Villa World announces fifth consecutive year of double-digit growth

Villa World has delivered a fifth year of double digit growth.

Villa World recorded a net profit after tax of $43.6 million (34.4 cps), up 15% on last year's result of $37.8 million.

Villa World chairman Mark Jewell said the S&P/ASX 300 company’s year-on-year growth demonstrated that its financial strategy and commitment to delivering its core affordable house-and-land and land-only product was on track.

“The board has now turned its attention to the next phase,” he said.

It has welcomed a new board member, former Nike Inc Vice President, Lisa MacCallum, who takes up the independent non-executive director role.

“The addition of Lisa MacCallum to the Board will help us achieve this,” Jewell said.

During 13 years with Nike, she led major business turnarounds in the company’s US retail sales and growth initiatives.

With a background in accounting and consulting with KPMG in Australian and the US, MacCallum co-founded a Tokyo-based multimedia and broadcasting company.

She is a board member of British Telecom (BT) PLC.

Jewell said MacCallum’s global corporate experience and perspective would enhance the Villa World Board and help drive the company as it begins implementing a newly-endorsed purpose and beliefs focused on people, customers and community.

At its annual results announcement, Villa World reported a 39% increase in sales, up from 1,207 lots in FY17 to 1,678 lots.

Revenue increased to $441.6 million in FY18, up from $386.8 million last year.

The Villa World Board declared a full year dividend of 18.5 cents per share fully franked, representing a yield of 8.6%1.

Looking ahead, the company is targeting a statutory profit after tax of approximately $40 million in FY19.