16 Oct 2009 07:00
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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR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")
FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2009
(LONDON, 16 October 2009) - PIK (LSE: PIK), a leading Russian residential developer, today announces its interim financial statements for 6 months ended 30 June 2009, reviewed by KPMG.
Financial Summary
Revenues dropped by 58.1% to US$361million (1H2008: US$859million);
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 153,0% to approximately US$(106)million (1H08: US$200million),
Adjusted EBITDA from development activities decreased by 132,3% to approximately US$(65)million (1H08: US$201million),
Net loss for the period was US$(185)million (1H2008: net profit of US$ 93million);
Net loss per share amounted to US$(0,38) (1H2008: net profit per share US$0,19);
Total assets as of June 30 2009 decreased by 10,5% and reached US$4,34billion (December 31 2008: US$4,85billion);
Net tangible assets per share as of June 30 2009 amounted to approximately US$4.12 (December 31 2008: US$5.16);
Total debt as of June 30 2009 has not changed significantly and amounted to US$1,43billion (December 31 2008: US$ 1,37billion);
Net debt as of June 30 2009 amounted to US$1,42billion (December 31 2008: US$1.26billion).
Enquiries:
| PIK Group Viktor Szalkay Head of Investor Relations | Tel: +7 495 505 97 33 ext. 1358 |
| Citigate Dewe Rogerson Tom Baldock Lindsay Noton | Tel: +44 20 7638 9571 |
Note: The calculation of following measures used in this announcement is set below. Our calculations of the below measures may be different from the calculation used by other companies and therefore comparability may be limited. The below measures are not measures of financial performance under IFRS.
1a). EBITDA represents net profit/loss for the period before income tax expenses, interest income, interest expense, depreciation and amortization.
|
| 1H09 |
| 1H08 |
|
| MM USD |
| MM USD |
| Renevue | 361 |
| 859 |
| Net (Loss)/profit for the period | (185) |
| 93 |
| Depreciation and amortisation | 16 |
| 23 |
| Interest expense | 81 |
| 38 |
| Interest income | (8) |
| (10) |
| Income tax expense | (10) |
| 56 |
| EBITDA | (106) |
| 200 |
1b) Adjusted EBITDA from development activities represents net profit/loss for the period before income tax expenses, interest income, interest expense, depreciation, foreign exchange gain, foreign exchange loss, impairment losses.
|
| 1H09 |
| 1H08 |
|
| MM USD |
| MM USD |
| Net (Loss)/profit for the period | (185) | 93 | |
| Depreciation and amortisation | 16 | 23 | |
| Income tax expense (credit)/ expense | (10) | 56 | |
| Interest expenses | 81 | 38 | |
| Interest income | (8) | (10) | |
| FOREX loss | 40 | 2 | |
| Impairment loss on non-current assets | (9) | 0 | |
| Loss on disposal of property, plant and equipment | (1) | 3 | |
| Share of loss/(income) of equity accounted investees | 2 | (2) | |
| Assets held for sale | (1) | 0 | |
| Impairment on Financial Assets | 10 | 0 | |
| Adjusted EBITDA | (65) | 201 |
2. Net profit/loss per share calculated as net profit/loss divided by number of shares outstanding.
| 1H09 |
| 1H08 | |
| MM USD |
| MM USD | |
| Net (Loss)/profit for the period | -185 | 93 | |
| Number of shares (mln shares) | 493 | 493 | |
| Net Profit/ share | -0,38USD |
| 0,19USD |
3. Total assets calculated as sum of non-current and current assets.
| 30 June 2009 |
| 31 December 2008 | |
| MM USD |
| MM USD | |
| Total non-current assets | 1 385 | 1 500 | |
| Total current assets | 2 952 | 3 345 | |
| Total Assets | 4 337 | 4 845 |
4. Total debt calculated as sum of non-current loans and borrowings, current loans and borrowings.
| 30 June 2009 |
| 31 December 2008 | |
| MM USD |
| MM USD | |
| Non-current Loans and borrowings | 2 | 286 | |
| Current Loans and borrowings | 1 432 | 1 081 | |
| Total Debt | 1 434 | 1 367 |
5. Net tangible assets per share calculated as total assets less total debt less intangible assets divided by number of shares outstanding.
| 30 June 2009 |
| 31 December 2008 | |
| Total Assets | 4 337 | 4 845 | |
| Total Debt | 1 434 | 1 367 | |
| Intangible assets | 873 | 935 | |
| Number of shares (mln shares) | 493 | 493 | |
| Net tangible assets/ share | 4,12USD |
| 5,16USD |
6. Net Debt calculated as total debt less cash and cash equivalents.
| 30 June 2009 |
| 31 December 2008 | |
| MM USD |
| MM USD | |
| Total Debt | 1 434 | 1 367 | |
| Cash and cash equivalents | 12 | 108 | |
| Net Debt | 1 422 | 1 259 |
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.
Appendix
Consolidated Financial Statements for the period ended 30 June 2009
Note: The Group's reporting currency is Russian roubles. However, for presentation purposes, these amounts were converted into US$ using average RUB/US$ exchange rate of the Central Bank of Russian Federation (1H09: 33,2702; 1H08: 23,9647) for the income statement and using RUB/US$ exchange rate (30 June 2009: 31,2904; 31 December 2008: 29.3804) for the balance sheet as of the date of reporting.
The full version of the IFRS financial statements is available on the Group's website at http://www.pik.ru/fin_indices/doc_eng/
Consolidated Income Statement for the period ended 30 June 2009
| Six months ended 30 June 2009 | Six months ended 30 June 2008 | Six months ended 30 June 2009 | Six months ended 30 June 2008 | ||||
| mln RUB | mln RUB | mln USD | mln USD | ||||
| Revenue | 11 983 | 20 579 | 361 | 859 | |||
| Cost of sales | (9 541) | (12 918) | (287) | (540) | |||
|
|
|
|
| ||||
| Gross profit | 2 442 | 7 661 | 74 | 320 | |||
| Distribution expenses | (305) | (978) | (10) | (41) | |||
| Administrative expenses | (2 201) | (2 168) | (67) | (91) | |||
| Impairment losses and reversal of impairment loss | 285 | - | 9 | - | |||
| Other expenses | (365) | (268) | (11) | (12) | |||
| Finance income | 243 | 235 | 8 | 10 | |||
| Finance expenses | (6 502) | (975) | (196) | (41) | |||
| Share of (loss)/income of equity accounted investees, net of income tax | (61) | 40 | (2) | 2 | |||
|
|
|
|
| ||||
| (Loss)/profit before income tax | (6 464) | 3 547 | (195) | 149 | |||
| Income tax credit/(expense) | 317 | (1 320) | 10 | -56 | |||
|
|
| ||||||
| (Loss)/profit and total comprehensive income for the period | (6 147) | 2 227 | (185) | 93 | |||
| Attributable to: | |||||||
| Owners of the Company | (6 031) | 2 302 | (182) | 97 | |||
| Non-controlling interest | (116) | (75) | (4) | (4) | |||
| Total comprehensive (loss)/income for the period |
|
| |||||
| (6 147) | 2 227 | (185) | 93 | ||||
| Basic and diluted (loss)/earnings per share | -12,70RUB | 4,54RUB | -0,38USD | 0,19USD |
Consolidated Balance Sheet as at 30 June 2009
| 30 June 2009 | 31 December 2008 | 30 June 2009 | 31 December 2008 | ||||
| mln RUR | mln RUR | mln USD | mln USD | ||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | 11 428 | 12 840 | 366 | 438 | |||
| Intangible assets | 27 312 | 27 455 | 873 | 935 | |||
| Investments in equity accounted investees | 3 445 | 3 522 | 111 | 120 | |||
| Other investments | 1 066 | 169 | 35 | 6 | |||
| Deferred tax assets | 77 | 71 | 3 | 3 | |||
| Total non-current assets | 43 328 | 44 057 | 1 385 | 1 500 | |||
|
| |||||||
| Current assets | |||||||
| Inventories | 73 288 | 76 251 | 2 343 | 2 596 | |||
| Other investments | 1 241 | 4 223 | 40 | 144 | |||
| Income tax receivable | 448 | 519 | 15 | 18 | |||
| Trade and other receivables | 13 650 | 14 124 | 437 | 481 | |||
| Cash and cash equivalents | 370 | 3 153 | 12 | 108 | |||
| Assets held for sale | 3 370 | - | 108 | - | |||
| Total current assets | 92 367 | 98 270 | 2 952 | 3 345 | |||
| Total assets | 135 695 | 142 327 | 4 337 | 4 845 | |||
| EQUITY AND LIABILITIES | |||||||
| Equity | |||||||
| Share capital | 30 843 | 30 843 | 986 | 1 050 | |||
| Additional paid-in capital | 20 082 | 20 082 | 642 | 684 | |||
| Treasury shares | (2 428) | (2 428) | (78) | (83) | |||
| Reserve resulting from additional share issue | (28 506) | (28 506) | (912) | (971) | |||
| Retained earnings | (7 343) | (1 011) | (235) | (35) | |||
| Total equity attributable to equity holders of the Company | 12 648 | 18 980 | 405 | 647 | |||
| Non-controlling interest | 815 | 978 | 27 | 34 | |||
| Total equity | 13 463 | 19 958 | 431 | 680 | |||
| Non-current liabilities | |||||||
| Loans and borrowings | 61 | 8 393 | 2 | 286 | |||
| Trade and other payables | 865 | 1 527 | 28 | 52 | |||
| Provisions | - | 46 | - | 2 | |||
| Deferred tax liabilities | 5 661 | 6 135 | 181 | 209 | |||
| Total non-current liabilities | 6 587 | 16 101 | 211 | 549 | |||
| Current liabilities | |||||||
| Loans and borrowings | 44 797 | 31 742 | 1 432 | 1 081 | |||
| Trade and other payables | 69 094 | 73 506 | 2 209 | 2 502 | |||
| Provisions | 958 | 894 | 31 | 31 | |||
| Income tax payable | 219 | 126 | 7 | 5 | |||
| Liabilities related to assets held for sale | 577 | - | 19 | - | |||
| Total current liabilities | 115 645 | 106 268 | 3 696 | 3 617 | |||
| Total liabilities | 122 232 | 122 369 | 3 907 | 4 165 | |||
| Total equity and liabilities | 135 695 | 142 327 | 4 337 | 4 845 |
Consolidated Cash Flow Statement for the period ended 30 June 2009
| Six months ended | Six months ended | Six months ended | Six months ended | ||||
| 30 June 2009 | 30 June 2008 | 30 June 2009 | 30 June 2008 | ||||
| mln RUR | mln RUR | mln USD | mln USD | ||||
| OPERATING ACTIVITIES | |||||||
| Profit for the period | (6 147) | 2 227 | (185) | 93 | |||
| Adjustments for: | |||||||
| Depreciation and amortisation | 517 | 549 | 16 | 23 | |||
| Foreign exchange loss, net | 1 301 | 36 | 40 | 2 | |||
| Loss on disposal of property, plant and equipment | (16) | 56 | (1) | 3 | |||
| Impairment loss on non-current assets | (292) | - | (9) | - | |||
| Share of loss/(income) of equity accounted investees | 61 | (40) | 2 | (2) | |||
| Impairment of financial assets | 323 | - | 10 | - | |||
| Interest expense, including penalties payable | 4 378 | 901 | 132 | 38 | |||
| Interest income | (243) | (235) | (8) | (10) | |||
| Income tax expense (credit)/ expense | (317) | 1 320 | (10) | 56 | |||
| Assets held for sale | (16) | - | (1) | - | |||
|
|
|
|
| ||||
| Operating profit before changes in working capital and provisions | (451) | 4 814 | (14) | 201 | |||
| Decrease/(Increase) in inventories | 2 293 | (13 288) | 69 | (555) | |||
| Decrease/(Increase) in trade and other receivables | 399 | (1 703) | 12 | (72) | |||
| (Decrease)/Increase in trade and other payables | (2 287) | 14 009 | (69) | 585 | |||
| Decreased/(increase) in provisions | 106 | (10) | 4 | (1) | |||
|
|
|
|
| ||||
| Cash flows from/(utilised in) operations before income taxes and interest paid | 60 | 3 822 | 2 | 160 | |||
| Income taxes paid | (40) | (561) | (2) | (24) | |||
| Interest paid | (1 447) | (1 374) | (44) | (58) | |||
|
|
| ||||||
| Cash flows from/(utilised in) operating activities | (1 427) | 1 887 | (43) | 79 | |||
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| INVESTING ACTIVITIES | |||||||
| Proceeds from disposal of property, plant and equipment | 19 | 9 | 1 | 1 | |||
| Interest received | 231 | 175 | 7 | 8 | |||
| Acquisition of property, plant and equipment | (176) | (2 355) | (6) | (99) | |||
| Acquisition of development rights and other intangible assets | (249) | (11 631) | (8) | (486) | |||
| Acquisition of equity accounted investees | (2 208) | (9) | (67) | (1) | |||
| Acquisition of non-controlling interests | (61) | (193) | (2) | (9) | |||
| Proceeds from sale of non-controlling interests and development rights | - | 1 047 | - | 44 | |||
| Loans advanced | (168) | (920) | (6) | (39) | |||
| Repayment of loans advanced | - | 1 326 | - | 56 | |||
| Loans advanced to individuals | - | (1 540) | - | (65) | |||
| Repayment of loans advanced to individuals | 338 | 437 | 11 | 19 | |||
|
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|
|
| ||||
| Cash flows utilised by investing activities | (2 274) | (13 654) | (69) | (570) | |||
|
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| ||||
| FINANCING ACTIVITIES | |||||||
| Proceeds from borrowings | 4 528 | 18 470 | 137 | 771 | |||
| Repayment of borrowings | (3 225) | (15 754) | (97) | (658) | |||
| Consideration paid for treasury shares | - | (2 428) | - | (102) | |||
| Transactions with Majority Shareholders | (385) | 681 | (12) | 29 | |||
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| ||||
| Cash flows from financing activities | 918 | 969 | 28 | 41 | |||
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| ||
| Net (decrease)/increase in cash and cash equivalents | (2 783) | (10 798) | (84) | (451) | |||
| Effect of exchange rate fluctuations on cash and cash equivalents | - | (76) | - | (4) | |||
| Cash and cash equivalents at beginning of year, net of overdrafts | 3 153 | 17 046 | 95 | 712 | |||
|
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| ||||
| Cash and cash equivalents at end of period, net of overdrafts | 370 | 6 172 | 12 | 258 |
-END-