18th Aug 2009 09:15
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA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")
1H2009 UPDATE
(LONDON, 18 August 2009) - PIK (LSE: PIK), one of Russia's leading residential real estate developers, today publishes updated housing completion figures for the first 6M 2009.
Headline numbers are provided in the table below:
|
(thousands of sq meters, rounded) |
2007 |
2008 |
1H2008 |
1H2009 |
Change 1H09 vs. 1H08 |
||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
||||||
|
Total housing completions |
1 542 |
813 |
418 |
174 (1) |
-58.4% |
||||
|
Including: |
|||||||||
|
Construction services provided to Moscow city |
196 |
192 |
10 |
17 |
+70% |
||||
|
Total housing completions by geography |
1 542 |
813 |
418 |
174 |
-58.4% |
||||
|
Including: |
|||||||||
|
Moscow |
528 |
219 |
33 |
55 |
+66.7% |
||||
|
Moscow region |
643 |
495 |
346 |
91 |
-73.7% |
||||
|
Russia's regions |
371 |
99 |
39 |
28 |
-28.2% |
||||
|
Note: (1) equivalent to approx. 2,630 units; |
|||||||||
Summary:
Continuing weak fundamentals in operating environment given the lack of funding following onset of the global financial crisis in 4Q 2008
Housing completions in the first half of the financial year severely restricted by withdrawal of access to debt finance and lack of demand from presales
Currently the Group is engaged to meet existing liabilities before customers, which means completing residential properties postponed earlier in 2008. This is financed purely from internal cash flows (e.g. construction services provided, completed inventory sold)
The Group's primary focus stays on the restructuring of balance sheet debt to position the business for a more normalized economic environment
Management is engaged in a ongoing dialogue with the majority of its creditors regarding the rescheduling of its debt repayment, however this process is getting much more time consuming as expected in the past
Looking ahead, the economic outlook is uncertain, Russian GDP shrunk by 10,8% in the first half of 2009 and we believe that the rest of 2009 will not be easier as we do not yet see the clear, strong catalysts for the recovery.
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 7.3 million square meters of residential housing, which is equivalent to approximately 122,000 residential units across Russia.
June 1, 2007, the Group completed successful listings on the London Stock Exchange, the RTS and MICEX exchanges in Russia.
PIK Group's website address is: www.pik.ru
Related Shares:
PIK.L