VILLA World is heading for a bumper 2015 after upgrading its profit forecast by 14 per cent to at least $27 million.
The result should also mean a significant boost for investors with the Gold Coast-based housing developer affirming its plan to target dividend payments of between 50 and 75 per cent of after-tax profits.
The company resumed paying dividends last financial year, paying out 15c a share and representing a yield of about 8 per cent for shareholders at the current share price.
Villa World, which this year posted an annual profit of $19.1 million, its best result since 2006, says strong demand in its key markets has driven the upgrade.
Just three months ago, Villa World was forecasting the FY15 profit would be at least 5 per cent up on the $23.7 million FY14 result – although it hinted that a bigger result was expected.
Today it confirmed that expectation as profit for the current half year is forecast to land between $9.5 million and $11 million, up from the $9.4 million profit recorded in the six months to December last year.
“Villa World has consistently delivered growth over the last three years, and FY15 is looking just as promising,” says Villa World managing director Craig Treasure (pictured).
“In August 2014 we announced an anticipated net profit before tax of $23.7 million for FY15, representing growth in excess of 5 per cent on the previous year,” he says.
“We now expect our growth in FY15 to be stronger, assuming market conditions continue to be favourable and we successfully deliver sufficient product to meet demand.
“Consumer confidence, low interest rates and first-home buyer grants continue to support the very positive outlook for Villa World.
“The volume of production currently under way, and the expected completion times, have provided us with the certainty we need.”
Villa World has been particularly active in bringing products to the market over the past two months with the release of five new projects.
“Our ability to achieve the higher end of our anticipated first-half net profit before tax range will depend on the timing of delivery for the first stage of Circa Metro, our 88 designer townhouse development located at Nudgee in northern Brisbane,” says Treasure.
“We anticipate sales will be boosted at Waterline, our premium land-only development in the Brisbane bayside suburb of Thornlands, thanks to the eight national builders who have expressed an interest in developing a home display village at the estate.”
Villa World has boosted its national development portfolio to 3925 lots, up 48 per cent from a year ago. It is focusing on Melbourne and south-east Queensland where it sees greater growth opportunities.
Among new projects for Brisbane is a 148-lot estate at Rochedale and, in Melbourne, a new joint venture project totalling 940 lots.
Villa World also has announced two new projects for the Gold Coast, at Coomera and Jacobs Well, the company’s first new Gold Coast developments in five years.
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