A better result emerged from the booming home building sector from AV Jennings (AVJ) which reported a 42% jump in interim net profit to $11.9 million.
That was after a much stronger than expected pre tax profit of $16.8 million, up 34.9%.
With revenue up 13.7% to $118.5 million, it’s clear Jennings managed to ride the home construction boom, while boosting profit margins and not being forced to discount prices.
Jennings’ chief executive Peter Summers said consumer confidence was high in New South Wales, and that Sydney remained the strongest market in the country.
"Demand in Brisbane continues to rise with positive knock-on to the Noosa, Caloundra and Coomera markets, which are now also firmly in recovery," he said.
"The Melbourne residential land market remains stable, with the company generally experiencing good demand on its projects in the east and north-east of the city.
"The South Australian residential market remains stable but subdued overall."
The company will pay an interim dividend of one cent a share, the first for a number of years.
Jennings shares were up 2.4% to 64c.
AVJ 2Y – AV Jennings improving
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