Dawn Properties release improved results

Published: 28 November 2013

Dawn Properties Limited released an improved set of results recording a 4% growth in revenue to $2.9m (2012: $2.8m). Reported operating profit increased by an impressive 185% mainly because of the rationalisation completed in the previous financial year which resulted in the discontinuation of non-performing businesses.

Nonetheless, we estimate that adjusted operating margins (excluding discontinued operations) eased to 29.2% from 37.1% as administration expenses spiked by 16.6% to $2.1m. We attribute the margins shrinkage to the slow down witnessed in the Property Division.

Turnover for the hotel portfolio increased by 3% to $1.3m driven by the 23% growth in RevPAR at Elephant Hills Resort which hosted the UNWTO Conference in August 2013. The Property Consultancy division was negatively affected by the liquidity scourge which led to reduced commission as rental collections plunged; consequently turnover was 6% below the prior period. An interim dividend of 0.00008 cents per share was declared. The LDR is Friday 20 December 2013.

The cash flow statement indicated that the net operating cash flow grew strongly at 100% to $0.7m. The balance sheet remained in pristine state with negative net gearing of 1.5%.

Assets were flat on the balance sheet as there was no significant increases save for the current assets which increased from $0.9m to $2.5m. The investment properties were flat at approximately $84.4m.

The lease re-structure is in process and it is anticipated to be completed in the second half of the current financial year. The company expects to launch the housing project in Marlborough in the first half of calendar year 2014. The directors resolved to payout 25% of profits for the period as dividends.
- businessdaily