Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Summerset says first-half underlying profit rose up to 26%

Summerset says first-half underlying profit rose as much as 26% on stronger development margins

By Jonathan Underhill

July 10 (BusinessDesk) - Summerset Group said first-half profit rose as much as 26 percent as stronger development margins made up for a lower volume of new sales.

Underlying profit, which excludes unrealised valuation gains in the fair value of investment property, was between $43 million and $45 million in the six months ended June 30 from about $36 million a year earlier, the Wellington-based company said in a statement. Earnings grew 45 percent in the first half of last year. Summerset will release its detailed results for the first half on Aug. 14.

“We are also seeing good levels of sales contracts and presales on homes which will be completed and delivered over the remainder of the year," chief executive Julian Cook said. "Our resales volumes continue to track well, with the realised gains associated with these sales strong across all regions of the country for the first half of 2018."

While new sales volumes were lower than in the first half of 2017, "the company has seen strong development margins on the homes that have settled over the first half of 2018," he said.

Summerset also said it had sales of 156 units in the three months ended June 30, made up of 77 new units and 79 resales. In the same period last year sales were 152, with 82 new and 70 resales.

"Resales also remain strong across all villages and are at levels consistent with 2017, with no sign of impacts from any changing property market conditions," Cook said.

The shares last traded at $7.53 and have gained 58 percent in the past 12 months.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Geothermal: World-Leading Silica Extraction Project

Geo40, in cooperation with Contact Energy and the Ngati Tahu Tribal Lands Trust, is this month set to start commercially extracting silica from geothermal fluid as part of a world-leading sustainable energy partnership. More>>

Electrical Vehicles: New Database of Charging Stations

EVRoam, a real-time database of public charging infrastructure, provides one view of a safe, reliable and interoperable public charging network for electric vehicles in New Zealand. More>>

ALSO:

FMA Mulls Legal Action: Customers Not Focus At Insurers

Most firms had processes in place to identify when a customer was being advised to replace life or health insurance... Generally, these processes seemed oriented towards reducing firms’ legal risk, rather than to identifying and mitigating risks for customers. More>>

ALSO:

Brands Sale To RJ's: Nestle Job Losses “A Bolt From The Blue”

E tū has about 200 members at the plant, where up to 55 workers could lose their jobs... Well-known Kiwi brands affected by the sale include Mackintosh’s, Heards, Black Knight liquorice, Life Savers and Oddfellows. More>>

ALSO:

'Sanctuaries': New Seabed Mining Project Threatens Endangered Species

Greenpeace is shocked to discover that a new seabed mining exploration permit has been awarded inside a Marine Mammal Sanctuary, and is calling on the Government to reject all attempts to mine the seabed. More>>

ALSO: