 31% 29%
Net bank debt $113.3 million
Gearing 18%
Net bank debt-to-equity  28%

“With buyer demand currently elevated above pre-COVID conditions, we expect the improved buyer confidence and low interest rate environment to continue to support our performance,” said Cedar Woods’ Managing Director Nathan Blackburne.

Finbar (ASX: FRI)

The developer has averaged more than $10 million in sales of completed apartments per month, with profits slowly rising once more.

This years after-tax profit came in at $8.86 million, up from last years $7.068 million. The figure is still much lower than previous years, in 2019 profit was $11.4 million, and in 2018 profit was $13.76 million. Finbar profits in 2017 were a lower $5.06 million.

FY21 Change Direction
After tax profit $8.86 million 25%
Cash at year end $52.6 million $22 million
Total sales $296 million

“Our strong cash position, combined with the support of our development partners who are as equally prepared to financially commit to bring completed stock to the market, gives us the confidence to start the new projects in Applecross and Rivervale and we expect both of these projects to be well received by potential buyers, particularly on completion,” said Finbar managing director Darren Pateman.

Peet (ASX: PPC)

The developer is looking forward to a bumper FY22, Peet MD and CEO Brendan Gore said, “FY22 is expected to be a year focused on the delivery of a significant number of land lots and townhouses sold during FY21 along with the commencement of up to six new projects.”

That is subject to the complexities of lockdowns and rising development and labour costs.

FY21 Change Direction
Operating profit $28.5 million 89%
Statutory profit $28.5 million 195%
Operating earnings per share 5.9 cents 90%
FY21 dividends 3.5 cps 133%
Lots sold 3,142 35%
Lots settled 2,980 66%
Contracts on hand 1,948 9%
Gearing 24.8%
EBITDA $58.1 million $21.1 million

“The profit for FY21 is at the upper end of the earnings guidance announced to the market in July 2021 of an earnings range of $27.5 million to $29.0 million. The improved profit compared to FY20 is on the back of both higher sales and settlements volumes across the Group’s three business segments and across most states that it operates in…” said Mr Gore.

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