Residential house and land developer Villa World sales down in HY19
Villa World said while sales for the period HY19 were down, however property settlements for the period were generally consistent with the previous period.
Managing Director and CEO Craig Treasure (pictured) said, “The current challenging market conditions are part of the cyclical nature of the property industry."
"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."
"In the current market conditions, we have invigorated our sales strategy to highlight our value product offering in our sector," he stated
The Company made a $17.6 million after tax HY19 profit, compared with $17.3 million for the same period last year.
Queensland flagship projects including The Meadows (Strathpine), Killara (Logan) and Arundel Springs (Gold Coast) "sold well"
Although Victoria's property market has moderated, some of Villa World’s Victorian projects have remained consistent, notably the Wollert joint venture project.
Villa World said as previously stated, delivery times on Victorian projects are taking longer than anticipated.
Several stages in the Company’s Victorian projects are scheduled for completion in late FY19, with some likely to extend into HY20.
They belive Market conditions and the availability of customer credit are likely to remain challenging for the remainder of FY19. Plus the upcoming federal and NSW elections may also lead to increased customer uncertainty.
GNet tangible assets at 31 December 2018 represented $2.31 per share.
Mr Treasure said, “the Company has conviction that its projects are located where people want to live, its homes are priced within reach of its customers, and its turnkey homes offer a unique customer experience."
"With sound financial fundamentals, prudent capital management and a committed team, the company has the foundations and resources to provide sustained success and shareholder value beyond the current sector dynamics," he concluded.
