16th Oct 2008 07:00
PIK GROUP ("PIK" or "the Company")
TRADING UPDATE
Summary of residential cash collections for
the 9 months ended 30 September 2008
(LONDON, 16 October 2008) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, today announces a summary of cash collections for the nine months ended September 30 2008, based upon unaudited management accounts.
Total cash collections for the period were up by 53% from $1,280m to $1,962m, driven primarily by the Company's core residential activities, where collections grew by 78%, from $865m to $1,544m.
Residential cash collections in Q3 2008 have remained strong, growing by 54% compared to Q3 2007 to approximately $545m.
A more detailed breakdown is provided in the table below.
|
(US$ in million) |
6M07 YTD |
6M08 YTD |
Change % |
9M07 YTD |
9M08 YTD |
Change % |
||
|
Total cash collections |
720 |
1 255 |
+74% |
1 280 |
1 962 |
+53% |
||
|
Including: |
||||||||
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Cash collection from sale of residential real estate |
510 |
999 |
+96% |
865 |
1 544 |
+78% |
||
|
Cash collection from other activities |
210 |
256 |
+22% |
415 |
418 |
+0,7% |
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 (6M08, 9M08: 24.0642; 6M07, 9M07: 25.8943).
In line with PIK's conservative accounting standards, these cash collections will be recognized as sales revenue once properties have been completed and third party acceptance acts (formal building certification from the authorities) are received upon the completed units.
In our half-year results statement last month we indicated that PIK had already secured substantial pre-sales of residential apartments which would crystallize into revenue recognition in 2008-2009. The fourth quarter has started strongly and we expect cash collections from wholesale customers by the year end to total in the region of $1.0bn. Management is therefore confident that the Group is on track to achieve the guidance given to the market in the half year results statement of $2.6bn in cash collections for the year ended 31 December 2008.
Commenting on the figures, Kirill Pisarev, Chief Executive said:
"The Group continues to perform strongly. As expected, cash collections from sale of real estate have been strong and we expect this trend to continue in the final quarter of 2008. At the same time, our short-term focus will be on debt reduction. The credit crisis is challenging businesses in Russia and around the world but we are a cash generative company and well placed to weather this difficult period."
Enquiries:
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Investors |
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PIK Group |
Tel: +7 495 505 97 33 ext. 1358 |
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Viktor Szalkay |
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Media |
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PIK Group |
Tel: +7 495 232 11 22 |
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Natalia Konovalova |
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Citigate Dewe Rogerson |
Tel: +44 20 7638 9571 |
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Tom Baldock |
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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.
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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.
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 01, 2008 was $12.3 billion.
Related Shares:
PIK.L