BUSINESS IMPROVING FOR DEVINE

Written on the 20 February 2014

BUSINESS IMPROVING FOR DEVINE

RESIDENTIAL developer Devine Limited (ASX:DVN) announced a loss before tax of $15 million for the half year to December 31, but expects to return to profit in the 2014 calendar year.

The Statutory Net Loss before tax of $85 million was a product of a $70 million impairment, DVN announced today.

The company expects to return to profit in the 2014 calendar year with a range of between $7-10 million.

Managing director and CEO David Keir says the company is focused on short-term capital recycling initiatives and has undertaken a corporate and operational restructure as a result of the loss.

“The capital recycling plan will see an exit from a number of selected assets to facilitate investment in higher margin opportunities and return the company to profitability,” says Keir.

First home buyer activity remains low, but Keir says investment purchasers and second home buyers are returning to some markets.

“Market fundamentals, headlined by low interest rates and the demand-supply imbalance, combined with the quality of Devine’s product and place offerings support an improved level of trading over the next 12 months.”

Sales results for the most recent quarter were strong and there has been a strong level of carry-in sales for calendar year 2014. Over 40% of forecast housing starts for CY14 are secured at December 2013.

Sales of the remaining apartments at Hamilton Harbour and DoubleOne 3 projects are progressing well.

Devine’s latest apartment project, Mode at Teneriffe in Queensland will be launched to the market in March 2014.

Devine Constructions’ progress on the Company’s DoubleOne 3 apartment project is expected to be completed in June.

The construction business has also commenced on the recently secured Queensland projects for external clients, Vida at West End and Alex Perry in Fortitude Valley.

DVN is trading down 0.68 per cent at $0.730.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter