Ann: 1H FY24 Results Presentation, page-2

Another very lack-luster announcement and presentation!!!!

- CWP sell the shopping centre and adjoining 1ha land - however settlement does not occur until H1 2025.... selling it below valuation... was this a fire sale?
- H1 net profit of $2.8m..... ouch!!! I know its weighted to H2 but what is settlements get delayed... seems very risky!! Also shows that management try and push everything in before end of financial year and play catch up the following year. Why is the reason for H2 to be skewed otherwise? Why is it not consistent?
- No surprises here and i mentioned this in the last presentation... with increasing interest rates, finance will become more expensive and reduce profits. It clearly says that on page 9!! I am not sure why they are quoting increase in gross margin.... its all about net profit not gross margin!!!! very amateurish or smoke and mirrors. AND GROSS MARGIN ONLY IMPROVED FROM 25% to 26% - WOW 1% INCREASE.....!!!! What a joke! CLUTCHING AT STRAWS
- Finance costs went from 1.5 to 5.2 !!!! That is a huge difference and will continue to impact this company into the future!!!!
- Book value went up but net assets/equity went down....
- Bank debt to equity increased substantially!!!
- Includes $30m in facility that ends 31 March 2024.... bank headroom will reduce massively!!!
- ESG ; does not quote how much CWP has donated to The Smith Family... now that would be interesting;
- ESG ; 'strong staff satisfaction scores' - I can guarantee this is not the case!


Overall very underwhelming. I have mentioned this is previous posts... Over half of CWP pipeline is in WA which is low profit and slow sales. Therefore net profit will reduce. Net profit is only up due to shopping centre sale. Does that seem convenient? Especially given they sold the shopping centre less than valuation!!! - Bonuses for management sound about right..!!!

higher finance costs hurting, slower sales hurting, no more williams landing projects which are highly profitable due to entry price and holding price being well below market value. All other projects are at valuation and therefore profit per unit sold is less so they need to double their sales to achieve the same net profits year on year.

This is going to sink sooner to later... they are losing a grip of the company now with fire selling income producing assets to keep profits up... deceiving to say the least