After more than 10 years losing buckets of cash and several group name changes, Eureka rental villages has struck a big profit making formula, allowing it to capitalise on these (tax) losses.

This financial year net profit grew 237% from $3.1M to $10.5M. Revenue doubled from $12.2M to $24.2M.

Valuations of villages owned also increased by $4M.

Their secret, or secrets. They run very low overheads and they are the only real buyer of rental villages in the market (after the failed expansion of the sector in the early 2000s) so they are getting them cheap – around $55,000 per villa when the replacement cost would be $200,000. Then they are empowering their village managers, making them effectively franchisees – and some are reported to be earning up to $150,000 a year plus free accommodation. The managers are working hard to make happy residents.

With virtually no tax to pay, they have a good story to tell investors and have no trouble raising cash to buy new villages – which they are doing. They invested $43M last year and now have 24 villages they own and another nine they manage.

Eureka is led by Robin Levison as Executive Chairman and Greg Rekers (pictured) on the ground.