DEVINE POSTS STRONG RESULTS
Written on the 13 August 2014
DEVINE Limited (ASX: DVN) has turned its spreadsheet around from this time last year, announcing a pre-tax profit of $5.6 million for the six months to 30 June, compared to a pre-tax loss of $6.9 million for the same period last year.
Managing director and chief executive officer David Keir (pictured) says the company is now reaping the rewards of a successful long-term strategy.
“Our strong trading performance in the first half reflects a general uplift in most property markets across Australia which we have translated into sales,” says Keir.
Testament to an upswing in Brisbane’s property market, sales have been strong over the period, notably at Hamilton Harbour and DoubleOne3 projects in the city.
Only one apartment at Hamilton Harbour is still available and 90 per cent of DoubleOne3’s apartments have sold.
The company’s capital recycling program, initiated in late 2013, has also helped reduce debt over the period.
“The capital raised through this program will allow us to investigate and negotiate a number of new higher-margin opportunities that will secure the project pipeline of the company in the future,” says Keir.
“With residential property markets continuing to improve in our key operational regions in south east Queensland and Victoria, 2014 will be a year of recovery for the company as we implement our strategy to return to sustained profitability.”
Looking forward, Leighton Holding Limited still intends to sell its 50.6 per cent investment in DVN, which has led to a process examining the sale of all shares.
An expression of interest program for the sale has commenced and is expected to conclude on 25 August.
The costs being incurred as a result of the sale process will impact the previous earnings guidance provided in June 2014.
Costs around the $1.5 million mark could be expected.
After the costs incurred from the sale process, the company expects to deliver a full year result of $10 million to $11 million profit before tax.