This article is from the Australian Property Journal archive
AVJennings (ASX: AVJ) posted a profit after tax of $2.8 million for 1H24, after a period of lower earnings and increase in the number of shares following an equity raise.
With net profit after tax down from $15.2 million in the previous corresponding period, revenue was also down 14% to $120 million.
“The company remains focused on delivering quality and affordable housing solutions to meet the increasing accommodation need across Australia and New Zealand,” said Philip Kearns, CEO at AVJennings.
“With the utilisation of prefabricated walls to deliver homes faster, we are also committed to ensuring that our customers have access to homes that are not only built efficiently but uphold our values of quality, sustainability and environmental responsibility.”
Contract signing volume was up 65% to 294 sales in the first half, attributed to an increase consumer confidence over the six months after interest rate stabilisation.
Over the half, 270 lots were settled, down 35% from pcp’s 215 lots.
Gross margin was at 26%, down from 35% in the pcp, as a result of cost pressures and the structure of the group’s Brunswick project in partnership with the VIC state government.
With no new acquisitions over the period, the pipeline of lots decreased to 13,905 lots, with 1,299 currently under development.
Net operating cashflow was at $110 million, up $69 million from the pcp.
Gearing increased to 25.7%, within the company’s 15%-35% target range.
“Despite a soft first half, we are confident of a solid 2HFY24. The lead indicators for our business have improved,” added Kearns.
“Enquiries have increased 26% year on year, and we’ve reported a 75% increase in contract signings with $159M of contracts on hand. Most of these contracts are expected to settle this calendar year resulting in a significant revenue and earnings skew to 2HFY24.”
