Park Street Nordicom A/S – Interim Financial report, 1st half of 2020
Copenhagen, 27 August 2020
In the first half of 2020 Park Street Nordicom achieved EBVAT (Earnings before value adjustments and tax) of DKK 36.2 million (2019: DKK 40.4 million). Profit for the period after tax is DKK 63.3 million against DKK 36.5 million in 2019. The increase compared to previous year is due to the profit generated in the sale of two properties (DKK 38.3 million).
The Group Equity at 30 of June 2020 is DKK 994.5 million compared to DKK 931.1 million at 31 December 2019; with the increase attributed to the profit of the period. The Group has also repaid a loan facility existing at 31 December 2019 with a total value of DKK 105.1 million.
The Board of Directors of Park Street Nordicom A/S today discussed and approved the company's Interim report 2020, which contained the following:
The period in outline
- The period generated a profit of DKK 63.3 million (1st half of 2019: DKK 36.5 million).
- During the period, Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 36.2 million (1st half of 2019: DKK 40.4 million). The reduction of gross profit (DKK -10.7 million compared to previous year) is due to a lower revenue on a hotel operated by the Group and slight increase in vacancies. This reduction in profit has been partially compensated by a reduction of overhead costs (DKK 6.0 million) and financial expenses (DKK -0.3 million). The reduction in overhead costs is caused by lower employee expenses (DKK 1.9 million) and a reduction of other external costs (DKK -3.9 million) caused by a change on accounting principles applied from July 1st, 2019 and a decrease in external advisors expenses.
- During the period, Park Street Nordicom acquired the following assets:
- Residential unit in Copenhagen
- During the period, Park Street Nordicom sold:
- Office building in Copenhagen
- Residential unit in Ballerup
- The Group's equity was positive at DKK 994.5 million at 30 June 2020 (31 December 2019: DKK 931.1 million).
- Park Street Nordicom's net cash flow in the 1st half of 2020 was negative by DKK 24.8 million (1st half of 2019: DKK 11.1 million). Cash flow from operating activities was DKK 28.0 million (1st half of 2019: DKK 48.1 million), while the cash flow from investing activities was DKK 148.9 million (1st half of 2019: DKK -105.0 million) mainly due to the disposal of assets. The cash flow from financing activities is negative by DKK 201.7 million (1st half of 2019: DKK 68.0 million) impacted mainly by repayment to short term debt and repayment of debt from disposed assets.
Expectations for 2020
Park Street Nordicom did not publish expectations for EBVAT (earnings before value adjustments and tax) for 2020 in the Annual Report 2019 approved on the 23rd of April, 2020 due to the uncertainties and potential disruptions generated by Covid-19 related Global Economic Disruption.
Since the publication of the Annual Report 2019 Park Street Nordicom has been able to better assess the implications of Covid-19 on the Company’s operations and has, as a result, decided to publish its EBVAT expectations for the period 2020.
Park Street Nordicom expectations for EBVAT at year end 2020 are in the range of DKK 70-75 million which is lower than DKK 83 million obtained by year end 2019. The reduction of the expectations is a direct consequence of the disruptions generated by Covid-19 due to reduction of the profit generated on the hotel business and delay on filling existing vacant units in the portfolio.
Subsequent events after June 30, 2020
As part of the strategy of disposal of non core assets Park Street Nordicom has completed on July 1st, 2020 the sale of a gas station in the Greater Copenhagen area for a price slightly above the book value. An additional residential unit in an existing property of the group has been acquired in August 2020 in Copenhagen, Østerbro.
Management comments on the Interim report
In connection with the interim report for Q2 2020, CEO Pradeep Pattem states the following:
”I am quite proud of the team at Park Street Nordicom for having made significant adjustments to cope with the changed way of working, taking on additional uncertainties from the ongoing Covid-19 related disruption stoically. We have redoubled our efforts to systematise the operations, and optimise our portfolio of assets to be able to sustain any potential further challenges in the market. We have also taken significant positive steps on various projects including our assets in Taastrup, Copenhagen and Odense. While the year 2020 seems to be one where we need to be very diligent with our operations, risk management, it also has presented us the opportunity to improve our operations leveraging technology and to re-gear the team to identify future opportunities.”
Attached files
Interim report 2020 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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