Listed developer Villa World announces 32 per cent profit gain

Listed residential property developer Villa World has posted a 32 per cent increase in its full-year net profit after tax.A strong second half-year saw the Company exceed an upgraded profit guidance and deliver a full-year dividend of 18 cents per share fully franked, with earnings per share growth of 19 per cent to 30.6 cents per share.Chairman Mark Jewel described the end-of-year outcome as "a tremendous set of results".Villa World's net profit after tax result of $33.7 million was up 32 per cent on the previous year's $25.6 million.Mr Jewel said the result reflected the Company's continued strengths in delivering quality housing product and projects, and sticking to its core business in the affordable to mid-price residential house and land market.This year marks Villa World’s 30th year as a listed property company and has seen a continuation of its strong financial and market growth.Revenue was up 20 per cent to $387 million and the Company achieved its sales target with 1,185 sales, up from 843 last year and almost double the sales result of three years ago.Managing Director and Chief Executive Officer Craig Treasure said the increase in sales and settlements was the result of increased operational efficiency and diverse sales channels, as well as strong market demand for Villa World’s quality product.“We have refreshed our business strategy around the key themes of focus, grow and lead," Mr Treasure said."We have firmly set our sights on where we want to be at our 40-year celebration and we are on track."Queensland continued to deliver the lion’s share of revenue (83 per cent) for the ASX300 Company, with strong demand for projects in Brisbane’s bayside, northside and the Brisbane-Gold Coast corridor.Mr Treasure said Villa World would continue to focus on the first home buyer, owner occupier and local investor markets, with international sales representing less than 5 per cent.A strong marketing program in Melbourne supported increased demand for Villa World homes in the north-west and land sales in the south-east corridors.With several flagship projects at or near completion, the Company invested $162.9 million in new land acquisitions to provide continued stock for its five year growth pipeline.Mr Treasure said the Company was finalising a re-entry to the New South Wales market through a partnership agreement with Greenfield Development Corporation, to deliver an initial 90 homes in Sydney’s south west.The Company’s underlying financial position remains strong, with gearing within target range at 25.6 per cent and continued strong cash flow from operating activities (FY16:$131.5 million).In addition to its focus on sales and delivery, Villa World has diversified its income stream through joint venture arrangements which this year delivered $1.2 million in fee income.The Company expects development and project management fees from these arrangements will provide an ongoing revenue stream.Mr Treasure said the Company would carry forward sales of $165.6 million and anticipated continued strong profit growth of at least 5 per cent in FY17.Established in 1986, Villa World is a leading east coast residential developer delivering success through property.