PROFIT SHRINKS AS SUNLAND BATTLES ON

Written on the 28 August 2012

PROFIT SHRINKS AS SUNLAND BATTLES ON

SUNLAND Group (SDG) has pledged financial discipline but will continue its share buy-back scheme and plans to push ahead with a new development at Mariner’s Cove on the Broadwater.

The company, which built Q1 and Palazzo Versace, today reported a 32 per cent decrease in net profit after tax of $14.5 million. It had 398 unconditional presales worth $189.8 million in FY12.

Managing director Sahba Abedian (pictured) says the group’s residential and urban portfolio performed soundly despite a softening of the market.

“This continued weakness in market conditions has encouraged the group to pursue its strong fiscal discipline, through capital management initiatives, which include the fourth tranche of the share buy-back, the maintenance of conservative gearing levels and replenishment of the group’s portfolio through selective acquisitions in key markets,’’ he says.

SDG, which has bought back 120 million shares in recent years, says it plans to purchase a further 43.2 million shares in an effort to bring the total number of down to 150 million. The group increased its net tangible assets to $1.79 per share, from $1.55 the previous year.

SDG has not paid a dividend since 2009 and will not pay one again this year. Abedian says the company will look to reinstate dividends in the future.

SDG’s share price jumped almost 9 per cent this morning to $0.850 in reaction to the full year results.

The company today reported its plans for a site at Mariners Cove are still in the conceptual stage. The Carrington high-rise project in Brisbane is in its final stages of design.

The company exited Dubai this year, exchanging its projects there for full ownership of Palazzo Versace. The luxury hotel, on the Southport Spit, has been on the market for $80 million for nearly three months.

Meanwhile, Icon Energy has reported a $4.6 million loss for the financial year ending June 30.

Gold Coast-listed junior explorer (ASX: ICN) has trimmed its losses by about $1.4 million on the previous year.

It drilled five wells in the period, two at its Gippsland basin tenement, PEP 170, and three at ATP626P in the Surat Basin without major success.

The company’s shares are down 4.88 per cent to $0.195 in response to the results.


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