FDC swings to FY profit

Group pushes forward with cost control strategy to weather subdued retail market.

Federation Centres (FDC) expects to increase earnings per share to between 16.5 cents and 16.8 cents after swinging to a full-year profit, as it continues its strategy of cost control to weather a subdued retail market.

For the year to June 30, the commercial property group posted a net profit after tax of $212.65 million, compared to a $222.89 million loss in the seven-month period to June 2012 following its rebirth from Centro Ltd.

Full-year underlying earnings was $224.4 million, in line with analyst estimates.

Gross expenses of $297.5 million for fiscal 2011-12 were attributable to settlement of class action and litigation defence costs.

Revenue was also up, at $546.05 million compared to $318.29 million in fiscal 2011-12.

The group paid a final unfranked dividend of 7.5 cents per security, bringing the total dividend to 14.1 cents for the financial year.

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