DESPITE adverse weather conditions, Queensland contract home builder Tamawood Limited has posted an increase in its after tax profit for the half year ended December 31 2007.
Tamawood Limited, the owner of the Dixon Homes brand, achieved a record after-tax profit of $5.33 million, representing a 19.96% increase over its $4.49 million in 2006. Earnings per share for the half year were 15.14 cents up from 13.30 cents in December 2006.
A fully franked interim dividend of 8 cents per share has been declared, up from 7 cents last year.
Tamawood said its result was affected by adverse weather conditions and a rapid increase in the price of timber and some sub contractor rates.
During the period, part of the excess cash reserves were used to accelerate the payments of its subcontractor labour force and suppliers to well below industry averages. This is evidenced by the $4.247 million reduction in trade creditors since June 30 2007. Work in progress increased by $6.151 million due to increased sales and weather conditions. Stock levels increased by $1.522 million due to the upcoming introduction of new product ranges.
But Tamawood said despite continued investment to support higher inventory and trade receivables levels, the company remains debt-free.
“The directors believe the current increase in house sales and the value of work in progress should deliver the 8th record annual profit for Tamawood Limited.
“This outcome is subject to supply constraints and weather conditions. The company will be in a position to provide more detail in respect to earnings guidance in late May 2008,” the company said in a statement.
Australian Property Journal
