MNHD posts EGP 91m net profit in Q4 of 2015: El-Hitamy

Company attributes revenue growth to increased business size and commitment to delivery dates: MNHD Managing Director

Medinet Nasr Housing & Development (MNHD) announced a net revenue of EGP 91.1m in the fourth quarter of 2015 and total revenues of EGP 748.4m over the whole year, according to Ahmed El-Hitamy CEO of MNHD.
"2015 was transformative for the company; the administration succeeded in expanding its operations and growing its business while respecting all its commitments with customers and all relevant parties," said El-Hitamy.
"Operational developments during 2015 prove the company's ability to meet customer expectations in terms of design and delivery accuracy while increasing revenue and net profit during the fourth quarter of 2015 compared to the previous quarter," added El-Hitamy.
"2015 also saw us lay the groundwork for future growth, with strategic co-development plans now in place with Palm Hills Developments (PHD). The PHD partnership allows us to create value for our shareholders by monetising our Sarai land bank, without incurring the associated capital expenditure," El Hitamy said.
During 2015, the net profit amounted to EGP 245.4m, an annual increase of 15% compared to EGP 213.2m in 2014.
The consolidated financial statements reflect the results of the two construction companies owned by MNHD, according to the company statement issued Sunday.
The revenue of the company operating in real estate development during the fourth quarter of 2015 was approximately EGP 267.8m, a 110% annual growth rate. The net profit rose at an annual rate of 107% to EGP 87.8m during the same period, with a gross profit margin of 56.7% and a net profit margin of 32.8%.
On an operational level, MNHD has sold units worth EGP 1.98bn from its Tag Sultan development project since the project's launch in 2012. It sold units valued at EGP 346m during 2015, representing approximately 96.3% of the project. The company began delivering units in Tag Sultan development project in October 2015.
The company is committed to meeting contract terms stipulating that units of the Tag Sultan project are to be delivered three years following its launch. The company delivered 170 units at the end of the fourth quarter of 2015, surpassing its target of 150 units; management expects to deliver an additional 450 to 500 units during 2016.
According to El-Hitamy, MNHD announced in December 2015 that a total of 436 units had been reserved in its Capital Gardens housing development project worth a value of EGP 628m.
Capital Gardens is a joint venture between the company and Palm Hills Development. It is an integrated community in New Cairo spread over an area of 434,000 sqm.
The Capital Gardens housing development project is to be established in four stages. The first phase is to be delivered before the end of 2019, and it will include 756 units.