DEVINE BOUNCES BACK, GUIDANCE NEARLY DOUBLES

DEVINE BOUNCES BACK, GUIDANCE NEARLY DOUBLES

STRONG Queensland property sales and successful short-term capital raising initiatives have contributed to Devine Limited’s (ASX: DVN) announcement of a near-doubling of its full-year profit guidance.

The company has raised the bar from between $7 million and $10 million to $12 million and $14 million, indicating it is bouncing back from a $15 million half-year loss last December.

DVN has secured 60 per cent of its annual forecast land settlement target and 70 per cent of its annual home construction starts.

Short-term capital recycling initiatives announced following the loss have come into fruition, where DVN has exited selected assets in Brisbane and Sydney to facilitate investment in higher margin opportunities.

Managing director and CEO David Keir says more than $110 million has been raised through this initiative in the past six months.

“This has enabled the company to investigate and negotiate a number of new development opportunities that will underpin the future of business,” says Keir.

In the meantime, existing DVN developments are performing strongly particularly on the local apartment front.

The company's  apartment sales presently stand at 80 per cent of its full year settlement target.

Currently sold to 98 per cent capacity, the award-winning Hamilton Harbour mixed-use development has been the big property winner for DVN, as well as its DoubleOne3 apartment project in Teneriffe which has reached nearly 90 per cent sold.

Furthermore, market conditions have appeared to work in the company’s favour, something managing director and CEO David Keir was hopeful of earlier in the year.

“Market fundamentals, headlined by low interest rates and the demand-supply imbalance, combined with the quality of Devine’s product and place offerings support an improved level of trading over the next 12 months,” said Keir in the company’s half-year report in December.


Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Golden handshakes to departing ASX100 CEOs hit 12-year high

Golden handshakes to departing ASX100 CEOs hit 12-year high

Around one in every six CEOs of ASX100 companies left their job&nbs...

Maggie Beer Holdings CEO Kinda Grange resigns just 16 months into the job

Maggie Beer Holdings CEO Kinda Grange resigns just 16 months into the job

The revolving door of leadership at Maggie Beer Holdings (ASX: MBH)...

Dreamworld owner reports improved ticket sales despite severe peak season storms

Dreamworld owner reports improved ticket sales despite severe peak season storms

The owner of Gold Coast theme parks Dreamworld and WhiteWater World...

Peter Farrelly's action comedy Balls Up starring Mark Wahlberg to be filmed in QLD

Peter Farrelly's action comedy Balls Up starring Mark Wahlberg to be filmed in QLD

The Australian film industry continues to attract Hollywood product...