In a financial report filed with the Securities and Exchange Commission, C&P Homes said the rise in profit was due to lower interest expense.
Net sales reached P1 billion last year or a decline of 30 percent from P1.43 billion in 2004, mainly due to the effect of deconsolidated subsidiaries which normally contributes 25 percent of total sales.
Interest income rose 28 percent primarily due to increase of installment contracts receivable and a higher collection efficiency rate versus 2004.
Cost and expenses, however, fell 7.18 percent to P1.68 billion from P1.81 billion.
Earnings per share amounted to 19 centavos compared with only 10 centavos a year ago.
C&P Homes recently raised its authorized capital stock to P7 billion from P500 million. The capital build-up forms part of the company’s capital and debt restructuring program aimed at cleaning up its books.
According to C&P Homes, the increase in capital stock would allow it to invest, purchase and own properties that would further boost operations.
The new capitalization consists of seven billion common shares each with a par value of P1.
The company is also restructuring $150 million worth of floating-rate notes.
C&P Homes continues to settle some of its obligations through outright and unconditional sale of real estate properties and sale of assets as liquidity mechanism.
Among the firm’s creditor-banks include Bank of the Philippine Islands, Equitable PCIBank, International Exchange Bank and Rizal Commercial Banking Corp.
C&P Homes, currently the country’s largest socialized housing developer, has also entered into swapping deals with its business partners to service some operational requirements.
The company is strengthening its foothold in the middle-income market through its Crown Asia projects.
Its home designs range in gross floor area from 21 to 74 square meters and the selling price ranges from P150,000 to P2 million.
C&P Homes is more popularly known under the brands Camella and Palmera. The Camella projects focus in Southern Metro Manila, Cavite, Laguna and Batangas regions while the Palmera brands are visible in northeastern Metro Manila, Rizal and Bulacan.