Summerset sales on cusp of beating annual IPO target

BUSINESSDESK: Summerset Group, the retirement village operator and developer, is on the cusp of beating forecast annual sales of occupation rights after just nine months of the financial year.

The Wellington-based company increased new sales of occupation rights 41% to 86 in the three months ended September 30 from the same quarter a year earlier, it says.

That has taken year-to-date sales to 257, one short of the annual target in its prospectus. New sales rose 46% to 41 in the quarter and resales climbed 36% to 45.

"Sales within the group continue to the strong," chief executive Norah Barlow says. "Our recent first-half results reflected this and we are pleased to see the momentum continue."

The quarter built on 83 new sales of occupation rights for gross proceeds of $28.8 million and 88 resales, realising gains of $4.2 million.

Ms Barlow expects the company will beat its initial public offering forecast of net profit of $13.3 million and underlying earnings of $9.7 million in calendar 2012.

The shares were unchanged at $1.95 in trading today and have climbed 46% this year. The stock is rated an average "hold" based on four analyst recommendations compiled by Reuters, with a median target of $1.925.

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7959 -0.0001 -0.01%
AUD 0.9075 0.0004 0.04%
EUR 0.6264 0.0040 0.64%
GBP 0.4941 0.0013 0.26%
HKD 6.1735 -0.0023 -0.04%
JPY 85.1880 0.1030 0.12%

Commods

Commodity Price Change Time
Gold Index 1248.5 4.340 2014-10-21T00:
Oil Brent 86.2 0.820 2014-10-21T00:
Oil Nymex 82.5 -0.260 2014-10-21T00:
Silver Index 17.5 0.190 2014-10-21T00:

Indices

Symbol Open High Last %
NZX 50 5233.1 5264.6 5233.1 0.47%
NASDAQ 4359.2 4419.5 4316.1 2.40%
DAX 8693.1 8889.8 8717.8 1.94%
DJI 16406.0 16620.8 16399.7 1.31%
FTSE 6267.1 6372.3 6267.1 1.68%
HKSE 23300.5 23300.5 23088.6 0.60%
NI225 15038.2 15129.1 14804.3 1.64%