2015 is shaping up to be a great year for leading Australian residential property developer
Villa World. The ASX listed company (ASX:VLW) has revised its profit guidance for FY15, with the company now anticipating a net profit before tax of at least $27 million.
Managing Director Craig Treasure said that the company has had a strong start to FY15 and is targeting a first half net profit before tax in the range of $9.5 to $11 million, up from $9.4 million at the same time last year.
“Villa World has consistently delivered growth over the last three years, and FY15 is looking just as promising,” Mr Treasure said.
“In August 2014 we announced an anticipated net profit before tax of $23.7 million for FY15, representing a growth in in excess of five per cent on the previous year.”
“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."Mr Treasures said 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 underway, and the expected completion times have provided us with the certainty we need over delivery dates to settle, and recognise profit, on sales,” he said.
Since September Villa World has released five new communities which have been well received by the market.
New project releases, combined with strong sales across existing projects will deliver the anticipated increase in sales towards the end of the year.
“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,” Mr Treasure said.
“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,” he said.
Villa World is restocking its project pipeline and is actively acquiring land in key Queensland and Victorian locations. The company recently purchased adjoining parcels of land in Rochedale in Brisbane’s south which will be developed into a 148 lot estate.
In October they announced that they had entered into a joint venture arrangement to develop approximately 940 residential lots on a 66 hectare site in the northern growth corridor of Melbourne.