Secure Property Development & Investment PLC, the AIM quoted South Eastern European focused property company, is pleased to announce its full year audited financial results for the year ended 31 December 2017.
Financial Highlights
- EBITDA showed a 61% increase to €3,7m compared to €2,3m in 2016, mainly due to the sale of Delia Lebada, a plot of land in east Bucharest
Significant asset backing behind the Company:
- Net Equity of €36,3 million as at 31 December 2017 (31 December 2016: €38,9 million)
- NAV per share as at 31 December 2017 stood at GBP 0,31 and the discount of the current Market Value vis a vis this NAV widened to 63%
- Successful management of portfolio costs:
- 10% further reduction in business costs to €2,35 million (2016: €2,6 million) – in line with strategy to reduce corporate costs
- 40% reduction in interest costs to ~€1,9m compared to ~€3,2m in 2016
- Significant improvement in operating result after finance and tax expenses to €1,47m (compared to a €1,05m loss in 2016)
Operational Highlights
- Romania, the fastest growing economy of the EU in 2017, is now the prime country of operations
- Successful and profitable sale of primary Ukrainian asset (Terminal Brovary) completed at a Gross Asset Value of ~€15 million generating a profit for SPDI of ~€2,7 million and a cash inflow of ~ €3 million and reduces the Company’s exposure to Ukraine to 12%
- Profitable disposal of 65% owned ~40,000 sq m plot of land in Romania (Delia Lebada) for €2,4 million (net) and settlement of associated €6,6 million loan at a rate of 45 cents / Euro (totalling ~€3 million) using the disposal proceeds plus additional €550,000 payment; a transaction that generated a gain on disposal of €2.7m
- Following the successful completion of these sales, the Gross Asset Value of the Company’s properties stood at ~€82 million
- Focused on executing the due diligence on, and raising the necessary funding for, a potential acquisition of the Olympians logistics property portfolio in Romania
Post Period End Highlights
- On 17 January 2018, PM Capital Inc., one of the Company’s largest shareholders, lent the Company €1 million to be used for general working capital purposes
- Board changes – appointment of Mr Michael Beys as Non-Executive Chairman and Mr Colin Chapin as a Non-Executive Director. Paul Ensor, previous Non-Executive Chairman, remains as a Non-Executive Director.
Lambros G. Anagnostopoulos, Chief Executive Officer, said, “61% increase in EBITDA to €3,7m, 10% reduction in total operating costs, 40% drop in interest costs, and a swing to a €1,47m operating profit after finance and tax, the financial headlines neatly encapsulate the excellent progress the Company has made in 2017 in focusing on disposing of non-core assets and streamlining our related cost base. We embarked on this programme to lay the foundations for the next phase of the Company’s growth, one which is centred on adding to our existing portfolio of prime real estate in our target South East European markets which, combined with our existing properties would transform SPDI into a major player in the South East European logistics property market.
“A focus on fast-growing economies such as Romania, exposure to the ongoing European compression play, a portfolio of prime real estate let to blue chip customers, and a management team with a proven track record in identifying and securing properties at attractive yields, the growth credentials of SPDI are clear. I am confident that the period ahead will see us make great strides towards delivering on our objective to build SPDI into the leading London-listed property company focused on selected emerging South East European countries and in the process close the 63% discount that has opened up between our share price and our NAV per share.”
Copies of the Annual report and Accounts are being posted to Shareholders today and are available on the Company’s website at www.secure-property.eu.
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