Cairo, Egypt : SODIC ("Sixth of October Development & Investment Company") has released its consolidated financial results for the FY 2011 period. SODIC reported a net consolidated loss of EGP 193 million on consolidated revenues of EGP 542 million for FY 2011. Despite a turbulent 4th quarter marred by socio-political unrest SODIC was able to launch its latest post revolution designed project, Westown Residences. The successful launch aided SODIC in closing the FY2011 with a net positive figure and built the base for a strong Q1 2012 performance. SODIC has achieved EGP 711 million of net new contracted sales for Q1 2012, selling out all projects launched post revolution.
SODIC has also achieved great milestones with regards to its land bank issues. The Company has managed to secure its SODIC West 3 year development schedule in writing from the government, the portion of the land bank that currently holds all of SODIC's EGP 2.1 bln receivables. Finalized the foot print increase from 2% to 7% for Al Yosr Plot (1.26 mln Sqm), and initiated dialogue with government on Eastown. SODIC is currently enrolled in the CRC (Conflict Resolution Committee); a committee designed to fast track investor issues, and is pending a decision after NUCA sent a revocation letter for the Eastown plot (0.86 mln Sqm).
SODIC has a number of projects lined up for Launch in the coming period. Westown Residences phase 4 is a continuation of the successful launches executed over the last 4 months that generated some EGP 550 mln. The project will target the upper middle income segment with unit values ranging from EGP 1.2 mln through EGP 2.5 mln. SODIC is also launching a retail destination in SODIC West, Westown Entertainment Hub, which will generate lease revenues of some EGP 30 mln by 2015.
FY 2011 Operational Summary:
SODIC delivered 58 units in Q4 worth EGP 182 million. The number of units delivered declined by some 30% vs. last period due to the instability of the socio-political environment of the 4th quarter. In totality SODIC delivered 259 units worth EGP 657 million for FY2011, bringing total Allegria deliveries at 2011 YE to 369 units and expects to deliver some 350 unit for FY2012.
2011 contracted Gross Sales reached EGP 973 million with Q4 contributing some EGP 320 million of full year figure. Concerning contract cancellation and modifications, FY 2011 reached EGP 968 million resulting in a net sales position of EGP 5 million.
SODIC's cash collection process led to collecting more than 91% of FY2011 project receivables. The tightly managed cash collection process secured EGP 685 million of total Company receivables for FY 2011.
During a tough 2011 SODIC preserved the strength of its Balance sheet, Improved cash collection delinquency rates, increased receivables and maintained healthy levels of Cash on hand. SODIC's main priority in 2012 is to maintain its strong balance sheet with clear guidelines on unit delivery, construction, cash collection, new sales and debt management.
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Media information:
Esmat El Nahas
PR Director
eelnahas@sodic.com
© Press Release 2012
