Photo: 123RF
Residential property developer Winton says its full-year profit will be at least 17 percent down on forecast as a result of bad weather.
The company's net profit for the year ending June was expected to between $72.4 million and $82.4m, compared with a forecast of $98.9m, made at the time of its initial public offering (IPO) and NZX listing in 2021.
However, the revised guidance was expected to beat the year earlier's $31.7m net profit.
In addition, the company said any profit unrealised in this financial year would be realised in the next, as those profits were largely related to pre-sold units that had no sunset dates.
Winton chief executive Chris Meehan said last month's heavy rain damage had delayed delivery of pre-sold projects, with earthworks significantly behind expectations, in addition to supply chain disruptions.
"We have already lost 83 percent of this summer's earthwork season, incurred water damage to pre-ordered supplies and expect supply chain implications to the industry," he said.
"Before the impact of the severe weather, the business was on track to achieve the FY23 IPO forecasts.
"Our high degree of committed pre-sales has served us well in this weaker housing market."
He said the company was still on track to deliver a record number of land lots and homes this year.
"Going into the remainder of the year and into the next, we are in a strong financial and market position to continue to deliver our pre-sold product, create ongoing revenue opportunities and use softer market conditions to our advantage for further land acquisition and construction delivery."
He said the balance sheet remained debt free, with cash and cash equivalents of $89m as of 31 December 2022.
The company declined to make further comment ahead of its full interim results and commentary, to issued on 22 February.