Thursday 12 November 2015 by Company updates

W.A. Stockwell FY15 audited accounts and 1Q16 update

All development projects appear to be progressing in line with expectations

Stockwell has given a development update and released its audited FY15 financial accounts. The accounts differ from management estimate figures provided when the bond was issued in June. These estimate figures for FY15 were based on management accounts and prepared by accountancy firm, Williams Hall Chadwick, for the bond offer. The main driver of difference between estimates and actual figures was the auditor’s decision to expense various items rather than capitalise them. This typically reflects timing differences in recognition rather changes to income/expenses and are largely non-cash - therefore not considered problematic.

Management estimates and actual figures are detailed below along with a reconciliation of figures.

$m FY15 management FY15 audited Difference
Revenue 67.8 68.0 0.2
EBITDA 13.1 10.2 -2.9
Net cashflow 29.9 30.4 0.5
Net profit before tax (reconciled below) 10.9 2.2 -8.7
Net assets (reconciled below) 88.7 71.4 -17.2
EBITDA/Interest 3.5x 1.4x
Debt/Total capital 63.0% 69.2%
Tangible assets/total liabilities 145% 129%
                        
Reconciliation Comments Amount $m
NPBT
Distributions Increased payout to shareholders (1.85)
Bond issuance costs            Expensed not capitalised (1.20)
Interest Income Lower income (capitalised) from director
loans given balance was paid down
(1.29)
Interest Expense Expensed not capitalised and allocated
as development stages were completed
(3.45)
Riverpoint Ferry Non-cash: provisions for defects (0.45)
Amortisation of Borrowing Costs Non-cash: previously not allowed for (0.48)
Total (8.71)
Net Assets
Difference explained above (8.71)
Infrastructure charges Prior period adjustment to reflect
expenses in the period recorded
(4.80)
Widgro Joint Venture carrying value Non-cash adjustment (0.30)
Deferred tax assets/liabilities Non-cash adjustment (3.20)
Total (17.02)
  • Gearing was higher than management accounts primarily due to the lower net asset figure. EBITDA interest cover was lower primarily due to the additional $3.45m in interest the auditors decided to expense rather than capitalise against the development
  • Again we note that the majority of the changes reflect accounting treatment and did not impact cashflow. Net cashflow for the period was actually slightly higher than expected at $30.4m compared $29.9m
1Q16 development update
60 Ferry Rd Riverpoint on Ferry - 50 residential units
- Completed on time and on budget May 2015
- 100% sold
43 Forbes St Habitat (Part of Riverpoint)

- 151 residential units
- Completed on time and on budget 1Q16
- Circa 90% presold

51 Ferry Rd Virtuoso - 77 residential units
- Projected completion June 2017
- Circa 30% sold                      
399 Montague Rd Muse - 132 residential units
- Projected completion January 2017
- 55% sold
50 Ferry Rd - 60 residential units
- pre DA
- Projected completion July 2018
  • All projects are progressing in line with expectations