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.

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

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