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RESIDENTIAL property developer Villa World (ASX: VLW) has posted its fourth consecutive full-year profit growth, announcing a $37.8 million net profit after tax, up 12 per cent on the previous financial year.
The Gold Coast-based company generated a revenue of $386.8 million off the back of continued sales momentum as well as delivery of land and housing developments.
The company says its results reflect a long-game strategy as it gears up for new flagship developments in Victoria and Queensland over the next two years.
Craig Treasure, Villa World managing director and CEO, says the company conducted capital raising transactions earlier this year and the funds raised will bolster these projects.
"Having virtually sold out on 18 projects by the middle of this financial year, the Company delivered eight new projects in the second half, including developments in the Logan, Gold Coast, bayside Brisbane and Melbourne growth corridors," says Treasure.
"These projects will make full year contributions to sales in FY18, with a further nine projects due to start selling by mid FY18 and setting up a strong result in FY19."
Over the past year the Queensland market continued to perform well for Villa World and the company has similarly strengthened its presence in New South Wales.
The company has also continued to flesh out the Victorian market as it releases new land and turnkey housing projects in suburbs Clyde and Wollert.
Treasure says Villa World's growing base of interstate projects keeps with its diversification strategy.
"Our strategy of maintaining a pipeline of projects, while also diversifying both geographically and in our product mix within the residential house and land market, has translated into consistent cash flow and growth," says Treasure.
The company will carry forward 526 sales contracts worth $175.7 million into FY18. Three-quarters of those contracts, worth $127.6 million, are due to settle by December 2017 with a further $38.6 million to settle by 30 June 2018 and the balance settling in FY19.
Villa World declared a 10.5 cent fully franked dividend, bringing the full-year dividend to 18.5 cents per share.
At the time of writing (3:11pm AEST), VLW stock is trading relatively flat at $2.34.
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