MENU

Finbar raises the roof 10% on record profit

Finbar Group (ASX: FRI) is raising the roof on record profits. The property development company reported its 2013 full-year earnings today, pushing up both its top and bottom lines. Revenue for 2013 clocked in at $124 million, up from $93 million last year. And while sales soared, the company kept cost of sales steady, translating to a $10 million boost in gross profit to $38 million.

But for investors, the best news came from the bottom line. Finbar boosted after-tax net profit up 10% to $31.2 million, a new record for the company. Adusted EPS came in at $0.145, up from $0.126 in 2012. These latest numbers mark a seventh straight year of earnings growth, and are due primarily to projects in Karratha, East Perth, and East Victoria Park.

“We have secured some excellent sites this year that meet our strict land price modelling,” said Managing Director Darren Pateman in a statement today. “Some of these have also been by way of JVs [joint ventures] with land owner partners which allow us to leverage our development returns very efficiently.”

Looking ahead, Pateman expects these latest sites to continue to generate strong returns as they continue through the development cycle. He did note, however, that sales activity has slowed in some areas due to tough times for the resources sector. But with $35.6 million in cash, Finbar’s balance sheet is in good order, and the company will continue to peruse for profitable joint ventures. For the moment, fiscal 2014 expectations are expected to fall in line with 2013’s results.

Property markets are making a comeback, but there’s one company that’s set itself up for stable returns, no matter what. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.