Villa World shareholders support business as usual as developer outlines rise in profit and dividend
A GOLD Coast developer just had the best annual meeting they could hope for. Here’s what’s got their shareholders beaming.
Business
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“JUST keep up the good work fellas,” was the only grilling shareholders of listed Gold Coast developer Villa World had for chairman Mark Jewell at the company’s annual general meeting at Broadbeach yesterday.
The four-strong board reported to a quiet room of about 40 shareholders and staff on a solid year, which paid out an 18.5cents/share full-year dividend on the back of a 12 cent increase in net profit.
CEO Craig Treasure outlined the year’s results, including the profit of $37.8 million and an increase in sales from 1185 to 1207.
“An outstanding delivery of land and housing resulted in 1116 accounting settlements of wholly owned lots, compared with 1073 settlements in FY16, as well as 38 lots under 50 per cent share joint venture arrangements,” he said.
“These joint ventures contributed $5.4 million in fee income and profit share, up from $4.6 million, driven by strong sales at the Rochedale project, in Queensland.”
Shareholders re-elected Mr Jewell and David Rennick to the board, and also supported allocating to Mr Treasure shares worth $870,000, subject to performance and vested over three years.
Mr Treasure flagged future opportunities in the recent release of eight new projects, with nine more going to market this year.
Land acquisitions payable at June 30 were $139.3 million, with $88.4 million paid in the year to September 30 and the balance to be settled from operating cash flows, existing debt facilities and capital-light transactions.
“The timing of these acquisitions payments resulted in a low gearing ratio of 12.9 per cent at 30 June, however our target remains in the range of 15-30 per cent,” he said.
Mr Treasure said there would be reduced need for acquisitions in the coming year, thanks to five to six years worth of land already banked.
Flagship developments around Brisbane, as well as in Victoria and New South Wales, are expected to fuel strong results into FY19, Mr Treasure said, adding the company’s FY18 profit guidance was for a 10 per cent increase to $41.6 million.
“In summary, Villa World is in an excellent position moving forward,” he said.
“It’s great to be back in the market with several larger scale projects, and with several years of sales to flow through to deliver the next step-up in growth for Villa World.”
Shares in Villa World hit a 52-week high on the day of the meeting, trading at $2.60.
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