News: AVJennings back on track for growth

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AVJennings (ASX:AVJ) says it is back on track for growth, moving out of the red in fiscal 2009 to report a 176% increase of net profit to $9.6 million for the year ending 30 June.

The residential property developer has also benefitted from the $20 million sale of its contract building division, the business returning a loss of $4.6 million for the full year, compared with an $18 million loss the year before.

CEO Peter Summers says that the past 18 months have been challenging, and the company's sale of the contract building division indicates the boards strategy to focus on land, integrated housing and low-rise apartment buildings.

AVJennings also reports a 35% reduction in net debt over the previous year and says as a result it is well placed to capitalise on new opportunities.

Reflecting this confidence dividends have been resumed, AVJennings declaring a fully franked final dividend of 1.5 cents per share.

AVJennings reported a loss of $12.72 million for the year to 30 June 2009.