In the company’s full-year financial results released to the Australian Securities Exchange on Friday, Centuria revealed an increased underlying net profit after tax (NPAT) of $5.3 million, up 8 per cent from the $4.9 million announced last year, while statutory NPAT more than tripled from $2.0 million to $7.3 million.
Underlying earnings per share increased by a quarter, from 6.1 cents to 7.7 cents per share, and statutory earnings per share almost quadrupled, up from 2.5 cents to 9.4 cents per share.
The group tripled its direct property fund acquisitions over the prior period, from $58 million to $171 million, and doubled its market capitalisation from $32.7 million to $64.0 million, as well as doubling its share price from 42 cents to 82 cents.
The group said it had completed the sale of legacy properties Moonah Links at Fingal in northern NSW and Pepper Sands Resort at Torquay near Melbourne, which group chief executive John McBain said had “no adverse impact on the group’s earnings or balance sheet”. Corporate debt to equity remains low, Centuria stated.
Costs remained stable despite several growth initiatives launched during the period, including the opening of a Singapore office focusing on wholesale investors and the launch of a new listed property division, as outlined by Mr McBain to InvestorDaily in April.
Revenue in the traditional direct property division increased by 30 per cent over the period, with a “strong increase in management and acquisition fees.”
Mr McBain claimed the group’s financial services division had contributed strongly to the result.
“Centuria Life has seen stabilisation of total funds under administration and we are in the final stages of developing a new investment product which will highlight the attraction of our investment bonds as an alternative to traditional superannuation offerings,” he said.
However, the company also said it would not pay a final dividend for the 2013 financial year due to expenses incurred as part of the growth initiatives.
“Whilst it is regrettable that the dividend stream has been interrupted during this period of exceptional growth, we have a clear growth strategy and the establishment of these new divisions primes Centuria for further expansion,” Mr McBain said.
