Western Australia’s leading apartment development company, Finbar Group Limited (ASX: FRI) has reported an after tax profit of $8.86 million for the year ended 30 June 2021.
HIGHLIGHTS
- Finbar confirms after tax profit of $8.86 million for the full year ended 30 June 2021
- Company holding $52.6 million in cash at year end, up from $30.6 million at 30 June 2020
- Completed stock valued at $59.9 million held by Finbar at 30 June 2021, debt free
- Final dividend of $0.02 per share to be paid on 10 September, taking the full year dividend payment to $0.04 per share, fully franked
The result represents an increase of 25 per cent compared with the previous year’s profit after tax of $7.06 million.
Total sales for the financial year reached $296 million with 486 completed and off-the-plan apartments sold. The major completed projects that contributed to the result were Riverena in Rivervale which was completed during the financial year, Sabina in Applecross and Vue Tower in East Perth which we completed in previous financial years.
In the current financial year, Finbar has averaged more than $10 million in sales of completed apartments per month, reducing its available existing stock. The recently completed apartment building, the 128-lot Dianella Apartments project, will add 61 apartments to Finbar’s available completed stock with the balance of apartments being sold and due to settle in the first half of the current financial year.
Finbar managing director Darren Pateman said that with the cash and cash flows being generated from the active sales environment of our debt free completed stock, the group was well positioned to fund all of its continued capital commitments for the Civic Heart in South Perth and AT238 in Perth. Further, we also expect to be in the position to commence construction at both Aurora in Applecross and The Point in Rivervale this financial year.
The 121-lot AT238 just east of the Perth CBD and at 335-lot Civic Heart in South Perth, are both projects to be completed in the next financial year.
“We are focused on bringing completed stock to the market in a sales environment which continues to be very active from owner occupiers seeking immediate occupation. This strong sales and settlement cashflow environment we have experienced since April 2020 has allowed us to not only reward shareholders with an increase in our dividend this year but is helping to bring forward the commencement of new projects with less debt and therefore lower pre-sale thresholds. This gives us a significant competitive advantage in our marketplace”, Mr Pateman said.
“This will be supplemented by a gradual release of investment stock we currently hold in Karratha where the residential market continues to strengthen from rental demand and continued increasing rents over our 101 apartments there.
“Our strong cash position, combined with the support of our development partners who are as equally prepared to financially commit to bring completed stock to the market, gives us the confidence to start the new projects in Applecross and Rivervale and we expect both of these projects to be well received by potential buyers, particularly on completion.”
