Perth property developer Finbar Group (FRI) says it expects to report a 10% rise in earnings for the 2012-13 financial year and has lifted final dividend as a result.
The company told the ASX yesterday that it expects net earnings to come in around $31 million after reporting an interim result after tax of $14.07 million.
The expected profit improvement shows there’s still money to be made in WA, even if the mining sector has been hit by the fall in activity, especially development work and exploration.
Finbar said 2012-13 will be the company’s 7th successive year of profit growth.
Dividend for the year has been raised to 9.5c from 9c a share with a final payout of 6c a share, up from 5.5c.
"Finbar has also completed the financial year with a strong cash position of $35 million which ensures the Company is sufficiently capitalised to fund recent acquisitions and provide working capital for commencing new projects," the company told the market yesterday.
"Coupled with cashflow from sales from completed projects, Finbar is well positioned to actively identify new project opportunities.
"A reasonably robust metropolitan sales market has provided sufficient sales to commence construction at Spring View Towers with the Company preparing to launch the sales of three new metropolitan projects representing a combined value of approximately $340 million by the end of the 2013 calendar year.
"Despite the Pilbara sales market recently slowing in light of current resource sector sentiment, Finbar has secured sufficient pre-sales in Pelago East to retire the project finance facility which is on track and on budget to be completed this calendar year.
"A strong leasing market in the Pelago project has ensured this project, and future planned projects in the Pilbara, continue to be accretive to earnings for the Company."
Managing Director Darren Pateman said in the statement: “FY13 has been a financially sound year for Finbar and represents our seventh consecutive year of profit growth. Our strong balance sheet and cash position allow us to continue with our current level of development activities and secure new opportunities for our continued growth.”
The company says it expects profit for the 2013-14 year will be "similar" to the 2012-13 result. It said another potential profit increase depends "on the timing of company projects currently under construction and due for completion in the 2014 calendar year".
Finbar shares rose 3c yesterday to $1.36 (just over 2%) in a market off around 0.6%.
FRI YTD – Finbar raises the bar
