In 2017, Polnord group reported revenue from sales of PLN 293.6m, representing a 66% increase compared to 2016 and the best result since 2007.
In 2017, Polnord group reported revenue from sales of PLN 293.6m, representing a 66% increase compared to 2016 and the best result since 2007. Operating profit in the same period totaled PLN 21.9m, with a net profit of PLN 3.3m. The group has adjusted the value of its landbank to market value.
In 2017 the group reported record operating results on all levels:
- it sold 1,389 units vs. 1,024 units in 2016 (an increase of 36%),
- it recognized 1,131 units in its financial result vs. 843 units
in 2016 (a 34% increase),
- as part of 12 new development projects launched in Warsaw, Gdansk, Lodz, Olsztyn and Wroclaw, it begun marketing 1,595 units vs. 962 units in 2016 (up by 66%)
The group ended the year with 1,401 units on offer, a figure 28% higher than at the end of 2016, when it had 1,097 units available.
The record number of apartments transferred to clients had a direct impact on the value of consolidated revenues from sales, which in 2017 totaled PLN 293.6m. Apartments handed over to clients in Warsaw and Tri-City area had the most impact on the sales volume (59% and 14% of the property deed transfers respectively).
- Thus far, the effects of our strategy were only visible in our sales data. Currently, projects which begun over the past two years, start being reflected in the financial results we are generating. In the following time periods we are expecting a further increase in sales, once the units contracted during the last, record year, are recognized in the results - says Dariusz Krawczyk, the CEO of Polnord SA.
The group has completed a review of the value of its landbank, incorporating the related write-offs in its financial results for 2017. This way, it has achieved a milestone in the restructuring process of the organization, whose landbank value shown in the balance sheet now reflects its market value.
Strong operating cash flows achieved by intensifying landbank development allowed the group to reduce its net financial debt from PLN 344m at the end of 2016 to PLN 299m at the end of last year, a 13% decrease on a year-on-year basis.
- Financial results presented at below-the-topline, sales level of our profit and loss account do not reflect the strength and potential of our group. They incorporate one-off items, such as re-evaluation of the properties or our financial assets, which, nonetheless, was necessary in order to maintain the transparency and to present the real value of our assets. We are able to obtain a far more complete image of our actual situation and growth prospects by looking at the cash flow statement. Surplus cash generated from operating and investment activities is allowing us to reduce our debt level, i.e. execute one of key assumptions of our growth strategy - says Dariusz Krawczyk, the CEO of Polnord SA.
Significant improvement of financial and operating results in 2017 is due to consistent execution of targets set in Polnord group development strategy for 2016-2019, published in March 2016. Key elements of this strategy included the alignment of group’s assets with their market value, focus on large urban areas, reducing the debt to a rational level and launching profitable projects, adopted to the needs of the market.