Palm Hills Developments has released their financial results for the first half of 2018, showing the positive numbers have been achieved during the period, Invest-Gate reports.

The company has reported a gross profit margin of 39% in H1 2018, in addition to a rise in earnings before taxes, depreciation, and amortization (EBTDA) to reach EGP 902 mn during the same period.

During a meeting held on July 31, the company’s board of directors (BoD) approved the increase of the issued capital by EGP 1.54 bn via tradable rights issue at par value.

Palm Hills Chairman Yassin Mansour has said, “The rights issue proceeds will be mainly allocated towards the development of Badya’s infrastructure component following its successful launch, alongside the development of the commercial component of Palm Hills New Cairo, accelerating construction works in The Crown and seed capital for the 205 ares plot. The company will announce further details post concluding related regulatory and shareholders approvals.”

The lead developer revealed a growth in new sales of 29% y-o-y to reach EGP 7.8 bn in H1 2018, backed by the launch of Badya project in West Cairo.

In May 2018, Palm Hills launched the first mini phase of Badya, offering 2,688 units (709 standalone units and 1,979 apartments). By end of the second quarter of 2018, the project achieved new sales worth  EGP 3.7 bn.

“Despite the challenging market conditions, we believe that we are still gaining market share with 2,242 units sold during H1 2018. We handed over 728 homes during such period, spent EGP 0.9 bn on construction and generated cash inflows from operations of EGP 2.9 bn,” Mansour has added.

Revenues grew by 4% y-o-y to EGP 3.4 bn in H1 2018 and by 16% y-o-y to record EGP 1.9 bn in Q2 2018, driven by deliveries of Palm Parks, Hacienda Bay, and Golf Extension.

Mansour has added “With regards to new land acquisitions, we are the highest bidders for a prime land plot strategically located adjacent to 26th of July Corridor in West Cairo, and expect to be awarded soon. The plot will be developed into a mixed-use complex. The company expects to sign the definitive agreement during H2 2018, based on an SPV between PHD, Al Shark and Al Badr (developers of the renowned Akran mixed-use complex in West Cairo) and NUCA.”