AVJennings H1 net profit up 39%

AUSTRALIAN home builder AVJennings posted a 39 per cent increase in net profit for the half year ended December 2015 to A$16.5 million (S$16.3 million) from nearly A$11.9 million a year ago.

This was achieved on the back of a 58 per cent improvement in revenue to A$187 million from A$119 million.

The company has declared an interim dividend of 1.5 Australian cents to be paid in April this year versus one Australian cent in the previous period.

The directors reaffirmed the company's full-year dividend target of a payout range of 40-50 per cent of profit after tax.

Standout contributors were New South Wales and Queensland, which continue to benefit from buoyant market conditions, said the company in a statement.

Significant contributions came from individual projects - Arcadian Hills, Argyle at Elderslie and The Ponds in Sydney and Magnolia on the central coast of New South Wales; Big Sky and Creekwood in Queensland.

"The pattern of continuous improvement in its results over the past three years validates the company's diversified geographic strategy and reflects continuing good levels of production, sales and gross margins in key locations," said AVJennings chairman Simon Cheong.

"It also reflects continued focus on traditional housing," he added.

Earnings per share came in higher at 4.33 Australian cents from 3.12 Australian cents a year ago.