Shares in Subiaco-based property management group Wentworth Mutual Ltd have risen 8 per cent after the company upgraded its projections for the full year to 30th June 2006.
Shares in Subiaco-based property management group Wentworth Mutual Ltd have risen 8 per cent after the company upgraded its projections for the full year to 30th June 2006.
At market close, Wentworth's share price was up .2 cents to 2.7 cents.
Following it's release of its half year results last week, Wentworth has upgraded its projections for earnings before income tax, depreciation and amortisation (EBITDA) from `break even' to $800,000 for the full year to 30th June 2006.
For the half year ended 31 December 2005, Wentworth recorded a $1 million EBITDA loss and posted a loss after tax of $1.2 million. The company's revenue for the half year was $1.77 million, up 308 per cent on the previous corresponding period.
Wentworth has also projected an EBITDA for the full financial year to 30th June 2007 of $6 million.
The company listed a number of key factors as to their reasoning behind the upgraded EBITDA projection:
The Group's revised business strategy has seen WWM record an operating cash flow surplus for each month since December 2005. This together with recent capital raisings has significantly improved the balance sheet allowing the normalization of the level of creditors and the repayment of debenture holders.
Wentworth have identified a number of acquisition opportunities, both rent roll businesses and property management rights and is confident that these acquisitions will occur and contribute to earnings in the current half.
Wentworth executive director Kingsley Lamont said the group would continue with its acquisition strategy.
"To date, we have invested $10 million in the acquisition of real estate rent rolls (residential property management)and $25 million in the acquisition of management rights," he said.
"We have clearly determined the numbers we need to drive economies of scale and increase profitability from our rent roll and management rights businesses and continue toward our goals.
"We are excited by the continuing opportunities that are in the management rights industry and will invest a greater share of our acquisition dollar in this sector.
"Our aim across both the rent roll and management rights businesses is to maximise income and manage expenditure to increase profitability and shareholder returns."
