PROPERTY group AV Jennings has cited a simultaneous drop across Australian housing markets as a prime reason for its $29.5 million loss after tax for the year to June 30.

Managing director Peter Summers said rock-bottom consumer confidence identified by larger developers such as Stockland, which has reported a drop in revenues, had a deeper dimension in sellers also holding off.

This was slowing down the entire housing and construction market and flowing through to the attitudes of banks to lending.

Mr Summers said he had never seen Australia's various state property markets so low simultaneously, which made conditions uniquely difficult for an interstate operator such as Jennings.

AV Jennings' revenue was down 12 per cent, to $188.8 million, as the "crisis of confidence'' had persisted despite good economic conditions and no expectation of a sharp decline in housing prices.

Net debt had risen from $82.3 million in 2011 to $129 million.

AV Jennings said the delay in recovery had hit its estates in NSW and Queensland hardest, causing it to restructure management, delay and reduce spending on some projects.

Mr Summers emphasised the company had reported a $5.1 million net profit before provisioning loss on inventory and investments of $34.9 million.

He said home building would remain “subdued”, with the company’s decision to slow down its existing developments in NSW and Queensland also likely to spill over to its four new estates, including Doreen near Epping.

The $29.5 million loss is in line with guidance the company issued to the market a few weeks ago

The loss came after the previous year's profit of $12.9 million last year and it was still too early to predict any general upswing.

The Singapore-owned company said it maintained a strong land bank of 10,800 lots and was in a good position to take advantage of any market upturn due to working better with local authorities on hastening planning approvals.

No final dividend will be paid, after an interim dividend of 0.5 cents per share on April 11 this year.

AV Jennings shares, which sat above 40c in February, were last trading at 31 cents.



