Gold Coast developer Villa World reports 15 per cent boost to net profit for past financial year after strong sales at flagship projects

A LEADING Gold Coast residential developer has reported a big boost to its profit this financial year, helped by strong sales in Queensland. Here’s why they’re smiling.

Villa World managing director Craig Treasure has led the company to a strong result for the past financial year.

BROADBEACH-based developer Villa World has boosted its net profit by 15 per cent to $43.6 million.

The full-year result, announced this morning to the ASX, is at the top of the range forecast earlier this year of between $42 million and $44 million.

Villa World recorded 1678 sales in the past financial year, 39 per cent higher than FY17.

Queensland projects contributed to 64 per cent of sales, slightly down on the previous period, with strong sales in southeast Queensland and Hervey Bay.

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Villa World will carry forward 845 sales contracts, worth $278.1 million, into this financial year.

Managing director Craig Treasure hailed the result as proof Villa World’s strategy, of spreading its projects across multiple markets, is working.

“Villa World is well positioned with diversity in terms of our product and our markets, with significant development projects now selling across major growth corridors and in three states,” he said.

The company said it expects strong sales to continue this financial year, underpinned by projects in Queensland and Victoria.

Its joint-venture strategy is expected to contribute more than $6 million to its profit before tax in FY19.

Villa World is targeting a net profit of about $40 million this financial year, which it said, assumes consumer confidence does not drop off, interest rates remain low, consumer credit conditions do not worsen, and first-home buyer grants remain in place.

Villa World declared a final dividend of 10.5c per share, taking its full-year dividend to 18.5c.