Finbar’s Revenue Jumps 46% Despite Profit Dip: What’s Next for the Developer?

Strong Revenue Growth Amid Profit Pressure

Finbar Group Limited, a Western Australia-based property developer, announced a significant 46.37% increase in revenue for the year ended 30 June 2025, reaching $284.5 million. This growth was driven primarily by the completion and settlement of major residential projects including The Point in Rivervale and Aurora Applecross.

However, despite the revenue surge, the company’s comprehensive profit declined by 12.49% to $14.4 million. This contraction reflects margin pressures and increased costs, including a notable $2.4 million decrease in investment property valuations and other operating expenses.

Project Milestones and Strategic Divestments

During the year, Finbar completed construction on two flagship developments, The Point and Aurora Applecross, which contributed substantially to sales revenue. The company also advanced construction on Garden Towers East Perth and Bel-Air in Belmont, with strong pre-sales supporting ongoing development.

In a strategic move to concentrate on its core property development activities, Finbar divested non-core subsidiaries Finbar to Rent Pty Ltd and Finbar Sales Pty Ltd, realising a net gain of $2.5 million. Additionally, select investment properties were reclassified as assets held for sale, signaling a focus on streamlining the portfolio.

Dividend Policy and Shareholder Returns

Finbar paid a fully franked final dividend of 8 cents per share for 2024 and has proposed a 2 cents per share fully franked dividend for 2025, payable in August. Notably, the company suspended its Dividend Reinvestment Plan (DRP) for the 2025 financial year, a decision that may influence shareholder liquidity preferences.

Leadership Transitions and Governance

The year saw key leadership changes with the retirement of long-serving Managing Director Darren Pateman and the appointment of Ronald Chan as Chief Executive Officer and Melissa Chan as Chief Operating Officer. The Board remains committed to strong governance, with ongoing oversight of risk management, remuneration, and ethical standards.

Financial Position and Risk Management

Finbar maintains a solid balance sheet with net tangible assets of $0.92 per share and a significantly reduced debt-to-capital ratio of 18%, down from 57% the previous year. The company continues to manage risks related to supply chain volatility, interest rate fluctuations, and property valuation uncertainties through prudent project funding and conservative valuation approaches.