SINGAPORE (Aug 18): AV Jennings, the Australian-based residential property developer, has announced FY17 earnings of A$35.7 million ($38.4 million), down 12.7% from A$40.9 million in FY16 on the back of lower revenue.
Revenue for the full year fell 4.8% to A$401.6 million from A$421.9 million in the previous year, due largely to production and lot titling delays in part occasioned by protracted adverse weather events that affected the eastern seaboard of Australia in the second half.
Nonetheless, the group has maintained its total dividend for FY17 at 5 Australian cents per share with a final dividend of 3.5 Australian cents per share, and attributes this to good contract signings in 2H17; substantial post balance date cash inflows from the collection of receivables; and confidence in the outlook for FY18.
AV Jennings continues to expect positive earnings momentum given current levels of production, anticipated sales, and development of its nine projects targeted for commencement this year.
“As has been the case for several years, the company anticipates a significantly stronger second half, with contract signings for FY18 currently expected to be within a range of 1,900- 2,100 lots,” says Peter Summers, managing director and CEO of the group.
Shares of AV Jennings closed 4.7% lower at 70 Australian cents on Thursday.
