Egypt's Palm Hills reports 128% rise in Q4 profit

Palm Hills, Egypt’s second-largest listed property developer, reported on Sunday a 128 per cent rise in fourth-quarter net profit to 203.5 million Egyptian pounds from 89.2m pounds in the same period in 2014.

The company posted a 192 per cent rise in net profit of 1.03 billion pounds for the 2015 full year, up from 353.3m pounds 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 6 billion Egyptian pounds mark, recording 6.3 billion [pounds] with a growth of 61 per cent,” said 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 957.2m pounds in the fourth-quarter of 2015 versus 777.5m pounds in 2014. Revenues for the full year in 2015 stood at 3.56bn pounds compared to 2.1bn pounds in 2014.

The company expects to spend 2bn pounds on construction in 2016 and achieve gross sales of 6.5bn 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 Mr Mansour.

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

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