Winton Delivers Strong FY22 Result

WINTON DELIVERS STRONG FY22 RESULT; RE-AFFIRMS FY23 GUIDANCE

Winton (NZX: WIN / ASX: WTN) is pleased to release its inaugural full year result as a publicly listed company for the period ending 30 June 2022, slightly ahead of its PFI forecasts – based on settlements of 449 units and $159.5 million in revenues, delivering a net profit after income tax of $31.7 million.

Chris Meehan, Chair and CEO of Winton said: “This strong full year performance reflects the underlying strength and resilience of the Winton business, which has been building over many years.

“Winton is in tremendous shape – our landbank has the potential to yield up to 6,896 units, including 919 retirement living units. Our gross pre-sales book sits at approximately $662.2 million as at 30 June 2022, we have $204.8 million cash on hand and zero debt on our balance sheet.”

“We are executing against a core strategy to mitigate cost increases and supply disruptions, while creating a diversified portfolio of distinct neighbourhoods in our core markets, and excitingly, making significant progress on the luxury Northbrook retirement brand under Julian Cook’s direction.”

“The double-digit year-on-year growth experienced in the New Zealand housing market over the last few years was unsustainable by any measure. We have seen residential enquiries and sales soften, but our long-term strategy of seeking pre-sales adds an important layer of resilience to our financial position.”

“Looking forward, the New Zealand housing market remains in a structural undersupply position and any contraction of the industry is likely to result in fewer operators. This is where we will actively seek appropriate opportunities to further diversify and add scale to the Winton portfolio and landbank,” he adds.

Relative to the prior corresponding period and in line with forecasts, Winton’s gross profit was $72.4 million, 2.7% ahead of the Company’s PFI and 26.1% ahead of FY21. During FY22, the timing of development and construction programmes resulted in Winton settling 18.8% fewer units than FY21, which saw FY22 revenue 9.9% lower than in FY21, while cost of sales were 27.1% down on FY21.

During FY22, Winton made significant progress across its 14 masterplanned neighbourhoods and 27 projects. The development of Winton’s luxury Northbrook retirement brand continues to gather pace – with significant progress realised through the design and resource consent application stages for the first five villages, located in Auckland, Christchurch, Queenstown and Wanaka.

Winton continues to add to its landbank having recently settled on a 5,000 sqm Wynyard Quarter site at Beaumont Street, Auckland for its Northbrook Wynyard luxury retirement village. Winton also acquired a prime waterfront 1.2-hectare block within Wynyard Quarter, known as Pier 21 located on Westhaven Drive, Auckland.

More recently, Winton announced the establishment of the Winton / MaxCap Medium Density Development Fund, a $200m equity investment vehicle that will focus on the acquisition and construction of townhouse and apartment developments throughout New Zealand’s metropolitan centres. This fund is expected to be the first of various funds management initiatives Winton will employ across different sectors of the property market in the near term.

Winton reaffirms its FY23 guidance, while remaining subject to no material adverse changes or unforeseen events, which is expected to deliver $344.7 million in revenue, $137.5 million EBITDA and $98.8 million profit after income tax. Approximately 84.8% in pre-sales of forecast FY23 revenue has already been achieved.

In line with the Company’s dividend policy, the Winton Board declared a 1.07 cent dividend per share for the six months ending 30 June 2022.

As at 30 June 2022, Winton’s landbank has the potential to yield up to 6,896 units, including 919 retirement living units. The Company’s gross pre-sales book was $662.2 million and continues to grow, with cash holdings of $204.8 million and zero company debt. Winton’s residential, commercial and retirement property portfolio as at 30 June 2022 has a total estimated Gross Development Value (GDV) of approximately $4.6 billion.

Following a formal request for proposals for external audit services, the Winton Board recommends Ernst & Young be appointed as its new external auditor. Winton has been extremely satisfied with KPMG’s external audit services over the past five years and looks forward to continuing to work with them on non-audit functions going forward. However, as the Company heads into the next five year term, the Board believes that now is the appropriate time to rotate external audit services. Ernst & Young’s proposed appointment as Winton’s external auditor is for the financial year ending 30 June 2023 and is subject to approval by shareholders at Winton’s Annual Shareholders’ Meeting to be held on 26 October 2022.

Winton’s Annual Report is also released today with the Company’s FY22 results, which contains important information related to the company’s governance, operational updates, financial commentary, Northbrook, and Winton’s environmental and social commitments.

Winton’s Annual Report and all future annual reports will be publicly available on our website https://investors.winton.nz/investor-centre/. You may at any time, request a hard copy (or an electronic copy) of the most recent and future Annual Reports free of charge. You can do so through our share registry, Link Market Services, including by updating your communication preferences online through the Investor Centre.

Ends.

For investor or analyst queries, please contact:
Jean McMahon, CFO
+64 9 869 2271
[email protected]

For media queries, please contact:
Hugo Shanahan
+64 275 111 561 / [email protected]


About Winton

Winton is a residential land developer that specialises in developing integrated and fully masterplanned neighbourhoods. Across its 14 masterplanned communities, Winton has a portfolio of 27 projects expected to yield a combined total of circa 7,000 residential lots, dwellings, apartment units, retirement village units and commercial lots. Winton listed on the NZX and ASX in 2021. www.winton.nz

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