For AVJennings this is important as wehave a number of...

For AVJennings this is important as wehave a number of significant projectsthat don’t replace existing projects butadd to them in a whole-of-businesssense. Other than in a minor way,the results for FY18 don’t adequatelyreflect the continued advancement ofrelatively new projects which haven’tformed part of our results in recentyears. It is when these projects areadded to our mature projects that wewill see further growth.These new projects are also the partof the business that can experiencethe greatest delays due to planningand other constraints. Much moreso than when you do get to site andare under way with development.Delays then tend to be more relatedto weather and short term tradeavailability issues.It is disappointing some of theseprojects did not contribute to theFY18 results, however, they are nowvery close to doing so and will mostcertainly have a material impact onthe FY19 results and beyond.

Themost material of these was Stage 6 atAcadian Hills at Cobbitty, in Sydney,the impact of which was a deferral ofsome $6.1 million net profit before tax. Had Stage 6 at Acadian Hillsbeen recognised, the result for FY18would have been almost the sameas for FY17