CDL lifts half-year profit

Property company CDL Investments New Zealand said today it had lifted its June half-year net profit 22 per cent to $3.80 million.

Pre-tax operating profit rose 13 per cent to $5.74m. Property sales and other income rose 27.4 per cent to $11.94m with 58 sections sold.

Shareholders' funds rose to $67.6m from $64.6m.

CDL said that within the markets it trades in, it was apparent there was an oversupply of sections in some areas and market segments.

"This reflects the current downward market cycle."

"The residential market is also contracting, albeit slowly, and prices have plateaued in some key areas," the company said.

"Although market commentators are of the view that the New Zealand economy will experience a soft landing, factors such as recent rises in mortgage interest rates cannot be ignored."

The company said although trading conditions were likely to remain difficult for the remainder of 2006, its strategy of maintaining a wide geographic spread of sections at competitive prices had allowed it to stay competitive and profitable.

Its shares last traded at 36c, having ranged between 32c and 42c over the last year.

- NZPA