Gold Coast-based developer Villa has substantially increased its Full Year 2016 profit guidance from $40.5 million profit before tax to $46.6 million.
Villa World said the higher guidance was a result of continued strong market conditions and the completion of the Eynesbury sale in Victoria.
The company said that profit was expected to be consistent between the halves.
With the company returning to an effective tax rate of 30% from 13% in 2015, it was targeting net profit after tax of $32.6 million compared to $25.6 million in 2015.
The Board said it planned to continue the payment of dividends in accordance with the stated payout policy of 50% to 75% of Net Profit After Tax, paid semi-annually. It reaffirmed that dividends in Full Year 16 were expected to be at least 16 cps fully franked.
Villa World said settlement of the second tranche at Eynesbury, comprising the balance of the land, was completed on 7 December 2015 at a sale price of $34.5 million (plus GST). The sale price was increased from $30 million (plus GST) as part of the arrangements to extend settlement as previously announced by the company.
Its share of profit from the Eynesbury joint venture now included in the Full Year 2016 guidance is $3.6 million primarily representing the increase in selling price and extension fees. $9.5 million in cash proceeds will be returned to the company from the Eynesbury joint venture in the first half 2016.