Ronson Development’s financial results for three quarters of 2017
- After three quarters of 2017, Ronson Group’s total revenue exceeded PLN 182 million and was 10% lower than last year. Considering the value of units delivered to clients as part of the City Link I joint venture project, the total revenue in the discussed period would amount to over PLN 195 million.
- In the first three months of this year, Ronson handed over 456 units to its clients in fully consolidated investments, compared to 510 units in the corresponding period of 2016.
- In addition, in Q3 2017, Ronson delivered to its clients the first 36 units in the City Link I project, in which it holds a 50 per cent share.
- At the end of Q3 2017, the Company had already 359 units sold but not yet delivered to clients, with a total value of nearly PLN 137 million. Most of them will be delivered to buyers in Q4 this year. 276 units are built as part of the City Link I project.
- Gross profit on sales for the first three quarters of this year amounted to over PLN 29 million, compared to PLN 41 million in the corresponding period of 2016.
- Gross margin achieved on projects delivered to clients from January to September this year amounted to 16% against 20.2% in the first three quarters of 2016.
- Gross margin achieved on the City Link I project is 30.2%.
- Ronson Europe’s consolidated net profit after nine months of this year amounted to PLN 2 million compared to PLN 11.4 million in the corresponding period of the previous year.
- o Net profit attributable to shareholders of the parent company amounted to PLN 0.1 million against PLN 10.8 million last year.
– In the first nine months of this year, we delivered to our clients 456 units in fully consolidated projects. This is 11% less than in the corresponding period of 2016, which translated into a 10% drop in revenue year-on-year. The majority of revenues recognised in the current year also derives from investments completed last year. Let me remind you that according to our project schedule, it was only in September this year that we completed our two construction projects, i.e. Vitalia I in Wrocałw and City Link I in Warsaw. As regards the City Link project, in the third quarter, we delivered to our clients only 36 units out of 312 already sold. Most of them will be handed over to buyers in the fourth quarter and only then we will be able to recognise the majority of profit form this investment. It is a joint venture project in which we hold a 50 per cent share. Therefore, no revenue from the sale of units as part of this project, but only half of the profit attributable to our company and remuneration for managing this project are recognised in our income statement – said Tomasz Łapiński, CEO of Ronson Europe.
–As a result, in line with our expectations, we generated lower financial results in the third quarter of this year as compared to the previous year. Most of this year’s profit will be recognised in the fourth quarter, in which we plan to deliver a record number of around 400 units to our clients. Last quarter’s results will include both very profitable projects, such as City Link and Vitalia with the margin exceeding 30% and 21% respectively, and low-margin investments, such as Młody Grunwald in Poznań or Panoramika in Szczecin– added Tomasz Łapiński.
At the end of September this year, Ronson Development’s completed projects included 500 units that have not yet been delivered to clients. For as many as 359 of them, the company signed preliminary sales contracts – their total value reaches almost PLN 137 million and most of them will be delivered to buyers in the fourth quarter of this year. 276 of these units have been developed as part of the City Link I project.
In addition, in the fourth quarter of this year, Ronson completed the construction of the third stage of the Młody Grunwald housing complex in Poznań, comprising a total of 108 units (of which 71 were already sold by the end of the third quarter) and plans to complete the third stage of the Panoramika housing complex in Szczecin, as part of which 122 units are being built (of which 80 were already sold by the end of September), as well as the fourth stage of the Chilli City project in Tulce near Poznań, comprising 45 units.
This year, Ronson Development enjoys very good sales results. In the third quarter alone, the Company found buyers for 206 units, which is 12% more than in the corresponding period of 2016, and cumulatively in the first nine months of this year, it entered into sales contracts for 645 units, which is 18% more than last year.
– In the second and third quarters, we significantly strengthened our sales offer by launching three projects covering a total of 667 units. These projects include the next stage of our best-selling City Link investment in Wola, the second stage of the Miasto Moje housing estate in Białołęka and a completely new Miasto Marina project in Wrocław. This should translate into good sales figures, also in the fourth quarter. As announced, throughout 2017, we plan to achieve similar to last year’s sales, i.e. over 800 units – said Andrzej Gutowski, Sales and Marketing Director of Ronson Development..
Among the most popular investments in the first three quarters of this year were: City Link, Miasto Moje and Espresso projects developed in Warsaw, as well as Panoramika in Szczecin and Vitalia in Wrocław.
At the end of the third quarter, Ronson Development’s sales offer included 953 units, of which 141 accounted for already completed projects. – In recent days, we have also launched sales of 83 flats as part of the second stage of the Vitalia estate, and in a short time, we will begin the construction and sale of the fourth stage of the Panoramika project, covering 111 units – addes Andrzej Gutowski.
Selected consolidated financial results of Ronson Europe (in million PLN)
| 3Q 2017 | 3Q 2016 | change y/y | 1-3Q 2017 | 1-3Q 2016 | change y/y | |
| Sales revenue | 36,0 | 91,3 | -61% | 182,2 | 202,6 | -10% |
| Gross profit on sales | 4,7 | 21,2 | -78% | 29,3 | 41,0 | -29% |
| Net profit/loss 1) | -2,5 | 10,1 | – | 0,1 | 10,8 | -99% |
1) Net result attributable to shareholders of the parent company
Opublikowano:
7.11.2017