DEVINE PROFITS $9.5M

RESIDENTIAL developer Devine Limited will continue to drive a growth focused strategic plan after reporting NPAT of $9.5 million for the December half – up from $1.2 million on the corresponding period.

Managing director David Keir (pictured) says the result reflects the company’s focus on generating sustainable short-term earnings while driving the company’s long term pipeline of new projects.

“We’ve executed the delivery of key projects extremely well over the last six months despite difficult conditions in some markets – this has ensured we’re achieving our short term goal of building sustainable earnings per share,” he says.

“In parallel with this focus on execution, we’ve also been building for the future by securing in excess of 4 300 new lots for future development, taking our pipeline to approximately 12 700 lots and apartments with an end value of $2.8 billion.”

Last month, the company announced it had acquired a substantial residential development project at Munno Para Downs North of Adelaide for an end value of $190 million.

Keir says the project will accommodate 650 residential allotments and provide significant strength and diversity. He says the latest acquisition reinforces growth plans. The company underwent a capital raising in March 2010, which raised $66.3 million.

“The Munno Para Downs site will increase our South Australian land bank to in excess of 2100 lots and enhance our current active projects,” he says.

“We expect to achieve the necessary development approvals within two years with the first allotments expected to be released in 2013.The acquisition will be made on deferred payment terms over a number of year and the cost of it isn’t material to the company having regard to the company’s total asset and net asset position.”

Keir says the reduction in debt significantly strengthened the company’s balance sheet and the available debt facilities will enable the company to pursue emerging opportunities during the coming year.

“The company made a number of site acquisitions in 2010, which will expand the company’s development pipeline by over 4130 lots across Brisbane, Melbourne and Adelaide. The Munno Parra Downs site increases Devine’s backlog of equivalent lots and future dwellings to over 12,300 nationally,” he says.

Company founder David Devine along with fellow director Ken Woodley stood down from the board in 2010, while the company’s CFO Travis Young was appointed as a non executive director in November 2010.

Devine shares are slightly up, today trading at 30c.

For the full story on Devine, don’t miss the annual Top 50 Companies edition of Brisbane Business News out in March.