Port Bouvard Announces Half Year Profit In-line With Expectations: Aggressive Rebuilding Strategy On-track
Media Release 29 February 2008
ASX-listed property developer Port Bouvard Limited (ASX: PBD) has posted an interim profit after tax of $618,000 for the six months to 31 December 2007.
Port Bouvard Limited Managing Director, Ross Neumann, said the results reflect the Company’s current re-building phase and importantly is in line with its own internal forecast.
“Since our Board decided in July 2006 to keep Port Bouvard Limited operating, the company has significantly replenished the project pipeline with the purchases of a number of key sites for major residential developments and is diligently working through necessary planning and approvals to bring these new and exciting developments to market.”
The last remaining canal stage in Eastport is under construction at the Port Bouvard Residential Estate and the luxurious Oceanique Apartments. Sales of Oceanique Apartments are progressing well, with Stage 1 sold out (comprising of 41 apartments for a total of $109 million) and Stage 2 to be released around May this year.
Strategies are also being assessed in respect to the development of additional hotel and villa sites also located within the Port Bouvard Resort Precinct.
The company recently announced the withdrawal of its Oceanique Fund due to current market conditions and will continue to pursue its fund management initiatives at a more appropriate and opportune time. The company will, in the interim, fund this development from its own balance sheet.
Port Bouvard Limited's strategy is to develop and expand the company through long term co-investment property model targeted at partnering with other equity providers so as to add value for shareholders to develop land throughout Western Australia, rather than as a traditional property developer. This continues to be the long term strategy of the Company and will be executed in accordance with market conditions at the time.
The company continues to look to maximise shareholder value and returns, subject to market conditions and financial considerations.
In addition to completing development at its two world-class estates at Port Bouvard and Princeton Private Estate at Stirling (both in Western Australia), the company has acquired land at Point Grey, Melros and Dawesville in the Peel Region of Western Australia, Gidgegannup in the hills region of Western Australia and Esperance in South West Western Australia. In total, Port Bouvard has a land bank of more than 5,000 residential lots coming to market in the coming 18 months.
The Board remains extremely confident of the underlying value of these assets moving forward and anticipates significant returns in the future.
The Board believes the value of the company’s land holdings to be far in excess of its current share price.
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