Gold Coast property finance group City Pacific has continued its run of record profits, yesterday posting an interim result of $24.25 million.
The net profit for the six months to December 31 is up 19 per cent on a year earlier, and sets the company on course for a full-year result of about $75 million.
The half-year result was struck on a $9.1 million drop in revenue to $108.5 million, largely due to rain-affected delays in construction at its Martha Cove project on Victoria's Mornington Peninsula as well as delays in property settlements. The company reaped big rewards from joint ventures, with its 26 per cent interest in Indigo Pacific Capital producing a net profit of $1.81 million, up from $21,474 a year earlier, and its 50 per cent joint venture Mirvac Pacific reaping a healthy $2.54 million.
Earnings per share have jumped 16.5 per cent to 18.68c, the company's fifth half-year record on the trot since listing in 2001.
The interim dividend has edged up 4c to 15c a share, payable on March 30. City Pacific chief Phil Sullivan said the profit result reflected the strong core fundamentals of the business, which is among the stock exchange's top 200 companies.
"City Pacific's operations will continue to benefit from a foundational platform of specialist skills in mortgage origination, property lending and development," he said.
"Our development pipeline, now over 7000 lots, will predictably provide increasing returns in coming years."
Among the company's major projects are the $650 million Martha's Cove waterfront development in Victoria and the $1 billion Ocean Terminal and Breakwater Cove project in Townsville.
City Pacific has also teamed up with property giant Mirvac to develop a 366ha site surrounding Gainsborough Greens golf course at Pimpama.
City Pacific yesterday reported a lift in its net tangible asset backing from 93.1c a share to $1.06 a share.
The company's shares rose 4c to close at $4.70.
Following the placement of 18.3 million shares earlier this month, City Pacific's market capitalisation yesterday stood at $705 million.
