Winton on track to deliver record year in FY23
MARKET ANNOUNCEMENT
NZX: WIN / ASX: WTN
22 February 2023
WINTON ON TRACK TO DELIVER RECORD YEAR IN FY23
Winton (NZX: WIN / ASX: WTN) is pleased to release its interim results for the six months ending 31
December 2022 (H1 FY23) with revenue of $85.1 million, a gross profit margin of 46.3%, earnings
before interest, tax, depreciation and amortisation (EBITDA) of $49.7 million and $34.5 million profit
after tax.
Chris Meehan, Chair and CEO of Winton said: “This is a fantastic result for the half year. We settled
219 units
1
delivering $85.1 million revenue which was 91.9% higher than H1 FY22 and delivered
$34.5 million profit after tax.”
“We deliver these results at a time of a softer housing market, high inflation and increasing interest
rates where our pre-sales from prior years have done their role to provide security of income into the
future. As at 31 December 2022, pre-sales were $565.8 million
2
.”
“We also deliver these results at a time when New Zealand is dealing with the cleanup from the
January storms and Cyclone Gabrielle. The full extent of the damage and cost for New Zealand is
unknown and the effects will be ongoing as the remediation and rebuild occurs. I acknowledge the
distressing situation for many and those personally impacted.”
“NZ median sales prices have decreased 12% from their COVID triggered peak and we expect them to
continue to decline until inflation has stabilised. We successfully operated in the pre-COVID market
with robust profit margins and the ability to create and fund new projects and will continue to do so
as we move through the current sales cycle. In this environment, the strategy adapts to
accommodate low pre-sales for the majority of the market as buyers prefer to buy completed
properties and focus on high net worth pre-sales where buyers are more immune to the current
economic conditions. Aligned with this, we have continued to make good progress with our luxury
retirement offering Northbrook and premium freehold apartment products in Parnell and Wynyard
Quarter.”
“FY23 is expected to be a record year for Winton as we deliver more land lots and homes than we
ever have before. Going into the remainder of the year and into the next, we are in a strong financial
and market position to continue to deliver our pre-sold product, create ongoing revenue
opportunities and use softer market conditions to our advantage for further land acquisition and
construction delivery.”
“We finish the half year in a strong position with a landbank yield of up to 6,751 units, including 907
retirement living units, cash holdings of $89.0 million and zero debt.”
1
Units comprise residential land lots, dwellings, townhouses, apartments, retirement living units and commercial units.
2
Winton pre-sells properties by signing a contract with buyers prior to completion of a unit who pay a deposit on signing
the contract (which is held in Winton’s solicitors’ trust account) and then pay the balance on completion. Pre-sales are
recognised as revenue when the unit is settled.
2
Relative to the prior corresponding period, Winton’s gross profit was $39.4 million, 204.1% ahead of
H1 FY22. During the first half of FY23, the timing of development and construction programmes
resulted in Winton settling 71.1% more units than H1 FY22, which saw revenue 91.9% higher than
the same period in FY22, and cost of sales up 82.6%.
During H1 FY23 Winton continued executing development plans across its 14 masterplanned
neighbourhoods and 27 projects including completing Stages 5, 7 and 8 at Beaches Matarangi,
Stage 2 at Lakeside Te Kauwhata, Ovation apartments at Launch Bay Hobsonville Point and the Stage
15 homes at Northlake Wanaka.
Julian Cook, Director of Retirement, has continued to build out the Northbrook team, appointing an
operations manager, clinical manager, marketing manager and sales manager who is starting to
establish the sales team. Development is well underway at Northbrook Wanaka, including the
construction of the show suite. The flagship Northbrook show suite is also under construction at
Wynyard Quarter in Auckland.
The vision for Ayrburn restaurant precinct is coming together as Winton gets closer to opening the
doors before the end of 2023. A marketing manager has been employed and further operational
appointments will be made in the next few months. Next door at Waterfall Park, the civil works on
the retirement precinct are advancing at pace.
The extreme rainfall over summer and the storms at the end of January meant Winton lost 83% of
this summer’s earthwork season by the end of January and incurred water damage to pre-ordered
supplies compounding expected supply chain implications to the industry. As a result, on 3 February
2023 Winton updated guidance for FY23 reflecting delivery delay of pre-sold projects.
Winton now expects to deliver net profit after tax
3
of between $72.4 million and $82.4 million,
subject to no material adverse changes or unforeseen events. This compares to the FY23 forecast
provided at the time of IPO of $98.9 million. The revised guidance remains above the FY22 declared
net profit after tax of $31.7 million. Any net profit after tax not realised in FY23 is expected to be
realised in H1 FY24, as these profits are largely pre-sold and there are no sunset dates in relation to
the delayed units that would put this at risk. Cyclone Gabrielle has further solidified this change to
Winton’s full year expectations.
The Winton Board has declared a 2.06 dividend per share for the six months ending 31 December
2022, in line with the Company’s updated dividend policy to exclude any unrealised valuation
movements in investment properties.
Winton’s Interim Report and all future financial reports will be publicly available on our website
Winton Land Limited Investor Centre
. You may at any time, request a hard copy (or an electronic
copy) of the most recent and future Annual Reports free of charge. You can do so through our share
registry, Link Market Services, including by updating your communication preferences online through
the Investor Centre.
Ends.
For investor or analyst queries, please contact:
Jean McMahon, CFO
+64 9 869 2271
investors@winton.nz
3
Excluding any unconfirmed fair value revaluation of investment properties for FY23.
3
About Winton
Winton is a residential land developer that specialises in developing integrated and fully
masterplanned neighbourhoods. Across its 14 masterplanned communities, Winton has a portfolio
of 27 projects expected to yield a combined total of circa 7,000 residential lots, dwellings, apartment
units, retirement village units and commercial lots. Winton listed on the NZX and ASX in 2021.
www.winton.nz
---
Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuer Winton Land Limited (WIN)
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$85,079 92%
Total Revenue $85,079 92%
Net profit/(loss) from
continuing operations
$34,471 2474%
Total net profit/(loss) $34,471 2474%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.02060000
Imputed amount per Quoted
Equity Security
$0.00801111
Record Date 1 March 2023
Dividend Payment Date 15 March 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.63 $1.42
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This dividend is fully credited with imputation credits to the
extent permitted by the imputation credit rules and to the extent
that the directors of Winton determine were available.
This announcement is extracted from Winton’s unaudited
financial statements as at and for the six months ended 31
December 2022. A copy of these unaudited financial statements
is attached to this announcement.
Authority for this announcement
Name of person
authorised
to make this announcement
Jean McMahon
Contact person for this
announcement
Jean McMahon
Contact phone number +64 9 377 7003
Contact email address jean.mcmahon@winton.nz
Date of release through MAP
22 February 2023
Unaudited financial statements accompany this announcement.
---
Template
Distribution Notice
Updated as at June 2022
Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)
Section 1: Issuer information
Name of issuer Winton Land Limited
Financial product name/description Ordinary shares
NZX ticker code WIN
ISIN (If unknown, check on NZX
website)
NZWINE0003S1
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 1 March 2023
Ex-Date (one business day before the
Record Date)
28 February 2023
Payment date (and allotment date for
DRP)
15 March 2023
Total monies associated with the
distribution
1
$6,110,242.96
(296,613,736 shares at $0.02060 per share)
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.02861111
Gross taxable amount
3
$0.02861111
Total cash distribution
4
$0.02060000
Excluded amount (applicable to listed
PIEs)
N/A (not a listed PIE)
Supplementary distribution amount $0.00363529
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.00801111
Resident Withholding Tax per
financial product
$0.00143056
Section 4: Authority for this announcement
Name of person
authorised to make
this announcement
Jean McMahon
Contact person for this
announcement
Jean McMahon
Contact phone number +64 9 377 7003
Contact email address jean.mcmahon@winton.nz
Date of release through MAP
22 February 2023
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
---
WINTON FY23 INTERIM RESULTS
INVESTOR PRESENTATION
22 FEBRUARY 2023
BEACHES
MATARANGI
2
Presenting today
Jean McMahon
Chief Financial Officer
Chris Meehan
Chief Executive Officer
OVATION
LAUNCH BAY
AYRBURN
ARROWTOWN
Contents
3
1.Business Highlights and Update
2.Financial Overview
3.Guidance and Outlook
BUSINESS HIGHLIGHTS AND
U P DAT E
LAKESIDE
TE KAUWHATA
Established with MaxCap a $200m Medium Density Development Fund
H1 FY23 Business Highlights
Grew Winton team by 37% to execute growth plans
Execution onsite by talented project team and contractors
Launched premium freehold apartment products in Parnell and Wynyard Quarter
Continue to operate on an ungeared basis and benefit from strong balance sheet
High degree of pre-sales has served us well through a softer market
Pre-sale book of $565.8m as at 31 December 2022
Improved Gross Margin of 46.3%
Significantly progressed luxury retirement living brand, Northbrook
NORTHBROOK
WANAKA
219 settlements at a 12.2% higher average sales price, earning $85.1m of revenue
6
Development Plan Execution
H1 FY23
NeighbourhoodUnits Settled H1 FY23
Lakeside
111
Beaches
82
Launch Bay
13
Northlake13
Total219
Completed and settled 219 units including residential lots, dwellings, and apartments.
0
5
10
15
20
25
30
BeachesLakesideLaunch BayNorthlake
$ Millions
Revenue Settled in H1 FY23
LAKESIDE
TE KAUWHATA
BEACHES
MATARANGI
NORTHLAKE
WANAKA
OVATION
LAUNCH BAY
7
Works Continued at Pace
Northlake Wanaka
•Civil works across stage 16 are nearing completion.
•The remaining 10 duplexes are on track for completion in H2 FY23.
•Construction works are well underway and progressing well at the
townhouses, commercial and apartment projects.
River Terrace Cromwell
•All works on lifestyle lots and dwellings are finished, bringing the project
to completion.
Lakeside TeKauwhata
•Construction of Lakeside Commercial is nearing completion.
•Significant works carried out across completed and future stages.
North Ridge Cessnock
•Stages 3 and 4 complete, awaiting practical completion sign-off from
Council.
•Stages 5 and 6, drainage complete, roading well advanced and services
being installed.
H1 FY23
Progressed works on future stages, navigating supply chain shortages and poor weather conditions.
LAKESIDE
TE KAUWHATA
NORTHRIDGE
CESSNOCK
JIMMY’S POINT
LAUNCH BAY
AYRBURN
ARROWTOWN
Beaches Matarangi
•Earthworks largely complete in Stages 9 to 13 with all 4 lakes in the
development now constructed. Earthworks to be completed in
Stages 14 and 15.
•Civil works, roading, services installation and landscaping well
advanced in Stages 9 to 13.
Waterfall Park/Ayrburn Arrowtown
•Remediation of historic buildings and other works well advanced for
the Ayrburn hospitality precinct.
Launch Bay Hobsonville
•Ovation completed at the end of November 2022, with settlement
and residents moving in shortly after.
•Launch Bay Townhouses progressing with cladding works completed,
internal fit out works are now underway.
•Jimmy’s Point basement works are progressing well, with excavation
completed and precast panels currently being installed.
8
De-Risked And Well Positioned For Changing
Market
Notes: 1. Pre-sales and contracted costs as of 31 December 2022; 2. Target units to be developed from 1 January 2023 onwards on existing projects based on management estimates and masterplans current as at 31 December
2022. Target total units, target product mix and target settlement period may change, including due to planning outcomes and market demand.
Gross
Pre-Sales
1
$566m
Pipeline of
Existing
Projects
2
6,751 units
Pipeline
residential Lot
Weighting
2
78%
Forecasted FY23
Revenue Pre-
Sold
97.9%
Forecasted FY23
Development Costs
Under Contract
100%
Development
Portfolio
27 Projects
Across
14
Communities
FY23 Revenue
Incurring Projects
7 Projects
Retirement
Living Pipeline
2
907 units
H1 FY23
Settlements
219
NORTHLAKE
WANAKA
218
160
171
76
553
449
219
638
0
200
400
600
800
1000
1200
PriorFY18AFY19AFY20AFY21AFY22AFY23FFY24F+
Actual units settledForecast Units to SettleRemaining Units
9
Winton’s Pipeline
Over 6,751 units remaining in the landbank pipeline from existing projects
1
.
Pipeline from Existing Projects
Lot sales from existing
projects prior to FY18A
6,000+
Notes: 1. Target total units, target product mix and target settlement period may change, including due to planning outcomes and marketdemand.
10
Progressed Luxury Retirement Living Vision,
Northbrook
•Julian Cook, Director of Retirement, has continued to build out the
Northbrook team, appointing an operations manager, clinical manager,
marketing manager and sales manager who is starting to establish the
sales team.
•Appointed the world-class architect Woods Bagot.
•All projects have progressed both in design and operational
consideration. Focus on the Northbrook difference, apartment sizes,
ceiling heights, room spaces, the premium quality of the fit-out, and
amenities.
•Flagship Northbrook show suite under construction at Wynyard
Quarter in Auckland.
•Northbrook Wanaka continues at pace with building consent
documentation completed and negotiations being completed with our
nominated build partner. Construction is underway including the show
suite.
•All projects have resource consents submitted and Wanaka has been
granted.
Northbrook
Leveraging our existing expertise and capability in residential land acquisition and development to build and
operate luxury later living retirement villages.
NORTHBROOK
WANAKA
11
Moving forward at Sunfield
A forward-thinking and innovative ’15-minute community’ powered by the sun and 90% less cars.
•We are moving forward with the 50 hectares of the property, which is
currently zoned future urban with a more traditional masterplan
supported by current regulation, yielding ~2,000 lots.
•In parallel, Winton is absolutely firm in its resolve to pursue alternate
legislative pathways to rezone the remaining c.150 hectares of the
Sunfield land, including the Resource Management Act.
•Winton has issued proceedings in the Auckland High Court under the
Commerce Act, alleging anti-competitive conduct by Government
housing agency Kāinga Ora.
•Winton is seeking Court declarations that Kāinga Ora’s conduct is
unlawful and in breach of the Commerce Act, and an order requiring
Kāinga Ora to consider Sunfield for assessment under the UDA, as well
as substantial damages for Kāinga Ora’s conduct to date.
Sunfield
Sunfield is an interconnected '15 minute' neighbourhood located in
Papakura Auckland, where residents can work, live and play. By
integrating recreation, health, schools, employment and retail, close to
residential areas, the day to day to needs of a diverse kiwi community
can be reached in 15 minutes. Enabling a car-less, solar powered
neighbourhood allows for truly local living and takes a big step towards
New Zealand's goal of carbon neutrality.
Key features:
•3,643 healthy homes.
•50 hectares of employment land.
•22.8 hectares of parks and wetlands.
•Creates over 11,000 permanent jobs.
•90% less cars.
•Solar power throughout project.
SUNFIELD
PAPAKURA
Sunfield
12
Focused on Key Deliverables Onsite in FY23
FY23 will be a record year for Winton with 638 units forecast for delivery of which 219 units have settled with
the remaining 419 units to settle in H2 FY23.
Neighbourhood
Units to Settle FY23
Lakeside264
Beaches148
North Ridge122
Northlake83
Launch Bay15
River Terrace6
Total638
98%
2%
FY23F Revenue Pre-Sold
67%
19%
14%
Total FY23F Revenue by Product
Dwellings/Townhouses
Apartments
Residential LotsUnsoldPre-sold
NORTHLAKE
WANAKA
LAUNCH BAY
HOBSONVILLE POINT
FINANCIAL OVERVIEW
14
H1 FY23 Financial Performance
Headline numbers are consistent with forecasted delivery of projects with improved gross profit margin.
H1 FY23H1 FY22
Movement
NZ$m (unless indicated otherwise)
6 Months Ended
31 December 2022
6 Months Ended
31 December 2021
Revenue
85.144.3+40.8
Number of settled units (#)
219128+91
Gross profit39.419.3+20.1
Gross profit margin
46.3%43.5%+2.8%
EBITDA49.72.8+46.9
Pro forma EBITDA
49.78.5+41.2
Profit after income tax34.51.3+41.2
Pro forma profit after income tax
34.57.1+27.4
One-off listing and offer costs are removed in the pro forma numbers to demonstrate the business's underlying performance.
We settled 219 units, including land lots and residential
homes, at a 12.2% higher average sales price than H1
FY22, reflecting settlements of units in more mature
developments. The number of units settled was 71.1% more
than the comparable period attributable to the timing of
settlements impacting the prior period.
15
H1 FY23 Financial Performance
Statement of Financial Performance
NZ$m (unless indicated otherwise)
H1 FY23H1 FY22
Movement
6 Months Ended
31 Dec 2022
6 Months Ended
31 Dec 2021
Revenue85.144.340.8
Number of settled units (#)
21912891
Average revenue per unit (NZ$000)
38834642
Cost of sales(45.7)(25.0)(20.7)
Gross profit39.419.320.1
Gross profit margin
46.3%43.5%2.8%
Other income
7.61.06.6
Fair value gain on investment properties
15.6-15.6
Gain on sale of property, plant and equipment
0.3-0.3
Selling expenses(3.1)(5.7)2.6
Property expenses(0.6)(0.3)(0.3)
Administrative expenses(8.9)(5.5)(3.4)
Share-based payment expense(0.6)(0.1)(0.5)
Offer costs-(5.9)5.9
EBITDA49.72.846.9
Amortisation(0.2)-(0.2)
Depreciation(0.9)(0.4)(0.5)
EBIT48.62.446.2
Interest0.3(0.1)0.4
Profit before tax48.92.346.6
Income tax expense(14.1)(1.0)(13.1)
Profit after income tax34.51.332.2
Pro forma EBITDA49.78.541.2
Pro forma Profit after income tax34.57.127.4
Winton’s financial performance in H1 FY23 is consistent with its forecast settlement profile.
Fair value gain of $15.6m at Northbrook Wanaka and Lakeside
Commercial following resource consent receipt and progress on
site.
1
1
2
2
16
H1 FY23 Financial Position
Statement of Financial Position
NZ$m (unless indicated otherwise)
FY23FY22
As at
31 Dec 2022
As at
30 June 2022
Movement
Current assets
Cash and cash equivalents
89.0204.8(115.8)
Restricted cash
-0.8(0.8)
Accounts receivable, prepayments, and other receivables
6.14.91.2
Inventories
107.195.611.5
Total current assets
202.2306.1(103.9)
Non-current assets
Inventories
128.686.342.3
Deposits paid on investment property acquisitions-7.2(7.2)
Investment properties
188.580.5108.0
Property, plant and equipment
22.916.16.8
Right-of-use assets
11.40.610.8
Intangible assets
2.70.12.6
Total non-current assets
354.1190.8163.3
Total assets
556.3496.959.4
Current liabilities
Accounts payable, accruals, and other payables
28.824.93.9
Taxation payable
15.38.07.3
Total current liabilities
44.132.911.2
Non-current
Lease liability
10.40.310.1
Deferred tax liabilities
16.19.66.5
Total non-current liabilities
26.59.916.6
Total liabilities
70.642.827.8
Share capital
386.6386.6-
Foreign currency translation reserve
(0.1)0.3(0.4)
Share-based payment reserve
1.50.80.7
Retained earnings
97.766.431.3
Total equity
485.7454.131.6
Winton has historically operated with a conservative level of debt in its capital structure.
Winton’s Cash and cash equivalents has reduced by $115.8m due
to settlement of acquisitions and continued investment in
existing projects.
Acquisition of Northbrook Wynyard and Cracker Bay during H1
FY23.
1
2
2
1
Total equity has increased by $31.6m mainly due to $34.5m net
profit after tax offset by dividends paid of $3.2m.
3
3
17
H1 FY23 Statement of Cash Flows
Statement of CashflowsFY23FY22
NZ$m (unless indicated otherwise)
6 Months
Ended
31 Dec 2023
6 Months Ended
31 Dec 2022
Movement
Cash flows from operating activities
Receipts from customers93.647.3
46.3
Interest received1.30.2
1.1
Net GST received / (paid)
3.7(1.3)
5.0
Payment to suppliers and employees
(89.7)(50.3)
(39.4)
Purchase of development land
(22.2)
-
(22.2)
Deposits paid on unconditional contracts for land
(3.6)(10.2)
6.6
Interest and other finance costs paid
(0.5)(3.7)
3.2
Income tax paid
(0.5)-
(0.5)
Net cash flows from operating activities
(17.9)(18.0)
0.1
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
1.3 -
1.3
Acquisition of land for investment properties
(63.9)-
(63.9)
Intangible assets acquired
(2.9)-
(2.9)
Payments to suppliers and employees for investment properties
(21.1)-
(21.1)
Acquisition of property, plant and equipment
(8.1)(0.7)
(7.2)
Net cash flows from investing activities
(94.7)(0.7)
(94.0)
Cash flows from financing activities
Proceeds from the issue of new shares
-350.0
(350.0)
Payment of offer costs
-(18.4)
18.4
Payment of dividends
(3.2)-
(3.2)
Net cash flows from financing activities
(3.2)331.6
(334.8)
Net increase in cash and cash equivalents
(115.8)312.9
(428.7)
Cash and cash equivalents at beginning of the period
204.835.0
169.8
Cash and cash equivalents at the end of the period
89.0347.9
(258.9)
Following a successful capital raise, Winton is well positioned to execute its strategy.
Payment to suppliers and employees has increased due to
additional recruitment of staff and works being completed
across more sites.
Acquisition of land for investment properties is primarily made
up of Northbrook Wynyard and Cracker Bay.
1
2
Proceeds from the issue of new shares is in relation to Winton’s
successful IPO which raised $350m on 17 December 2021.
3
1
2
3
18
FY23 Dividend
•The Winton Board has declared a 2.0600 dividend per share for the six
months ending 31 December 2022, in line with the Company’s
updated dividend policy to exclude any unrealised valuation
movements in investment properties.
•The interim dividend amount is reflective of the lower end of the
revised FY23 guidance and a 20% pay-out ratio.
•The dividend is fully imputed at 0.8011 cents per share.
•Our dividend policy is to target an increasing distribution per share
over time within a pay-out ratio of approximately 20-40% of full-year
distributable earnings
1
.
•Dividends are declared at the Board’s discretion and depend on our
financial performance.
1. Distributable earnings is net profit after tax excluding any fair value gain/loss on investment properties.
Winton confirms a dividend for H1 FY23.
AYRBURN
ARROWTOWN
GUIDANCE AND OUTLOOK
NORTHLAKE
WANAKA
20
Annual FY23 Guidance
Winton continues to operate with confidence, reaffirming updated guidance issued on 3 February 2023.
•On 3 February 2023 we updated guidance for the 12 months ending
30 June 2023. The change to guidance is driven by delivery delay of
pre-sold projects attributable to heavy January rainfall in the North
Island. As a result, we have already lost 83% of this summer’s
earthwork season, incurred water damage to pre-ordered supplies
and expect supply chain implications to the industry.
•For FY23, we now expect net profit after tax
1
of between $72.4
million and $82.4 million. This compares to the FY23 forecast
provided at the time of IPO of $98.9 million. The revised guidance
remains above the FY22 declared net profit after tax of $31.7 million.
•Any net profit after tax not realised in FY23 is expected to be realised
in H1 FY24, as these profits are largely pre-sold and there are no
sunset dates in relation to the delayed units that would put this at
risk.
•Cyclone Gabrielle has further solidified this change to our full year
expectations, with no further amendment to guidance.
This guidance is subject to no material adverse changes or unforeseen
events, no material development delays, material settlement defaults or
any further material Covid restrictions.
1. Excluding any unconfirmed fair value revaluation of investment properties for FY23.
LAUNCH BAY
HOBSONVILLE POINT
21
Market and Outlook
In Winton’s established market-leading position, with a history of successful developments and extensive
development pipeline, Winton will continue to execute its growth strategy, outperforming competitors and taking
market share.
•The double-digit year on year growth experienced in the New Zealand
housing market in recent years was unsustainable, amplified by
Covid’s impact on the housing market, which was unprecedented.
•We expect sales prices to continue to decline from their COVID-
triggered peak at the end of 2021 until inflation has stabalised.
•We successfully operated in the pre-COVID market with robust profit
margins and the ability to create and fund new projects and will
continue to do so as we move through the current sales cycle.
•The recent weather events will likely have further supply chain
implications for the industry.
•In this environment, the strategy adapts to accommodate low pre-
sales for the majority of the market as buyers prefer to buy completed
properties. Instead, we will focus on high net worth pre-sales where
buyers are more immune to the current economic conditions through
premium urban residential offerings and our luxury retirement
offering Northbrook.
•FY23 is expected to be a record year for Winton as we deliver more
land lots and homes than we ever have before.
•Going into the remainder of the year and into the next, we are in a
strong financial and market position to continue to deliver our pre-
sold product, create ongoing revenue opportunities and use softer
market conditions to our advantage for further land acquisition and
construction delivery.
ARTHAUS
PARNELL
QUESTIONS
QUESTIONS
NORTHLAKE
WANAKA
APPENDICES
NORTHBROOK
WANAKA
PRESENTING TODAY
Simon Ash
Chief Operating
Officer
Justine Hollows
General Manager,
Corporate Services
Julian Cook
Director of
Retirement
•Over 18 years’ experience in real estate, finance
and investment banking.
•Responsible for oversight of Winton’s business
operations.
•Previously at Macquarie Group and Brookfield
Financial.
•Over 18 years’ experience in law, including property
development, transactional and leasing work.
•Responsible for legal oversight, risk management,
compliance, and human resources.
•Previously at Auckland International Airport, Bell Gully,
and Minter Ellison.
•Over 20 years’ experience in corporate finance and
retirement living.
•Responsible for leading and executing Winton’s
retirement living strategy.
•Previously held CEO and CFO roles at Summerset
Group and spent 12 years at Macquarie Group.
24
Management Team
Chris Meehan
Chief Executive
Officer
Jean McMahon
Chief Financial
Officer
•Founded Winton in 2009.
•Over 30 years’ real estate experience.
•Strategic and operational leadership.
•Founded the Belle Property real estate
franchise in Australia, and grew the
business to 20+ offices across Australia
and New Zealand.
•Over 18 years’ experience in real
estate, finance and investment.
•Responsible for finance, tax and
accounting functions.
•Previously at Property for Industry,
Lloyds Banking Group and KPMG.
APPENDIX 1
A bridge summary of pro forma EBITDA and NPAT
25
RECONCILIATION OF PRO FORMA EBITDA
NZ$m (unless indicated otherwise)
H1 FY23H1 FY22
Selected Financial Information
6 Months Ended
31 Dec 2022
6 Months Ended
31 Dec 2021
Movement
Earnings before interest expense, taxation and
depreciation (EBITDA)
49.72.846.9
Pro forma adjustments:
Transaction costs relating to the Offer
-5.9(5.9)
Incremental listed company costs-(0.2)0.2
Total pro forma adjustments:
-5.7(5.7)
Pro forma EBITDA
49.78.541.2
Description of pro forma adjustments
In determining the use of pro forma adjustments, the Board has considered only those items that they believe are required to
ensure consistency and comparability of the financial information over the Historical Periods and the Prospective Periods.
The pro forma adjustments that Winton considers are appropriate are explained below:
•Removal of the one-off transaction costs relating to the Offer; and
•Adding an estimate of the incremental costs that will be incurred by Winton as a publicly listed company.
All values in $000’s
H1 FY23H1 FY22
Selected Financial Information
6 Months Ended
31 Dec 2022
6 Months Ended
31 Dec 2021
Movement
Profit after income tax
34.51.333.2
Pro forma adjustments:
Transaction costs relating to the Offer
-5.9(5.9)
Incremental listed company costs-(0.2)0.2
Tax impact of pro forma adjustments
-0.1(0.1)
Total pro forma adjustments:
-5.8(5.8)
Pro forma Profit after income tax
34.57.1
27.4
APPENDIX 2
26
This disclaimer applies to this document and the accompanying material (“Document”) or any information contained in it. The information included in this Document should be read in conjunction with the audited
consolidated financial statements for the year ended 31 December 2022.
Past performance information provided in this Document may not be a reliable indication of future performance. This Documentcontains certain forward-looking statements and comments about future events, including
with respect to the financial condition, results, operations and business of Winton Land Limited (“Winton”). Forward lookingstatements can generally be identified by use of words such as ‘project’, ‘foresee’, ‘plan’,
‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. Forward-lookingstatements involve known and unknown risks, significant uncertainties, assumptions, contingencies,
and other factors, many of which are outside the control of Winton, and which may cause the actual results or performance of Winton to be materially different from any results or performance expressed or implied by
such forward-looking statements. Such forward-looking statements speak only as of the date of this Document. There can be no assurance that actual outcomes will not differ materially from the forward-looking
statements. Recipients are cautioned not to place undue reliance on forward-looking statements.
Certain financial data included in this Document are "non-GAAP financial measures", including earnings before interest, tax, depreciation and amortisation (EBITDA). These non-GAAP financial measures do not have a
standardised meaning prescribed by New Zealand Equivalents to International Financial Reporting Standards (“NZIFRS") and therefore may not be comparable to similarly titled measures presented by other entities, nor
should they be construed as an alternative to other financial measures determined in accordance with NZIFRS. Although Winton’s management uses these measures in assessing the performance of Winton’s business, and
Winton believes these non-GAAP financial measures provide useful information to other users in measuring the financial performance and condition of the business, recipients are cautioned not to place undue reliance on
any non-GAAP financial measures included in this Document.
All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated.
While every care has been taken in the preparation of this presentation, Winton makes no representation or warranty as to theaccuracy or completeness of any statement in it including, without limitation, any forecasts.
To the maximum extent permitted by law, none of Winton, its directors, employees, shareholders or any other person shall haveany liability whatsoever to any person for any loss (including, without limitation, arising from
any fault or negligence) arising from this Document.
This Document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any
investment decisions, consider the appropriateness of the information in this Document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs.
Important Notice and Disclaimer
DISCLAIMER
---
INTERIM FINANCIAL STATEMENTS
31 DECEMBER 2022
Winton builds
neighbourhoods
Letter from the CEO and Chair 2
Financial Statements 11
Directory 29
Contents
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 20221
LAUNCH BAY
HOBSONVILLE POINT
2
Letter from Chris Meehan
CEO and Chair
It is a pleasure to announce Winton’s
interim results for the six months ending
31 December 2022 (H1 FY23) with
revenue of $85.1 million, a gross profit
margin of 46.3%, earnings before interest,
tax, depreciation and amortisation
(EBITDA) of $49.7 million and $34.5 million
profit after tax.
Before going into detail about the first half, I want to
acknowledge those affected by Cyclone Gabrielle, on top
of the distress caused by the extraordinary January rainfall
event. These extreme weather events caused unexpected
and disastrous havoc for much of the North Island and our
thoughts are with those that were personally impacted.
The full extent of the damage and cost for New Zealand is
unknown but the effects will be ongoing as the remediation
and rebuild occurs. Thankfully the Winton team was all
safe, as were our residents in our neighbourhoods.
During H1 FY23 we have continued executing our
development plans. We completed Stages 5, 7 and 8 at
Beaches Matarangi, Stage 2 at Lakeside Te Kauwhata,
Ovation apartments at Launch Bay Hobsonville Point
and the Stage 15 homes at Northlake Wanaka. We settled
219 units1, including land lots and residential homes, at a
12.2% higher average sales price than H1 FY22, reflecting
settlements of units in more mature developments. The
number of units settled was 71.1% more than the comparable
period attributable to the timing of settlements impacting
the prior period. As at 31 December, there was a balance
of 8 completed but unsold properties, creating a small
inventory for buyers who want to purchase completed lots
and homes versus buying off the plans.
We finish the half year in a strong position with a landbank
yield of up to 6,751 units, including 907 retirement living units,
cash holdings of $89.0 million and zero debt.
We deliver these results at a time of a softer housing
market, high inflation and increasing interest rates where our
pre-sales from prior years have done their role to provide
security of income into the future, creating a win/win for
ourselves and buyers. As at 31 December 2022, pre-sales
were $565.8 million2. In this environment, the strategy adapts
as we expect minimal pre-sales as buyers prefer to buy
1. Units comprise residential land lots, dwellings, townhouses, apartments, retirement living units and commercial units.
2. Winton pre-sells properties by signing a contract with buyers prior to completion of a unit who pay a deposit on signing the contract (which is held in Winton’s solicitors’ trust
account) and then pay the balance on completion. Pre-sales are recognised as revenue when the unit is settled.
$85.1M
REVENUE
UP 91.9%
46.3%
GROSS PROFIT
MARGIN
$49.7M
EBITDA
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 20223
$34.5M
PROFIT
AFTER TAX
219
COMPLETED
UNITS
NORTHLAKE
APARTMENTS
WANAKA
6,751
UNITS
LANDBANK YIELD
4
completed properties, whether land lots or homes. High net
worth buyers are the exception as they are more immune to
the changing economic landscape and are more focused on
securing the property they want in their ideal location, and
show less regard to price or market conditions. Aligned with
this, we have continued to make good progress with our
luxury retirement offering Northbrook and premium freehold
apartment products in Parnell and Wynyard Quarter.
Julian Cook, Director of Retirement, has continued to build
out the Northbrook team, appointing an operations manager,
clinical manager, marketing manager and sales manager
who is starting to establish the sales team. We are initially
focused on the first five sites, with land acquired for all of
them. Development is well underway at Northbrook Wanaka,
including the construction of the show suite. Our flagship
Northbrook show suite is also under construction at Wynyard
Quarter in Auckland.
The Ayrburn restaurant precinct looks incredible as our vision
comes together and we get closer to opening the doors
before the end of 2023. We have employed a marketing
manager and look forward to appointing key roles in the
next few months and the operational team closer to launch.
Next door at Waterfall Park, the civil works on the retirement
precinct are advancing at pace.
The small but high performing Winton team executes projects
cohesively with razor-sharp focus on timeline, budget and
quality. The extreme rainfall over summer, our peak earthwork
NORTHBROOK
WANAKA
season, put those timelines to the test and even though
we continue to do everything we can within our control to
meet completion deadlines, the intense summer rainfall and
the storms at the end of January exposed likely delays to
settlements. Therefore, prior to Cyclone Gabrielle but after the
January rainfall event, we updated the market with delays to
our development timelines which had been affected by the
compounding effect on top of a very wet summer and as a
result we changed full year 2023 guidance. I go into more detail
further in this letter. While out of our control, it is not something
we take lightly and we are all disappointed. I commend our
team for how they have dealt with recent adversity and
continuing to go above and beyond as these challenges arise.
At times like these, we are reminded what a talented team
we have at Winton and the ‘can do’ attitude is at the core
of how they operate. They are vital to our business and
growth plans and are embedded and responsible for our
shared success. As such, we look after them accordingly,
like you would a family member and prioritise connectivity
within each project team and between offices.
We continued to make progress on our ESG journey, working
on our first emissions inventory measurement, upskilling
some of our team, and preparing ourselves to conduct our
first climate-related financial assessment. The recent extreme
weather events have further enforced the importance and
urgency of this work and we look forward to sharing our
progress during the year.
Letter from CEO and Chair continued
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 20225
JIMMY’S POINT
LAUNCH BAY
6
Letter from CEO and Chair continued
LAKESIDE
COMMERCIAL
TE KAUWHATA
Outlook and Guidance
The double-digit year on year growth
experienced in the New Zealand housing
market in recent years was unsustainable,
amplified by COVID’s impact on the
housing market, which was unprecedented.
NZ median sales prices have decreased 12% from their
COVID triggered peak which was 43% above the
pre-COVID December 2019 median. We expect prices
to continue to decline until inflation has stabilised.
We successfully operated in the pre-COVID market with
robust profit margins and the ability to create and fund
new projects. The average sales price moves in cycles
and we are agile enough to adapt and succeed long-term
irrespective of the cycle. On the one hand, this current
softer market has meant minimal further pre-sales and
will continue to for the near future, and on the other
hand, any land acquisitions we make will be at distressed
pricing due to the current economic conditions. Our
balance sheet and forward cashflow are robust and we
have timed the market well.
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 20227
The pre-sale book has proven to be resilient. At the end
of December we had one sales default attributable to the
buyer’s personal situation, not their financial situation.
Given our long-standing pre-sale strategy of discounting
from the expected completion sales price, the settlements
due to occur during the remainder of the financial year
are still below the current market prices. Therefore, if we
received defaults, we expect to be able to relist in the
current market for at least the same margin in most cases.
To navigate the near term, we will elect to keep some of the
commercial properties we develop within our communities
to generate ongoing revenue where it makes sense to do
so. We will target high net-worth buyers more immune to
changing economic conditions through residential offerings
and Northbrook. And, we will slow the construction of new
products outside this target market that aren’t presold
to ensure that we fully capitalise on keener builders’
construction pricing which we believe will become apparent
throughout the year.
On 3 February 2023 we updated guidance for the 12 months
ending 30 June 2023. The change to guidance is driven by
delivery delay of pre-sold projects attributable to heavy
January rainfall in the North Island. As a result, we have
already lost 83% of this summer’s earthwork season, incurred
water damage to pre-ordered supplies and expect supply
chain implications to the industry.
For FY23, we now expect net profit after tax3 of between
$72.4 million and $82.4 million. This compares to the FY23
forecast provided at the time of IPO of $98.9 million. The
revised guidance remains above the FY22 declared net profit
after tax of $31.7 million. Any net profit after tax not realised in
FY23 is expected to be realised in H1 FY24, as these profits are
largely pre-sold and there are no sunset dates in relation to
the delayed units that would put this at risk. Cyclone Gabrielle
has further solidified this change to our full year expectations.
The revised FY23 guidance remains subject to no further
material adverse changes or unforeseen events.
Before the impact of the severe weather, the business was
on-track to achieve the FY23 IPO forecasts. FY23 is expected
to be a record year for Winton as we deliver more land lots
and homes than we ever have before. Going into the remainder
of the year and into the next, we are in a strong financial and
market position to continue to deliver our pre-sold product,
create ongoing revenue opportunities and use softer market
conditions to our advantage for further land acquisition and
construction delivery.
The recent weather events have demonstrated how
existing infrastructure is under pressure and its inability to
cope with weather events with current density. Therefore,
further intensification in existing suburbs proposed by the
Medium Density Residential Standards (MDRS) Bill is poorly
conceived, particularly the proposed three houses per
existing lot. The cost of replacing the existing underground
piping and infrastructure that sits underneath existing roads
and houses is simply too great to lead to an affordable
outcome or a meaningful increase in supply of houses.
Therefore the only way to safely increase the availability of
affordable homes is to deliver more well considered and
properly engineered greenfield sites in the right locations,
like Sunfield in Papakura and Lakeside in Te Kauwhata.
Dividend
The Board has updated its dividend policy to exclude any
unrealised valuation movements in investment properties.
Our dividend policy is to target an increasing distribution
per share over time within a pay-out ratio of approximately
20-40% of full-year distributable earnings4.
The Board has declared a 2.06 cent
dividend per share for the six months
ending 31 December 2022.
Thank you for your ongoing support as we navigate and
execute in a different market environment, which is not
possible without our employees, customers, contractors,
suppliers and investors. We are grateful to have you
alongside us as we continue to grow Winton and deliver
thoughtfully designed master-planned neighbourhoods.
Sincerely,
Chris Meehan
Chair and CEO
3. Excluding any unconfirmed fair value revaluation of investment properties for FY23.
4. Distributable earnings is net profit after tax excluding any fair value gain/loss on investment properties.
8
For the 6-month period ending
31 December 2022, Winton delivered
$85.1 million in revenue, 91.9% higher than
H1 FY22, reflecting the settlement of an
additional 91 units and increased revenue
per unit of 12.2%. This higher average
price is driven by settlements of more
premium units in matured developments.
The number of settled units varies
between halves of the year and year-
to-year depending on the number and
size of projects under development, the
development lifecycle of each project,
the staging of construction works, the level
of pre-sales and the underlying market.
Cost of Sales reflects the costs of the land and to develop
the land and property for sale and is recognised in
alignment with settlements. Cost of Sales increased by
82.6% from $25.0 million in H1 FY22 to $45.7 million in
H1 FY23. This reflects the 71.1% increase in the volume of
units sold and a 6.7% increase in the cost per unit due to
construction cost increases.
Gross Profit was $39.4 million, up 204.1% compared to H1
FY22. Gross Profit Margin for H1 FY23 was 46.3% compared
to 43.5% in H1 FY22 due to different product mixes settling
in applicable halves. In the most recent half, we had a higher
proportion of lots to dwellings settling which typically
provide a greater return than dwellings.
EBITDA in H1 FY23 was $49.7 million, up 484.6% on H1 FY22
pro forma5 EBITDA of $8.5 million. One-off listing and offer
costs are removed from pro forma EBITDA and profit after
tax in H1 FY22 to demonstrate the business’s underlying
performance. The substantial increase compared to the prior
year reflects $40.8 million more revenue, $6.7 million of other
income mostly driven by favourable litigation settlements,
fair value gain on investment properties and lower selling
expenses, offset by higher administrative expenses.
The 45.6% lower selling expenses were attributable to
reduced sales commissions for pre-sales and reduced
marketing expenses for the Sunfield project and Winton
brand, partially offset by increased Northbrook marketing.
Profit after income tax for the period was $34.5 million
compared to pro forma net profit after tax of $7.1 million in
the comparative period.
As at 31 December 2022, cash and cash equivalents were
$89.0 million, compared to $204.8 million at 30 June 2022,
reflecting the acquisition settlement of land at Wynyard and
construction timing. Total assets were $556.3 million and total
liabilities were $70.6 million.
Noting that most of Winton’s property assets are reflected
on the balance sheet at cost, not fair value as at H1 FY23,
except for the land at Lakeside Commercial and Northbrook
Wanaka.
Financial Commentary
5. Pro forma EBITDA and pro forma net profit after tax is a non-NZ GAAP measures that includes pro forma adjustments. You can find a reconciliation to NZ GAAP measures
in Winton’s results presentation.
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 20229
ARTHAUS
PARNELL
AYRBURN
ARROWTOWN
10
NORTHLAKE
WANAKA
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202211
Consolidated
Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
12
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2022
All VALUES IN $000'SNOTE
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Revenue 85,079 44,328
Cost of sales (45,726) (25,047)
Gross profit 39,353 19,281
Other income 7,687 1,001
Fair value gain on investment properties 15,569 -
Gain on sale of property, plant and equipment297-
Selling expenses (3,108) (5,717)
Property expenses (576) (279)
Administrative expenses8.1 (8,936) (5,491)
Share-based payment expense (540) (62)
Offer costs - (5,950)
Earnings before interest, taxation, depreciation and
amortisation (EBITDA)
49,746
2,783
Amortisation(236)-
Depreciation (909) (309)
Earnings before interest and taxation (EBIT) 48,601 2,474
Interest income 1,267 215
Interest expense and bank fees (971) (360)
Profit before income tax 48,897 2,329
Income tax expense
Current taxation8.2 (7,887) 3,423
Deferred taxation8.2 (6,539) (4,413)
Total income tax expense (14,426) (990)
Profit after income tax 34,471 1,339
Items that may be reclassified to profit or loss:
Movement in currency translation reserve (457) (88)
Total comprehensive income after income tax attributable
to the shareholders of the Company
34,014
1,251
Basic earnings per share (cents)7.1 11.47 0.59
Diluted earnings per share (cents)7. 2 11.06 0.58
The accompanying notes form part of these interim financial statements.
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202213
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2022
ALL VALUES IN $000'S NOTE
SHARE
CAPITAL
RETAINED
EARNINGS
SHARE
BASED
PAYMENTS
RESERVE
FOREIGN
CURRENCY
TRANSLATION
RESERVE
TOTAL
EQUITY
Balance as at 30 June 2021 (audited) 49,100 34,691 - 4 83,795
Total comprehensive income - 1,339 - (88) 1,251
Proceeds from primary issuance8.3 350,000 - - - 350,000
Offer costs capitalised to equity (15,356) - - - (15,356)
Employee share bonus8.3 2,928 - - - 2,928
Share-based payment expense - - 62 - 62
Balance as at 31 December 2021 (audited) 386,672 36,030 62 (84) 422,680
Balance as at 30 June 2022 (audited) 386,595 66,348 829 318 454,090
Total comprehensive income- 34,471 - (457) 34,014
Dividends to shareholders8.3- (3,174) - - (3,174)
Share-based payment expense- - 754 - 754
Balance as at 31 December 2022 (audited) 386,595 97,645 1,583 (139) 485,684
The accompanying notes form part of these interim financial statements.
14
All VALUES IN $000'SNOTE
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
CURRENT ASSETS
Cash and cash equivalents 89,014 204,824
Restricted cash - 810
Accounts receivable, prepayments and other receivables8.4 6,062 4,924
Inventories3 107,105 95,615
Total current assets 202,181 306,173
NON-CURRENT ASSETS
Inventories3 128,561 86,254
Deposits paid on investment property acquisitions - 7,198
Investment properties4 188,503 80,498
Property, plant and equipment5 22,935 16,064
Right-of-use asset 11,387 562
Intangible assets6 2,762 123
Total non-current assets 354,148 190,699
Total assets 556,329 496,872
CURRENT LIABILITIES
Accounts payable, accruals and other payables8.5 28,795 24,872
Taxation payable 15,316 7,986
Total current liabilities 44,111 32,858
NON-CURRENT LIABILITIES
Lease liability 10,394 323
Deferred tax liabilities8.2 16,140 9,601
Total non-current liabilities 26,534 9,924
Total liabilities 70,645 42,782
Net assets 485,684 454,090
EQUITY
Share capital8.3 386,595 386,595
Foreign currency translation reserve (139) 318
Share-based payment reserve 1,583 829
Retained earnings 97,645 66,348
Total equity 485,684 454,090
These interim financial statements are signed on behalf of Winton Land Limited and were authorised for issue on 22 February 2023.
The accompanying notes form part of these interim financial statements.
Consolidated Statement of Financial Position
As at 31 December 2022
Chris Meehan
Chair
Anna Molloy
Chair, Audit and Financial Risk Committee
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202215
All VALUES IN $000'SNOTE
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 93,635 47,319
Interest received 1,267 212
Net GST received / (paid) 3,651 (1,370)
Payments to suppliers and employees (89,662) (50,291)
Purchase of development land (22,186) -
Deposits paid on unconditional contracts for land (3,600) (10,200)
Interest and other finance costs paid (473) (3,745)
Income tax paid (557) (47)
Net cash flows from operating activities (17,925) (18,122)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 1,330 -
Acquisition of land for investment properties (63,888) -
Intangible assets acquired (2,875) -
Payments to suppliers and employees for investment properties (21,136) -
Acquisition of property, plant and equipment (8,142) (653)
Net cash flows from investing activities (94,711) (653)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of new shares8.3 - 350,000
Payment of offer costs8.3 - (18,378)
Payment of dividends8.3 (3,174) -
Net cash flows from financing activities (3,174) 331,622
Net increase in cash and cash equivalents (115,810) 312,847
Cash and cash equivalents at beginning of year 204,824 35,026
Cash and cash equivalents at end of year 89,014 347,873
The accompanying notes form part of these interim financial statements.
Consolidated Statement of Cash Flows
For the six months ended 31 December 2022
16
1. General Information
This section sets out the basis upon which the Group’s Interim Financial Statements are prepared.
1.1. Reporting entity
These unaudited consolidated interim financial statements (the interim financial statements) are for Winton Land
Limited and its subsidiaries (together, the Group). The Company is a limited liability company incorporated in New
Zealand and is registered under the New Zealand Companies Act 1993. The Company is a FMC reporting entity under
Part 7 of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013 and these interim financial
statements have been prepared in accordance with the requirements of these Acts. The Company is listed on the NZX
Main Board (NZX: WIN) and the ASX Main Board (ASX: WTN).
The Group’s principal activity is the development and sale of residential land properties. The Group also develops
retirement villages and commercial properties however these are start-up operations.
1.2. Basis of preparation
The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting
Practice (NZ GAAP). They comply with NZ IAS 34 ‘Interim Financial Reporting’ and IAS 34 ‘Interim Financial
Reporting’. For the purposes of complying with NZ GAAP the Group is a for-profit entity.
These interim financial statements have been prepared on the historical cost basis except where otherwise identified.
All financial information is presented in New Zealand dollars and has been rounded to the nearest thousand.
These interim financial statements should be read in conjunction with the Annual Financial Statements for the year
ended 30 June 2022 which may be downloaded from the Company’s website (https://www.winton.nz).
1.3. Critical judgements, estimates and assumptions
In applying the Group’s accounting policies, the Board and Management continually evaluates judgements, estimates
and assumptions that may have an impact on the Group. The significant judgements, estimates and assumptions
made in the preparation of these financial statements were the same as those applied to the consolidated financial
statements as at and for the year ended 30 June 2022 with the exception of the following new judgements, estimates
and assumptions:
Investment property valuations
The fair value of investment properties have been determined from a desktop review of the investment property
portfolio where the fair value can be reliably measured. Where appropriate, independent valuers are instructed to
perform full valuations.
Useful lives of intangible assets
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the
straight-line method over their estimated useful lives, and recognised in profit or loss. Amortisation methods, useful lives
and residual values are reviewed at each reporting date and adjusted if appropriate.
1.4. Accounting policies
The accounting policies adopted are the same as those applied by the Group in its consolidated financial statements
as at and for the year ended 30 June 2022 with the exception of the following new accounting policies:
Intangible Assets
Customer contracts acquired in a business combination that qualify for separate recognition are recognised as
intangible assets at their fair value. Amortisation is calculated to write off the cost of intangible assets less their
estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit
or loss. The useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. The
useful lives as at 31 December 2022 for the customer contracts acquired was between five and six years with no
residual value.
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202217
Business Combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the
Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net
assets acquired. Any goodwill that arises is tested at each reporting period for impairment. Transaction costs are
expensed as incurred.
Interests in equity-accounted investees
Interests in equity-accounted investees. The Group’s interest in equity-accounted investees comprises of an interest in
a joint venture. The joint venture is an arrangement in which the Group has joint control, whereby the Group has rights
to the net assets of the arrangement, rather than rights to its assets and obligations for it liabilities. Interest in joint
venture is accounted for using the equity method. It is initially recognised at cost, which includes transaction costs.
Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss
and OCI of equity accounted investees, until the date on which joint control ceases.
1.5. Significant events and transactions
The financial position and performance of the Group was affected by the following events and transactions that
occurred during the reporting period:
Inventory and investment property acquisitions
On 1 July 2021, the Group contracted to purchase land at Wynyard Quarter, Auckland for $70,000,000. An initial
deposit of $7,000,000 was paid on 7 July 2021 and the balance of $63,000,000 was paid on 5 July 2022. A portion
of the land will be developed into apartments and sold, $23,453,000 of the purchase price is included in inventories.
The remaining portion of the land will be developed into a retirement village, $46,547,000 of the purchase price is
included in investment properties. The apportionment is based on the resource consent submission for this land as at
31 December 2022.
On 8 April 2022, the Group contracted to purchase land and other assets at Wynyard Quarter, Auckland for
$23,750,000. An initial deposit of $2,375,000 was paid on 21 June 2022 and the balance of $21,375,000 was paid
on 21 July 2022. Of the purchase price, $20,702,000 is included in investment properties, $2,875,000 is included in
intangible assets and $173,000 is included in property, plant and equipment as at 31 December 2022.
On 25 July 2022, the Group contracted to purchase land in Auckland for $18,000,000. An initial deposit of
$3,600,000 was paid on 4 August 2022 and is included in inventories as at 31 December 2022.
Business Combination
On 21 July 2022, Cracker Bay Operating Limited (a 100% subsidiary company of the Company) acquired assets in
a business combination. The fair value of the identifiable net assets was $3,048,000 and no goodwill or bargain
purchase price adjustment arose from this transaction.
Joint Venture
On 21 September 2022, WMC Development Fund LP (a 100% subsidiary company of the Company) entered into a
new partnership with MCNZ Finance Trustee Limited as trustee of MDI NZ Partnership No.1 MaxCap. The partnership is
a $200m equity investment vehicle that will focus on the acquisition and construction of townhouses and apartment
developments throughout New Zealand. WMC Development Fund LP has a 25% interest in this partnership.
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
18
2. Segment Reporting
(i) Basis for segmentation
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker has been identified as the Board of Directors. The Group has
established the following reportable segments that are managed separately because of different operating strategies.
The following describes the operation of each of the reportable segments:
Reportable segmentOperations
Residential developmentDesign, develop, market and sell residential properties to external customers. These include land
lots, dwellings, townhouses and apartments with the majority of operations in New Zealand.
Retirement villagesDevelop and operate retirement villages in New Zealand.
Commercial portfolioDevelop and manage a commercial portfolio to produce rental income and capital appreciation
in New Zealand.
(ii) Information about reportable segments
During the six months ended 31 December, the residential development segment was the only segment contributing
to revenue. Both the retirement villages and commercial portfolio segments are start-up operations.
The following is an analysis of the Group’s segments:
All VALUES IN $000'S
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Gross profit
Residential development 39,353 19,281
Group 39,353 19,281
Earnings before interest, taxation, depreciation and
amortisation (EBITDA)
Residential development 45,332 2,783
Retirement villages (1,053) -
Commercial portfolio 666 -
Unallocated 4,801 -
Group 49,746 2,783
Earnings before interest and taxation (EBIT)
Residential development 44,974 2,474
Retirement villages (1,053) -
Commercial portfolio (121) -
Unallocated 4,801 -
Group 48,601 2,474
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202219
2. Segment Reporting (Continued)
UNAUDITED
31 DECEMBER 2022
All VALUES IN $000'SRESIDENTIALRETIREMENTCOMMERCIALUNALLOCATEDTOTAL
Segment assets
and liabilities
Inventories 235,666 - - - 235,666
Investment Properties - 155,620 32,883 - 188,503
Property, plant and
equipment
-
-
18,988
3,947
22,935
Other assets 6,062 - 13,728 89,435 109,225
Total assets 241,728 155,620 65,599 93,382 556,329
Total liabilities 52,118 2,649 13,990 1,888 70,645
Net assets 193,969 152,971 51,609 91,494 485,684
AUDITED
30 JUNE 2022
All VALUES IN $000'SRESIDENTIALRETIREMENTCOMMERCIALUNALLOCATEDTOTAL
Segment assets
and liabilities
Inventories 181,869 - - - 181,869
Investment Properties - 76,415 4,083 - 80,498
Property, plant and
equipment
-
-
12,603
3,461
16,064
Other assets - 4,823 2,375 - 7,198
Total assets 187,603 81,238 19,061 208,970 496,872
Total liabilities 39,174 985 1,422 1,201 42,782
Net assets 148,429 80,253 17,639 207,769 454,090
3. Inventories
This section shows the inventories used to generate the Group’s trading performance which are considered to be the
most relevant to the operations of the Group.
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Expected to settle within one year 107,105 95,615
Expected to settle greater than one year 128,561 86,254
Total inventories 235,666 181,869
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
20
4. Investment Properties
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Opening balance 80,498 -
Acquisitions 71,086 36,418
Transfers from inventories - 28,714
Unrealised fair value gain 15,569 -
Capital expenditure 21,350 15,366
Total investment properties 188,503 80,498
The Board determined that a desktop review of the investment property portfolio where the fair value can be
reliably measured should be undertaken in order to ensure that investment properties are held at fair value. The
Board determined that full valuations were appropriate for Lakeside Commercial and Northbrook Wanaka land and
these were performed by Savills (NZ) Limited and Jones Lang LaSalle respectively. The valuation method applied
was a sales comparison approach with the key assumption being land value per square metre with estimates used
of between $275 and $484.
Two investment properties with a total value of $33,934,000 (30 June 2022 $28,781,000) could not be reliably
measured as at 31 December 2022 due to the resource consent changes being in progress and the current stage
of development of the property therefore cost has been determined to be the best proxy for fair value as at
31 December 2022.
As the fair value of investment property is determined using inputs that are unobservable, the Group has categorised
investment property as level 3 under the fair value hierarchy in accordance with NZ IFRS 13 ‘Fair Value Measurement’.
5. Property, Plant and Equipment
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Opening balance 16,064 2,926
Additions 7,970 7,156
Acquisition through business combination 173 -
Transfers from inventories - 6,419
Depreciation (238) (437)
Disposals (1,034) -
Total property, plant and equipment 22,935 16,064
As at 31 December 2022, property, plant and equipment includes work in progress of $18,988,000 (31 December 2021:
nil, 30 Jun 2022: $12,603,000).
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202221
6. Intangible Assets
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Opening balance 123 123
Acquisition through business combination 2,875 -
Amortisation (236) -
Total intangible assets 2,762 123
7. Investor Returns and Investment Metrics
This section summarises the earnings per share which is a common investment metric.
7.1. Basic earnings per share
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Total comprehensive income for the period attributable to the
shareholders of the Company ($000s)
34,014
1,251
Weighted average number of ordinary shares (shares) 296,613,736 213,218,653
Basic earnings per share (cents) 11.47 0.59
7.2. Diluted earnings per share
The calculation of diluted earnings per share has been based on the profit attributable to ordinary shareholders and
weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential
ordinary shares. Weighted average number of shares for the purpose of diluted earnings per share has been adjusted
for 10,859,222 share options (31 December 2021: 11,165,422) issued under the Group’s Share Option Plan as at
31 December less share options forfeited. This adjustment has been calculated using the treasury share method.
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Total comprehensive income for the period attributable to the
shareholders of the Company ($000s)
34,014
1,251
Weighted average number of ordinary shares (shares) 307,472,958 214,128,878
Diluted earnings per share (cents) 11.06 0.58
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
22
8. Other
8.1. Administrative expenses
All VALUES IN $000'S
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Auditors remuneration:
Audit of annual financial statements – EY (95) -
Audit of annual financial statements – KPMG - (125)
Tax compliance and advisory fees – KPMG - (122)
Directors' fees (233) (80)
Employee benefits expense (4,425) (3,417)
Operating lease and rental payments (147) (60)
Other expenses (4,036) (1,687)
Total administrative expenses (8,936) (5,491)
Ernst & Young (EY) were appointed as Auditors of the Company on 26 October 2022 replacing KPMG.
During the six months ended 31 December 2021, the auditor KPMG also received remuneration in relation to their role
as Investigating Accountant for the IPO and tax advisers. These fees for the six months ended 31 December 2021 were
$691,000 and are included within offer costs capitalised to equity.
8.2. Taxation
(i) Current taxation
All VALUES IN $000'S
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Profit before income tax 48,897 2,329
Prima facie income tax calculated at 28% (13,691) (652)
Adjusted for:
Prior period adjustment 9 4,082
Non-tax deductible revenue and expenses (23) (335)
Movement in temporary differences 5,818 249
Tax losses utilised - 79
Current taxation expense (7,887) 3,423
The prior period adjustment for the six months ended 31 December 2021 of $4,082,000 relates to an IRD binding
ruling issued in February 2022 with regards to timing of net income permitted on inventory. This amount can be
spread for tax purposes over a 4 year period and not in a single period as done in the prior years. This has been
treated as a change in accounting estimate and is reflected in the deferred tax balance for inventory.
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202223
8. Other (Continued)
8.2. Taxation (Continued)
(ii) Deferred taxation
All VALUES IN $000'S
AUDITED
30 JUNE 2022
AS AT
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
RECOGNISED IN
PROFIT
UNAUDITED
31 DECEMBER 2022
AS AT
Deferred tax assets
Employee benefits 152 107 259
Accounts payable, accruals and other payables 850 (427) 423
Lease liability 174 3,078 3,252
Share-based payment reserve 232 211 443
Gross deferred tax assets 1,408 2,969 4,377
Deferred tax liabilities
Accounts receivable, prepayments and other receivables 93 (69) 24
Right-of-use asset 157 3,031 3,188
Inventories 10,759 1,411 12,170
Intangible asset - 739 739
Investment properties - 4,396 4,396
Gross deferred tax liabilities 11,009 9,508 20,517
Net deferred tax liability (9,601) (6,539) (16,140)
Deferred taxation expense for the six months ended 31 December 2021 was $4,413,000.
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
24
8. Other (Continued)
8.3. Equity
(i) Capital and Reserves
UNAUDITED
31 DECEMBER 2022
SHARES
‘000S
UNAUDITED
31 DECEMBER 2022
$000’S
AUDITED
30 JUNE 2022
SHARES
‘000S
AUDITED
30 JUNE 2022
$000’S
Shares issued 1 July 296,614 386,595 205,817 49,100
Primary issuance - - 90,044 350,000
Offer costs - - - (15,433)
Issue of share capital to employees - - 753 2,928
Total shares issued and outstanding 296,614 386,595 296,614 386,595
All shares on issue are fully paid, carry equal voting rights, share equally in dividends and any surplus on wind up and
have no par value. All shares are recognised at the fair value of the consideration received by the Company.
(ii) Dividends
The following dividends were declared and paid by the Company during the six months ended 31 December:
All VALUES IN $000'S
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
1.0700 cents per qualifying ordinary share – 14/09/2022 (3,174)-
Total dividends (3,174)-
8.4. Accounts receivable, prepayments and other receivables
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Accounts receivable 42 14
Prepayments and other receivables 6,020 4,910
Total accounts receivable, prepayments and other receivables 6,062 4,924
8.5. Accounts payable, accruals and other payables
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Accounts payable 16,783 16,162
Accruals and other payables in respect of inventories 4,862 4,084
Accruals and other payables 7,150 4,626
Total accounts payable, accruals and other payables 28,795 24,872
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202225
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
8. Other (Continued)
8.6. Related party transactions
The transactions with related parties that were entered into during the six months ended 31 December, and the
balances that arose from those transactions are shown below.
Key management personnel remuneration
Key management personnel comprise members of the Board and members of the Senior Management Team.
All VALUES IN $000'S
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Employee benefits expense 1,602 1,307
Share-based payment expense 611 51
Employee share bonus - 3,500
Executive Directors' fees 80 35
Key management personnel remuneration 2,293 4,893
An Executive Director was granted 5,145,356 share options on 17 December 2021 with an exercise price of $3.8870,
a fair value of $7,950,000 and a vesting date of 17 December 2031.
Senior Management Team were granted 3,344,484 share options on 17 December 2021 with an exercise price of
$3.8870 and a fair value of $2,736,000. Of these, 1,114,828 share options have a vesting date of 17 December 2025,
1,114,828 share options have a vesting date of 17 December 2028 and 1,114,828 share options have a vesting date of
17 December 2031.
Transactions with related parties during the year
All VALUES IN $000'S
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2022
UNAUDITED
6 MONTHS ENDED
31 DECEMBER 2021
Key management personnel 1,050 -
Employees - 859
Revenue from contracts with customers 1,050 859
The Group has also entered into agreements for the sale of residential properties with Executive Directors for
$18,852,000, key management personnel for $1,799,000 and employees for $7,577,000 to be recognised as revenue
in future years.
During the six months ended 31 December 2022, the Group has leased land from an employee for $8,000 (six months
ended 31 December 2021: $8,000) to store materials.
The Group’s Directors are also Directors of other companies. Julian Cook, an Executive Director is also a Director of
WEL Networks Limited (WEL). During the six months ended 31 December 2022, the Group incurred $336,000 of
development costs categorised as inventories (six months ended 31 December 2021: $159,000) from WEL. As at
31 December 2022 there was $177,000 (30 June 2022: nil) owing to WEL and included in account payables, accruals
and other payables. There were no other transactions between the Group and other related companies to be disclosed.
Some of the Directors and key management personnel are shareholders of the Company. Certain individuals are
Executive Directors, key management personnel and employees.
A member firm of Ernst & Young Global Limited
Independent auditor’ s review report to the shareholders Winton Land Limited
Conclusion
We have reviewed the interim financial statements of Winton Land Limited(“the Company”) and it’s
subsidiaries(together “the Group”) on pages 12 to 26 which comprise the consolidated balance sheet
as at 31 December 2022, and the consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of movements in equity and consolidated statement
of cash flows for the six months ended on that date, and a summary of significant accounting policies
and other explanatory information. Based on our review, nothing has come to our attention that
causes us to believe that the accompanying interim financial statements on pages 12 to 26 of the
Group do not present fairly, in all material respects the consolidated financial position of the Group as
at 31 December 2022, and its consolidated financial performance and its consolidated cash flows for
the six months ended on that date, in accordance with New Zealand Equivalent to International
Accounting Standard 34: Interim Financial Reporting and International Accounting Standard 34:
Interim Financial Reporting.
This report is made solely to the Company’s shareholders, as a body. Our review has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them
in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company and the Company’s shareholders as a
body, for our review procedures, for this report, or for the conclusion we have formed.
Basis for conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the
Auditor’s responsibilities for the review of the financial statements section of our report. We are
independent of the Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements.
Other than in our capacity as auditor we have no relationship with, or interest in, the Company or any
of its subsidiaries. Partners and employees of our firm may deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group.
Directors’ responsibility for the interim financial statements
The directors are responsible, on behalf of the Entity, for the preparation and fair presentation of the
interim financial statements in accordance with New Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting and International Accounting Standard 34: Interim Financial
Reporting
and for such internal control as the directors determine is necessary to enable the
preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410(Revised)requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with New Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting.
26
Notes to the Interim Financial Statements
For the six months ended 31 December 2022
8.7. Capital and land development commitments
As at 31 December 2022, the Group had entered into contractual commitments for development expenditure and
purchase of land. Development expenditure represents amounts contracted and forecast to be incurred in future
years in accordance with the Group’s development programme. Land purchases represent the amounts outstanding
for the purchase of land. Joint venture capital commitment represents the Group’s commitment to the Winton /
MaxCap Medium Density Development Fund (refer note 1.5).
All VALUES IN $000'S
UNAUDITED
31 DECEMBER 2022
AUDITED
30 JUNE 2022
Development expenditure 94,202 119,332
Land purchases 60,000 146,200
Joint venture capital commitment 50,000-
Total capital and land development committments 218,602 265,532
8.8. Significant events after balance date
On 3 February 2023, the company issued revised earnings guidance for the year ended 30 June 2023 following
heavy rainfall in the North Island of New Zealand causing delivery delay of pre-sold projects of net profit after tax
between $72,400,000 and $82,400,000 compared to previous guidance of $98,900,000. Subsequently the North
Island experienced more severe weather with Cyclone Gabrielle. At this stage, the additional impact of Cyclone
Gabrielle on our business and guidance has not been significant.
On 22 February 2023, the Board of Directors of the Company approved the payment of a net dividend of 2.0600
cents per share to be paid on 15 March 2023. The gross dividend (2.8611 cents per share) carries imputation credits
of 0.8011 cents per share. The payment of this dividend will not have any tax consequences for the Group and
no liability has been recognised in the Consolidated Statement of Financial Position as at 31 December 2022 in
respect of this dividend.
A member firm of Ernst & Young Global Limited
Independent auditor’ s review report to the shareholders Winton Land Limited
Conclusion
We have reviewed the interim financial statements of Winton Land Limited(“the Company”) and it’s
subsidiaries(together “the Group”) on pages 12 to 26 which comprise the consolidated balance sheet
as at 31 December 2022, and the consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of movements in equity and consolidated statement
of cash flows for the six months ended on that date, and a summary of significant accounting policies
and other explanatory information. Based on our review, nothing has come to our attention that
causes us to believe that the accompanying interim financial statements on pages 12 to 26 of the
Group do not present fairly, in all material respects the consolidated financial position of the Group as
at 31 December 2022, and its consolidated financial performance and its consolidated cash flows for
the six months ended on that date, in accordance with New Zealand Equivalent to International
Accounting Standard 34: Interim Financial Reporting and International Accounting Standard 34:
Interim Financial Reporting.
This report is made solely to the Company’s shareholders, as a body. Our review has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them
in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company and the Company’s shareholders as a
body, for our review procedures, for this report, or for the conclusion we have formed.
Basis for conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the
Auditor’s responsibilities for the review of the financial statements section of our report. We are
independent of the Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements.
Other than in our capacity as auditor we have no relationship with, or interest in, the Company or any
of its subsidiaries. Partners and employees of our firm may deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group.
Directors’ responsibility for the interim financial statements
The directors are responsible, on behalf of the Entity, for the preparation and fair presentation of the
interim financial statements in accordance with New Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting and International Accounting Standard 34: Interim Financial
Reporting
and for such internal control as the directors determine is necessary to enable the
preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410(Revised)requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with New Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting.
27
A member firm of Ernst & Young Global Limited
A review of interim financial statements in accordance with NZ SRE 2410(Revised)is a limited
assurance engagement. We perform procedures, consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing(New Zealand)and consequently do
not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion on those interim financial
statements.
The engagement partner on the review resulting in this independent auditor’s review report is
Grant Taylor.
Chartered Accountants
Auckland
22 February 2023
28
WINTON LAND LIMITED INTERIM FINANCIAL STATEMENTS 31 DECEMBER 202229
Directory
Company
Winton Land Limited
NZCN 6310507
ARBN 655 601 568
Board of Directors
Chris Meehan, Chair
Michaela Meehan
David Liptak
Julian Cook
Anna Molloy
Glen Tupuhi
James Kemp
Jelte Bakker (alternate for James Kemp)
Senior Management Team
Chris Meehan, Chief Executive Officer
Simon Ash, Chief Operating Officer
Jean McMahon, Chief Financial Officer
Justine Hollows, General Manager Corporate Services
Julian Cook, Director of Retirement
Registered Office
New Zealand:
Level 4, 10 Viaduct Harbour Avenue
Auckland 1010
New Zealand
Australia:
c/- Mills Oakley
Level 7, 151 Clarence Street
Sydney, NSW 2000
Australia
Mailing Address and Contact Details
P O Box 105526
Auckland 1143
New Zealand
Telephone: +64 9 377 7003
Website: www.winton.nz
Auditor
Ernst & Young
100 Willis Street
Wellington 6011
New Zealand
Legal Advisors
New Zealand:
Chapman Tripp
Level 34, PwC Tower
15 Customs Street West
Auckland 1010
New Zealand
Australia:
Mills Oakley
Level 7, 151 Clarence Street
Sydney, NSW 2000
Australia
Share Registry
Winton’s share register is maintained by Link
Market Services Limited. Link is your first point of
contact for any queries regarding your investment
in Winton. You can view your investment, indicate
your preference for electronic communications,
access and update your details and view information
relating to dividends and transaction history at
any time by visiting the Link Investor Centre at the
addresses noted below.
Registry
New Zealand:
Link Market Services Limited
Level 30, PwC Tower
15 Customs Street West
Auckland 1010
New Zealand
Telephone: +64 9 375 5998
Email: enquiries@linkmarketservices.co.nz
Website: www.linkmarketservices.co.nz
Australia:
Link Market Services Limited
Level 12, 680 George Street
Sydney, NSW 2000
Australia
Telephone: +61 1300 554 474
Email: enquiries@linkmarketservices.com.au
Website: www.linkmarketservices.com.au
Investors
investors@winton.nz
WINTON.NZ
OVATION
APARTMENTS
LAUNCH BAY
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- KPG — Kiwi Property: Kiwi Property drives robust operating result in 1H232022-11-27
“In parallel, we have recently listed Westgate Lifestyle for sale, with a marketing campaign now underway. The net proceeds from these transactions will be used to repay debt and help fund our development pipeline, unlocking what we believe will be better growth and greate…”
- FBU — Fletcher Building: Fletcher Building confirms HY23 Results, interim dividend2023-02-14
“›Winstone Wallboards® ›Laminex® New Zealand ›Comfortech® › Iplex® New Zealand ›Humes® ›Fletcher Steel® ›Altus® JV Divisional Review EBIT for six months ended 31 December NZ$M20222021 Building Products9366 Steel2530 Total11896 (1) EBIT before significant items is a non-GAA…”
- SUM — Summerset Group Holdings Limited: Financial Results for the Year Ended 31 December 20222023-02-23
“Record underlying profit of $171.4m up 21% on FY21 Full Year Report 2022 Our highlights Uplift in underlying profit driven by strong development returns and growth in deferred management fees 1,007 978 FY21 651 FY21 671 Total units delivered $1.5b Embedded value $1.4b FY21 FY21…”