The company recently provided the guidance update in the company’s AGM held on 16 November 2018 for the four months as at 31 October 2018. It was stated that the company for FY19 was still targeting guidance of ~$40 million NPAT. Villa World Limited (ASX: VLW) gives guidance of $16 million - $17 million and expects to pay a half-year dividend of 8 cps.
Customer sentiment and residential housing market conditions and have significantly deteriorated as widely published in the media. With customers experiencing more stringent assessment criteria and delayed finance approvals and, sales results and inquiries have been struck by a substantial reduction in the availability of finance for residential housing.
For completion late in 2H19, additionally, a few stages in the company’s Victorian projects are scheduled while there is a risk that some settlements from those stages may now move into 1H20. The company as expected for FY19 NPAT will not achieve its guidance of ~$40 million as a result of these issues. The company considers it practical to provide no guidance for FY19 with an uncertain outlook for the sector at this time and will update the market as necessary during 2H19.
With its stated dividend policy, the company expects to continue payment of strong dividends consistent after the review of previous full-year dividend guidance of 18.5 cps. The cyclical nature of the industry does make for the challenging market conditions. However, beyond the current sector dynamics, the company remains confident that their medium to long-term strategy and affordable price point, will provide shareholder value and sustainable success.
On Wednesday, February 13, 2019, the company intends to release its 1H19 results. The company stated that a further 119,918 ordinary shares have been bought back on the market on 6 December 2018 and canceled since the last ASIC Form 484 was lodged with ASIC and ASX. Since October 7, 2018, the beginning of the buy-back on, with 125,849,624 ordinary shares now remaining on the issue, a total of 1,076,642 ordinary shares have been bought back on-market and canceled.
The share price of Villa World Limited traded at $1.655 down by -10.541% as at December 14, 2018. The stock has witnessed a price change of -13.95% over the past six months. The market capitalization of the company at the current price stands at $233.04 million.
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