RESIDENTIAL RECOVERY BOOSTS VILLA WORLD

Written on the 22 January 2014

RESIDENTIAL RECOVERY BOOSTS VILLA WORLD

IT has been a busy month at Gold Coast listed residential developer Villa World Limited (ASX:VLW).

An upgraded profit guidance, purchase of a new development project and the resignation of a long serving director Troy Harry headlined the month.

With the upgraded profit guidance, the company indicated sales are so strong it will be beefing up production, but even then it may not be able to keep up. 

VLW is expecting a Net Profit before Tax of between $17.5 and $19.5 million for FY14, compared to a Statutory Net Loss after Tax of $13.5 million for last financial year - an increase of up to 74 per cent against Underlying Operating Profit Before Tax of $11.2 million in FY13.

The company has carried forward 217 sales worth $80.8 million into FY14 and has made a further 424 sales worth $157.6 million to November 30. It remains cautious, however, noting in a statement the market remains volatile.

Demand is stronger for completed dwellings, though there s increasing demand for off-the-plan product at some projects and therefore sales may depend on the company's construction capacity and it is accelerating this construction activity where possible.

Restocking is a priority for the company and five site acquisitions have been made and settled since July 2012, adding 579 lots to the development pipeline. Three projects have been released for sale and sold strongly.

The company has also entered an unconditional contract for the purchase 
of a development site at Pakenham, with approval for 291 residential lots, in the growth corridor of south east Melbourne. 
 
The purchase price is $9.5million (including GST), with settlement expected towards the middle of 2014  following the completion of works by the vendor. 
 
Harry, a non-executive director of the company since 2009, resigns effective March 31, to go on a long term holiday with his family.

In preparation for his holiday, Harry is making some adjustments to his investment portfolio, including his shareholdings in the Company.  

The board is searching for his replacement, in addition to the recent appointment of Mark Jewell as an independent nonâ€executive director. 

VLW has enjoyed a strong year on the share market, with its share price rising to a 52 week high of $2.03 per unit late in the year (up from 75 cents in January), but it is trading 1.34 per cent down at $1.835 per unit today.


Latest News

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter