Delays hit Villa World forecast
BROADBEACH-BASED developer Villa World has flagged a lower FY19 net profit due to planning delays at its projects in Melbourne’s growth corridor.
The forecast of net profit of about $40 million – lower than the $42 million to $44 million expected for the past financial year – failed to faze investors in intraday trading.
Villa World’s shares closed steady at $2.15 yesterday.
Earlier this month the com- pany, led by managing director Craig Treasure, said it expected to record 1678 sales in the past financial year, with projects selling ahead of expectations in the final quarter.
However, Villa World, in a market update, said revenue from some of these projects, in Melbourne’s Plumpton and Clyde North, would be delayed to FY20 due to delays with planning authorities in Victoria but there remained the possibility that revenue from these projects may be delivered in FY19.
The forecast comes as the housing market slows around the east-coast capitals, amid a regulatory clampdown on bank lending to investors and riskier borrowers, as well as buyer exhaustion at the skyhigh prices hit in major cities.
As well as Melbourne’s growth corridor, Villa World has continued to acquire parcels in the booming Logan region, north of the Gold Coast.
The company recently paid $5.4 million for two lots totalling 7.34ha at 564-572 Chambers Flat Rd, Logan Reserve.
Villa World will release its full-year results on August 15.