Cedar builds profit jump

DEVELOPER Cedar Woods Properties expects a record profit this year after the West Australian housing market underpinned a big jump in first-half earnings.

Managing director Paul Sadleir said first home buyer activity was holding up in the state, helping Cedar achieve a 65 per cent jump in net profit.

The Perth-based company has residential projects split between Western Australia and Victoria.

"Perth has certainly been on an upswing after a post-stimulus quiet period," Mr Sadleir said.

"Melbourne's at a different point in the cycle . . . since about September 2010 it's been, sort of, bumping along at very low levels after what had been a strong period."

Mr Sadleir said he was confident demand would pick up for the Victorian projects, of which three out of four are near railway stations.

Net profit in the six months to December 31 rose 65 per cent to $18.1 million, from $10.94 million during the previous corresponding period. Cedar forecast a record full-year net profit of $35 million, up slightly from $34.25 million in 2011-12. Cedar reported $70 million in pre-sales on projects due for completion in the second half of 2012-13.

But revenue in the six months to December 31 fell 5 per cent to $73.5 million.

The company has high hopes for its Williams Landing project in western Melbourne, which will integrate a Woolworths supermarket and a Masters Home Improvement store into a railway train station and freeway interchange precinct.