Sixth of October Development and Investment Company (SODIC) has released its consolidated financial results for the first half (H1) of 2019. The company achieved revenues of EGP 2bn during the six-month period, compared to EGP 1.05bn during the same period last year, reflecting a growth of 92% with East Cairo projects amounting to 66% of the delivered value. Gross profit grew 23% to hit EGP 630m during the period, reflecting a gross profit margin of 31%. Operating profit of EGP 325m was recorded during the period showing a growth of 3% versus the same period last year. Net profits declined to EGP 336m in H1 of 2019, compared to EGP 373m for the same period last year. Total cash and cash equivalents amounted to EGP 4.5bn reflecting a very liquid balance sheet supporting the execution of SODIC's projects as well as growth. Bank leverage remains low despite increasing to 0.43x bank debt to equity with bank debts outstanding at EGP 2.1bn. The increase in bank facility utilization comes in line with the company's strategy to prudently increase its leverage to enhance shareholder returns. Receivables of EGP 11.5bn provide strong cash flow visibility, with delinquency rates at 7%. Client deposits represent the backlog of unrecognized revenues from contracted sales of units that are to be delivered over the coming three to four years. Client deposits as of the end of the quarter were EGP 17bn providing strong revenue visibility for the company.
