CDI - Chairman's Review H1 2008
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CDL Investments New Zealand Limited (CDI) | 8:20 am, Wednesday 6 August 2008 | CDI | 0.220 |
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CHAIRMAN'S REVIEW
Financial Performance:
The Directors of CDL Investments New Zealand Limited ("CDLI") advise that the
Company has made an unaudited operating profit after tax of $1.481 million
for the six month period ending 30 June 2008 (2007: $7.566 million).
Operating profit before tax was $2.040 million (2007: $11.278 million).
Property sales and other income for the period was $4.069 million (2007:
$20.327 million). A total of 20 sections were sold (2007: 108).
Market Overview:
As foreshadowed in the 2007 Annual Report, the depressed market conditions
throughout New Zealand are clearly reflected in this interim result. Like
other property development companies, CDLI has not been able to generate the
same level of sales as seen in previous years. While Management is
developing initiatives to generate sales in the latter half of 2008, the
Company has slowed its development programme down both in response to current
demand and to save costs where practicable.
Acquisitions:
The Company has not acquired any properties during the period under review.
Outlook:
It is clear that from a profit perspective, 2008 will be a very difficult
year given the dramatic slow down in the New Zealand property market and the
corresponding impact on CDLI's revenue and profit. Assuming no adverse
unforeseen events, the Board does not expect that the 2008 results will run
at a loss.
CDLI's key competitive differentials are still its financial strength,
quality of assets, geographical diversity of its asset portfolio and its
long-term approach to development. The Company remains in the enviable
position of being able to make acquisitions in the current marketplace and
will secure strategic opportunities if and when they arise.
Wong Hong Ren
Chairman
6 August 2008
