Joint venture success buoys Villa World profit

Joint venture success buoys Villa World profit

Villa World (ASX: VLW) is on track to deliver its full-year forecast profit growth as the company today announced a $17.3 million statutory profit after tax.

The property developer upgraded its guidance range to $17-18 million in December following a new joint venture project at Wollert in Victoria has since contributed $5.2 million net profit after tax during the half.

Villa World carries forward 610 sale contracts with a gross value of $207.4 million.

During 1H18 the company grew its development and project management income streams by working closely on its joint venture arrangements, including the Wollert development in partnership with Ho Bee Land.

Villa World CEO and managing director Craig Treasure said strong sales, along with new partnerships and earnings from joint ventures, had contributed to the half-year result and would deliver strong forecast earnings through FY19.

"We are on-script with the Company's longer-term strategy to deliver consistent, through-the-cycle growth," said Treasure.

"We have also continued to deliver strong sales through our focus on Villa World's core markets."

Queensland continues to shine for Villa World, contributing 63 per cent of sales during the half. The company also recorded strong growth in the Victorian market which contributed 34 per cent of sales off the back of new project releases including Lilium at Clyde.

"Having fully-stocked our land bank, Villa World is now very much in the delivery phase with flagship projects in Queensland and Victoria coming online," said Treasure.

"We have also leveraged the Company's development and project management skills to take advantage of other income streams through joint ventures and other partnerships."

Villa World's strong result is reflected in the declaration of an interim dividend of 8.0 cents per share, targeting a full-year dividend of at least 18.5 cents per share fully franked.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

Just days after the sudden and unexpected death of Metricon founder...

How tech rebooted economics and platforms broke the invisible hand

How tech rebooted economics and platforms broke the invisible hand

Growing evidence and new research explain the evolution of economic...

Without foreign students and workers, retail sector calls for pensioners to fill staffing gaps

Without foreign students and workers, retail sector calls for pensioners to fill staffing gaps

The Australian Retailers Association (ARA) has called on new g...

Cannon-Brookes launches shareholder campaign against AGL demerger

Cannon-Brookes launches shareholder campaign against AGL demerger

Australian billionaire and Atlassian co-founder Mike Cannon-Brookes...