House and land packages group AV Jennings has lifted its first half profit by 42 per cent and expects even more contracts to be signed than previously forecast.
Chief executive Peter Summers said low interest rates, strong consumer confidence and housing shortages, particularly in Sydney and Auckland, were helping.
Sydney was the strongest market with healthy demand in Brisbane also boosting its prospects on the Gold and Sunshine coasts, he said.
He described the Melbourne residential market as stable and South Australia as subdued.
AV Jennings made a net profit of $11.87 million for the six months to December 31, up 42 per cent from $8.35 million during the same time the previous year.
Chairman Simon Cheong said the home builder expected 1,700 to 1,900 contract signings for the full year, up from 1,500 to 1,700 forecast in November.
“AV Jennings remains confident that market fundamentals support a continuation of its growth strategy, both in terms of continued increased production levels from existing projects as well as through new acquisitions,” he said.
- Net profit of $11.87m, up 42pct from $8.35m
- Revenue of $118.52m, up 14pct from $104.27m
- Interim dividend of one cent a share, up from nil