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Egypt's Palm Hills profit soars to $131m

CAIRO, February 7, 2016

Palm Hills, Egypt's second-largest listed property developer, reported on Sunday a 128 per cent rise in fourth-quarter net profits to E£203.5 million ($25.99 million) from E£89.2 million in the same period last year.

The company posted a 192 per cent rise in net profit of E£1.03 billion ($131 million) for the 2015 full year, up from E£353.3 million ($45 million) in 2014.

Its board of directors proposed its first cash dividend, 0.15 pounds per share, and a bonus shares issuance of one bonus share for each 20 shares held, the company said in a statement.

"Our pre-sales for the year have for the first time ever broken the E£6 billion ($763 million) mark, recording E£6.3 billion ($802 million) with a growth of 61 per cent," said its chairman Yasseen Mansour.

"Growth in pre-sales was fuelled by demand for primary housing as Egyptians continue to migrate from Cairo, heading west and east, as well as demand for secondary homes in the North Coast," he added in the statement.

Palm hills posted revenues of 957.2 million pounds in the fourth-quarter of 2015 versus 777.5 million pounds in 2014. Revenues for the full year in 2015 stood at 3.56 billion pounds compared to 2.1 billion in 2014.

The company expects to spend 2 billion pounds on construction in 2016 and achieve gross sales of 6.5 billion pounds, delivering about 1,600 units.

"We expect to reach an agreement with the Egyptian government for the co-development of a mixed use 42 million square metres in West Cairo during the first half of 2016," said Mansour.

"Moving forward, we are planning to return excess cash to shareholders with plans to distribute almost 30 percent from annual free cash flows in the form of cash dividend to shareholders or share buyback, depending on market conditions."-Reuters




Tags: Egypt | Palm Hills | Residential project |

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