Property developer Cedar Woods expects to maintain its record profit after shrugging off disappointing sales in key mining town projects.
The company’s profit rose six per cent in 2014/15 to a record $42.6 million, due to strong residential sales in Melbourne and Perth.
Cedar Woods has projects in Victoria, Western Australia and Queensland, and said demand for homes was high as population growth proved strong.
“We have benefited from having a portfolio that has a good spread of product across a number of favourable locations,” managing director Paul Sadleir said.
Pre-sales across its portfolio rose 10 per cent in the year to June, and with the bulk expected to settle in 2015/16, Cedar Woods is forecasting profit will remain at similar levels.
It experienced some challenges in WA in the past year as demand for property in mining areas weakened, with the value of its investment in a set of luxury waterfront apartments in Geraldton downgraded due to unsatisfactory sales.
But the company said economic growth is expected to improve in all of the states it operates in.
CEDAR WOODS POSTS RECORD PROFIT
- Net profit up 5.6pct to $42.6m
- Revenue down 17pct to $178.6m
- Fully franked final dividend up half a cent at 16 cents