Winton continues momentum into FY24

WINTON CONTINUES MOMENTUM INTO FY24

Winton (NZX:WIN / ASX:WTN) is pleased to release its interim results for the six months ending 31 December 2023 (H1 FY24) with revenue of $85.6 million(1), earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.2 million and $9.7 million profit after tax.

Winton settled 158 units in H1 FY24, delivering $85.6 million in revenue, down 7.7% from $92.8 million in H1 FY23 when we settled 219 units. Settlements in H1 FY24 comprised more dwellings compared to H1 FY23, increasing the average revenue per unit.

Chris Meehan, Chair and CEO of Winton said: “Off the back of a record year of delivery in FY23, momentum continued into FY24 across the business. Our long-standing pre-sale strategy has continued to serve Winton well in the current challenging economic environment and property market, and along with the 158 units settled, we achieved a number of milestones, each of them a stepping stone toward Winton’s growth plan to create more diversified and recurrent revenue streams.”

“We finished the half year in an excellent position with pre-sales of $409.0 million as at 31 December 2023, a landbank yield of 6,268 units(2), including 902 retirement living units, and cash holdings of $99.3 million.”

During H1 FY24, 34.8% of product settled were constructed homes and commercial units compared to 11.9% in H1 FY23, resulting in a 24.7% higher cost of sales to $57.0 million. These are partially offset by higher average revenue per unit received over the period.

EBITDA of $14.2 million and $9.7 million profit after tax were down 71.5% from $49.8 million and 71.8% from $34.5 million respectively. The decrease reflects higher cost of sales from more built product this period, a $13.0 million lower gain in revaluation of investment properties and higher selling and administrative expenses mainly from the launch of Northbrook and Ayrburn.

In December, Winton implemented an $80.0 million debt facility with Massachusetts Mutual Life Insurance Company, which is ringfenced to the Lakeside development to fund Winton’s wider growth plans, particularly our luxury later living offering, Northbrook.

Mr Meehan said: “My highlights this year so far included starting construction at Northbrook Wynyard Quarter, Northbrook Wanaka and Northbrook Arrowtown, the market reaction to our luxury later living proposition, future residents securing their homes within Northbrook, opening Ayrburn in December and new residents moving into Winton neighbourhoods as completed product settled.”

“While some positive indicators are appearing, including slowing inflation, an increase in net migration, improving REINZ statistics, and decreasing residential lending rates, we remain cautious. In the short term, we are prepared for sales to remain slower, inflation to remain elevated, and continued pressure on borrowers. However, we are focusing on buyer groups that are the least affected by these headwinds and are generally well-positioned to use current market conditions to our advantage.

“As Winton communicated in its FY23 results, it is expected that FY24 revenue will be lower compared to FY23, reflecting a significant year of delivery in FY23, the timing of development construction and settlements, and a continued subdued property market.”

“While the market and economic landscape is complicated, there is a lot going on at Winton and a lot to look forward to. A big thank you to everyone involved in bringing each Winton project to life on time and on budget, including the Winton team, our contractors, and our service suppliers.”

The Board declared a dividend of 0.55 cents per share for the six months ending 31 December 2023. The dividend is in line with our dividend policy, updated in February 2023 to exclude any unrealised valuation movements in investment properties and within a pay-out ratio of approximately 20-40% of full-year distributable earnings.

Winton’s Interim Report and all future financial reports will be publicly available on our website Investor Centre (https://investors.winton.nz/investor-centre/).

Ends.

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

For media queries, please contact:
Sonya Fynmore
+64 21 404 206
[email protected]

Attachments:
Cover Letter
NZX Form – Results Announcement
NZX Form – Distribution Notice
Interim Results Presentation
Interim Financial Statements

(1) Revenue includes all revenue as per Note 2 in the financial statement on page 17 of the Interim Report FY24.

(2) Units comprise residential land lots, dwellings, townhouses, apartments, retirement living units, and commercial units. Target units to be developed from 1 January 2024 onwards on existing projects are based on management estimates and masterplans current as at 31 December 2023. Target total units, target product mix, and target settlement period may change, including due to planning outcomes and market demand.

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Announcement PDF