- Previous guidance was 15%-20% on FY20 EBIT
- Underlying EPS is up 5%, despite originally forecasting a decline
- Uncertain domestic travel will likely weigh on FY22 results
Home is where the earnings are, with demand for domestic travel one of the factors buoying Ingenia Communities Group (ASX: INA).
The company today announced it expected FY21 guidance will be exceeded following strong performance across the board.
INA noted EBIT was up by some 30% versus the original guidance of 15% to 20% on FY20 EBIT and underlying EPS up circa 5% on FY20, versus a decline of 1-2 cents.
Also driving the positive sentiment in the latest announcement is 380 new homes settled, up 17% from the previous financial year, and $30 million worth of settlements expected to be completed in July.
Ingenia Communities Group CEO, Simon Owen, said that the business delivering such a strong outcome, despite the challenges of the last year, reflected the momentum across the business and diversity of earnings.
“We will exceed our guidance for FY21, supported by strong settlements in the last quarter, high occupancy across our residential communities and improved performance from the holidays business from the second quarter.
Simon Owen, Ingenia Communities Group CEO
Mr Owen added that “above ground home development margins exceeded the first half and we close the year with over 300 contracts and deposits in place,”.
Ingenia also benefitted from the continued lack of overseas travel options, buoyant domestic demand provided INA with revenue of over $50 million for the year, up on FY20.
The company did note continued and uncertain interstate restrictions will be the “key determinant of holidays performance over FY22.”
Ingenia continued to expand the asset base through the completion of more than $190 million of acquisitions in FY21 as the Group deployed the $178 million of equity raised at the end of FY20.