QUEENSLAND based housing developer Devine has seen its profit drop almost 50% despite a vibrant housing boosted by the first home owners grant.
Devine recorded an after tax profit of $16.699 million for the 2008/09 financial year, down 47.6%. T e result was also impacted by writedowns on the book value of future development sites and an interest rate swap facility, which together totalled $5.252 million after tax.
Devine generated revenue of $440.499 million, down 23.7% on 2007/08 compared to $577 million from the previous corresponding period.
Earnings per share dropped from 11.9 cents in 2008 to 5.6 cents in the recently departed financial year.
Devine declared a full year dividend of three cents compared to 8 cents in 2008.
Devine’s managing director David Devine said the result was a strong one considering the nationwide slowdown in the commercial and high-rise residential development sector over the past year due to economic uncertainty.
“Our continued profitably in these challenging times reflects the remarkable strength of Devine’s Housing and Land Division which has delivered a 225 per cent increase in profit following combined record earnings in Victoria and South Australia,” Devine said.
“The division enters the 2009/10 year with a strong level of work in hand giving us every confidence of a strong year in 2010 and vindicating our long-term strategy of expanding our Victorian and South Australian land bank.”
According to its managing director, Devine enters the new financial year with a strong level of work in hand for its Housing and Land division.
“The market fundamentals remain positive with the low interest rate environment and increasing deficiency of supply of new housing stock set to continue and put upwards pressure on rents.”
Devine provided a guidance for the 2009/10 year of an operating profit that is around 15% up on the year just ended.
Australian Property Journal
