Cedar Woods expects its two-year record profit streak will end this financial year, with earnings growth stagnating because of the tough market for property developments.

The developer says profits for the year to June 30, 2013 will be in line with those for the 2012 financial year.

On Tuesday, the company, which has projects in Western Australia and Victoria, posted its second consecutive annual net profit, up 22 per cent to record $34.25 million.

Managing director Paul Sadleir said the company had secured about $140 million of pre-sale commitments so far this financial year.

He said that although that figure was $10 million higher than the previous year, there was a slow sales environment in WA and a cooling market in Victoria.

“On the current sales levels, we anticipate that the net profit will be about $34 million, same as the 2012 financial year – that’s the guidance we’re providing,” Mr Sadleir told AAP.

He said that while the company was comfortable with the guidance, it had the potential for a better performance.

“For many years we’ve had a target of 10 per cent profit growth each year and that’s not out of reach as market conditions improve.”

Mr Sadleir said the firm would make use of “extra stock” if that happened.

“We do have the ability to sell more stock because we’ve got the construction program in place to make sure the products for additional sales are available.”

In the longer term, Cedar Woods was looking to add to its property portfolio and launch additional property joint ventures, he said.

Mr Sadleir said Cedar Woods was bidding on several new LandCorp projects to take up new land opportunities in the Perth metropolitan area and also in the Pilbara region.

There were “a couple of larger acquisition projects we’re looking also, (which) are potential syndicate opportunities”, he said.

Shares in the company closed down six cents at $3.90.