- Cedar Woods (CWP) announces a net profit after tax (NPAT) of $32.8 million for FY21, up 61 per cent from the previous comparable period (pcp)
- Presales contracts totalled a record $478 million as of June 30, 2021, up 33 per cent from the $360 million recorded the previous year at the same time
- The company said the demand comes despite many not qualifying for government stimulus due to their price point or timing
- The board has announced a fully franked final dividend of 13.5 cents per share, bringing total financial year dividends to 26.5 cents per share
- Shares in CWP are up 1.35 per cent to trade at $6.76
Cedar Woods (CWP) today reported a net profit after tax (NPAT) of $32.8 million for the FY21, up 61 per cent from the prior comparable period (pcp) as it sees record demand despite government stimulus winding up in April.
Presales contracts are at a record $478 million as of June 30, 2021, up 33 per cent compared to the $360 million reported in the same period the previous year.
In FY22, roughly two-thirds of presales are projected to be settled, with the balance contributing to earnings in FY23.
The company said the demand comes despite many not qualifying for government stimulus due to their price point or timing.
Cedar Woods managing director Nathan Blackburne said the company had capitalised on the opportunity offered by a reviving economy, which had resulted in a resurgence of motivated consumers interested in the company’s product offers.
“Our record presales, coupled with a national pipeline of more than 9600 dwellings and lots, firmly positions the business to grow earnings,” he said.
“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.
“Our strong balance sheet and ongoing support from financiers provides us with the capacity to make strategic acquisitions and we continue to assess opportunities in a number of markets that will build on purchases agreed during the last year.”
Following the conclusion of the federal government’s HomeBuilder programme and the reduction of state government stimulus, the residential property market has remained robust, according to the company.
The stimulus initiatives sparked a surge in sales across the country, resulting in supply shortages in several residential development areas, with Cedar Woods claiming its contractors have been able to obtain materials to keep projects on track.
Building expenses are expected to rise through FY22, and the company said it will modify product prices where appropriate to retain profits. Due to the high demand for new homes, several of Cedar Woods’ projects have been able to raise their prices already.
The board announced a fully franked final dividend of 13.5 cents per share, bringing total financial year dividends to 26.5 cents per share, up 39 per cent on pcp.
With $478 million in presales projected to settle throughout FY22 and FY23 and a pipeline of 9600 to be bolstered by further acquisitions, Cedar Woods said it is off to a great start in FY22.
Shares in CWP were up 1.35 per cent to $6.76 as of 10:55 am AEST.