AVJennings First Half FY24 Results Overview

AVJennings Limited (ASX: $AVJ) has reported its first half FY24 results, with contract signings increasing by 75% to 294 lots and enquiries up by 26%. The value of contracts on hand also saw a significant rise of 34% to $159 million. However, settlements experienced a decrease of 35% with the settlement of 270 lots. The company's revenue stood at $120.4 million, reflecting a 14% decline compared to the same period in the prior year. Profit Before Tax (PBT) was reported at $4.2 million, down by 81% from the prior corresponding period, and no interim dividend was declared. The company also refrained from making any acquisitions in the first half of the financial year. AVJennings currently has work in progress (WIP) lots of 1,299 across 28 communities, totaling approximately 14,000 lots.

Executive Commentary on 1HFY24 Results

The CEO of AVJennings, Philip Kearns, AM, expressed confidence in the company's performance, highlighting the improved lead indicators for the business. Kearns emphasized the increase in enquiries and a substantial rise of 75% in contract signings, with $159 million worth of contracts on hand. He acknowledged the challenges faced in the first half but remained optimistic about a solid second half for FY24. Kearns also stressed the company's focus on delivering quality and affordable housing solutions, along with the commitment to efficient and sustainable home construction.

Summary of AVJennings First Half FY24 Results and Outlook

AVJennings' first half FY24 results revealed a notable increase in contract signings and enquiries, indicating improved lead indicators for the business. Despite a decline in revenue and PBT, the company remains optimistic about a stronger second half. The CEO's comments reflected the company's commitment to delivering quality housing solutions and efficient construction methods. AVJennings' prudent capital management approach led to the decision of not declaring an interim dividend and refraining from new acquisitions in the first half. The company's outlook for FY24 includes a heavily weighted revenue and earnings skew towards the fourth quarter, with expectations of lower PBT due to the settlement profile. AVJennings also anticipates no acquisitions during the second half of FY24, while focusing on executing its strategy effectively amidst the challenges in the residential property market. The company aims to capitalize on the future market recovery by prioritizing quality, customer satisfaction, innovation, and disciplined capital management.