Ingenia Community shares rise as it increases guidance
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The news: Ingenia Communities Group has increased its FY25 EBIT and underlying earnings-per-share guidance after it simplified its operations and improved returns in its development activity.
The numbers: The company is now targeting an EBIT of $162 million for FY25, up from its previous target of $148 million to $155 million.
Its earnings-per-share guidance has increased to 29 cents to 30 cents, up from a range of 24.4 cents to 25.6 cents.
The company noted that 258 homes were settled during the first half and that its sales pipeline was positioned to deliver a more consistent settlement profile.
Ingenia shares were up 1.33% to $4.58 by 3:16pm AEDT and over the last 12 months has risen 0.88%.
The context: The holiday parks and retirement villages owner said its guidance increase was due to simplifying its operations, driving operational efficiency and improving returns in all parts of the business.
It is also on track to exit from its managed funds business during the second half and said its residential communities and holiday parks continued to provide stable and growing returns.
In November 2023 the company suffered a first strike on its remuneration report after it faced headwinds including rising interest rates, inflationary pressures, significant rainfall and extended construction time frames.
What they said: Ingenia Communities chief executive and managing director John Carfi said: “Changes to the Group’s operating model aimed at improving productivity have delivered ongoing cost benefits with savings exceeding original expectations as the Group moves into the second half”.
“The development business is gaining momentum and benefitting from a clear focus on improving returns and greater financial discipline with the margin on home sales maintained despite cost pressures, and new projects on track to contribute in the second half.
“.. Other contributors to the improved outlook include a lower interest cost due to lower drawn debt and an increase in the Group’s hedged debt position.”
The source: ASX announcement
