An increase in land sales during fiscal year (FY) 2014 has driven Palm Hills’ revenues up by 74.2% compared to the previous year, the company said in an official statement.
Revenues recorded some EGP 2.1bn in FY 2014, compared to EGP 1.2bn during FY 2013.
Sales of properties in west Cairo and the North Coast, as well as construction projects The Village, Hacienda Bay and Casa, mainly contributed to the revenues increase, Palm Hills said.
Net profit during FY 2014 jumped by 47.9% compared to the previous year, recording EGP 353.3bn, which was lower than Palm Hills’ expectations of EGP 388m.
Gross sales in 2014 increased by 166% compared to 2013, registering EGP 3.94bn. Sales in the fourth quarter (Q4) of 2014 were approximately EGP 1.09bn. This represents an 85.4% increase compared to the same quarter a year earlier, and a 1.3% decrease compared to Q3 2014.
Net sales for FY 2014 recorded EGP 3.57bn, the real estate company noted.
Earlier this month, the general assembly of Palm Hills Developments approved increasing the company’s capital by EGP 1.648bn, from EGP 2.69bn to EGP 4.34bn. The company is planning on issuing 824m shares in the stock market at EGP 2 per share, in addition to 3.5 piastres as issuance expenses.
“The public subscriptions notice will be published as soon as possible post-finalising official procedures,” the company said.