25th Sep 2013 09:24
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR
INDIRECTLY IN THE UNITED STATES OF AMERICA
PIK GROUP ("The Group" or "PIK")
PIK ANOUNCES IFRS FINANCIAL RESULTS
FOR 6 MONTHS ENDED JUNE 30, 2013
(LONDON, September 26 2013) - PIK (LSE: PIK), a leading Russian residential developer, today announces its audited consolidated IFRS financial results for the 6 months ended June 30 2013.
1H13 financial summary:
· Total revenues were up by 72.4% to RUB25.0 billion (1H12: RUB14.5 billion)
· Revenues from the sale of apartments grew by 118.9% to RUB20.8 billion (1H12: RUB9.5 billion)
· Continued cost control lead to 12.5% decrease in administrative and distribution expenses resulting RUB1.4 billion (1H12: 1.6 billion)
· Gross profit margin reached 28.4% up by 7ppt from 1H12
· Adjusted EBITDA grew more than three times to RUB6.3 billion (1H12: RUB2.1 billion)
· Net positive cash flow from operating activities reached RUB4.6billion (1H12: negative net cash flow of RUB0.4billion)
· Net income amounted to RUB2.6 billion (1H12: loss of RUB0.9 billion)
· Total assets as of June 30 2013 increased to RUB138.5 billion (December 31 2012: RUB126.5 billion)
· In line with the Group's deleveraging strategy and as a result of the successful SPO completed in June 2013, net debt as of June 30 2013 decreased by RUB14.0 billion to RUB22.8 billion (December 31, 2012: RUB36.8 billion)
Enquiries:
Investors
PIK Group Tel: +7 495 505 97 33 ext. 1358 / 1315
Media
Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014
1H2013 financial results overview
In June 2013 the Group completed a successful secondary public offering of 167.2 million new shares, raising its capital by RUB10.45 billion (equivalent to USD330 million)
The Group plans to use around half of the SPO proceeds do deleverage its balance sheet, and the rest will be used for new project acquisitions, mostly in Moscow metropolitan area
Total revenues were up by 72.4% to RUB25.0 billion (1H2012: RUB14.5 billion) driven by an increase in sales of apartments from RUB9.5 billion to RUB20.8 billion. Revenues from apartment sales accounted for 83.2% of total sales (1H2012: 65.5%)
Sales revenue | 1H12 | 1H13 | Change, % |
Revenue from sale of apartment, RUB bn | 9.5 | 20.8 | +118.9% |
Other revenue from construction services, RUB bn | 5.0 | 4.2 | -23.6% |
14.5 | 25.0 | 72.4% |
Source: IFRS
Revenues from the sale of apartments were up, due to increased transfers to customers amounting to 261,000 square meters (1H12: 138,000 square meters)
Implied average selling prices in transfers increased by 15.8% to RUB79.7 thousand per square meter
Implied average selling prices (1) | 1H12 | 1H13 | Change, % |
Revenue from sale of apartments, RUB bn | 9.5 | 20.8 | +118.9% |
Transfers to customers, 000' sqm | 138 | 261 | +89.1% |
Implied average selling price, RUB per sqm | 68.8 | 79.7 | +15.8% |
Note: (1) calculated as revenue from apartment sales divided by transfers to customers
Source: IFRS
Gross profit totaled RUB7.1 billion (1H12: RUB3.1 billion). The gross profit margin accordingly rose by 7 ppt to 28.4% for 1H13
Gross profit margin | 1H12 | 1H13 |
Total revenue, RUB bn | 14.5 | 25.0 |
Gross profit, RUB bn | 3.1 | 7.1 |
Gross profit margin, % | 21.4% | 28.4% |
Source: IFRS
In 1H13 both administrative & distribution expenses remained under control and were down by 12.5% to RUB1.4 billion (2011: RUB1.6 billion).
Adjusted EBITDA from core activities grew more than three times to RU6.3 billion (1H12: RUB2.1 billion). Adjusted EBITDA margin increased 11ppt to 25.3%.
1H12 | 1H13 | |||
MM RUB | MM RUB | |||
Net (loss) / profit for the year | (962) | 2,630 | ||
Depreciation and amortisation | 346 | 335 | ||
Interest expense including penalties payable | 2,831 | 2,539 | ||
Interest income | (43) | (141) | ||
Income tax expense / (benefit) | (331) | 690 | ||
EBITDA | 1,841 | 6,053 | ||
Impairment (reversals) / losses | (24) | 249 | ||
Impairment losses / (reversals) on financial assets | 246 | 8 | ||
Forex loss / (gain) | 44 | (141) | ||
(Gain) / loss on disposal of PP&E | 40 | (8) | ||
(Gain) / loss from disposal of subsidiaries | 22 | - | ||
Penalties and fines, including reversals | (94) | 170 | ||
Adjusted EBITDA | 2,075 | 6,331 | ||
As of sales revenue, % | 14,3% | 25,3% |
Source: IFRS
Net income reached RUB2.6 billion (1H12: net loss of RUB0.9 billion)
As a result of the improved operational performance, free net cash flows from operating activities reached RUB4.6 billion (1H12: negative value of RUB0.4 billion). That together with successful share offering let the Group to continue the reduction of debt started in 2012.
Total assets increased to RUB138.5 billion (December 31, 2012: 126.5 billion). Total equity also rose significantly to RUB16.2 billion (December 21, 2012: RUB3.3 billion).
Loans and borrowings decreased by RUB7.1billion to RUB36.1billion, and net debt has been reduced by RUB14.0 billion, down to RUB22.8billion (December 31 2012: RUB36.8billion).
Loans and borrowings | 31 December 2012 | 30 June 2013 |
Long-term loans and borrowings, RUB bn | 33.0 | 9,8 |
Short-term loans and borrowings, RUB bn | 8.9 | 25.6 |
Interest payable accrued at year-end, RUB bn | 1.3 | 0.7 |
Total debt | 43.2 | 36.1 |
less | ||
Accrued interest payable, RUB bn | (1.3) | (0.7) |
Cash and equivalents, RUB bn | (5.1) | (12.6) |
Net debt | 36.8 | 22.8 |
Source: IFRS
In February 2013, the Group signed an agreement with Sberbank of Russia for a RUB4.0 billion non-revolving credit facility with final maturity in early 2017. These funds will be drawn down by PIK to finance the first phase of construction of a large-scale residential complex "Buninsky" located in New Moscow territory.
In line with its deleveraging strategy, the Group made full early repayment of the outstanding loans to Nomura International plc, Morgan Stanley Senior Funding Inc., Bin Bank and others for a total of RUB 3.6 bn
Notice to readers
The calculation of certain measures used in this announcement may be different from the calculation used by other companies and therefore comparability may be limited. Some of the measures (e.g. EBITDA, adjusted EBITDA, net debt) are not measures of financial performance under IFRS.
This press-release does not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities of PIK and neither this press-release nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever.
Matters discussed in this press-release may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "project", "will", "may", "should" and similar expressions identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements appear in a number of places in this press-release and may include statements regarding: strategies, outlook and growth prospects; future plans, expectations, projections and potential for future growth; plans or intentions relating to acquisitions; future revenues and performance; liquidity, capital resources and capital expenditures; economic outlook and industry trends; the impact of regulatory initiatives; competitive strengths and weaknesses; and the strengths of competitors. The forward-looking statements in this press-release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, management's examination of historical operating trends, data contained in PIK's records and other data available from third parties. Although PIK believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause the actual results of PIK or the industry to differ materially from those results expressed or implied in this press-release by such forward-looking statements. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved and you are cautioned not to place any undue influence on any forward-looking statement. No one undertakes to publicly update or revise any such forward-looking statement.
Related Shares:
PIK.L