Cedar Woods posts record profit

UPDATE 2.25pm: Cedar Woods has lifted its full-year profit by 10.9 per cent to a record $40.3 million.

The result was achieved on a 24.1 per cent jump in revenue to $214.5 million.

The property developer's board declared a final, fully-franked dividend of 15.5 cents up from 15 cents last year, bringing full-year dividends to a record 27.5 cents, up from 26 cents the previous year and representing a payout ratio of about 50 per cent.

The company said it held net debt of $32.6 million at the end of the year, representing a debt-to-equity ratio of 12.5 per cent.

Cedar Woods said the result was underpinned by strong revenue growth from sales across the company's property portfolio in WA and Victoria.

Managing director Paul Sadleir said the company entered the new financial year with confidence, given its strong balance sheet with the capacity to fund existing developments as well as explore new acquisition opportunities.

"As a result, we have a positive outlook and will continue to adopt a disciplined and conservative approach to growing the business in order to deliver consistent returns to shareholders," he said.

Cedar Woods said it had entered the new year with a positive outlook underpinned by strong pre-sales and the release of new residential projects that would contribute to earnings in FY2015 and future years.

However it said first-half 2015 profit was expected to be lower than that for 2014 because its earnings were expected to be heavily weighted towards the second half.

"Cedar Woods often reports uneven half-on-half results due to these timing issues and management remains focused on delivering year-on-year profit growth," the company said.

"Assuming the current level of sales activity continues, the company anticipates delivering a net profit after tax at least in line with last year's record profit."

Shares in Cedar Woods closed down 35 cents, or 4.43 per cent, at $7.55.