Villa World Ltd (ASX:VLW) shares zoom 5% on FY18 results

Small cap residential property developer Villa World Limited (ASX: VLW) has hit its top range upgraded profit guidance, delivering an FY18 NPAT of $43.6 million – up 15% from FY17 and in line with updated figures handed down in January.

The Villa World share price pushed almost 5% higher today off the back of its FY18 results and annual report, with investors welcoming a 14% uptick in revenue and EPS of 34.3c per share – up 6%.

Villa World announced a fully-franked dividend of 10.5c, bringing its total FY18 dividend to 18.5c per share meeting its dividend policy of 50%-75% of annual NPAT.

Operationally Villa World reported solid growth across all customer segments with growing settlement figures and Queensland and New South Wales contributing to 84% of revenue.

Looking forward, Villa World expects sales to remain strong through FY19 with a targeted statutory NPAT of $40 million with possible headwinds in Victoria due to planning delays.

Villa World is up against big guns in the sector like Lendlease Group (ASX: LLC) and Stockland Corporation Ltd (ASX: SGP) with Lendlease due to release its annual report on August 27 and Stockland on August 24.

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