Home builder AV Jennings saw sales slump

Home builder AV Jennings has moderated its outlook and no longer expects its full year results to better those from 12 months ago, as consumers delay major purchases.

Property contract sales fell from 100 in February to 57 in March as the coronavirus pandemic took hold, the company says.

There were 51 sales in April, while the May figure is tracking in line with the previous month.

Builders and corporates have continued to be among the buyers, which AV Jennings says shows confidence in the medium and longer term as these customers are buying land for future operations.

In February, management had said it expected a stronger outcome for the 2020 financial year than the previous one.

However, the pandemic has since changed that assessment.

The company said it s using the federal government’s JobKeeper wages program to retain staff, with most employees working four days per week.

Shares in the company are down nearly 40 per cent so far in 2020 amid a wider market downturn, and closed at 39 cents on Thursday.

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