In the period of January-September 2018, Polnord reported consolidated sales revenue of PLN 185.1 million, up by 25.2% y/y.
In the period of January-September 2018, Polnord reported consolidated sales revenue of PLN 185.1 million, up by 25.2% y/y. This level of revenue was generated mainly due to the increase in the number of premises delivered from 394 apartments recognised in the first 9 months of 2017 to 629 in the same period of 2018. During three quarters of 2018, Polnord Group generated PLN 56.9 million of positive cash flows from operating activities. In July this year the company bought bonds (mBank) in the amount of PLN 20 million and in August it repaid PLN 11 million of a loan to BOŚ Bank, which resulted in a decrease in its consolidated gross debt - amounting at the end of September this year to PLN 335.3 million - by PLN 31 million as compared to the end of June this year. Net debt at the end of September 2018 amounted to PLN 253.5 million against PLN 269.1 million a quarter earlier.
After three quarters of 2018, Polnord Group generated a gross profit of PLN 24.1 million, which in the corresponding period of the previous year amounted to PLN 32.3 million. Operating loss (EBIT) in this period amounted to PLN 11.5 million (PLN 1.4 million profit a year earlier), and net loss totalled PLN 37.7 million (PLN 1.8 million loss a year earlier). Excluding one-offs from the net result (KB Dom’s effect, increase in costs, additional adjustments), it amounted to PLN -18.9 million.
- The financial results of the three quarters of 2018 are the effect of notarised handing over of units within projects with unsatisfactory margins, high fixed costs and the impact of one-offs in the period. The company is recalculating the budgets for all projects. Polnord focuses on finalizing the currently sold investments, while the launch of subsequent projects will be determined by their profitability. From 1 December, the Management Board will be operating in full, final composition. Its priority will be to prepare a project plan for the next years, which will ensure the company's long-term development and increase its value for shareholders - says Marcin Mosz, Member of the Management Board of Polnord SA.
During the first 9 months of 2018, Polnord Group:
- sold 753 units compared to 1,034 units in the three quarters of 2017 (decrease by 27.2%),
- recognized, in the sales revenue (Polnord SA 100%), 629 units against 394 units (increase by 59.6%), and tin he financial result (data weighted with shares of Polnord SA in JV companies) 658 premises1) against 557 premises in the three quarters of 2017 (increase by 18.1%).
The Group's offering at the end of
June this year was on the level of 888 apartments. In 2018,
the Group has launched the sale of two projects: Wilania in Warsaw's Wilanów district (120 premises) and Tęczowy Las housing estate, buildings 9-12 in Olsztyn (119 premises).
In November, three subsidiaries of Polnord concluded contracts with API Sp. z o.o. for general contracting of three new investments in Warsaw, i.e. Wilania, Wiktoria and Wioletta. The contract value for the Wilania investment is approximately PLN 32.3 million net, Wiktoria is about PLN 25.2 million and Wioletta - approx. PLN 25.4 million net.
In addition - also in November - between Polnord and its two subsidiaries and Polski Holding Nieruchomości, a letter of intent was signed regarding the purchase of two buildings (Betheone and Befree) of the Wilanów Office Park complex, located in Warsaw at ul. Adama Branickiego 15 and 17, with a gross leasable area (GLA) of 17,580 sq m.
- The conclusion of the sale transactions regarding office buildings would allow the Company to significantly reduce the level of indebtedness and would also release funds to finance subsequent investments - comments Marcin Mosz, Member of the Management Board of Polnord SA.
1) The data for the third quarter of 2018 does not include Semeko Aqusfera Sp. z o.o.