Property developer Peet has posted an 86 per cent slump in first-half profit to $1.24 million on the back of challenging conditions in the residential property market.
Revenue was up 30 per cent to $83.1 million.
Peet managing director and chief executive Brendan Gore said the group's full-year performance would be heavily weighted to the second half of the year.
"The half-year result was disappointing, but also expected in some of the most challenging conditions the residential property market has seen, and reflects the ongoing capital management initiatives being implemented in response to those conditions," he said.
"This includes implementing targeted pricing strategies to meet market demand.
"While this has had an impact on margins, we believe FY13 is the cyclical low point in terms of earnings and there are positive indications for improved earnings in FY14 and beyond."
Peet said there were some early positive signs in WA where the rental market was particularly tight with the vacancy rate remaining near historic lows.
"Peet has a significant exposure to the strengthening WA market and is well positioned to take advantage of these improvements, with sales volumes continuing to improve in the first two months of the second half," the company said.Shares in the company closed down one cent at $1.075.
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