Press release
Paris, 11 July, 2018
Results for the 1ST HALF OF
2018
-
Overall backlog up 27.9%, to
more than €2 billion
-
Transition from a net financial
debt to a positive cash position
-
Upwards revision of the annual
outlook
(H1 2018 vs H1
2017)
€1,210.5 million including VAT (+54.1%)
Housing: €864.2 million including VAT (+10.1%)
4,149 units (+1.2%)
Business property: €346.2 million
5.1 months vs 6.3 months in H1 2017
(-1.2 months)
(H1 2018 vs H1 2017)
Of which housing: €608.8 million (+13.2%)
€150.0 million (+25.1%)
€77.6 million (+48.9%)
€37.8 million (+87.4%)
€(24.4) million vs € 33.1 million at end-2017
(€289.4 million at end-May 2017)
Key growth indicators
(H1 2018 vs H1 2017)
Overall backlog:
€2,088.6 million (+27.9%)
Of which Housing €1,784.7 million (+19.9%)
28,035 units (+2.7 %)
|
Kaufman & Broad SA announced today its results for the
1st half of the
2018 financial year (from 1 December, 2017 to 31 May,
2018).
Nordine Hachemi, Chairman and Chief Executive Officer
of Kaufman & Broad, made the following
comments:
"The results for the 1st half of 2018
have confirm the quality of Kaufman & Broad's
fundamentals. They highlight the ability of its growth model, which
generates profitability and cash flow, to sustain its distribution
capacity while reinforcing its financial strength and growth
prospects.
With overall orders up of 54.1% in value terms
(+10.1% for housing alone) and the marketing
period down again to 5.1 months, the trading results demonstrate
the ability of our commercial offer to meet demand in a market that
is still expected to contract over the year. Maintenance of our
high level of marketing continues to rely on our ability to offer
our customers transactions at selling prices that match their
financial capacity.
The business property segment also continued to
perform extremely well, with orders of €346.2 million (including
VAT).
The strong growth in the overall backlog of nearly
28% has substantially increased our visibility. In the Housing
segment alone, the backlog grew by 20%, enabling us to continue to
rigorously manage our land reserve, which represents more than
three years of business.
Our policy of controlling prices and operating
expenses resulted in growth of 48.9% in adjusted EBIT. The working
capital requirement was once again managed in an environment of
strong growth in turnover and the order backlog. This resulted in a
reduction in debt of nearly €85 million in the last 12 months and a
positive net cash position of €24.4 million at the end of
May.
All of these factors led to an increase in
shareholders' equity, which stood at over €240 million at the end
of May 2018, as well as our financing capacity, which reached
nearly €380 million.
The group believes that its revenue growth for the
full financial year should be more than 10%. Gross margin is
expected to remain at about 19%, while adjusted EBIT is expected to
increase to about 9%.
In this context, and according to our dividend
policy, the dividend will increase in the same
proportions." |
Sales
activities
In the 1st half of
2018, orders for housing unit orders amounted to €864.2 million
(including VAT) in value terms, representing an increase of 10.1%
compared with the 1st half of
2017. In terms of volume, they increased to 4,149 housing units, up
1.2% over the same period in 2017.
The marketing period for projects
was 5.1 months in the 1st half of
2018, an improvement of 1.2 months compared with the
1st half of 2017
(6.3 months).
The commercial offer, 93% of which
is located in areas of strong demand (A, Abis and B1), amounted to
3,527 housing units at the end of May 2018 (4,294 housing units at
the end of May 2017).
Breakdown of the
customer base
Orders by first-time buyers
increased by 7.0% in value terms (excluding VAT) over the
1st half
of 2018 as a whole, representing 18% of sales. Orders
by second-time buyers grew by 33.0%, representing 10% of sales.
Orders from investors accounted for 34% of sales (28% only under
the Pinel Law tax scheme). The proportion of block sales increased
to 37% (26% in the 1st half
of 2017). Managed accommodation (tourism, students, business and
seniors) accounted for more than 64% of block sales.
In the 1st half of
2018, the business property segment registered net orders of €346.2
million, including VAT for one logistics platform and two office
property.
Kaufman & Broad also
signed:
- a sale before completion agreement
for the construction of an office building covering approximately
7,000 sq.m at Eurasanté, a health industry cluster developed by the
Lille metropolitan authority (municipality of Loos). The building
will accommodate the new offices of the l'Etablissement Français du
Sang, with which Kaufman & Broad had earlier signed a lease
before completion.
- a sale before completion agreement
for a business campus at Courbevoie of 24,000 sq.m, organised into
three buildings, including a high-rise tower.
- a sale before completion agreement
to build a new-generation XXL logistics platform with a total
surface area of 74,000 sq.m at MER for DWS (Deutsche Bank Asset
Management) after signing a lease before completion with the
LAPEYRE Group.
Kaufman & Broad is currently
marketing or studying approximately 205,000 sq.m of office premises
and approximately 185,000 sq.m of logistics premises. In addition,
more than 90,000 sq.m of office premises are currently under
construction (including SNI Paris 13, ORA Paris 17, EDF Bordeaux
and Polaris in Nantes) and 180,000 sq.m of logistics premises.
The business property backlog
amounted to €302.1 million (excluding VAT) at the end of May
2018.
The housing backlog amounted to
€1,784.7 million (excluding VAT) at 31 May, 2018, i.e. 16.7
months of business. Kaufman and Broad had 217 home programmes
on the market at the same date, representing 3,527 housing units,
compared with 225 programmes representing 4,294 housing units
at the end of May 2017.
The housing property portfolio
represents 28,035 units, up 2.7% compared with the end of May
2017, and corresponds to potential revenues of more than four
years of business.
The group is planning to launch 86
new programmes in the 2nd half of
2018, including 31 in the Île-de-France Region, which represent
3,322 units, and 55 programmes in the French Regions representing
4,119 units.
Total revenues amounted to €776.9
million (excluding VAT), representing an increase of 23.8% compared
with the 1st half of
2017.
Housing revenues amounted to
€608.8 million (excluding VAT), compared with €537.9 million
(excluding VAT) in the 1st half of
2017. They accounted for 78.4% of the group's revenues. Revenues
from the Apartments business were up 10.3 % compared with the
1st half of
2017, and amounted to €573.7 million (excluding VAT). Revenues from
single family homes in communities amounted to €35.2 million
(excluding VAT), compared with €18.0 million (excluding VAT) in the
1st half of
2017.
The business property segment's
revenues amounted to €163.9 million (excluding VAT) in the
1st half
of 2018, compared with €87.0 million (excluding VAT) in the
1st half of
2017.
The gross margin amounted to
€150.0 million in the 1st half of
2018, compared with €119.9 million in the 1st half
of 2017. The gross margin ratio was 19.3%, or slightly higher than
the level in the 1st half
of 2017 (19.1 %).
Current operating expenses amounted
to €78.5 million (10.1% of revenues), compared with €71.2 million
in the 1st half of 2017
(11.3% of revenues).
Current operating profit amounted to
€71.5 million, compared with €48.8 million in the 1st half
of 2017. The current operating margin was 9.2%,
compared with 7.8% in the 1st half
of 2017.
The group's adjusted EBIT amounted to
€77.6 million in the 1st half of 2018
(compared with €52.1 million in the 1st half of
2017). The adjusted EBIT margin was 10.0% (compared with 8.3% in
the 1st half of
2017). Attributable net income amounted to €37.8 million in the
1st half of 2018
(compared with €20.2 million in the 1st half of
2017).
The net cash position was €24.4
million at 31 May, 2018, compared with net financial debt of €33.1
million at the end of 2017, representing an improvement of €57.5
million. Cash assets (available cash and investment securities)
amounted to €276.7 million, compared with €221.1 million at
30 November, 2017. The group's financing capacity was €376.7
million (€321.1 million at 30 November, 2017).
The working capital requirement
amounted to €141.5 million (9.2% of revenues on a 12-month rolling
basis), compared with €147.6 million at 30 November, 2017 (10.6% of
revenues). The tight control over working capital primarily relies
on the very short marketing period for the group's programmes.
Kaufman & Broad paid out a
dividend of €2.10 per share on 30 May, 2018, in respect of the
financial year ended 30 November, 2017, with an option of payment
in shares of all or part of the dividend. The issue price for these
new shares was set at €37.60, which corresponds to 90% of the
average prices quoted for Kaufman & Broad shares on the
Euronext Paris regulated market during the 20 trading sessions
prior to the day of said Shareholders' Meeting, minus the net
amount of the dividend of €2.10 per share, rounded up to the next
euro cent.
The option period was opened
between 9 May and 22 May, 2018 inclusive. At the close of the
period, shareholders who had opted for payment of the dividend in
shares represented 67.3% of Kaufman & Broad S.A. shares.
790,539 new shares were issued in order to pay the share-based
dividend, representing 3.75% of the share capital and 3.60% of the
voting rights of Kaufman & Broad S.A. on the basis
of the share capital and voting rights at 30 April, 2018.
Settlement and delivery of the shares, and their admission to
trading on the Euronext Paris regulated market, occurred on 30 May,
2018.
The overall cash dividend payable
to shareholders who did not choose to have their dividends paid in
shares or opted for partial payment in shares amounted to €13.9
million, and was paid on 30 May, 2018.
For the 2018 financial year, the
group believes that its revenue growth should be more than 10%.
Gross margin is expected to remain at about 19%, while adjusted
EBIT is expected to increase to about 9%.
This press release
is available on the www.kaufmanbroad.fr website
Contacts
Chief Financial
Officer
Bruno Coche
+33 (1) 41 43 44 73
nfos-invest@ketb.com
|
Press Relations |
Media relations: Hopscotch Capital: Violaine Danet
+33 (1) 58 65 00 77 / k&b@hopscotchcapital.fr
Kaufman & Broad: Emmeline Cacitti
+33 (6) 72 42 66 24 / ecacitti@ketb.com |
About Kaufman
& Broad - Kaufman & Broad has been designing,
building and selling single-family homes in communities,
apartments, and offices on behalf of third parties for 50 years.
Kaufman & Broad is one of the leading French Property
Development & Construction companies due to the combination of
its size and profitability, and the strength of its brand.
The Kaufman &
Broad Registration Document was filed with the French Financial
Markets Authority ("AMF") under No. D.18 0226 on 29 March,
2018. It is available on the AMF (www.amf-france.org) and Kaufman & Broad (www.kaufmanbroad.fr) websites. It contains a detailed description of Kaufman
& Broad's business activities, results, and outlook, as well as
the associated risk factors. Kaufman & Broad specifically draws
attention to the risk factors set out in Chapter 1.2 of the
Registration Document. The occurrence of one or more of these risks
may have a material adverse effect on the Kaufman & Broad
group's business activities, net assets, financial position,
results, and outlook, as well as on the price of Kaufman &
Broad's shares.
This press release does not amount to, and cannot
be construed as amounting to a public offering, a sale offer or a
subscription offer, or as intended to seek a purchase or
subscription order in any country.
Backlog: also
known as the order book, is a summary at a given time that enables
future revenues over the coming months to be estimated.
Off-plan lease
(BEFA): an off-plan lease involves a customer leasing a
building before it is even built or redeveloped.
Financial
Capacity: is equal to the active cash flow
plus non used credit lines up to date
Marketing
period: The inventory marketing period is the number of months
required for the available housing units to be sold, if sales
continue at the same rate as for the previous units, or the number
of housing units (available supply) per quarter divided by the
orders for the previous quarter, and divided by three in turn.
Adjusted
EBIT: corresponds to current operating profit restated for
capitalised "IAS 23 revised" borrowing costs, which are deducted
from the gross margin.
EHU: The EHUs
(Equivalent Housing Units) delivered are a direct reflection of
business volumes. The number of EHUs is obtained by multiplying (i)
the number of housing units in a given programme for which
notarised sale deeds have been signed by (ii) the ratio between the
group's property expenses and construction expenses incurred on
said programme and the total expense budget for said programme.
Gross margin:
corresponds to revenues less cost of sales. Cost of sales consists
of the price of land, the related property costs, and the
construction costs.
Commercial
offer: is represented by the total inventory of housing units
available for sale at the relevant date, i.e. all housing units
that have not been ordered on that date (minus the sales tranches
that have not been released for marketing).
Property
portfolio: represents all of the land for which any commitment
(contract of sale, etc.) has been signed.
Orders:
measured in volume (units) and in value terms; orders reflect the
group's sales activity. Their inclusion in revenues is conditional
on the time required to turn an order into a signed and notarised
deed, which is the triggering event for booking the income. In
addition, in the case of multi-occupancy housing programmes that
include mixed-use buildings (apartments, business premises, retail
space, and offices), all of the floor space is converted into
housing unit equivalents.
Take-up rate:
the take-up rate represents the percentage of the initial inventory
that is sold on a monthly basis for a property programme (sales per
month divided by the initial inventory), i.e. net monthly orders
divided by the ratio between the opening inventory and the closing
inventory, divided by two.
Units: units
are used to define the number of housing units or equivalent
housing units (for mixed programmes) in a given programme. The
number of equivalent housing units is calculated as a ratio between
the surface area by type (business premises, retail space, or
offices) and the average surface area of the housing units
previously obtained.
Sale before
completion: a sale before completion is an agreement via which
the vendor transfers its rights to the land and its ownership of
the existing buildings to the purchaser immediately. The future
structures will become the purchaser's property as they are
completed: the purchaser is required to pay the price of these
structures as the works progress. The vendor retains project owner
powers until the works are accepted.
NOTES
Key consolidated
data
€ 000s |
H1
2018 |
H1
2017 |
Revenue |
776,864 |
627,676 |
|
608,821 |
537,935 |
|
163,864 |
87,016 |
|
4,179 |
2,725 |
|
|
|
Gross margin |
150,036 |
119,903 |
Gross
margin ratio (%) |
19.3% |
19.1% |
Current operating
profit |
71,542 |
48,750 |
Current operating margin (%) |
9.2% |
7.8% |
Adjusted EBIT* |
77,552 |
52,099 |
Adjusted EBIT margin (%) |
10.0% |
8.3% |
Attributable net
income |
37,770 |
20,151 |
Attributable net earnings per share (€/share)** |
€ 1.73 |
€ 0.97 |
* Adjusted EBIT corresponds to current operating profit
restated for capitalised "IAS 23 revised" borrowing costs, which
are deducted from the gross margin.
**Based on the number of
shares that make up Kaufman & Broad's share capital, i.e.
20,837,039 shares at 31 May, 2017, and 21,864,074 shares at 31 May,
2018 following the issue of 790,539 shares for the payment of
dividends for the year ended 30 November, 2017.
Consolidated
income statement*
€ 000s |
H1
2018 |
H1
2017 |
Revenues |
776,864 |
627,676 |
Cost of sales |
-626,828 |
-507,773 |
Gross
margin |
150,036 |
119,903 |
Selling expenses |
-17,396 |
-17,886 |
General administrative
expenses |
-34,409 |
-32,541 |
Technical and
after-sales service expenses |
-11,103 |
-10,590 |
Development and
programme expenses |
-15,585 |
-10,135 |
Current operating profit |
71,543 |
48,750 |
Other non-recurring
income and expenses |
- |
- |
Operating result |
71,543 |
48,750 |
Cost of net financial
debt |
-5,144 |
-2,131 |
Other financial income
and expense |
- |
- |
Income tax |
-20,411 |
-13,366 |
Share of income
(loss)
of equity affiliates and joint ventures |
2,051 |
-202 |
Net
income of the consolidated entity |
48,039 |
33,051 |
Non-controlling equity interests |
10,269 |
12,900 |
Attributable net income |
37,770 |
20,151 |
* Not approved by the Board of
Directors and unaudited.
Consolidated balance sheet*
€ 000s |
31 May,
2018 |
30 November,
2017 |
ASSETS |
|
|
Goodwill |
68,661 |
68,661 |
Intangible assets |
89,522 |
89,442 |
Property, plant and
equipment |
9,133 |
7,699 |
Equity affiliates and
joint ventures |
11,507 |
14,815 |
Other non-current
financial assets |
2,662 |
2,311 |
Deferred tax
assets |
4,227 |
4,227 |
Non-current assets |
185,711 |
187,155 |
Inventory |
403,265 |
384,882 |
Trade receivables |
365,671 |
340,142 |
Other receivables |
188,443 |
198,968 |
Cash and cash
equivalents |
276,703 |
221,065 |
Prepaid expenses |
1,598 |
1,079 |
Current assets |
1,235,680 |
1,146,136 |
TOTAL ASSETS |
1,421,391 |
1,333,291 |
|
|
EQUITY AND LIABILITIES |
|
|
Share capital |
5,685 |
5,479 |
Additional paid-in
capital |
174,054 |
132,670 |
Attributable net
income |
37,770 |
59,118 |
Attributable shareholders' equity |
217,509 |
197,268 |
Non-controlling equity
interests |
24,031 |
18,174 |
Equity capital |
241,540 |
215,442 |
Non-current
provisions |
27,877 |
24,952 |
Non-current financial
liabilities (portion maturing in >1 year) |
249,651 |
249,615 |
Deferred tax
liability |
80,248 |
60,105 |
Non-current liabilities |
357,776 |
334,672 |
Current
provisions |
1,898 |
1,191 |
Other current
financial liabilities (portion maturing in <1 year) |
2,681 |
4,542 |
Trade payables |
686,231 |
652,012 |
Other payables |
130,467 |
125,177 |
State - current
taxes |
42 |
- |
Prepaid
income |
756 |
255 |
Current liabilities |
822,075 |
783,177 |
TOTAL EQUITY AND LIABILITIES |
1,421,391 |
1,333,291 |
*Not approved by the Board of Directors and
unaudited.
Housing |
H1
2018 |
H1
2017 |
|
|
|
Revenues (€ million,
excluding VAT) |
608.8 |
537.9 |
|
573.6 |
519.9 |
|
35.2 |
18.0 |
|
|
|
Deliveries (EHUs) |
3,599 |
3,471 |
|
3,443 |
3,389 |
|
156 |
82 |
|
|
|
Net orders
(number) |
4,149 |
4,100 |
|
3,968 |
4,005 |
|
181 |
95 |
|
|
|
Net orders (€ million,
including VAT) |
864.3 |
784.8 |
|
811.0 |
764.2 |
|
53.2 |
20.6 |
|
|
|
End-of-period
commercial offer (number) |
3,527 |
4,294 |
|
|
|
End-of-period
backlog |
|
|
|
1,784.7 |
1,487.9 |
|
1,696.7 |
1,440.9 |
|
88.0 |
46.9 |
|
16.7 |
15.6 |
|
|
|
End-of-period land reserve (number) |
28,035 |
27,296 |
Business property |
H1
2018 |
H1
2017 |
|
|
|
Revenues (€ million,
excluding VAT) |
163.8 |
87.0 |
Net orders (€ million,
including VAT) |
346.2 |
- |
End-of-period backlog (€ million, excluding VAT) |
302.1 |
144.6 |
Kaufman & Broad: Results for
the 1st Half of 2018
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Kaufman & Broad SA via Globenewswire
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