26th Aug 2008 13:13
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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 ("PIK" or "the Company")
TRADING UPDATE
Summary of residential cash collections for
the 6 months ended 30 June 2008
Notification re: publication of half year results
(LONDON, 26 August 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, today announces a summary of residential real estate cash collections for the six months ended June 30 2008, based upon unaudited management accounts.
Total cash collections more than doubled from $611m to $1,263 during the period, driven primarily by the Company's core residential activities, which grew collections by 97% from $510m to $1,005m. A more detailed breakdown is provided in the table below.
|
(US$ in million) |
6 months ended June 30 2007 |
6 months ended June 30 2008 |
Change |
||||||||||
|
Total cash collections |
611 |
1 263 |
+106% |
||||||||||
|
Including: |
|||||||||||||
|
Cash collections from residential real estate sales and presales |
510 |
1 005 |
+97% |
||||||||||
|
Cash collections from sale of development rights and others |
101 |
258 |
+155% |
|
(US$ in million) |
6 months ended June 30 2007 |
6 months ended June 30 2008 |
Change |
||||||||||
|
Cash collections from residential real estate sales |
510 |
1 005 |
+97% |
||||||||||
|
Including: |
|||||||||||||
|
Moscow |
324 |
221 |
-32% |
||||||||||
|
Moscow region |
123 |
513 |
+317% |
||||||||||
|
Russia's regions |
63 |
270 |
+328% |
|
6 months ended June 30 2007 |
6 months ended June 30 2008 |
Change |
||||
|
Equivalent number of units from cash collections of residential real estate (equivalent units) |
3 902 |
5 904 |
+51.3% |
|||
|
Blended average unit cost (US$ per unit, rounded) |
130 715 |
170 275 |
+30.2% |
Important note: The Group's reporting currency is Russian roubles. However, for presentation purposes, these amounts were converted into US$ using average RR/US$ exchange rate of the Central Bank of Russian Federation (1H07: 26.07; 1H08: 23.92).
The first half of 2008 has seen the Company achieve a substantial increase in apartment presales, which have risen 51.3% year on year, driven predominantly by management's strategy of increasing development activity in Moscow's suburbs and Russia's regions. At the same time the Company has increased apartment selling prices, with average unit prices rising by 30.2% year on year.
In line with PIK's conservative accounting standards, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed and third party acceptance acts (formal building certification from the authorities) are received upon the completed units.
Commenting on the figures, Kirill Pisarev, Chief Executive said:
"We expect the fundamental undersupply of mass market residential housing and the continuing affordability of our apartments to continue underpinning the Group's growth. These figures confirm that the business continues to perform strongly and in line with management's expectations."
PIK Group intends to report full unaudited half year results for the six months ended 30 June 2008 during the week beginning 29 September 2008.
Enquiries:
|
Investors |
|
|
PIK Group |
Tel: +7 495 505 97 33 ext. 1358 |
|
Viktor Szalkay |
|
|
Media |
|
|
PIK Group |
Tel: +7 495 232 11 22 |
|
Natalia Konovalova |
|
|
|
|
|
Citigate Dewe Rogerson |
Tel: +44 20 7638 9571 |
|
Tom Baldock |
|
|
Lindsay Noton |
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PIK. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK's projections or forward-looking statements, including, among others, general economic conditions, PIK's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.
-END-
NOTES TO EDITORS
PIK Group Overview
Founded in 1994, PIK is one of the leading vertically integrated residential developers with presence in over 20 cities across Russia. Its business activities are concentrated in Moscow and the Moscow region with an increasing footprint in many of Russia's other regions. Its principal activity is the development, construction and sale of residential properties in large scale developments targeted primarily at the middle income housing market in Russia.
Since January 1 2004, PIK has completed over 4 million square meters of residential housing, which is equivalent to approximately 58,000 residential units across Russia.
June 1, 2007, the Group completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia. In December 2007, Fitch Rating agency assigned a ''BB-'' credit rating to the Group.
PIK Group's website address is: www.pik.ru
Group Financial Summary
Revenue for 2007 rose by 75% and equalled US$2.7 billion, while EBITDA for 2007 amounted to US$939 million. Net profit was US$700 million in 2007 compared to US$ 298 million in 2006.
According to CBRE, an independent appraiser, the combined market value of the Group's properties valued as of January 1, 2008 was $12.3 billion.
Related Shares:
PIK.L