- Dianella development likely done by September
- Company likely to report $8.4M profit after tax
- Comes from strong sales figures
Western Australian developer Finbar (ASX: FRI) today announced that it is expecting a net profit after tax of $8.4 million.
The estimate of an 18% increase on the previous year’s results comes off the back of strong sales, Finbar completed 486 sales of off-the-plan apartments, worth a combined value of $296 million.
As at 30 June, Finbar had $52.6 million in cash. The company’s total completed stock value was $59.9 million, which equates to a sell down of $137 million in debt free stock completed the financial year.
Finbar managing director Darren Pateman said FRI was the beneficiary of strong market demand. That demand is not diminishing either, Mr Pateman added that the company is “committed to [bringing] new completed stock to the market to resupply our diminishing stock pipeline,”.
“Considering our current sales rates, we have approximately three months’ of completed residential apartments supply available in the Perth market so are very keen to see the completion of Dianella over the next few months and are committed to see CivicHeart and AT238 delivered as quickly as possible.
Darren Pateman, Finbar managing director
Mr Pateman also said the strong company finances meant FRI was “in [a] position to conclude all equity funding requirements of our major current apartment projects Civic Heart and AT238, and allows us to also commit to the commencement of both Aurora in Applecross and The Point in Rivervale this financial year.”
Current sales figures
Finbar’s Dianella apartments development is expecting settlements to begin in September, and sales are currently at $27 million.
Civic Heart sales are currently at $105 million, and AT238 reported pre-sales of $21 million so far.
Audited results are expected to be announced on 25 August.
FRI shares responded positively to the news and the company is likely to trade up from the last closing price.