Despite a tough property market Villa World (ASX: VLW) has recorded a slightly improved profit at the end of the first half of FY19.
The residential house and land developer announced a $17.6 million after tax half year profit, up from $17.3 million at the end of H1 FY18.
This was despite sales being down significantly from the same time last year. The company recorded 517 sales compared to 1H18's 742.
Villa World managing director and CEO Craig Treasure says the company will survive these market conditions.
"The current challenging market conditions are part of the cyclical nature of the property industry," says Treasure.
"However, Villa World has a long history of successfully navigating through market cycles and has a forward strategy focused on helping people reach home and long-term value creation."
"We believe Villa World is well placed to capitalise on opportunities that will arise for astute acquisitions and partnering arrangements."
The company's flagship projects in Queensland, The Meadows, Killara, and Arundel Springs, sold well, and several projects in Victoria also performed consistently.
Delivery times on some Victorian projects are lagging according to the company, with completion times expected to be delayed into the first half of FY20.
The company decided to not provide guidance for FY19 in light of market conditions and upcoming elections federally and in NSW which could lead to increased customer uncertainty.
The board declared an interim dividend of 8 cents per share fully franked.
Shares in Villa World are up 1.63 per cent to $1.87 per share at 1.05pm AEDT.
Business News Australia
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