Winton Land Limited (NS) Analysis

Overview

To date, Winton’s primary business has been developing and selling ‘lots’ of residential land. In some cases, Winton also provides land and building packages, where Winton contracts with specialist builders to provide a home on the land it is selling. Similarly, where the market or site dictates, Winton develops apartment buildings as part of its masterplanned developments.

Performance

The following information was extracted from Winton Land Limited's Half Year Results, released 21 February 2025:

Winton (NZX: WIN / ASX: WTN) today announces its interim results for the six months ending 31 December 2024 (H1 FY25).

Revenue of $81.1 million decreased 5.3% compared to H1 FY24 revenue of $85.6 million. Revenue for the period is attributed to 90 units settled, down 68 units from 158 in H1 FY24, a full six months of trading at Ayrburn compared to one month in the prior period, and rent received.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for H1 FY25 decreased to a loss of $0.1 million from $14.2 million profit in H1 FY24, and there is a net loss after tax of $2.0 million in H1 FY25 compared to a $9.7 million net profit after tax in H1 FY24.

The decrease in profitability reflects the lower number of settlements, a $2.8 million investment properties fair value loss in H1 FY25 compared to a $2.6 million gain in H1 FY24, a $3.6 million increase in administrative expenses reflecting a full six months of administration expenses from the establishment and operation of Ayrburn, $1.0 million higher depreciation and a $0.7 million decrease in net interest income. This is offset by 10.1% lower selling expenses, mainly attributable to lower marketing costs.

Chris Meehan, Chair and CEO of Winton said: “These results reflect the struggling economic environment and a year of lower product delivery in Winton’s residential development timeline.

While the overall results aren’t what we would have liked, we have continued to operate with discipline, nurtured growth parts of the business in line with the revenue diversification strategy and avoided taking on significant new projects to protect the Company from undue risk until we see clear evidence that the cycle is turning. We are navigating the recession as well as possible but most importantly, we are positioning the Company optimally to benefit from an improving property cycle.”

Winton finished the six-month period with a pre-sale book of $342.0 million as at 31 December 2024, a landbank yield of c6,000 units, including 877 retirement living units and cash holdings of $26.1 million.