$69 postpage LB

Property Developer Villa World Today Releases Its Investors Insight Report

  • November 13, 2018 08:23 AM AEDT
  • Team Kalkine
Property Developer Villa World Today Releases Its Investors Insight Report

Property developer group Villa World Limited (ASX: VLW) today released its Investor Insight along with explaining the changes made to accounting classifications. Some of the key highlights of the report includes:

Gold MTF non-AMP

Changes to accounting classification: The company explained that in line with industry peers, it has made two major accounting changes, first in the presentation of borrowing costs previously capitalized into the cost of inventory sold and impairments, and second in sales, production and settlement statistics. The impact of reclassification will have no changes in the net profit after tax of the company however, gross margin, EBITDA, and finance costs will vary, as told by the company. Following the changes in accounting, the company expects lower gross margin range of 23% to 25%, reduced from 24% to 26%.

Sales Contract: In the Investors Insight, the company reported that ahead of strong carried forward sales worth around $278 million, it anticipates that around one third of those 845 sales contracts will settle during the first half of Fiscal 2019. It is reported to include an elevated 87-lot land development at Bella Vista Estate, south of the Wollongong CBD. Further, about 21% of more contracts, valued at over $61 million, are due to be settled by the end of the financial year, with the balance of contracts worth in excess of $108 million settling in FY20.

Investment strategy: Villa World is committed to build well-located, affordable to mid-priced house-and-land packages under its no-variations, all-inclusive turnkey model. Currently, the company focuses to make strong investment in operational delivery and cash settlements pursuant to which limited new acquisitions are anticipated to be undertaken in Financial Year 2019.

Segment performance: Ahead of strong product positioning within the affordable owner occupier market in Queensland, Villa World has attracted a steady sale. Whereas, in Victoria market the company expects to eye a further upswing in construction activity underpinned by the delivery of carried forward sales. The New South Wales segment of the company has experienced substantial slow down across the Sydney housing market. Commenting on which, the company said that it will continue to address the affordability challenge, with the release of medium density product in Sydney’s south-west.

Buy Back: The Villa World Board approved an on-market buy-back for up to 5% of issued ordinary shares. Having activated the buy back, Villa World to date has acquired 321,699 shares worth $0.6 million, moreover buyback will be effective until October 2019. The management advised that buy-back represents a strategic and prudent deployment of capital, being NTA and earnings per share accretive.

FY19 Guidance: The company continues to target a statutory profit after tax of approximately $40 million in FY19, with the Board guiding to an FY19 full-year dividend of 18.5 cents per share fully franked.

The Annual General Meeting of the company is scheduled to be held on 16 November 2018.

The stock of Villa World Limited traded flat today. The stock price last traded at $2.010 with PE of 5.840x and market capitalization of $255.12 million as on 13 November 2018.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.




The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK