|About Us||Products And Services||Investor Relations||Sustainability||Media center||Contacts|
• Sales revenues amounted to RUB 22,964m
• EBITDA amounted to RUB 3,834m
• EBITDA margin was 17%
• Operating profit amounted to RUB 2,685m
• Net profit amounted to RUB 706m
In the first half of 2011, 61% of our revenues and 67% of our EBITDA were generated by our Real Estate Development, Construction and Commercial Real Estate pision, and the share of our Building Materials, Aggregates and Construction Services pision was 39% of the total revenues and 33% of the Group’s EBITDA.
Aleksandr Vakhmistrov, CEO and Chairman of the Executive Committee of LSR Group comments:
"Year 2010 saw signs of recovery in the construction market which resulted in the increased sales in all our key segments. First half of 2011 continued the positive trend and we are happy to mention that our sales volume almost reached, and in certain segments exceeded, pre-crisis level. For example, in the segment of elite real estate in St. Petersburg our sales in volume increased almost twice against 1H 2008, which was a period of the highest demand.
In 1H 2011 we signed new contracts for the sale of 118 th m2 of real estate in all segments, up 96% compared to 1H 2010. The total value of contracts for the sale of real estate was approximately RUB 9.6bn, up 83% against 1H 2010.
We consider that real estate sales growth was primarily driven by the deferred demand and development of mortgage lending. As a result of our efforts, currently most of our real estate projects are provided with various mortgage programmes, and the share of our mortgage sales reached the pre-crisis level.
Sales of building materials were gradually increasing throughout 2010 while prices still remained relatively weak. Since the end of 2010 prices on building materials started to grow. In the first six month of 2011 prices on certain our products increased by 5-27%, and even though they have not reached the pre-crisis level. It is important to note that the breakdown of our sales revenue and EBITDA by major business pisions has become more balanced as compared to 1H 2010.
In 2011, we continued to acquire high-quality building materials production assets and land plots for our development business on attractive conditions. In particular in Central Federal District, we have acquired one of the most advanced and modern brick factories in Russia – OJSC Pavlovskaya Keramika and signed a contract to acquire clay and lime-stone deposits which we intend to use as raw materials source for our new cement plant in a medium-term perspective. We also started a new large-scale development project in the Moscow region (town of Domodedovo).
In North-Western Russia we acquired OJSC Obukhovsky SMiK and thus increased our reinforced concrete capacity in St.Petersburg. We also acquired crushed granite producer OOO 436 KNI which made LSR Group No.1 company in Russia by gneiss granite reserves.
I would like to mention that one of our key investment projects is completed: we have finished commissioning and start-up of our new cement plant in the Leningrad region. In September 2011 we launched production of cement, first batches of which are for our internal use. We also continued implementation of another large-scale project – construction of a new brick factory in the Leningrad region. Launch of the new factory will allow us to decrease production costs and improve quality of our products.
We are confident in sustainable development of our company. This year we significantly increased new housing supply in St. Petersburg and in the next 1.5 years we plan to launch sales of approximately 1.2m m2 in all our geographical markets. We also intend to increase sales of our building materials. We will proceed with active development of our business in Moscow and the Moscow region as well as in the Urals region, where we intend to expand our land bank. We plan to announce new acquisitions in the nearest future".
Notes to Editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg and the Leningrad region, Moscow and the Moscow region, Yekaterinburg and the Urals region.
In 2010, the sales revenues of LSR Group were RUB 49,950 million (IFRS).
LSR Group real estate portfolio amounts to 8.4 million m2 with the market value of RUB 104 billion (according to DTZ valuation as of 31 December 2010).
LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.
For more information please contact:
|LSR Group Press Service
Director of Corporate Communications and PR
Tel: +7 812 314 1044
LSR Group Investor Relations
Director of Investor Relations
Tel: +7 812 326 9329
THE MATERIALS YOU ARE SEEKING TO ACCESS ARE BEING MADE AVAILABLE ON THIS WEBSITE IN GOOD FAITH AND ARE FOR INFORMATION PURPOSES ONLY.
THESE MATERIALS ARE NOT DIRECTED AT OR ACCESSIBLE BY PERSONS IN THE UNITED STATES, OR PERSONS RESIDENT OR LOCATED IN AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE MATERIALS TO WHICH YOU ARE SEEKING ACCESS WOULD BREACH ANY APPLICABLE LAW OR REGULATION.
The materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States, Australia, Canada, Japan or in any jurisdiction in which such offers or sales are unlawful. Any securities issued in connection with an offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any applicable securities laws of any state, province, territory, county or jurisdiction of the United States, Australia, Canada or Japan. Accordingly, unless an exemption under relevant securities laws is applicable, any such securities may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in or into the United States, Australia, Canada, Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction. There will be no public offer of securities in the United States.
The materials are only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In addition, in the United Kingdom, the materials are being made available only to, and are directed only at, Qualified Investors who are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or who are high net worth entities falling within Article 49(2)(a)-(d) of the Order and other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which the materials relate is available only to relevant persons in the United Kingdom and Qualified Investors in any member state of the European Economic Area other than the United Kingdom, and will only be engaged with such persons. Other persons should not rely or act upon the materials or any of their contents.
If you are not permitted to view materials on this website or are in any doubt as to whether you are permitted to view these materials, please exit this webpage. These materials must not be, released or otherwise forwarded, distributed or sent in or into the United States, Australia, Canada, Japan or any jurisdiction in which such offers or sales are unlawful. Persons receiving such documents (including custodians, nominees and trustees) must not distribute or send them in, into or from the United States, Australia, Canada or Japan.
Confirmation of understanding and acceptance of disclaimer
I warrant that I am not located in the United States and am not resident or located in Australia, Canada, Japan or any other jurisdiction where accessing these materials is unlawful, and I agree that I will not transmit or otherwise send any materials contained in this website to any person in the United States, Australia, Canada, Japan or any other territory where to do so would breach applicable local law or regulation.
I have read and understood the disclaimer set out above. I understand that it may affect my rights and I agree to be bound by its terms. I confirm that I am permitted to proceed to electronic versions of the materials.
We regret that, due to regulatory restrictions, we are unable to provide you with access to this section of our website.
You have indicated that you are located in the United States. These materials are not intended for, directed at or accessible by persons located in the United States. However, persons located in the United States that make the below certifications can access these materials. Please read the certifications below carefully and provide the information requested in order to access these materials. If you cannot make the below certifications, please exit this page.
“We are a “qualified institutional buyer” (a "QIB") as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Further, if we are acting as a fiduciary or agent for one or more investor accounts, (a) each such account is a QIB, (b) we have investment discretion with respect to each account, and (c) we have full power and authority to make the representations, warranties, agreements and acknowledgements herein on behalf of each such account.”
“We acknowledge that the materials relate to a transaction that is not subject to, or is only available in the United States pursuant to an exemption from, the registration requirements of the Securities Act.”
By clicking “I AGREE” below, you are certifying that the certifications and information provided are accurate and that you would like to access the materials. You agree that the materials you access are for your own use and will not be distributed to any person outside of your organisation.