A leading Gold Coast developer has reported net profit half of last year. It could be the last time it reports as shareholders mull a takeover offer valuing the company at $293.5 million.
Alister Thomson, Gold Coast BulletinSubscriber only|
VILLA World has reported net profit of almost half of last year as weak consumer sentiment and tightening credit conditions impacted the bottom line for the Gold Coast developer.
This morning the company reported net profit of $22.9 million, 47 per cent down from last year’s record full-year profit of $43.6 million.
Villa World called it a “solid result” given the challenging housing market.
Revenue fell 11.3 per cent to $391.6 million, including 1049 settlements compared to 1303 in the previous period. Sales dropped from record highs to 870 lots.
Queensland, where its projects include Arundel Springs on the Gold Coast, and NSW made up 89 per cent of revenue compared to 84 per cent in the prior period.
“After years of double-digit growth, this was a pleasing result given the challenges faced during FY19,” the company said.
“The result is consistent with the decline in the Australian residential housing market throughout FY19.
“Lower sales results and inquiries were observed in late 2018 and continued into the second half.