Full Year Results Release
| Stock | Lifestyle Communities Ltd (LIC.ASX) |
|---|---|
| Release Time | 28 Aug 2025, 9:04 a.m. |
| Price Sensitive | Yes |
Lifestyle Communities Ltd reports FY25 results
- Settlement volume impacted by broader market softness
- Recovery in sales cadence in second half
- Balance sheet de-leveraging and positive operating cash flow
Lifestyle Communities Limited (ASX: LIC) has released its reporting suite for FY25. Statutory profit after tax declined from a $50.0m profit in FY24 to a loss of $195.3m in FY25 due to a $54.5m after tax provision for repayment of DMF collected from previous homeowners and a $135.5m after tax write down in the carrying value of investment properties following a recent VCAT decision. FY25 Operating profit after tax was $45.2m (FY24: $52.9m). The company intends to appeal the VCAT decision, and a material portion of these adjustments will be reversed if the appeal is successful. The pace of settlements was impacted by market softness, lower transaction volumes, and lower clearance rates in the broader Victorian property market. However, the company saw a 'tale of two halves', with encouraging momentum in the second half following early challenges in FY25. First half realised 41 new home sales, and the second half resulted in 98 sales. Progress was also made on reducing inventory levels. Capital management initiatives have progressed well, with de-leveraging commencing in H2 of FY25 and further improvement expected over the next six months. The company also executed contracts to sell four parcels of land to right size the development pipeline, recouping circa $114.1m in capital over the next 6-12 months. There was a $119.8m change in net operating cash flow from negative $(115.2m) in FY24 to positive $4.6m in FY25.
As the company looks to FY26, its priorities will be further de-leveraging the balance sheet, delivering positive operating cash flow underpinned by further inventory reduction and a cash recovery development cycle, re-contracting with existing customers, and finalising and embedding its refreshed and revised strategy. The company believes it is well-positioned to realise its long-term potential, with macro themes remaining supportive and a sharpened strategic focus.