January’s floods prompted listed property specialist Winton Land to downgrade its annual result, the company saying it was unable to complete most of this summer’s earthworks season because of extremely wet weather.

Instead of making the $98.9 million forecast for the year to June 30, 2023, the company said it now only expects to make $72.4m to $82.4m.

“The change to guidance is driven by the delivery delay of pre-sold projects attributable to heavy January rainfall in the North Island. As a result, we have already lost 83 per cent of this summer’s earthwork season, incurred water damage to pre-ordered supplies and expect supply chain implications to the industry,” the company said today.

Net profit after tax could be only $72.4m to $82.4m in the full-year result due out in August.

This compares to the FY23 forecast provided at the time of its initial public offer of $98.9m. The revised guidance remains above the FY22 declared net profit after tax of $31.7m. Any net profit after tax not realised in FY23 is expected to be realised in 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. The revised FY23 guidance remains subject to no further material adverse changes or unforeseen events,” the company said.

Chris Meehan, Winton chief executive, said the bad weather had caused severe issues.

“Before the impact of the severe weather, the business was on-track to achieve the FY23 IPO forecasts. Our high degree of committed pre-sales has served us well in this weaker housing market.

“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.”

In October, the company said it was suing state agency Kāinga Ora, alleging anti-competitive conduct by the Government housing agency.

That is over its plans for Sunfield where it wants to build around 5000 homes, seeking for consent to be fast-tracked.

But Housing Minister Megan Woods has rejected that.

Winton’s application for Kāinga Ora to assess the project under the Urban Development Act was declined.

She wrote to Meehan saying Ministers of Finance and Housing would not direct Kāinga Ora to undertake a project assessment of the Papakura scheme as a special development project.

The need to avoid adding further pressure to already constrained Government resources and Treaty of Waitangi interests were cited in the rejection.

Winton has 27 projects expected to yield 7000 new residential lots, dwellings, apartments, units and retirement village places.

It listed on the NZX and ASX two years ago.

It is trading at $1.94, down 43 per cent annually. Its half-year result will be announced on February 22.