Peet reinstates didvidend on profit jump
Peet reinstates didvidend on profit jump

Residential property developer Peet has reinstated its dividend after a marked increase in sales and settlements underpinned a big rise in annual profit.

The company's reported net earnings of $30.3 million for the 12 months to June 30, compared with just $900,000 for a year earlier on the back of write-downs across Peet's portfolio.

Underlying profit rose 73 per cent to $31.6 million on the back of a 23 per cent improvement in revenue to $296.7 million.

Directors declared a final fully franked 3.5� a share dividend, the first in three years.

Chief executive Brendan Gore said the profit improvement reflected a stronger residential property market, particularly in WA and Victoria, which drove a 53 per cent increase in sales for the year to 3525 and a 67 per cent increase in settlements to 3491.

"This is a pleasing result that has built on steady improvements in key markets, with strong sales and improving operating margins in 2014 also providing good momentum for the start of the current financial year," Mr Gore said.

As at June 30, Peet was sitting on 1990 sales contracts with a gross value of $467.9 million.

The company's improved financial performance was reflected in a jump in Mr Gore's remuneration. While his cash salary remained unchanged, he received a $911,375 bonus, more than doubling his remuneration to $2.78 million after including the value of performance rights which vested during the year.

Peet shares were up 1.5¢ at $1.32 as at 12.15 AWST.

The West Australian

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