Summerset sales beat forecast

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Summerset, the Wellington retirement care group which floated last year, has revealed a surge in sales well ahead of its prospectus forecasts.

In the six months to June 30, Summerset, which generates most of its profits from the sales of units in its villages, made 83 new sales compared to 41 in the same period a year ago and 67 in the second half of 2011.

In the prospectus for its 2011 initial public offering, Summerset forecast 134 sales for the year to December 31, 2012, however a repeat of first half sales would see the figure topped by 24 per cent.

Resales - sales of units vacated by existing tenants - were 88 in the first half, a 52 per cent increase over the first half of 2011.

Chief executive Norah Barlow said sales had been strong but the company gave no indication about whether it expected it would top full year sales.

''We see no reason that those sales don't continue, we just don't want to be creating over expectation in any market. We're very happy with what we've done so far.''

The sales had been strong at all seven villages where Summerset was still developing new units, Barlow said.

Shares in Summerset rose 4 cents on the news to $1.67, compared to an all time high of $1.73 at the start of May but well above its listing price of $1.40.

- © Fairfax NZ News