AVJennings has swung into the black with a $18.8 million profit and expects a stronger 2015 financial year.
AVJennings is gearing up to develop more homes as the east coast property market takes off.
The home builder expects to develop between 1,500 and 1,700 lots in the next 12 months.
It developed 1,264 lots in 2013/14, which was towards the bottom of what it had originally expected.
Chief executive Peter Summers says he expects the housing market will continue to recover on the back of stronger consumer confidence and low interest rates.
“We entered FY2014 with only NSW starting to enter into a recovery market,” he said on Thursday as the company.
“But this financial year we’ve got NSW in full recovery, Queensland entering into a stronger property cycle, Victoria stabilising and improving a bit, and Auckland continuing to go strong.”
His comments came as AVJennings announced it had returned to the black with an $18.8 million profit for the 12 months to June 30, reversing a $15.3 million loss in 2012/13.
Mr Summers attributed the turnaround to the company’s commitment in recent years to scaling up or down its development plans based on the housing market outlook.
“We can look at where the market is going in three to six months and scale down to where we can see the market is heading,” he said.
AVJennings’ earnings were also supported by several acquisitions, including a joint housing venture in South Australia, more than 400 lots in Auckland and a small stake in a Perth development.
Mr Summers said a recent rise in first home buyer activity was a good indicator of strong market conditions.
“Overall market conditions are good. It’s much about consumer confidence.”
While the jobless rate is at a 12-year high of 6.4 per cent and expected to rise, Mr Summers did not expect this to reverse the housing recovery.
“Most people are confident in their existing jobs, the unemployment rate is really an issue when people get insecure about their future,” he said.
“And while those headline numbers are up, I don’t think that has been accompanied by a level of anxiety.”
AVJennings’ shares were 1.5 cents higher at 61 cents at 1504 AEST.
AVJENNINGS SWINGS BACK INTO THE BLACK
* Net profit of $18.8m, from $15.3m loss in 2012/13
* Revenue of $250.6m, up 58.1 pct from $158.5m
* Fully franked final dividend of two cents per share, up from zero