16 Apr 2015 08:58
PIK GROUP 1Q 2015 Trading Update
MOSCOW, April 16, 2014 - PIK Group (LSE: PIK) released today its trading update for the three months ended March 31, 2015 (1Q2015). The operational and financial data are based on management assessment only and have not been reviewed by external auditors.
1Q2015 key operational highlights:
· Total cash collections decreased by 5.2% to RUB 15.3 billion (1Q2014: RUB16.1 billion) primarily driven by lower cash collections from construction services provided to third parties.
- Cash collections from sale of real estate to individuals was generally unchanged at RUB 13.3 billion (1Q2014: RUB 13.5 billion), whilst being materially affected by cash collections from record sales in 4Q2014.
- Cash collections from construction services and others decreased by 25.3% to RUB 1.9 billion (1Q2014: RUB 2.5 billion)
· New sales contracts to customers decreased by 19.7% to 110 th. sqm.(1Q2014: 137 th. sq. meters). Homebuyers' activity in 1Q2015 was affected by a cooling-off period after a rush demand of 4Q2014 and higher mortgage interest rates.
· In 1Q2015, PIK launched 6 new projects compared to 11 new projects in 1Q2014. New sellable area in the buildings put on sale decreased by 28.1% to 82 th. sq. meters (1Q2014: 114 th. sq. meters).
· Share of mortgage backed sales reached 25.3% in 1Q2015 compared to 32.54% in 4Q2014 primarily due to increase in mortgage interest rates.
Table 1 - Cash collections summary(1)
(in RUB MM) | 1Q2014 | 1Q2015 | Change, % |
| ||||
|
| |||||||
TOTAL GROSS CASH COLLECTIONS (2) | 16 133 | 15 291 | (5.2%) |
| ||||
Cash collections from sale of real estate | 13 593 | 13 394 | (1.5%) |
| ||||
including: |
| |||||||
- Cash collections from retail real estate sales | 13 492 | 13 347 | (1.1%) | |||||
- Cash collections from wholesale real estate sales | 80 | 0 | (100.0%) | |||||
Cash collections from construction services activities and others | 2 540 | 1 897 | (25.3%) | |||||
Notes: (1 )In line with PIK's accounting policies, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed, approved by the local State commission established for acceptance of finished buildings and the larger share of proceeds is received upon the completed unit.
(2) Including offsets with suppliers
Source: Management accounts
Table 2 - New sales contracts to customers
in '000 sq. meters | 1Q 2014 | 1Q 2015 | Change, % | |
New sales contracts to customers (1) | 137 | 110 | (19.7%) | |
including: | ||||
New retail sales contracts to customers | 135 | 110 | (18.5%) | |
Value of retail contracts for apartments and ground floors(in RUB mn) | 12 122 | 9 977 | (17.7%) |
(1) Including contracted retail and wholesales
Source: Management accounts
Table 3 - New sales contracts to customers by region
in '000 sq. meters | 1Q2014 | 1Q2015 | Change, % |
Moscow | 38 | 23 | (39.5%) |
Moscow region | 70 | 67 | (4.3%) |
Other regions | 29 | 20 | (31.0%) |
Total | 137 | 110 | (19.7%) |
Note: including contracted retail and wholesales
Source: Management accounts
Table 4 - Pre-sales launches summary table
2014 | 2015 | Change | ||
Number of buildings launched for sale | 114 | 82 | (28.1%) | |
New sellable area, 000' sqm | 11 | 6 | (5) |
Source: Management accounts
Table 5 - Share of mortgage backed retail sales
In % | 1Q2014 | 4Q2014 | 1Q2015 | |
Share of mortgage backed transactions | 37.2% | 32.4% | 25.3% |
Note: Based on monthly averaged data from retail sales, calculated using apartments only
Source: Management accounts
Enquiries:
PIK Group
Investors | Media |
Investor Relations | Natalia Mikhna |
Tel: +7 495 505 97 33 ext. 1157 / 1315 | Tel: +7 495 505 97 33 ext. 1403 |
E-mail: ir@pik.ru | E-mail: pressa@pik.ru |
Some of the information in this press release may contain guidance, projections or other forward-looking statements regarding future events or the future financial performance of PIK Group. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK Group 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 Group's projections, guidance or forward-looking statements, including, among others, general economic and market conditions, PIK Group's competitive environment, risks associated with operating in Russia, rapid market change, and other factors specifically related to PIK Group and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of PIK Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of PIK Group.