The NSW housing boom and good weather has smiled on residential property developer AV Jennings (AVJ) which yesterday revealed a surprise earnings update for 2014-15.
AV Jennings had already told the market to expect a more than doubling in net profit for the year to June – now it’s looking for a further rise on that increase.
The company said this had followed the failure of bad weather to slow its projects in NSW as much as expected.
AVJ made a $18.8 million profit in 2013-14 and now sees earnings around $47 million, up from the previous forecast of $40 million.
Investors have reacted enthusiastically, pushing the shares as much as 7% at one stage yesterday.
They ended the day up 3.8% at 67.5 cents.
AVJ 1Y – AV Jennings lifts full year guidance
“Directors previously advised a profit before tax in the order of $40 million or higher,” the company said yesterday.
“The expected result was impacted by adverse weather in New South Wales in the second half, however, a number of material stages of projects were able to be completed in the month of June that were originally assessed as likely to be completed after year end.
"Whilst assessment of the asset carrying values as at 30 June 2015 is continuing and has not been finalised, further material adjustments are not expected.
"Directors remain confident of strong residential market conditions continuing and look forward to providing more commentary on this when the final results for the year ended 30 June 2015 are released."
The company said it will announce annual earnings around August 20.
