Moscow, April 22, 2014 - PIK Group (LSE: PIK), (“The Group” or “PIK”), one of the leading Russian residential developers, today announces its audited Consolidated Financial Statements prepared in accordance with IFRS, for the year ended December 31, 2013 and the Valuation Report in respect of the portfolio of its properties.
2013 Financial Highlights:
2013 Operational Highlights:
2013 Development Portfolio Valuation Summary:
Pavel Poselenov, PIK Group’s President and Chief Executive Officer, commented:
“2013 was another very successful year for PIK Group during which we achieved strong financial results and increased our financial and investment flexibility. As growth in the Russian economy slowed, we shifted our focus from rapid expansion in volumes to better earnings’ quality and overall deleveraging of the company. We believe our strong profitability in 2013 is a good indication that our business model works, even in times when the macroeconomic trends are not optimal.
Despite macroeconomic pressures, the Russian residential real estate market was stable during 2013 with average selling prices growing slightly ahead of inflation. PIK Group was able to exceed average market price growth rates in the key regions primarily due to changes in sales mix and efficient marketing. Increasing mortgage penetration continues to provide good support to sales momentum. A new record was set last year with 39% of our new contracts being backed by mortgages as overall mortgage affordability and accessibility continue to improve.
Overall, the pace of growth is moderating. In 2013, our residential apartment sales amounted to 677,000 square meters, just 2.8% higher than in 2012. Our cash collections in 2013 rose by 10.8%, while retail residential sales were 32.3% higher due to intentional reduction in lower margin wholesale transactions. The steadying of growth allowed us to focus on profitability by further enhancing our project management in the real estate development segment and by launching efficiency measures at our production facilities in Moscow. As a result, we have achieved an adjusted EBITDA margin of 22.4% compared to a margin of 16.1% in 2012. Together with a number of other positive financial developments, we were able to boost our net income for the year more than 2.3 times to RUB7.4 bn and to generate a record free cash flow of RUB8.4 bn.
The strong cash flow from operations coupled with capital raised during the secondary public offering in June, 2013 have enabled us to cut our net debt by about RUB20 bn and achieve a significantly lower net debt to adjusted EBITDA ratio of 1.3x.
We entered 2014 with a strong platform, both in terms of our financial standing and operational efficiency across all business lines. Our prime goals are to maintain the current level of profitability and investment discipline while capturing current market opportunities, which continue to be plentiful as indicated by homebuyers’ activity early in 2014.
All in all, we continue to be optimistic about the Group’s future – both for 2014 and in a longer perspective, despite increased macroeconomic uncertainty in Russia .
On behalf of the Management Board, I would like to thank all our employees for their energy and commitment and encourage them to keep up the good work for the benefit of all of our stakeholders.”
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Additional documents:
The Audited Consolidated Financial Statements, prepared in accordance with IFRS, for the year ended December 31, 2013 can be found under the following link:
http://pik-group.com/investors/financial-statements/2013/
For additional information please see our Corporate Governance Statement under the following link:
http://pik-group.com/corporate-governance/regulatory-documents/documents-being-currently-in-force
Conference Call Dial-In Details:
PIK Group’s Management will host a conference call for investors and analysts followed by a Q&A session.
Date: Tuesday, April 22, 2014
Time: 17:30 Moscow / 14:30 London / 9:30 New York
Title: PIK Group 2013 IFRS Results
Conference ID: 4680429
Domestic line: + 7 (495) 662-5793
UK international tel.: +44 (207) 190-1595
Enquiries:
PIK Group
Investors |
Media |
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Andrey Machanskis |
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Head of Investor Relations |
Press-secretary |
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Tel: +7 495 505 97 33 |
Tel: +7 495 505 97 33 |
E-mail: ir@pik.ru |
E-mail: pressa@pik.ru |
For more information: FY 2013 financial results