Ariadne does a 360

ARIADNE has had a change of fortunes by posting a net profit after tax result of $2.34 million for the six months ended December 2007.

In the previous corresponding period, Ariadne posted a loss of $3.12 million.

Ariadne has declared an unfranked dividend of 1 cent, unchanged on pcp.

The company said factors affecting the result were a high proportion of settlements on the Skyline Project which contributed profits to the property division.

Ariadne’s S & K Car Park Management Pty Limited also reported an excellent result, significantly ahead of 2006 and above budget. Brisbane-based car parks retained by Ariadne also traded strongly, reporting solid contributions.

During the period, the 192 unit Skyline residential project, a joint venture with Seymour Group, and Watpac Limited was completed in October 2007. At December 2007 the project was 65% settled and 24 units remain to be sold.

The investment division recorded a profit of $2.3 million. S & K Car Park Management Pty Limited traded strongly across all states, including the Victorian operations which reported a loss last year.

The company has also successfully secured a number of new car parks, including the Southern Cross Centre (800 bays), 101 Collins Street (970 bays) and the 600-bay Axa building in Docklands.

The New South Wales market was competitive, however S & K continues to build market share. New contracts acquired include Northpoint (550 bays) and the Hurstville Super Centre (350 bays).

Ariadne’s chief executive Murray Boyte said the new brand roll out now implemented across the Eastern Seaboard is underpinning a strong market position.

He added that the outlook is for a continued strong performance in the second half.

Ariadne has a strong balance sheet as a consequence of the successful 2007 asset sale program.

During the period net debt was reduced from $53.26 million to $23.56 million, being a net gearing level of 27.71% at December 2007.

“The Car parking group is expected to continue to perform in line with the first half and well ahead of the 2007 full year result.

“Ariadne has a number of marina development acquisitions under evaluation both in Australia and overseas. The expansion of Ariadne’s marina related activities remains a core strategic objective,” he continued.

“Ariadne completed the rationalisation of its South East Queensland property portfolio during the period. New opportunities are being evaluated; however, a prudent approach is being taken in a market which is expected to have a degree of volatility over the next twelve months,” Boyte concluded.

Australian Property Journal