Net profit up by 179% to AED 45million, compared to AED 16.1million in H1 2014
Diversification strategy primes business for long term growth
Key Highlights:
H1 2015 Net profit stands at AED 45m, up by 179% from AED 16.1m in H1 2014 on the back of margin improvement, reduction of financing costs and mark to market of investment properties.
Revenues are at AED 262.8m down by 8% compared to AED 284.5m in H1 2014 on the back of handing over of Al Reef Downtown in 2014.
H1 2015 EBITDA stands at AED 77.9m up by 39% from AED 56.1m on the back of improved margin from sale of properties and cost management program.
Company on expansion mode into growing non-cyclical revenues through diversification.
Abu Dhabi - MENA Herald: Manazel Real Estate PJSC (”Manazel”), a leading UAE developer, today announced its results for the six months ended 30 June 2015 (H1 2015).
Manazel delivered a robust performance for the period delivering significant profit growth underpinned by the successful restructuring of the company. This was coupled with the introduction of a comprehensive new business strategy with a focus on growing non-cyclical revenues through diversification into closely aligned growth sectors.
In support of this new strategy, Manazel listed on the Abu Dhabi Securities Exchange at the end of 2014 and adopted comprehensive corporate governance protocols in support of its longer term growth strategy.
Net profit for the period ended 30 June 2015 is AED 45m, up by 179% from AED 16.1m in first half 2014, largely driven by improved margins from sale of properties, reduction in financing cost & mark to market of investment properties. Revenues are at AED 262.8m compared to AED 284.5m as the handover of Al Reef Downtown was completed in 2014. EBITDA during the period was AED 77.9m up by 39% from AED 56.1m. This is attributable to Manazel’s cost management program, which also included renegotiations with existing banks to reduce financing costs.
Commenting on H1 2015 results, Manazel’s Chairman Mohamed M. Al Qubaisi said:-
“We are pleased to announce the half yearly results for 2015. Over the year, Manazel Real Estate has made significant progress both in terms of restructuring its business in order to focus on the significant growth opportunities in new and dynamic market sectors, which will capitalize on our expertise in the residential and commercial real estate sectors. Following the success of Al Reef, Manazel launched Al Reef 2 project and the sales are in line with our expectations. We are very excited to see the progress and look forward to reporting on further developments in due course.”
Manazel’s Chief Executive Officer, Hassan Fahmi said:-
“Manazel has demonstrated good performance during the first half of the year, which demonstrates the core strength of our business. First half profits have increased to AED 45m. Further, we have commenced cost management and profit optimization program and these initiatives coupled with new project launches which we are targeting for H2 2015, are expected to have positive impact on our results in the future periods.”
Manazel has delivered 1,818 apartments & 2,376 villas in Al Reef and handover was completed in 2014. We are now focusing on our Al Reef 2 project which consists of 860 villas which is located in Samha, near Kizad and Khalifa Port. We will continue to pursue the significant growth opportunities that exist for our group via diversification as we evaluate opportunities both in our local and regional markets. We remain firmly focused on expansion and growing Manazel’s brand and footprint in the years ahead”.
