JWH profit slips despite more builds

Homebuilder JWH Group has recorded a small dip in profit, despite increasing the number of homes it started building over the financial year.

The state’s third-biggest residential builder lodged its annual report with the Australian Securities and Investments Commission today, which showed a net profit of $4.3 million, down from $4.5 million in the 2014 financial year.

Construction revenue was up in FY2015, from $363 million in FY2014 to $427 million.

However, the cost of building was also significantly higher, at $343 million in FY2015, up from $286 million in FY2014.

The dip in profit came despite JWH Group starting construction on nearly 100 more homes in 2014-15 than in the previous year, according to the Housing Industry Association’s Housing 100.

The HIA said last month that JWH started building 1,516 houses in 2014-15, up from 1,425 homes in 2013-14.

JWH Group, founded by Julian Walter in 1983 as J-Corp, builds homes under the banners Residential Building WA, WA Country Builders, Rural Building Company, Oswald Homes and Plunkett Homes, among others.

JWH Group was the second big Perth-based construction company to lodge its results with ASIC this week, after civil and commercial construction contractor Doric Group reported an $8 million loss on Monday.

Doric suffered a 36 per cent fall in revenue to $119 million, which contributed to its loss, which followed a $2.7 million profit in the previous year.