Troubled builder Privium Group’s shareholders receive $22m in dividends

Troubled Queensland building group Privium gave shareholders a big dividend payout during the same financial year it reported a substantial loss.

One of Australia’s most active residential builders Privium Group paid out $22m in dividends, despite posting a $28m loss in 2019/20 financial year.

Privium Group last week stopped work on the bulk of its building sites and has now closed down its website for public scrutiny.

It has 160 unfinished projects in Queensland and more around the country.

According to documents lodged with the corporate regulator, the Australian Securities and Investments Commission (ASIC), Privium reported a loss of more than $28m in 2019/20 as the construction industry felt the impact of shutdowns, labour shortages and price hikes caused by Covid-19.

However, over the same period it paid $22m in dividends to its shareholders, including $4m to Privium Group.

They have not filed a financial report for the 2020/21 financial year.

Privium Group reported a loss of $28m in 2019/20.

According to ASIC three Privium directors left their roles in the past three months — Neil Wormwell, Donald Wormwell and James Jonathan Harder — leaving Robert Harder as the sole director.

In the latest HIA Housing 100 report, Privium was listed as the 19th largest detached house builder in Australia with 1044 starts in the 2020/21 financial year. Over the same period is had 147 semi detached home starts.

Privium was named 11th largest builder in Queensland by HIA in 2020/21 with 500 detached and semi detached home starts and according to the Queensland Building and Construction Commission completed more than 600 projects worth $183m over the same period.

Privium, which also operated under the trading name Impact Homes, operates in Queensland, NSW and Victoria.

In a letter to clients Privium said: “As you are well aware, the last six months have been very difficult in our industry with the continued supply and demand challenges, significant price increases and ongoing lockdowns with Victoria and NSW.”

“Due to the volume of builds … this has had a significant financial impact on the Privium Group.”

According to ASIC documents obtained this week, Privium currently has more than 25 shareholders. At the time of publication we have not been able to verify who was a shareholder in the 2020 financial year and whether they received a dividend payout.

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