CDL Investments NZ Posts Record Profit for 2007
CDL Investments New Zealand Posts Record Profit for 2007
Property development company CDL Investments New Zealand Limited (NZX: CDI) today reported its audited results for the year ended 31 December 2007.
Chairman Mr. Wong Hong Ren was pleased to announce that the company had achieved a record operating profit after tax of $15.1 million on revenue of $39.5 million. The Company also announced that the current market value of its land portfolio as determined by DTZ, had increased by 29% from $157 million in the previous year to $202.7 million now.
“The fact that CDL Investments New Zealand is able to report a record profit in 2007 is a reflection of the high quality and spread of our product, the strength of the New Zealand property market over that time and the fact that we have been able to trade strongly from all our markets”, Mr. Wong said.
The Company also announced that its Board had declared a dividend at 2.3 cents per share, payable on 9 May 2008. The dividend would be fully imputed and the record date would be 24 April 2008. The Company’s Dividend Reinvestment Plan would apply to this dividend.
Mr. Wong also said that the Company was in good shape and positioning itself to take advantage of opportunities that might arise.
“Our balance sheet is strong and our property portfolio continues to increase in value. This reflects our selective approach to investment in areas that we are confident will grow in the future. We are not leveraged and therefore we are in an excellent position to capitalize on appropriate opportunities in what may become a difficult market”.
Speaking about the Company’s trading prospects for 2008, Managing Director B K Chiu said that the results were very much dependent on market conditions.
“We have all seen the issues surrounding various finance companies in New Zealand during the last quarter of 2007. Lower migration, together with the continued pressures from high mortgage interest rates inevitably mean that trading conditions will be very different to what we experienced in 2007. While we expect that the 2008 results will be profitable, the next twelve months will certainly be challenging and those prevailing market conditions are likely to be duly reflected in our results”, he said.
Summary of results:
• Operating profit after tax $15.1 million (2006: $10.9 million)
• Operating profit before tax and minorities $22.4 million (2006: $16.3 million)
• Total group revenue $39.5 million (2006: $31.6 million)
• Shareholders’ funds $89.4 million (2006: $74.7 million)
• Total assets $90.5 million (2006: $76.2 million)
• Net tangible asset value (at book value) 38.8 cents per share (2006: 34.1 cents)