Villa World on track to turn profit, despite royal commission pressures

Villa World on track to turn profit, despite royal commission pressures

Villa World (ASX: VLW) is on track to turn a solid profit in FY18, as flagship projects contribute to a strong third quarter sales result.

In its 3Q18 operational update, Villa World revealed that it expects to reach $41.6 million in net profit at the full year, buoyed by an increase in sales.

The residential property developer is close to reaching its yearly sales target of 1400 lots, sitting at 1281 sold thus far.

After four consecutive years posting improved profits, the company continues with its long-game to build on its portfolio of flagship developments across Queensland, Victoria and New South Wales.

Following the $17.3 million in statutory profit it recorded at the end of 1H18, Villa World expects to meet its dividend target of at least 18.5 cps fully franked.

While Villa World's books are looking good, the Royal Commission into the finance industry has put pressure on the company as purchasers are taking longer than usual to gain unconditional finance.

The company does not expect the fallout from the Royal Commission will have any material impact on its bottom line.

Villa World recently appointed a new chief financial officer Lorelei Nieves and chief operations officer Michael Vinodolac, in line with the company's management succession planning.

CEO Craig Treasure said earlier this year that the company would benefit from the duo's combined experience and leadership.

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