Forsyth Barr broker Lyn Howe is expecting a 14.5% gain in underlying profit for the year, up to $180.5million, which would be in line with Ryman’s long term target of around 15% annual profit growth.
"We expect a stronger second half in terms of new sales volumes and continued strong pricing to offset higher development costs," Mrs Howe said.
Sales revenue is expected to have increased from $535 million a year to $633 million.
She expected resale gains to also be a key driver, due to high pricing and margin gains given the favourable environment, with rapidly ageing populations in both New Zealand and Australia.
Mrs Howe is expecting updates today from Ryman on its "pipeline" of Melbourne developments and also Ryman’s take on the Government’s equal pay settlement for caregivers.
