solid growth - results monday

AV Jennings : Financial Summary

Price $2.10 Market Cap $452m
2004 (e) 2003 2002 2001 2000 1999 1998
Revenue 570 525.8 460.4 544.4 650.9 544.8 459.1
EBIT 106 80.7 43.8 36.5 34.2 28.1 24.6
Net Profit (excl. abnormals) 69.3 56.7 29.3 36.9 32.9 23.4 18.3
S/H Equity 267 222.3 172.0 163.1 147.6 137.6 124.5
Shares @ y/e 215.2 215.2 215.2 215.2 215.2 215.2 215.2
ROE (ave S/H Equity) 28.3 28.8 17.5 23.7 23.0 17.9 15.2
EPS 32.2 26.4 13.6 17.2 15.3 10.85 8.5
DPS 11.0 10.0 8.0 10.0 5.25 4.75 3.75
NTA 124 1.03 80.0 75.7 68.6 60.2 53.9
EBIT Margin 18.6 15.3 9.5 6.7 5.2 5.2 5.3
Debt/Equity 50 34.6 18.6 40.0 34.8 58.2 62.2


Comments:

„h The result for the 12 months ended 31 March 2004 is due to be released on 24 May 2004.

„h AVJ¡¦s Market: AVJ develops and markets urban infill residential developments to the 2nd/3rd home buyer: ¡§the aspirational buyer¡§ generally with significant equity. First home buyer sales tend to be only to the more affluent buyers in this segment and sales to investors are minimal.

„h Financial Performance (including estimated 2004 result)

5 Year Growth (compound)

EPS 24%
DPS 18%
Shareholders Equity 14%

„h EBIT Margin grown from 5.2% in 1998-9 to 18.6% (e) in 03-04. This reflects the transition in the company¡¦s business from predominantly contract house sales to land development over this period.

„h ROE has increased from 17.9% in 1998-99 to an estimated 28.3% for 2003-04.

„h Issued Capital has not changed since 1999, constant at 215.2m shares; no dilutive executive options, DRP¡¦s and placement / issues of stock below market.

„h The only industrial companies capitalised at +$400m which generate a ROE of +25% and have achieved 5 year compound EPS growth of +12% p.a. are Corporate Express, Cochlear, ASX, Woolworths, Unitab and AV Jennings. AVJ is on a 03-04 p/e ratio of 6.4x, the average for the other 5 stocks is 19x.