Palm Hills Developments (PHD) plans to engage in securitisation and discounting transactions with a gross receivables portfolio of up to EGP 1.2bn in 2020, said PHD chairperson and group CEO Yasseen Mansour.
PHD achieved a 20% year-over-year (YoY) growth in new sales to record EGP 14.9bn in fiscal year (FY) 2019, up from EGP 12.5bn in Fiscal year (FY) 2018. Also, the company’s positive cash flows from various operations registered at EGP 1.7bn, the highest ever in PHD’s history, compared to a negative EGP 537m the previous year.
“Looking ahead into FY20’s financial targets, we expect to maintain 2019’s new sales level and spend EGP 1.8bn on construction,” Mansour commented.
Revenues amounted to EGP 6.2bn in FY19, a decrease of 16% YoY, mostly due to the YoY decrease in the number of handed over units, as most projects currently under development are nearing completion.
However, PHD maintained a healthy gross profit margin of 37% in FY19, compared to 35% in FY18, mainly driven by the YoY growth in the value of units delivered.
“We refinanced some of our existing debt at much more competitive terms, which is a strong testimony to the company’s sound and steadily improving financial position. We expect to optimise and restructure debt further in 2020,” Mansour said.
“We are ahead of schedule on all project deliveries, evidenced by the early handovers in Palm Valley and Capital Gardens,” he concluded.