THE Perth-based Aspen Group, which is moving towards providing "pure
play" accommodation, has recorded a statutory loss of $31.7 million.
Announcing its financial results for the year ending June 30, the ASX-listed
property group said this was largely due to devaluating its resources
properties.
Operating profit before tax fell 31 percent to $10.2m.
Chief executive Clem Salwin said his company had "substantially achieved"
its strategic goal set two years ago.
"Aspen is now largely a focused, pure play accommodation business," he
explained.
"Our objectives were clear ... to simplify the business, reduce debt, have a
lower cost base and grow our asset base within the 'value-for-money'
accommodation sector."
Mr Salwin said the group had made "very significant progress" in achieving
its objectives and was well placed for the future.
Aspen continued to suffer from further softening in the resources sector,
with a decline of $29 million in the value of the five resource
properties.
This reflected the deep cyclical decline in the resources sector.
"As we move into FY16, our focus is to create value both within our
existing portfolio and in disciplined acquisition opportunities," he
added.
Aspen Group owns and manages 25 accommodation and holiday properties,
either directly or through its investment in Aspen Parks Property Fund (APPF).
During the year, it acquired five parks for a combined value of $51.3m.
Two were 100 percent manufactured housing estates, acquired by Aspen Group
directly, with the others being a combination of residential and short
stay properties
acquired by APPF.
Subsequent to year end, a sixth park was acquired by Aspen Group directly,
bringing total acquisitions to $61.8 million since they began in December
2014.
