Strong sales put Summerset in the black
Wellington retirement care company Summerset has reported a net profit after tax of $3.9 million for the six months ending June, on the back of strong sales and higher development margins.
The result reversed a loss of $1.2m in the same period last year.
Total sales of unit occupation rights were up 73 per cent on the same period last year, while sales of rights on new units more than doubled year on year.
Managing director Norah Barlow said the company, which listed last year, was on track to busting last year's record-breaking sales tally.
It was also cashing in on higher margins from the move to bring its design and development in-house.
"The company is in a robust position and the team has been working incredibly hard over this half year. We are expecting to exceed [initial public offering] forecasts if trading momentum continues."
Underlying profit for the six month period, including fair value movements for its investment properties, rose to $6.9m, up 133 per cent from $2.9m. Revenue rose 12.5 per cent to $18.2m.
Summerset forecast in its prospectus that underlying full-year profit would reach $9.7m.
Over the half year Summerset completed 68 new units at four sites. Its full-year target is 155 units.
Barlow said it had begun building at its newest village in Dunedin and a highlight of the half-year had been its purchase of a waterfront site in Hobsonville, Auckland.
"We are working toward making more announcements on land purchases in the second half of the year."
Summerset also provides retirement care but most of its profits come from sales of units.
Summerset's shares were valued at $1.95 on the NZX this morning. The company's first dividend will be declared with its full-year results.
- © Fairfax NZ News