Summerset profit 35% higher than forecast
Retirement village developer beats IPO forecast.
Retirement village developer beats IPO forecast.
Summerset Group has announced an underlying profit 35% higher than forecast.
In releasing its full results today, the retirement village developer and operator said its underlying profit was $8.1 million, compared to an IPO forecast of $6 million.
Managing director and chief executive Norah Barlow said the result was due to a very strong performance in the second half of the year, driven by early delivery of new developments and higher than predicted sales.
“Our new developments performed very well and existing villages experienced uplift in demand driven by a number of factors, including an increased brand profile and effective marketing initiatives,” Mrs Barlow said.
Summerset’s net operating cash flow was also up on IPO forecast by 14% at $44 million, on the back of higher occupation occupation rights sales and better than expected operational performance, she said.
During the 2011 year Summerset started work on two new villages, one in Nelson and the other in Hamilton.
It also continued development at existing villages in Warkworth, Hastings and Manukau.
The value of Summerset’s total assets is now $617 million, having grown 15% from $537 million in 2010.
Mrs Barlow said she expected there would be further announcements regarding new sites in the coming year.
Summerset’s after tax result of $4.3 million compared to the IPO forecast of $5 million after non-cash accounting tax adjustments were made.
Summerset chairman Rob Campbell said he was pleased with how the company had performed since it listed in November.