14 May 2009 07:00
Q1 2009 Earnings Release |
Palm Hills Developments Announces Q1 2009 Consolidated IFRS Results
Cairo, May 14 2009 - Palm Hills Developments S.A.E. (PHD), a leading Egyptian real-estate developer specializing primarily in residential real-estate and resort projects, announces its financial results for the three-month period ending March 31, 2009. PHD is listed on the Egyptian Stock Exchange (EGX) and on the London Stock Exchange (LSE).
HIGHLIGHTS
Net sales registered EGP 130 million (US $24 million)1 in Q1 2009, compared with EGP 325 million (US $60 million) in Q1 2008, however, net sales are in line with sales achieved in Q4 2008.
Gross contracts signed in the period reached EGP 523 million (US $97 million), compared with EGP 947 million (US $175 million) in Q1 2008, however, gross contracts surged 12% in value and 19% in volume over Q4 2008.
Gross profit margin rose to 84% in Q1 2009 compared with 80% in Q1 2008.
EBIT margin remained at a healthy level of 60% in Q1 2009 versus 69% in Q1 2008.
SG&A reduced 16% in absolute terms, down from EGP 34 million (US $6 million) in Q1 2008 to EGP 29 million (US $5 million) in Q1 2009.
Profit before tax recorded EGP 98 million (US $18 million) in Q1 2009, compared with EGP 199 million (US $37 million) in Q1 2008, nonetheless, achieving a 34% increase over Q4 2008.
Net Profit recorded EGP 61 million (US $11 million) in Q1 2009, compared with EGP 168 million (US $31 million) in Q1 2008.
Total land bank remained at 48.8 million sqm.
Bank Debt: Equity2: dropped 45 bps, from 63% at 31/3/2008 to 18% at 31/3/2009.
Successfully launched 3 new projects in Mid-March 2009, selling 33% of total units available for sale within the first 15 days.
Commenced construction in the Village Mall, achieving a 70% lease of the 27,000 sqm of Gross Leasable Area.
1 Based on EGP/US$5.4
2 (Bank Overdrafts + Term Loans) / Total Equity
Operational Performance
Cumulative reservations remained over EGP 8 billion (approximately US $1.5 billion) at March 31, 2009.
When compared with Q4 2008 due to the similarity of the global financial conditions in the two periods, gross reservations surged 64% from 203 units in Q4 2008 to 333 units in Q1 2009 highlighting PHD's capacity to benefit from existing genuine demand despite current financial conditions.
The gross value of contracted units amounted to EGP 523 million (US $97 million), compared with EGP 947 million (US $175 million) in Q1 2008, recording however, a 12% increase in value over Q4 2008. The decrease in value is partially attributed to the deliberate reduction of the average value/unit from EGP 1.7 million (US $0.3 million) in Q1 2008 to EGP 1.2 million (US $0.2 million) in Q1 2009, highlighting management's strategic success in actively developing products that cater to varying market segments and a diversified customer base. While the total value and number of contracted units during the period has comparatively been reduced in contrast with the same period last year, both figures exhibit a significant increase when compared to Q4 2008. The total number of units contracted recorded a 19% increase over Q4 2008.
PHD successfully launched 3 new projects in Mid-March of 2009: Palm Hills Botanica, Village Gardens Katameya, and Village Gardens October, selling 33% of total units available for sale upon launch. The new projects represent the materialization of PHD's corporate strategy to penetrate varying market segments. Unit prices in the new projects start from EGP 490 thousand (US $91 thousand) as opposed to unit prices of projects launched in Q1 2008 with unit prices exceeding EGP 3 million (US $0.6 million). The sales level achieved in PHD's new projects indicates that genuine demand remains strong when the right product is offered.
Financial Performance
During the 3 month period ending March 31, 2009, PHD achieved a net sales figure of EGP 130 million (US $24 million), compared to EGP 325 million (US $60 million) in Q1 2008. Net sales however, are in line with sales achieved in Q4 2008 despite the delay in the initiation of the contracting process of reserved units in the Golf Extension project, amounting to approximately EGP 800 million (US $148 million) worth of reservations, as a result of the delay in obtaining necessary government approvals. More notably however, as PHD continues to execute its strategy and move towards providing products that are more affordable to varying market segments, the net sales figure will not be reflective of the true levels of sales achieved. With an increasing portion of PHD's new projects consisting of multi-tenant apartment buildings, all associated revenues will be recognized upon delivery of units not upon contract signature.
Gross profit margin rose to 84% in Q1 2009 compared with 80% in Q1 2008.
While PHD was able to achieve its stipulated objective of minimizing group overheads and costs by reducing SG&A by 16% in absolute terms, decreasing from EGP 34 million (US $6 million) in Q1 2008 to EGP 29 million (US $5 million) in Q1 2009, SG&A increased in relation to net sales-22% in Q1 2009, up from 11% in Q1 2008 thereby affecting the EBIT margin. In perspective however, PHD's expenses have decreased in spite of the marked level of sales and growth it is achieving that is not being reflected in the sales figure in the short-term due to the aforementioned revenue recognition policy.
Profit before tax recorded EGP 98 million (US $18 million) in Q1 2009, compared with EGP 199 million (US $37 million) in Q1 2008, nonetheless, achieving a 34% increase over Q4 2008.
Net profit recorded EGP 61 million (US $11 million) in Q1 2009, compared with EGP 168 million (US $31 million) in Q1 2008 achieving a 47% net profit margin in Q1 2009 vs. a 52% margin in the same period last year.
Land Bank
PHD's strategy is to focus primarily on the execution of its existing projects and developing its sizable land bank. Nonetheless, PHD will remain diligent regarding the pursuit of unparalleled land acquisition opportunities that complement its existing developments.
Outlook
The underlying fundamentals of the Egyptian real estate market remain sound, despite the continued turbulence in the global economy. Although conditions have undoubtedly been more challenging in Q1 2009 compared to Q1 2008, PHD has witnessed an improvement in the current quarter from Q4 2008 and is confident that it is well positioned to endure these testing trading conditions due to the company's experienced management team, diverse spread of operations and strong brands.
PHD remains the only existing developer to offer a highly diversified product mix and holds one of the largest, most diversified land banks in the sector. It is able to address a number of different market segments with varying levels of customer purchasing powers and it is this level of flexibility that gives the company the utmost confidence in its future success.
Table 1 - Q1 2009 Vs. Q1 2008 Operating Results (EGP '000)3
3 Months Ended | ||||
| 31/3/2009 | 31/3/2008 | ||
SALES (NET) | 130,296 | 324,740 | ||
Cost of Sales | (21,087) | (65,714) | ||
GROSS PROFIT | 109,209 | 259,026 | ||
Margin% | 83.82% | 79.76% | ||
Selling, General & Administrative Expenses | (28,670) | (34,220) | ||
EBITDA | 80,539 | 224,806 | ||
Margin% | 61.81% | 69.23% | ||
Depreciation and Amortization | (2,695) | (917) | ||
OPERATING PROFIT (EBIT) | 77,844 | 223,889 | ||
Margin% | 59.74% | 68.94% | ||
Other Income | 11,915 | 3,337 | ||
Interest Income - Amortization of Discount | 32,434 | 6,634 | ||
Finance Costs | (15,177) | (23,994) | ||
Interest Exp. - Amortization of Discount | (8,661) | (10,483) | ||
PROFIT BEFORE TAX | 98,354 | 199,383 | ||
Income Tax Expense | (9,541) | (31,079) | ||
PROFIT FOR THE YEAR | 88,814 | 168,304 | ||
Minority Interest | (27,668) | (470) | ||
NET PROFIT AFTER MINORITY | 61,146 | 167,834 | ||
Margin% | 46.93% | 51.68% |
N.B
Palm Hills Developments recognizes its villas and town houses revenues from land upon signature of a contract while revenues from construction are recognized on a percentage of completion basis with a minimum threshold of 50%. Revenues from apartments and multi tenant buildings are recognized upon delivery. As a result, total revenues figure on the Income Statement during a period does not reflect neither reservations nor construction revenues from villas and town houses less than 50% completed or any revenues from apartments.
3 Figures presented are prepared according to IFRS
PALM HILLS DEVELOPMENT CO.
S.A.E AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
31 March 2009 (UNAUDITED)
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF PALM HILLS DEVELOPMENT CO. S.A.E AND ITS SUBSIDIARIES
We have reviewed the accompanying interim condensed consolidated balance sheet of Palm Hills Development Company S.A.E and its Subsidiaries (the "Company") as at 31 March 2009 and the related interim condensed consolidated statements of income, changes in equity and cash flows for the three-month period then ended and explanatory notes. Directors are responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Our report does not extend to the unaudited financial information in respect of the 3 month period ended 31 March 2008 and we express no opinion in respect of that financial information.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
Nabil Istanbouli
Partner
Date: 27 April 2009
Egypt
Palm Hills Developments Company S.A.E and its Subsidiaries
CONSOLIDATED INCOME STATEMENT
31 March 2009 (Unaudited)
Three months ended | ||
2009 | 2008 | |
EGP | EGP | |
Sales, net | 130,296,250 | 324,740,986 |
Cost of sales | (21,087,275) | (65,714,487) |
─────── | ─────── | |
GROSS PROFIT | 109,208,975 | 259,026,499 |
Selling and administrative expenses | (31,364,868) | (35,137,624) |
Interest income | 38,943,074 | 8,394,182 |
Finance costs | (23,838,220) | (34,477,015) |
Other income | 5,405,253 | 1,576,521 |
─────── | ─────── | |
PROFIT BEFORE TAX | 98,354,214 | 199,382,563 |
Income tax expense | (9,540,550) | (31,078,535) |
─────── | ─────── | |
PROFIT FOR THE PERIOD | 88,813,664 | 168,304,028 |
═══════ | ═══════ | |
Attributable to: | ||
Equity holders of the parent | 61,145,896 | 167,833,587 |
Minority interests | 27,667,768 | 470,441 |
─────── | ─────── | |
88,813,664 | 168,304,028 | |
═══════ | ═══════ | |
Basic and diluted earnings per share attributable to the equity holders of the parent (expressed in EGP per share) | 0.13 | 0.42 |
═══════ | ═══════ |
The attached notes 1 to 4 from part of these interim condensed consolidated financial statements.
Palm Hills Developments Company S.A.E and its Subsidiaries
CONSOLIDATED BALANCE SHEET
31 March 2009 (Unaudited)
31 March 2009 | Audited 31 December 2008 | |
EGP | EGP | |
ASSETS | ||
Non-current assets | ||
Property and equipment | 549,398,474 | 543,044,803 |
Advance payments for investments acquisition | 487,006,010 | 470,675,012 |
Investment in an associate | 245,000 | 245,000 |
Intangible assets | 46,375,000 | 47,700,000 |
Notes receivable | 1,760,723,435 | 1,658,430,196 |
─────── | ─────── | |
2,843,747,919 | 2,720,095,011 | |
─────── | ─────── | |
Current assets | ||
Notes receivable | 720,055,783 | 683,086,670 |
Accounts receivable and prepayments | 809,405,531 | 318,745,683 |
Bank balances and cash | 216,754,160 | 279,712,833 |
Financial assets at fair value through profit or loss - Held for trading | - | 203,433,368 |
Development properties | 4,964,783,712 | 4,940,216,448 |
─────── | ─────── | |
6,710,999,186 | 6,425,195,002 | |
─────── | ─────── | |
TOTAL ASSETS | 9,554,747,105 | 9,145,290,013 |
═══════ | ═══════ | |
EQUITY AND LIABILITIES | ||
Attributable to equity holders of the parent | ||
Share capital | 931,840,000 | 931,840,000 |
Share premium | - | 890,538,204 |
Statutory reserve | 471,435,177 | 13,635,814 |
Special reserve | 430,293,851 | - |
Retained earnings | 914,966,849 | 851,375,963 |
─────── | ─────── | |
2,748,535,877 | 2,687,389,981 | |
Minority interests | 172,478,207 | 144,810,439 |
─────── | ─────── | |
Total equity | 2,921,014,084 | 2,832,200,420 |
─────── | ─────── | |
Non-current liabilities | ||
Term loans | 313,159,270 | 379,591,680 |
Land purchase liabilities | 1,456,287,141 | 1,652,579,957 |
Notes payable | 1,422,895,392 | 1,172,180,388 |
Other non-current liabilities | 370,489,639 | 164,874,504 |
Deferred tax liability | 2,124,436 | 2,124,436 |
─────── | ─────── | |
Total non-current liabilities | 3,564,955,878 | 3,371,350,965 |
─────── | ─────── | |
Current liabilities | ||
Bank overdrafts | 80,485,903 | 111,249,739 |
Current portion of term loans | 147,480,000 | 136,405,712 |
Current portion of land purchase liabilities | 498,181,377 | 298,545,082 |
Accounts payable and accruals | 439,527,135 | 266,384,061 |
Notes payable | 18,215,857 | 261,212,904 |
Advances from customers | 459,220,556 | 573,596,662 |
Billings in excess of costs | 1,363,510,338 | 1,236,749,032 |
Income tax payable | 62,155,977 | 57,595,436 |
─────── | ─────── | |
3,068,777,143 | 2,941,738,628 | |
─────── | ─────── | |
Total liabilities | 6,633,733,021 | 6,313,089,593 |
─────── | ─────── | |
TOTAL EQUITY AND LIABILITIES | 9,554,747,105 | 9,145,290,013 |
═══════ | ══════ |
__________________ ________________
Mohamed Fahmy Yasseen Mansour
(First Vice President) (Chairman)
Palm Hills Developments Company S.A.E and its Subsidiaries
CONSOLIDATED CASH FLOW STATEMENT
31 March 2009 (Unaudited)
Three months ended | ||
2009 | 2008 | |
EGP | EGP | |
OPERATING ACTIVITIES | ||
Profit before tax | 98,354,214 | 199,382,563 |
Adjustments for: | ||
Depreciation | 2,694,974 | 1,567,692 |
Amortization of intangible asset | 1,325,000 | - |
Interest income | (38,943,074) | (8,394,182) |
Finance cost | 23,838,220 | 34,477,015 |
__________ | __________ | |
87,269,334 | 227,033,088 | |
Working capital changes: | ||
Notes receivable | (106,828,710) | (672,736,625) |
Financial assets at fair value through profit or loss - held for trading | 203,433,368 | - |
Accounts receivable and prepayments | (490,659,848) | (88,006,781) |
Development properties | (29,884,536) | (192,623,664) |
Notes payable | 7,717,957 | (6,530,076) |
Accounts payable and accruals | 173,143,074 | 163,875,906 |
Advances from customers | (114,376,106) | 46,330,985 |
Billings in excess of costs | 126,761,306 | 210,475,656 |
Other non-current liabilities | 205,615,135 | 38,258,395 |
__________ | __________ | |
Cash from operations | 62,190,974 | (273,923,116) |
Interest paid | (15,177,469) | (23,992,800) |
Tax paid | (4,980,009) | (28,987,107) |
__________ | __________ | |
Net cash provided from (used in) operating activities | 42,033,496 | (326,903,023) |
__________ | __________ | |
INVESTING ACTIVITIES | ||
Purchase of properties and equipment | (9,048,645) | (17,295,453) |
Advance payments for investments acquisition | (16,330,998) | (41,031,252) |
Interest received | 6,509,432 | 1,842,157 |
__________ | __________ | |
Net cash (used in) investing activities | (18,870,211) | (56,484,548) |
__________ | __________ | |
FINANCING ACTIVITIES | ||
Payments for term loan | (55,358,122) | (127,995) |
___________ | ___________ | |
Net cash from financing activities | (55,358,122) | (127,995) |
___________ | ___________ | |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (32,194,837) | (383,515,566) |
Cash and cash equivalents at 1 January | 168,463,094 | (99,969,750) |
___________ | ___________ | |
CASH AND CASH EQUIVALENTS AT 31 MARCH | 136,268,257 | (483,485,316) |
═══════ | ═══════ |
Palm Hills Developments Company S.A.E and its Subsidiaries
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
31 March 2009 (Unaudited)
Attributable to equity holders of the parent | ||||||||||
Share capital | Share premium | Statutory Reserve | Special reserve | Retained earnings | Total | Minority interests | Total | |||
EGP | EGP | EGP | EGP | EGP | EGP | EGP | EGP | |||
Balance at 1 January 2008 | 800,000,000 | - | 13,635,814 | - | 225,911,021 | 1,039,546,835 | 103,457,918 | 1,143,004,753 | ||
Profit for the period | - | - | - | - | 167,833,587 | 167,833,587 | 470,441 | 168,304,028 | ||
___________ | ___________ | ___________ | ___________ | _________ | __________ | __________ | __________ | |||
Balance at 31 March 2008 | 800,000,000 | - | 13,635,814 | 393,744,608 | 1,207,380,422 | 103,928,359 | 1,311,308,781 | |||
══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | |||
Balance at 1 January 2009 | 931,840,000 | 890,538,204 | 13,635,814 | - | 851,375,963 | 2,687,389,981 | 144,810,439 | 2,832,200,420 | ||
Transfer to statutory reserve | - | (890,538,204) | 457,799,363 | 430,293,851 | 2,444,990 | - | - | - | ||
Profit for the period | - | - | - | - | 61,145,896 | 61,145,896 | 27,667,768 | 88,813,664 | ||
___________ | ___________ | ___________ | ___________ | _________ | __________ | __________ | __________ | |||
Balance at 31 March 2009 | 931,840,000 | - | 471,435,177 | 430,293,851 | 914,966,849 | 2,748,535,877 | 172,478,207 | 2,921,014,084 | ||
══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ |
1 ACTIVITIES
Palm Hills for Development Company (S.A.E) was established according to the Investment Incentives and Guarantees Law No. (8) of 1997 and the Companies Law No.159 of 1981 and their executive regulations, taking into consideration the statutes of the Capital Market Law No. 95 of 1992 and its executive regulations. The company's headquarter is located in 6th of October City in Giza Governorate, where the main branch is located in Smart Village.
The company is registered in the Commercial Register under No. (6801) on 10 January 2005, and was listed in the unofficial schedule no. (2) Of the Cairo and Alexandria Stock Exchanges on 27 December 2006. The company got listed in the official schedule no. (1) Of the Cairo and Alexandria Stock Exchange on April 2008 and in London stock exchange on 8 May 2008.
The company was established to invest in real estate in the New Cities and New Urban Communities including building, constructing, possessing and managing residential compounds, resorts, villas and tourist villages, sale or lease as well as all the services, facilities, leasing and construction of integrated projects and managing the entertainment activities associated with the company's in activities. All such activities are subject to the approval of appropriate authorities.
All the company operations are located in Egypt; it has only one identifiable business segment which real estate development.
The company participated in the capital of eleven subsidiary companies as follows:
1-New Cairo for Real Estate Developments S.A.E
New Cairo for Real Estate Development S.A.E. is registered in Egypt under commercial registration number 12613 under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992. The company is located in plot 36 South investors' area in new Cairo. The company is engaged in construction, management, and the sale of hotels, motels, buildings and residential compounds and the purchase, development, dividing and sale of land.
The company's fiscal year ended 31 December of each year.
2-Royal Gardens for Real Estate Investment Company S.A.E
Royal Gardens for Real Estate Investment Company S.A.E. is registered in Cairo under commercial registration number 21574 under the provisions of under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992. The company is located in 11 El-Nakhil Street - Dokki-Giza. The company is engaged in real estate investment in cities and new urban communities and the set up, execution, acquisition, and management of urban communities, resorts, villas and tourist villages through sale or lease. The company is also involved in all other types of related services such as finance leasing and construction.
The company's fiscal year ended 31 December of each year.
3-Palm Hills Middle East Company for Real Estate Investment S.A.E and Its Subsidiary
Palm Hills Middle East Company for Real Estate Investment S.A.E and its subsidiary, Middle East Company for Real Estate and Touristic Investment S.A.E are engaged in real estate investment in new cities and urban communities, and also the construction, ownership and management of residential compounds, resorts, and villas. The company and its subsidiary are also involved in the sale and lease and other related services for managing integrated projects and entertainment activities.
The company is registered in Egypt under commercial registration number 21091. The company's subsidiary is registered in Egypt under commercial registration number 25016. Both companies are registered under the provisions of under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992.
The companies' fiscal year ended 31 December of each year.
4-Middle East for Development and Investment Touristic S.A.E
Middle East for Development and Investment Touristic S.A.E. is registered in Egypt under commercial registration number 25015 under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992. The company is located in 40 Lebanon Street - Mohandessin- Giza.
The company is engaged in real estate investment in cities and new urban communities and the set up, execution, acquisition, and management of urban communities, resorts, villas and tourist villages through sale or lease. The company is also involved in all other types or relevant services such as finance lease and construction of the company's projects or others'.
The company's fiscal year ended 31 December of each year.
5-Gamsha for Tourist Development S.A.E
Gamsha for Tourist Development S.A.E. is registered in Egypt under commercial registration number 23889 under the provisions of the Companies' Law No 159 of 1981. The company is located in 11 El Nakhil Street-Dokki-Giza. The company is engaged in real estate investments in new cities, urban communities, remote areas and regions outside the old valley.
The company's fiscal year ended 31 December of each year.
6-Nile Palm Al-Naeem for Real Estate Development S.A.E
Nile Palm Al-Naeem for Real estate Development S.A.E. is registered in Egypt under commercial registration number 27613 under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992. The company is located in 40 Lebanon Street - Mohandessin- Giza. The company is engaged in real estate investment in new cities and urban communities, and also in the construction, ownership and management of residential compounds, resorts, and villas.
The company's fiscal year ended 31 December of each year.
7- Saudi Urban Development Company S.A.E
Saudi Urban Development (Company) S.A.E. is registered in Egypt under commercial registration number 1971 under the provisions of the Companies' Law No 159 of 1981. The company is located in 72 Gamet El-Dewal El Arabia Street-Mohandeseen-Cairo. The company is engaged in the construction of advanced residential projects.
The company's fiscal year ended 31 December of each year.
8-Rakeen Egypt for Real Estate Investment S.A.E
Rakeem Egypt for Real Estate Investment S.A.E. is registered in Egypt under commercial registration number 22996 under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992. The company is located in 6th of October City. The company is engaged in leasing, construction and operation of hotels, motels, resorts and residential compounds, construction, generation of electricity, desalination of water, land acquisition, dividing and constructing villas, residential units and offices malls and the marketing thereof..
The company's fiscal year ended 31 December of each year.
9- Al Naeem for Hotels and Touristic Villages S.A.E
Al Naeem for Hotels and Touristic Villages S.A.E. is registered in Egypt under commercial registration number 32915 under the provisions of the Investment Guarantees and Incentives law No. 8 of 1997 and the Companies' Law No 159 of 1981 and the statutes of Capital Market Law No 95 of 1992. The company is located in 6th of October City. The company is engaged in construction and operation of hotels in Hamata.
The company's fiscal year ended 31 December of each year.
10 Gawda for Trade Services S.A.E
Gawda for Trade Services S.A.E. is registered in Egypt under commercial registration number 10242 under the provisions of the Companies' Law No 159 of 1981. The company is located in 66 Gamet El-Dewal El Arabia Street-Mohandeseen-Cairo. The company is engaged in real estate investments in new cities, urban communities, remote areas and regions.
The company's fiscal year ended 31 December of each year.
2 ACCOUNTING POLICIES
The interim condensed consolidated financial statements of the company are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. The accounting policies used in the preparation of the interim condensed consolidated financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2008 except for the standards and amendments and interpretations to existing standards which was published and effective for the group's accounting periods beginning on 1 January 2009.
3 EARNINGS PER SHARE
Earnings per share calculated on weighted average number of ordinary shares outstanding during the period of three months ended 31 March 2009 on 465.92 million shares amounting to EGP 0.19 compare to EGP 0.42 during the period of three months ended 31 March 2008 on 400 million shares.
4 GROUP ENTITIES
2009 | 2008 | 2007 | |
% | % | % | |
New Cairo for Real Estate Developments S.A.E | 99.87% | 99.87% | 74.9% |
Royal Gardens for Real Estate Investment Company S.A.E | 51% | 51% | 51% |
Palm Hills Middle East Company for Real Estate Investment S.A.E and its subsidiary, Middle East Company for Real Estate and Touristic Investment S.A.E | 99.95% 87.5% | 99.95% 87.5% | 99.95% 87.5% |
Middle East for Development and Investment Touristic S.A.E | 58.75% | 58.75% | 58.75% |
Gamsha for Tourist Development S.A.E | 59% | 59% | 59% |
Nile Palm Al-Naeem for Real Estate Development S.A.E | 51% | 51% | 50% |
Saudi Urban Development Company S.A.E | 51% | 51% | 51% |
Rakeen Egypt for Real Estate Investment S.A.E | 97% | 97% | 97% |
Al Naeem for the hotels and touristic Villages SAE | 60% | 60% | - |
Gawda for trade services SAE | 99.98% | 99.98% | - |
New East Cairo for Real Estate Development. SAE | 89% | 89% | - |
Saultan Company - Saudi SAE | 51% | 51% | - |
Villamora for Real Estate Development Company SAE | 65% | 65% | - |
Citi for real estate development SAE | 51% | 51% | - |
Coldwell Banker - Palm Hills for Real Estate Investments - S.A.E | 49% | 49% | - |
United group for real estate development SAE | 49% | 49% | - |