Settlement Update for FY18 and Strong Earning Outlook for FY19: Cedar Woods Properties Limited (ASX: CWP) has provided an update on settlements for FY18, an expected strong uplift in profit for FY19 and an update on several key projects. According to the release, the company expects that FY18 net profit after tax (NPAT) will be around $40 Mn due to the number of settlements occurred during the month of May’18 & June’18 and this strong pre-sale will support strong earnings growth in 2019. Further, the management stated that the level of sales and the current ongoing progress across the portfolio will provide a strong platform in FY19 and FY20.
Besides this, the company enters FY19 well positioned with presales of more than $320 Mn wherein the majority are expected to be settled in FY19. This compares to presales at the same time last year of $260 Mn. Additionally, the $58 Mn pre-sale of the Target Headquarters is also due to settle in FY19. These presales substantially de-risk earnings for FY19 and are expected to drive a strong uplift in net profit.
Moreover, the company has secured approvals for the first 61 premium townhouses and 136 apartments at Glenside. At last, the 16-hectare site is relied upon to yield around 220 townhouses and 780 apartments over numerous buildings.
With this announcement, the share price moved up 2.2 per cent this morning and was trading at $6.13 on July 05, 2018, before market close.
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