Egyptian property firm Palm Hills Developments said on Wednesday its revenue for the first half of the year has doubled year-on-year to 4 billion Egyptian pounds ($254.7 million). The growth was mainly driven by an increase in sales of primary and secondary homes and commercial units, the year-on-year increase in handed over units, complemented by contribution from Ready to Move units sold and recognised during the period, the company's financial statements showed. Revenue for the second quarter climbed 133 percent year-on-year to 2.0 billion pounds. First-half net profit after tax and minority interest also surged 67 percent year-on-year to 461 million pounds. Gross profit amounted to 1.4 billion pounds in the first half of 2021, marking an increase of 89 percent year-on-year, translating into a gross profit margin of 35 percent. Second-quarter gross profit grew 95 percent year-on-year to 697 million pounds. Sales New sales – residential and commercial – grew 76 percent year-on-year to 7.7 billion pounds in the first half of 2021, translating into 1,408 units sold, compared to 662 units sold during the same period last year. During the second quarter of 2021, new sales stood at 4.3 billion pounds, marking a growth of 62 percent year-on-year. The sales growth was driven by steady improvements in home buying transactions across all operating regions with West Cairo as the largest contributor in terms of value and number of units sold. In July 2021, Palm Hills launched sales in Hacienda West spreading 135 feddans in the North Coast, which continues to witness strong uptake during the summer season. Handovers The company delivered 517 residential and commercial units during the first half of 2021, translating into a growth of 63 percent year-on-year in the number of handed over units. Palm Hills started to deliver units in The Crown and Palm Hills New Cairo ahead of planned delivery schedule. Handovers for the period were mainly in the following projects; Capital Gardens, Palm Hills New Cairo, The Crown, Hacienda Bay, PK2 Extension, Woodville, Golf Extension, Golf Views, Palm Parks and Palm Valley, the company's financial statements further read. Palm Hills had 700 units released from construction that are available for delivery within livable zone by end of the first half of the current year. Financial Position Yasseen Mansour, Chairman of Palm Hills Development Company The company's balance sheet remains healthy with total equity (unadjusted) of 9.3 billion pounds and receivables of 23.1 billion pounds, covering net debt 53 times, said Yasseen Mansour, executive chairman of Palm Hills. "As we have managed to reduce our Net Debt in the past period, we are now in a sound position to tap the market for project financing, given the current low interest rate environment." Mansour added in a statement. "We continue to strengthen our Balance Sheet and avail funding requirements for our projects. We expect to conclude several financing agreements during the rest of 2021. These agreements will be in the form of "on and off" Balance Sheet financing including the securitisation of receivables, syndications with banks and for the first time ever in the Company's history, a long term sukuk issuance."
