In H1 2018 Polnord generated PLN 143.1 million of consolidated sales revenue versus PLN 97.4 million in the same period of the previous year.
In H1 2018 Polnord generated PLN 143.1 million of consolidated sales revenue versus PLN 97.4 million in the same period of the previous year. A 46.9% growth is mainly a result of recognition of 489 apartments in revenue, i.e. by 83.8% more than in the same period of the previous year. In the analysed period of six months, the Group generated PLN 42.4 million of positive operating cash flows which improved by PLN 18.8 million y/y. In he period January-June 2018, Polnord Group recorded a net loss of PLN 24.8 million, which is mainly due to the increase in the general contractor’s costs on investments previously carried out by KB Dom Sp. z o.o., increase in general administrative expenses and additional one-off adjustments to the financial result. The recurring net result, after adjusting for one-off events, amounted to PLN -11.9 million.
In H1 2018, The Group reported PLN 15.7 million of consolidated gross profit on sales, which was PLN 20.5 million a year earlier. Operating loss (EBIT) amounted to PLN 9.6 million versus PLN 4.6 million operating profit a year before.
Despite low profitability of operations demonstrated in the profit and loss account, Polnord Group regularly generates positive cash flows from operating activities. Additionally, thanks to the received dividends and repayments of loans granted to JV companies (included in cash flows from investing activities), in the first half of 2018 the Group reduced its net debt by PLN 29.5 million as compared to the end of 2017.
- The Group gradually settles the historical sale of apartments, which is visible in the increase in revenue. The decrease in the margin on core operations is mainly the result of higher construction costs. In addition, the Group experienced an increase in other cost items. The balance of one-off adjustments to the financial result was half of the reported net loss - comments Piotr Woźniak, acting Member of the Management Board of Polnord SA.
During the first six months of 2018, Polnord Group:
-sold 497 apartments versus 650 apartments in the first half of 2017 (decrease by 23.5%),
-recognised 489 apartments in revenue versus 266 apartments (increase by 83.8%), and 517 apartments versus 356 apartments in the financial result of the first half of 2017 (increase by 45.2%).
The Group's offer at the end of June this year was on the level of 904 apartments. The first two projects in 2018 were launched in July: Wilania in Warsaw's Wilanów district (120 premises) and Tęczowy Las housing estate, buildings 9-12 in Olsztyn (119 premises).
-After a record sale of apartments in 2017, Polnord, in line with market trends, records a drop in sales of premises. Currently, one of the Board’s priorities is to verify the budgets of all planned projects. The next investment sales will be determined primarily by their profitability - explains Marcin Mosz, acting President of the Management Board of Polnord SA.