Villa World Ltd (ASX: VLW) recently announced about a confidential Deed of Settlement for resolution of the Silverstone proceedings. The same has been approved by the Court. Further, all the parties have now complied with the terms of the Deed, and the Court has now made orders formally dismissing the proceedings. On the other side, VLW in joint venture with Greenfields Development Company, lately agreed to buy a 153-hectare site at Greenbank, south of Brisbane for $50 million (exclusive of GST) while settlement is expected to occur in stages during FY18 and FY19. The project has been said to be a suitable fit for the company’s strength in delivering a value product within an affordable budget.
 
VLW in FY 16 has reported a 32% increase in the statutory profit after tax to $33.7 million and a 19% increase in the earnings per share to 30.6 cents. In addition, 464 sale contracts are carried forward into FY17 with a gross value of $165.6 million while the group issued a guidance for FY17 of profit after tax growth of at least 5% to $35.4 million. The changes at operational level have helped the group to double its revenues from what was seen in FY13. The efforts to diversify into Victoria and NSW for portfolio growth will unveil further potential.
 
The company’s board declared total full year FY17 dividends of 18 cents per share, which comes in line with dividend policy entailing distribution of 50% to 75% of annual net profit after tax. So to say, VLW stock is a steady growth stock which is available at an outstanding dividend yield of about 8.14% while trading at a reasonable P/E. The stock has plunged 9.8% in the last three months but surged 2.3% in last five days alone (as at November 22, 2016).
 

FY16 Highlights (Source: Company Reports)

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