Winton Land's Northlake project at Wānaka. Photo / supplied
Winton Land's Northlake project at Wānaka. Photo / supplied
Winton Land, which was listed on the NZX two years ago, has nearly doubled its revenue and significantly boosted bottom-line profit after making strong residential sales.
In the six months to December 2022, the company earned $81.1m revenue, up from the previous $44.3m in the six months to December 31, 2021.
A previous interim net profit after tax of just $1.3m rocketed up to $34.5m net profit after tax in the December 2022 half-year.
The company settled sales of 219 housing units, including land lots and residential homes, at a 12.2 per cent higher average sales price than H1 FY22, reflecting settlements of units in more mature developments.
Its bottom line was also boosted by $15.6m revaluations when many other listed property companies were suffering devaluations in interim results.
Shareholders will get a 2.06 cents per share interim dividend.
The valuation rises came from its Northbrook at Wānaka and Lakeside Commercial properties after it got resource consent and made progress on the Lakeside Te Kauwhata site south of Auckland.
Chris Meehan, chief executive, said today: “This is a fantastic result for the half year. We deliver these results at a time of a softer housing market, high inflation and increasing interest rates where our pre-sales from prior years have done their role to provide security of income into the future.
He said national median house prices had dropped 12 per cent from a Covid-triggered peak and were expected to keep falling until inflation stabilised.
The company has a landbank which would enable it to develop 6751 housing units, including 907 retirement village homes. It has no debt and cash holdings of $89m.
Winton’s profit of $39.4m was 204.1 per cent up on H1 FY22.
The company expects to deliver net profit after tax of $72.4m to $82.4m, subject to no material adverse changes or unforeseen events, it said today.
January’s floods meant it could not complete most of this summer’s earthworks season.
Instead of making the $98.9m forecast for the year to June 30, 2023, the company previously said it only expected to make $72.4m to $82.4m.
“The change to guidance is driven by the delivery delay of pre-sold projects attributable to heavy January rainfall in the North Island.
“As a result, we have already lost 83 per cent of this summer’s earthwork season, incurred water damage to pre-ordered supplies and expect supply chain implications to the industry,” the company said this month.
Net profit after tax could be only $72.4m to $82.4m in the full-year result due out in August.
This compares to the FY23 forecast provided at the time of its initial public offer of $98.9m.
Winton is battling to build Sunfield in Auckland. Photo / supplied
The revised guidance remains above the FY22 declared net profit after tax of $31.7m.
Any net profit after tax not realised in FY23 is expected to be realised in FY24, as these profits are largely pre-sold and there are no sunset dates in relation to the delayed units that would put this at risk.
The revised FY23 guidance remains subject to no further material adverse changes or unforeseen events, the company said.
“Before the impact of the severe weather, the business was on track to achieve the FY23 IPO forecasts. Our high degree of committed pre-sales has served us well in this weaker housing market.
“FY23 is expected to be a record year for Winton as we deliver more land lots and homes than we ever have before.
“Going into the remainder of the year and into the next, we are in a strong financial and market position to continue to deliver our pre-sold product, create ongoing revenue opportunities and use softer market conditions to our advantage for further land acquisition and construction delivery,” Meehan said on February 7.
Winton has 27 projects that were expected to yield 7000 new residential lots, dwellings, apartments, units and retirement village places.
It listed on the NZX and ASX two years ago, raising $350m of new equity.
Macquarie Asset Management sank $200m into the listing through one of its real estate vehicles. As well, a group of rich investors contributed $110m for the balance of the capital raise.
