13th Nov 2013 11:56
LONDON (Alliance News) - Mirland Development Corporation PLC Wednesday said it swung to profit in the nine months ended September 30, as revenue increased by almost 60%, boosted by strong sales and high occupancy levels.
The residential and commercial property developers in Russia posted pretax profit of USD635,000, versus a USD6.2 million loss a year earlier, while revenue rose to USD46.3 million from USD29.7 million in 2012. Last years' results were affected by a deficit on the revaluation of investment properties and properties under construction.
Mirland attributed the increase in revenue to a high occupancy rate of around 99% and the first-time partial recognition of revenues from the Triumph Park residential project.
The site is a block of apartments in St. Petersburg. Mirland said sales rates at the site are high, and sales prices have increased ahead of inflation.
Mirland's total assets were valued at USD843.5 million compared with USD743.7 million at the end of December 2012, of which 88% are property and land assets.
Earnings before interest, depreciation and amortisation increased 82% to USD14.4 million from USD7.9 million in 2012, while total net borrowings amounted to USD342.4 million up from USD304.2 million at December 2012.
"The Russian economy continues to show signs of improvement, and we are well placed to capitalise on increased consumer confidence and a strengthening residential and commercial property market," Chairman Nigel Wright said in a statement.
"We will actively look for further opportunities, as well as ensuring we generate maximum value from our existing assets," he added.
The stock was trading at 225.00 pence Wednesday morning, up 21.38 pence or 10.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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