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

property

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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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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