Delays hit AVJennings result

Residential developer AVJennings has been hit by planning and accounting delays on key estates but says these are timing issues.

AVJennings expects about $45 million profit before tax.

Residential developer AVJennings has been hit by planning and accounting delays on key estates but says these are timing issues rather than reflecting a shift in its traditional housing markets.

The company said its unaudited result for the last financial year was expected to show about $45 million profit before tax.

AVJennings said there were issues about the timing of recognising revenue of a stage at its Arcadian Hills project in Cobbitty, NSW. It said the issues involved were complicated and required time to review.

“After discussion with our external auditors, the decision has been made to exclude the item from the fiscal 2018 result. Consequently, the result excludes a positive profit before tax contribution of approximately $6.1m,” AVJennings said. Had the revenue and profit from this stage been recognised, the result would have been in line with the 2017 result of a $51m profit. A final decision will be made on how to recognise the revenue when the full-year accounts are available.

AVJennings signalled its confidence in the housing markets on the east coast in which it operates by flagging it would keep total dividends for the year in line with 2017 at 5c per share.

It will update investors on the newer projects soon, including Lyndarum North, Waterline Place and Riverton, which did not materially contribute to the fiscal 2018 result.

The developer in February said east coast housing would stay strong after a period of undersupply of new homes.