AVJennings Limited (ASX: AVJ) is into the operations of land development and housing sectors. The company develops residential houses in Australia. It is also into the residential land development space.
As per today’s ASX announcement, the company has presented the updates for the first half of 2019 financial year at the recently conducted Annual General Meeting (AGM) on 23 November 2018. The company had indicated that the financial results would be skewed more substantially towards the second half of the year.
The company expects that many of the projects which were supposed to generate the revenues in the first half of the year are now forecasted to contribute to the revenues only in the second half of the financial year. This will further intensify the revenue and earnings bias towards the second half.
The main projects which would be impacted are discussed herewith.
The various Stages at Lyndarum-North, stage 2 at Spring Farm and stages 6 and 7 at the Cobbitty all have got their worked completed. In all these projects, the process for title registration is being carried on & thus, is under process. However, titles will not be issued in the required amount of time. This will ultimately lead to a lag in the settlements to take effect, and hence now it is slated to occur in the month of December only.
Besides, revenues from the integrated housing stage at Hobsonville Buckley B, which was due for settlement in December, has been delayed to early second-half as the houses will not be completed until January 2019.
However, the deferral of the company’s revenues concerning these projects into the second-half will not impact the result for the whole year.
Resultantly, due to all the delays mentioned above, the firm will witness a circa $11 million shift from first-half PBT to the second-half PBT, a substantial part of which will get settled by January 2019. The Board will be considering the matter of an interim dividend once the half-year result is finalized.
AVJennings plans to release the half-year result (Appendix 4D) in early February 2019. The company looks forward to providing further commentary on market conditions, project progress, and an outlook for the balance of FY19 currently.
The chairman & MD of the company at the AGM stated that the company has for last 5 years delivered robust growth and provided substantial returns for the shareholders. The company has in the periods of past four years, seen surge in their revenue and earnings per share at a compounded annual growth rate of 10.6% and 13.4% respectively. For the 2018 financial year, AVJennings has reported a revenue of $374.3 million and NPBT of $45.1 million. This growth was achieved on the back of a substantial contribution from projects in New South Wales.
Meanwhile, the share price of the company has fallen by 28.08 percent in the past six months as on 19 December 2018. The company’s shares closed at $0.52 today, down by 0.952%. The company has a market capitalization of circa $213.27 Million as on 20 December 2018.