MOSCOW, October 21, 2014 - PIK Group (LSE: PIK) released today its trading update for the nine months ended September 30, 2014. The operational and financial data are based on management assessment only and have not been reviewed by external auditors.
9M2014 key operational highlights:
· Total cash collections decreased by 25.1% to RUB 39.1 billion (9M2013: RUB52.2 billion) primarily due to lower new sales launches in 1H2014 in accordance with the current development schedule and a slowdown in homebuyers’ activity from March, 2014.
- Cash collections from sale of real estate to individuals decreased by 23.8% to RUB 31.2 billion (9M2013: RUB 40.9 billion)
- Cash collections from wholesale transactions decreased by 94.2% to RUB 0.2 billion (9M2013: RUB 2.8 billion)
- Cash collections from construction services and others decreased by 8.9% to RUB 7.7 billion (9M2013: RUB 8.4 billion)
· New sales contracts to customers decreased by 23.5% to 362 th. sqm.
(9M2013: 473 th. sq. meters) due to lower new sales launches, which resulted in lower apartment offering in 1H2014, as well as weaker homebuyers’ activity. Starting from September, 2014, the revival of demand coupled with a wider new project inventory available for sale allowed sales volumes to recover. In 3Q2014, volumes of new contracts increased by 77.8% to 144 th. sqm. compared to 81 th. sqm. in 2Q2014.
· In 9M2014, PIK launched sales at 37 new projects (including 30 project in Moscow Metropolitan Area) compared to 33 and 23 new projects respectively in 9M2013. The largest increase in launched projects occurred in June, 2014 and had a noticeable effect on sales volumes by September, 2014.
· Share of mortgage backed sales continues to be strong at 39.9% in 3Q2014, which is in line with the 2013 full year average.