Property information services company RP Data Ltd it faces greater challenges this financial year, as housing sales and mortgage volumes fall.

The group reported a net profit of $10.13 million for 2007/08, up from $2.68 million in the previous year.

“The 2008/09 year will clearly present greater challenges in an increasingly uncertain economic climate,” chairman Ted Pretty told shareholders at the company’s annual general meeting today in Brisbane.

He noted that housing sales transactions are down 36 per cent in the June quarter, from the same period in 2007, and that mortgage volumes had been in sharp decline.

“We have also seen a decline in overall property transaction volumes in the September quarter on a year on year basis,” Mr Pretty said.

But Mr Pretty said the company should still be well placed as its consolidates its business units and offices, cuts staff and cuts discretionary costs.

“We believe that by taking action to get ahead of the impacts of the market downturn the company will be well placed going forward,” he said.

Mr Pretty said the company would not give any specific earnings guidance for this year.

However, its first half results would be impacted by redundancy costs and softer mortgage volumes, before an improvement was seen in the second half.

“We also believe that the core business will remain resilient and that there will be a steady uptake of our new valuation products by the financial sector albeit in a softening market,” he said.

Mr Pretty today stepped down as chairman of RP Data after three years and was replaced by independent director Ian Fraser. Mr Pretty will remain on the board as a director.

RP Data shares ended steady at 78 cents.

AAP