13 Aug 2014

Summerset predicts strong second half

7:11 am on 13 August 2014

Summerset is expecting to sell considerably more units in its second half, making up for a shortfall in the first half.

On Tuesday, the retirement village operator reported a 42 percent lift in first-half net profit as the value of its properties increased.

However, the company's underlying profit was down 6 percent, reflecting its investment in building record numbers of homes.

Summerset's net profit for the six months ended June rose to $15.3 million while underlying profit eased to $9.4 million compared with the same six months last year.

Although sales of new units fell 9 percent in the first half, chief executive Julian Cook said he was confident of a strong second half.

He said Summerset will have four new villages opening in the second half and contributing to sales in the second half of the year.

Mr Cook said he is very pleased with how the building is tracking particularly on the Karaka and Hobsonville sites and Summerset has had to accelerate the building programmes due to demand.