MOSCOW, July 22, 2014 - PIK Group (LSE: PIK) released today its trading update for the six months ended June 30, 2014. The operational and financial data are based on management assessment only and have not been reviewed by external auditors.
1H2014 key operational highlights:
Total cash collections decreased by 19.7% to RUB 27.3 billion (1H2013: RUB33.9 billion) primarily due to a planned decline in volume of wholesale transactions and in line with the current development schedule which envisaged a temporary slowdown in the number of new sales launches in 1H2014.
Cash collections from sale of real estate to individuals decreased by 17.0% to RUB 21.5 billion (1H2013: RUB 25.9 billion)
Cash collections from wholesale transactions decreased by 96.7% to RUB 0.08 billion (1H2013: RUB 2.5 billion)
Cash collections from construction services and others stayed flat at RUB 5.6 billion
New sales contracts to customers decreased by 25.1% to 218 th. sqm.
(1H2013: 291 th. sq. meters). New sales contracts decreased in line with the development schedule which envisages an increase in the number of new project launches in 2H2014.
In 1H2014, PIK launched sales at 26 new projects (including 19 project in Moscow Metropolitan Area) compared to 19 and 14 new projects respectively in 1H2013. The increase in launched projects occurred in June, 2014 and thus had limited effect on the volume of new sales contracts in 1H2014.
Share of mortgage backed sales stayed flat compared to 1Q2014, reaching 36.8% in 2Q2014. The share of mortgage backed transactions declined slightly compared to 2013 full year average of 39.0%.