PROFIT BOOST FORECAST AT VILLA WORLD
Written on the 6 December 2016
VILLA World has forecast profit growth of 5 per cent in the first half of FY17 in an earnings guidance released to the ASX today.
The company announced that it was targeting net profit after tax of between $19.5 million and $21.4 million for the first six months of the year, compared to $20.4 in the previous corresponding period.
Strong carried-forward sales and momentum in the Queensland and Victorian housing markets is feeding the growth.
Villa World managing director and CEO Craig Treasure says the strength of the Villa World balance sheet continues to support maintenance of a five to six-year pipeline of strategic acquisitions within growth corridors in east coast states.
This includes a $50 million joint venture acquisition of 153 development-ready hectares at Greenbank, in South East Queensland, with Sydney-based Greenfield Development Company. The site has approval for more than 1000 residential lots.
Villa World is also developing an initial 90-dwellings with Greenfield in Oran Park, its re-entry into the New South Wales market.
The Villa World board expects to pay a full-year shareholder dividend of at least 18 cents per share, fully franked. This is in line with the Companys payout policy of 50-75% of NPAT, paid semi-annually.