Strong revenue and results growth in 2009Trebling in revenue to ¤ 59.9 million Profit from operations: ¤ 16.9 million, up 165% Cash flow from operations: ¤ 13.0 million, x 4
Excellent prospectsDevelopment of 150 hectares into new districts Target of doubling revenue by end 2011
Proposed dividend of ¤ 0.07 per share, up 17%
"The 2009 financial year saw the successful materialisation of the Group's development model through the rapid rollout of the Development business, which generated a strong increase in the self-financing capacity.
Strong cash generation, combined with a growing, diversified Development offering on Reunion Island, where demand remains very strong, will finance the development of the 150 hectares of new districts, which is the basis for our future growth", declared Eric Wuillai, Chairman and Chief Executive Officer of CBo Territoria.
|Consolidated financial statements
(¤ millions, IFRS)
|Profit from operations||16.9||6.4||+ 165%|
|Fair value and goodwill movements||10.7||13.3||NS|
|Operating profit||27.8||20.5||+ 36%|
|Profit before tax||23.6||16.8||+ 41%|
|Net profit||15.5||14.6||+ 6%|
|Net profit (Group share)||15.2||13.8||+ 10%|
CBo Territoria carries out tax exempt transactions on its own behalf. Consequently, the income tax charge does not generally result in a cash outflow (deferred tax). The Group's 2009 final profitability was thus represented by Profit before tax.
Trebling in revenue driven by the Development business
The Group's positioning as a "Property - Land developer" bore fruit, with revenue growing to ¤ 59.9 million, compared to ¤ 20.3 million in 2008.
This trebling in revenue was primarily driven by the Development business, which materialised its rapid expansion and reported revenue of ¤ 47.6 million in 2009, compared to ¤ 10.8 million in 2008. Revenue comprised ¤ 25.1 million in sales of built units and ¤ 22.5 million in sales of building sites, including ¤ 15.5 million in particularly profitable well-timed disposals.
The Property business, which benefited in 2009 from the delivery of business premises of 7,500 m2 and a residential building of 44 apartments, recorded a 39% increase in rental income to ¤ 8.8 million, 60% of which was generated by business premises with a gross yield of 9.0%.
Development profit margin particularly high in 2009: 27%
Buoyant sales of building sites resulted in a rise in profit margin to 27% of total Development revenue to ¤ 13.0 million over 2009. The Property business generated an EBITDA of ¤ 7.5 million, being 85% of rental income.
Bolstered by this performance, Profit from operations grew by 165% to ¤ 16.9 million, compared to ¤ 6.4 million in 2008.
Profit before tax of ¤ 23.6 million, up 41%
After taking into account a ¤ 10.7 million upward movement in the value of investment property, Operating profit totalled ¤ 27.8 million, a 36% increase compared to 2008.
CBo Territoria carries out tax exempt transactions on its own behalf. Consequently, the income tax charge does not generally result in a cash outflow (deferred tax). The Group's 2009 end profitability assessment criteria was thus Profit before tax, which grew by 41% to ¤ 23.6 million.
The Group share of net profit amounted to ¤ 15.2 million, an increase of 10%.
Significant ¤ 13 million cash flow generation
Strong growth in development revenue, combined with the increase in rental income generated ¤ 13.0 million in cash flow from operations in 2009, compared to ¤ 3.0 million in 2008. This will enable the Group to bolster its self-financing capacity to finance its strong growth.
Continuing property asset growth: up ¤ 21.8 million
In 2009, the development of districts and new investment property enabled CBo Territoria to increase the value of its own property assets by ¤ 21.8 million to ¤ 205.5 million, after reclassification of building sites to inventories, due to their end use (development transactions).
Investment property in service comprised 37,800 m² of business premises (offices, stores and facilities) and 374 housing units, totalling 30,800 m². These new or recently-built properties are highly sought after, as confirmed by an occupancy rate in excess of 95%.
A balanced and sound balance sheet structure
At 31 December 2009, equity increased to ¤ 109 million and was represented in assets by high quality properties, valued by an independent expert.
Net debt represented 46% of total property assets and the available cash resources amounted to ¤ 13.0 million.
Inventories primarily comprise building sites following their reclassification to inventories at 31 December 2009 due to their end use (development sales); inventories corresponding to development projects in progress or completed were not significant.
Target for a doubling of revenue over the 2010/2011 period
Bolstered by its commitment to the development of 150 hectares of serviced land, a tax incentive framework secured until 2017 and its capacity to tailor its offering to market opportunities, CBo Territoria intends to continue its strong growth momentum and targets a doubling in its revenue by end 2011 and a 20% Development profit margin.
The Development business will continue to grow to meet continuing strong demand and will enable the Group to increase its investment capacity to gradually constitute a high quality property portfolio; our 2010 rental income target is ¤ 10 million, an increase of 14% compared to 2009.
17% increase in cash dividend
CBo Territoria is confident in its growth prospects and accordingly will propose the payment of a cash dividend of ¤ 0.07 to the Annual General Meeting of 3 June 2010, an increase of 17% compared to 2008.
Shareholders' agenda:1st half-year 2009 revenue: Wednesday, 25 August 2010 1st half-year 2009 results: Wednesday, 22 September 2010
About CBo Territoria
As the owner of an exceptional land bank of 3,200 hectares, CBo Territoria is a key player in the property development of Reunion Island, one of the most buoyant French départements.
CBo Territoria is positioned as a leader in its three businesses:
- Land management and development of built areas;
- Development of housing units and building sites;
- Development and management of its own property assets.
Alternext, FR0010193979, ALCBO
Chief Financial Officer
|Press Relations Paris
+33 (0)6 58 10 69 59
Press Relations Reunion Island
+33 (0)6 92 61 47 36
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