Palm Hills Developments (PHD) has achieved revenues of EGP 2bn in the financial period ending on 31 March 2021, reflecting a growth of 74% year-on-year (y-o-y).
The phenomenal growth followed the surge in new sales in both residential and commercial segments, largely supported by strong demand for Palm Hills New Cairo, Badya, and the recently launched Palm Hills Alamein.
This was complemented by the contribution from ready-to-move products sold and recognised during the period, as well as the y-o-y increase in handed-over units.
Yasseen Mansour, Executive Chairperson at PHD, said, “Our performance improved dramatically during the period as new sales almost doubled y-o-y to reach EGP 3.4bn, a growth of 98% y-o-y.
He added, “This was supported by the recovery in home buying transactions across all operating regions, which started during the second half (H2) of 2020, complemented by demand for ready-to-move products, and stellar commercial sales in East and West Cairo.”
Palm Hills sold 488 units, reflecting a growth of 87% y-o-y, and handed over 344 units, a remarkable increase of 155% y-o-y.
“As we promised the market in previous periods, we continue to outpace our handover schedule in all our projects on contractual delivery dates, and remain ahead of schedule in many projects, including The Crown and Palm Hills New Cairo, where we started to hand over units at the beginning of the year,” Mansour said, “We ended Q1 of 2021 with a Net Debt of EGP 1.0bn, a decrease of EGP 1.2bn y-o-y.”
Mansour noted that the company’s balance sheet remains healthy with total equity (unadjusted) of EGP 9.4bn and receivables of EGP 22.9bn, covering net debt 22 times.
Meanwhile, net debt/EBITDA stood at 0.7 times, supported by the steady improvements in the company’s cash flow position.
“Last week, we successfully concluded our sixth securitisation transaction for a gross receivables portfolio of about EGP 1.2bn, to further strengthen our balance sheet,” Mansour said, “We have securitised gross receivables of approximately EGP 5.1bn since we started the securitisation programme back in 2016.”
He noted that the securitisation programme has helped the company tremendously in expediting its construction schedule ahead of plans across its project portfolio. This has lead to early delivers across almost all projects.