RECORD PROFIT IN SIGHT FOLLOWING STRONG HALF FOR VILLA WORLD
Written on the 15 February 2017 by Business News Australia
VILLA World (ASX: VLW) has met its forecast to deliver a $19.6 million profit following a strong sales period across all its state markets.
During 1H17, the Gold Coast-based company achieved a boosted revenue of $209.4 million through the sale of 673 lots.
The developer expects to beat its record FY16 profit result by at least $3.8 million as it carries over more than $191.6 million in sales contracts, most of which are pegged to settle in the second half.
Villa World credits the success of 1H17 to positive economic conditions and job growth across Queensland and Victoria, the two states which have yielded the bulk of the company's acquisitions over the past six months.
CEO and Managing Director Craig Treasure (pictured) is optimistic about the remainder of the year as the company continues to turn over several key projects in South East Queensland.
"Strong demand in our key market segments and continued disciplined project delivery places Villa World in a very positive position as we head into the second half of the year," says Treasure.
"With several of our major projects now approaching sell-out, Villa World looks forward to strong interest in new flagship projects in the top-performing Brisbane-Gold Coast corridor."
Queensland accounted for 68 per cent of company sales in the last half as Victorian sales totalled 26 per cent.
The company has also nurtured its growing New South Wales market through the acquisition of four projects totalling 218 lots across South West Sydney and Illawarra.
To round out the year Villa World will continue to exploit its most profitable growth corridors which include Hervey Bay and Melbourne.
The company has issued a fully franked interim dividend of 8c, with guidance for total dividends increased to 18.5c.
Villa World stock jumped 1.25 per cent following the profit announcement and is currently trading at $2.43.
Author: Business News Australia