Summerset 3Q sales on cusp of beating annual IPO target

Wednesday 17th October 2012

Summerset Group, the retirement village operator and developer, is on the cusp of beating forecast annual sales of occupation rights after just nine months of the financial year.

The Wellington-based company increased new sales of occupation rights 41 percent to 86 in the three months ended Sept. 30 from the same quarter a year earlier, it said in a statement.

That's taken year-to-date sales to 257, one short of its annual target in its prospectus. New sales rose 46 percent to 41 in the quarter and resales climbed 36 percent to 45. "Sales within the group continue to the strong," chief executive Norah Barlow said in a statement.

"Our recent first-half results reflected this, and we are pleased to see the momentum continue."

The quarter built on 83 new sales of occupation rights for gross proceeds of $28.8 million and 88 resales, realising gains of $4.2 million for the company. Summerset's Barlow expects the company will beat its initial public offering forecast of net profit of $13.3 million and underlying earnings of $9.7 million in calendar 2012.

The shares were unchanged at $1.95 in trading today, and have climbed 46 percent this year. The stock is rated an average 'hold' based on four analyst recommendations compiled by Reuters, with a median target of $1.925.

BusinessDesk.co.nz

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