Bangkok--31 May--Francomasia
Raimon Land’s secured sales backlog on current projects reaches Bt 14.9 billion. The River project (now 100%-owned) is 73% sold, transfers scheduled for 2012. New growth plan will generate regular flow of projects at various stages of development targeted at both top and high-end market segments in Thailand. New income-generating projects and service related income will diversify Raimon Land’s revenue base.
Raimon Land PLC (‘Raimon Land’ or the ‘Company’) today announced sales performance, backlog status and financial results for the first few months of 2011.
Total secured sales backlog at the end of May 2011 reached Bt 14.9 billion, of which Bt 10.3 billion related to sales at The River project in Bangkok (representing 73% of the total sales value of that project). Under the new accounting rules, backlog represents recognizable sales income in the future once condominium unit transfers are made . Transfers are scheduled at The River project in 2012. Raimon Land also announced that it had completed the final 15% acquisition of The River project so that the Company now owns 100%.
At the 185 Rajadamri project, also in Bangkok, Raimon Land reported 35% of the total saleable area contracted by the end of March. In Pattaya the Northpoint project was 75% sold by the end of the quarter and the new Zire Wongamat project was 22% sold. For more details on the Company’s sales progress, see Annex I.
Under the new rules the only sales income the Company could report for accounting purposes in the first quarter related to transfers from Northpoint and The Heights, totaling Bt 451 million. As a consequence, the EBITDA fell to Bt 11 million for the quarter and the consolidated Net Profit After Tax was - Bt 41 million, versus Bt 133 million in the same quarter last year.
The Company’s total net interest-bearing debt (‘Net Debt’) at the end of March 2011 remained unchanged at approximately Bt 4.0 billion. As a result of the increase in the Company’s market capitalization since the end of the first quarter, Raimon Land’s Net Debt - to - Enterprise Value ratio has fallen from over 70% at the end of 2010 to around 52% in April 2011. For more details on the Company’s consolidated financial results, see Annex II.
Raimon Land’s new five year business plan will involve a regular programme of one or two new project launches per year in Bangkok and Pattaya. The Company will diversify its revenue base by targeting both ‘high-end’ and top-end market segments and by introducing new income-generating and service-based elements to its projects. Adjacent to The River condominium project, Raimon Land has recently announced the ‘Vue’, a neighborhood shopping-centre and ‘The River Promenade’, an upscale recreational area featuring restaurants, club lounges, spas, gyms and caf?s.
Mr. Hubert Viriot, Chief Executive, commented on the Company’s performance:
“The new accounting rules will inevitably impact our income statement in 2011 but the Company is fundamentally stronger now than it has been for many years. The secured backlog to date of nearly Bt 15 billion underpins the outlook of our profitability for 2012 and beyond.
Going forward we will maintain a rhythm of one or two new launches per year in Bangkok and Pattaya, targeted at a broader range of market segments than before. At any one time we should have a portfolio of projects at various stages of development — planning, launch, construction and delivery. W hile maintaining our unique DNA of quality and freshness, we will also gradually introduce some synergistic diversification to our revenue streams by launching income-generating projects and service based aspects to our growth. The Vue and River Promenade projects are just a first taste of what we are planning in this regard. The objective is to achieve a stable and sustainable growth in earnings over the next few years and ultimately to maximize the value for our shareholders. We continue to look to the future with confidence.”
Raimon Land will present its results to investors, analysts and journalists at 1.30pm on Monday 30th May 2011 at the 185 Rajadamri project site. For more information or an invitation please contact PravenaPiyavongpinyo (
[email protected])