DJ Kaufman & Broad SA: 2020 Annual results
Kaufman & Broad SA
Kaufman & Broad SA: 2020 Annual results
28-Jan-2021 / 18:38 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
=----------------------------------------------------------------------------------------------------------------------
2020 annual results
. Backlog up 42.7% at EUR3.6 billion
. A very solid balance sheet with a net cash surplus
. Financing capacity increased to EUR465 million
. Proposed dividend of EUR1.85 per share
. Key components of
sales activity (2020
vs. 2019)
. Total orders:
. EUR2,676.3m incl. VAT
(+22.9%)
. Housing: EUR1,490.8m
incl. VAT Kaufman & Broad SA has today announced its results for the 2020 financial
year (from December 1, 2019 to November 30, 2020). Nordine Hachemi,
(-12.8%) Chairman and Chief Executive Officer of Kaufman & Broad, made the
i.e. 6,305 units following comments:
(-23.3%)
"The results for financial year 2020 exceeded the objectives set back in
. Commercial Property: July and confirm that Kaufman & Broad's growth model is capable of
EUR1,185.5m incl. VAT generating profitability and cash, with a year-end net cash surplus of
EUR62.5 million (excluding IFRS 16 liabilities) and financing capacity
increased to EUR465.2 million.
. Take-up period for Sales activity in the Housing segment included a growing share of sales
Housing: to a diverse range of institutional investors from both the public and
private spheres. Their orders rose 45% year-on-year and accounted for 67%
3.8 months vs. 5.8 of total Housing orders by value.
months
(-2.0 months) Kaufman & Broad actively pursued its development drive throughout the
year in the strategic priority areas it had decided on before the public
health crisis struck.
. Key financial data
Our development policy geared towards expanding our regional network
(2020 vs. 2019) enabled us to identify potential to develop a total surface area of
600,000 sq.m over the medium term.
. Overall revenue:
EUR1,163.1m Our approach to CSR has been recognized by MSCI ESG Ratings, among
others, as it upgraded our overall rating from BBB to A in January 2021.
Of which Housing: Otherwise, Vigeo continues to qualify our "ESG Overall Score" as "Robust"
EUR963.3m and Gaïa has increased our rating by two points in 2020. This process
will be accelerated in 2021, particularly in the areas of soil
waterproofing and the reduction of carbon emissions during the
. Gross margin: development of industrial and tertiary brownfields.
EUR207.2m The portfolio of managed student and senior residences, owned and
operated by Kaufman & Broad, will include around ten operations in
development in 2021.
. Current operating
income: EUR80.1m As far as the Commercial Property segment is concerned, we obtained the
required authorizations for the A7A8 Austerlitz project (already fully
let) in late 2020 and hope to receive the clear building permits towards
the end of the first half of 2021.
. Attributable net
income: EUR40.1m Regarding residential business prospects [DEL: :DEL]2021, Kaufman & Broad
has noted that the number of building permits granted has continued to
trend downwards since 2019 and we therefore expect order levels to remain
flat in 2021.
. Net cash (excl.
IFRS 16 As announced back in July, revenue could reach between approximately EUR1.3
liabilities): EUR62.5m billion. In the event[DEL: :DEL] that the administrative authorizations
for the Austerlitz A7 / A8 project are free of objections[DEL: :DEL] in
2021, the turnover could be increased to 1.6 billion euros. In the first
case, the EBIT rate would be equivalent to that of 2020; in the second,
. Financing capacity: it will return to a level comparable to that of previous years.
EUR465.2m Based on Kaufman & Broad's 2020 results, solid balance sheet and
historically large backlog, the Board of Directors will suggest paying
out a dividend of EUR1.85 per share on 2020 earnings when the Shareholders'
. Key growth Meeting is held on May 6, 2021.
indicators
All these guidance targets are based on stabilization that the current
(2020 vs. 2019) economic and social situation and that any developments on the public
health front do not lead to further work stoppages at the group's
construction sites over the course of the year."
. Overall backlog:
EUR3,631.1m (+42.7%)
Of which Housing:
EUR2,383.2m (+15.2%)
. Housing property
portfolio:
35,086 units (+6.0%) . Sales activity . Housing Housing orders in 2020 were 12.8% lower by value than in 2019 and amounted to EUR1,490.8 million (including VAT). By volume, 6,305 units were ordered, reflecting a 23.3% decrease compared with 2019. The program take-up period was 3.8 months in 2020, compared with 5.8 months in the previous year, reflecting a decrease of 2.0 months. Housing supply, with 95% of projects located in high-demand, low-supply areas (A, Abis and B1), totaled 1,999 units at end-2020 (3,990 units at end-2019). Breakdown of the customer base Orders from first-time buyers accounted for 6% of sales by value (excluding VAT) in 2020 and were lower than in 2019 (17%). Second-time buyers accounted for 5% of sales, versus 8% in 2019. Orders from investors accounted for 22% of sales (of which 17% under the Pinel incentive scheme alone). Lastly, block sales increased by 45% and their share of total orders increased to 67% by value (including VAT), compared with 40% in 2019. . Commercial Property The Commercial Property segment recorded net orders of EUR1,185.5 million (including VAT) in financial year 2020, corresponding to three office complexes, one logistics platform and two property development contracts. End of November 2020, Kaufman & Broad signed a sale-before-completion agreement for a 42,000 sq.m logistics platform in Beaucaire (Gard) on behalf of a buyer-user. Otherwise, Kaufman & Broad also announced a sale-before-completion agreement with La Caisse de Retraite du Personnel Navigant for a 13,000 sq.m office building in Puteaux (92). Kaufman & Broad currently has around 136,000 sq.m of office space and around 68,000 sq.m of logistics space under marketing or under study. It is also in the process of building close to 88,000 sq.m of office space and more than 36,000 sq.m of logistics space. Lastly, it has around 110,000 sq.m of office space transactions yet to finalize. Leading sales and development indicators The Housing backlog at the end of financial year 2020 amounted to EUR2,383.2 million (excluding VAT), the equivalent of 2.5 years of business. Kaufman & Broad had 147 housing programs on the market at that same date, representing 1,999 housing units (compared with 191 programs representing 3,990 housing units at the end of 2019). The Housing property portfolio represents 35,086 units. It was up 6.0% compared with end-2019 and corresponds to more than 4 years of sales activity. The Commercial Property backlog at the end of 2020 amounted to EUR1,248.0 million. . Financial results . Business volumes Total revenue amounted to EUR1,163.1 million (excluding VAT), down 21.0% compared with 2019. Housing revenue amounted to EUR963.3 million (excluding VAT), compared with EUR1,334.0 million (excluding VAT) in 2019. This represents 82.8% of group revenue. Revenue from the Apartments business reached EUR877.1 million (excluding VAT), compared with EUR1,232.4 million (excluding VAT) in 2019. Revenue from the Single-family Homes in Communities business totaled EUR86.1 million (excluding VAT), versus EUR101.6 million (excluding VAT) in 2019. Revenue in the Commercial Property segment amounted to EUR194.4 million (excluding VAT), compared with EUR130.4 million in 2019. . Profitability highlights The gross margin for the 2020 financial year was EUR207.2 million, compared with EUR294.3 million in 2019. The gross margin ratio was 17.8%, which is lower than the 20.0% generated in 2019. Current operating expenses amounted to EUR127.0 million (10.9% of revenue), compared with EUR150.9 million in 2019 (10.2% of revenue). Current operating income reached EUR80.1 million, versus EUR143.4 million in 2019. The EBIT rate was 6.9%, compared with 9.7% in 2019. Consolidated net income amounted to EUR56.5 million in full-year 2020 (versus EUR95.5 million in 2019). Non-controlling equity interests totaled EUR16.4 million, compared with EUR17.6 million in 2019. Attributable net income was EUR40.1 million, versus EUR77.9 million in 2019. . Financial structure and liquidity During the public health crisis, Kaufman & Broad did not request deferral or suspension of payment of its tax and social security charges or apply for the government-backed bank loans introduced as one of the measures to support the economy. It did, on the other hand, extend its RCF (revolving credit facility) by one year, bringing its debt maturity to 4.2 years. After dividend payments and share buybacks as part of a share buyback plan amounting to a cumulative EUR56 million in financial year 2020, the group's financial debt at November 30, 2020 resulted in a positive net cash position (excluding IFRS 16 liabilities) of EUR62.5
(MORE TO FOLLOW) Dow Jones Newswires
January 28, 2021 12:38 ET (17:38 GMT)
