CDL Investments lifts first half profit 3.6% on 'satisfactory' property sales

Net profit rose to $8.5 million, or 3.08c, in the six months ended June 30.

CDL Investments, the residential property developer controlled by Millennium & Copthorne Hotels New Zealand [NZX: MCK], lifted first-half profit 3.6% on what it called "satisfactory" sales that reflected the current market.

Net profit rose to $8.5 million, or 3.08c, in the six months ended June 30, from $8.3 million or 2.99c a year earlier, the Auckland-based company said in a statement. Revenue fell 4.1% to $23.9 million, and the improved margin came through lower cost of sales and cheaper selling expenses. The company anticipates annual profit to beat the $14.7 million it reported last year.

"The level of sales made in the first half of 2015 is satisfactory and reflect current market conditions," chairman Wong Hung Ren said. "In terms of sales for the remainder of the year, we expect the current tempo to continue."

The board didn't declare an interim dividend. CDL shares were unchanged at 64c, and have gained 19% this year.

Managing director BK Chiu said the company sold 128 sections at subdivisions in Hamilton, Hawke's Bay and Rolleston. Additional stages at CDL's Stonebrook development in Rolleston and Magellan Heights in Hamilton had been completed, and earthworks were under way at sites in Auckland and Christchurch.