Copenhagen, 29 August 2019
In the first half of 2019 Park Street Nordicom achieved EBVAT (Earnings before value adjustments and tax) of DKK 40.4 million (2018: DKK 41.4 million) which was in line with management expectations for the period. Profit for the period after tax is DKK 36.5 million against DKK 37.2 million in 2018.
The Group Equity at 30 of June 2019 is DKK 847.2 million compared to DKK 810.6 million at 31 December 2018; the increase is caused by the profit of the period. The Group has acquired assets in the first half of 2019 with a value of DKK 101.3 million.
The Board of Directors of Park Street Nordicom A/S today discussed and approved the company's Interim report 2019, which contained the following:
The period in outline
- The period generated a profit of DKK 36.5 million (1st half of 2018: DKK 37.2 million).
- During the period, Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 40.4 million (1st half of 2018: DKK 41.4 million). The slight reduction is primarily due to the increase in overhead costs (DKK 7.0 million, primarily driven by higher investment of resources for future value enhancements) which has been partially compensated by an increase of the gross profit (DKK 5.5 million, driven by operational improvements) and a reduction of the financial expenses (DKK -0.5 million).
- During the period, Park Street Nordicom acquired the following assets:
- Shopping Center in Glostrup
- Residential unit in Copenhagen
- Land plot in Kolding
- No fair value adjustments to investment properties have been performed in the first half of 2019 (1st half of 2018: DKK 0.0 million).
- The Group's equity was positive at DKK 847.2 million at 30 June 2019 (31 December 2018: DKK 810.6 million).
- Park Street Nordicom's net cash flow in the 1st half of 2019 was DKK 11.1 million (1st half of 2018: DKK 5.8 million). Positive cash flow from operating activities has been DKK 48.1 million (1st half of 2018: DKK 40.4 million), while cash flow from investing activities has been negative by DKK 105.1 million (1st half of 2018: DKK 48.0 million) mainly due to the acquisition of assets. On the other hand, cash flow from financing activities is positive by DKK 68.0 million (1st half of 2018: DKK -82.6 million) impacted mainly by new long term mortgage financing for one of the newly acquired assets.
The management of Park Street Nordicom maintains its expectations for EBVAT of DKK 95 - 105 million for 2019.
Subsequent events after June 30, 2019
As part of the strategy to develop a Real Estate Platform with Technology as one of its core pillar a partnership agreement has been established with a company that is developing an advanced AI (Artificial Intelligence) based system that allows organizations to capture, curate and analyse data which will help the Company to increase efficiency in the operations and simplify the processes.
Management comments on the Interim report
In connection with the interim report for Q2 2019, CEO Pradeep Pattem states the following:
”During the first half of 2019 Park Street Nordicom has taken significant steps towards establishing a technology and design driven asset management platform. The operational performance improvements are a testament to the significant impact technology can have on the future of real estate investments and operations. Group expectations for EBVAT (earnings before value adjustments and tax) at year-end 2019 remains at DKK 95 - 105 million before the inclusion of profits generated on the revaluation of investment properties due to the selective redevelopments that the Group is working on currently.”
Attached files
Interim report 2019 is attached to this announcement.
Copenhagen,
Andrew La Trobe Pradeep Pattem
Chairman CEO
Further information
For further information please contact Pradeep Pattem, CEO at nordicom@nordicom.dk
Company Website: www.psnas.com
Telephone number: +45 33 33 93 03
This company announcement contains some forward-looking statements, including statements about Park Street Nordicom's activities. Such forward-looking statements are based on information, assumptions and assessments that Park Street Nordicom finds reasonable. These forward-looking statements cover known and unknown risks, uncertainties and other material factors that may cause Park Street Nordicom's actual profits, growth or performance to differ considerably from the future profits, growth and performance expressed or implied in connection with these forward-looking statements. If one or more of these risk factors or elements of uncertainty is triggered or if an underlying assumption turns out to be incorrect, Park Street Nordicom's actual financial position or operating profits may differ considerably from that which is described as assumed, assessed, estimated or expected.
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