A good start to the year with significant growth in the project portfolio
Summary of the first quarter 2017
- Net sales increased to 136.4 MSEK (72.9).
- Operating profit went down to 21.2 MSEK (28.5).
- Gross margin increased to 17.4 % (17.2).
- Operating margin was 15.6 % (39.1).
- Profit after tax totaled 14.4 MSEK (25.0).
- Earnings per share at 0.48 SEK (0.83).
- Cash flow was ‑1.5 MSEK (-87.8).
- Return on equity at 18.5 % (54.2).
- Debt/equity ratio was 32.2 % (31.7).
- Acquisition of 530 building rights in Mariehäll and Täby.
- 96.7% (98.6) sales rate for homes in production.
Significant events after the balance sheet date
- Stock exchange listing on Nasdaq Stockholm’s main list (Mid-cap) on April 6, 2017 together with a new issue of 9,152,542 shares.
- Sales start for 387 cooperative apartments in the Kosmopoliten project in Kista Äng and Sollentuna Hills.
- Acquisition of 425 building rights in Spånga and Akalla.
- On the reporting date, there were 5,932 building rights in the portfolio.
Mattias Roos, President & CEO, comments on the first quarter:
“During the first five months of the year, we have further expanded and strengthened our project portfolio with 955 building rights. Our focused portfolio, which in its entirety is made up of homes in semi-central locations close to good public transport, now includes nearly 6,000 building rights that are either in the planning or production phase. Our success in acquiring building rights shows that our investment strategy works well and that the market is confident of expertise and capacity to develop relevant, modern and quality housing.
The quarter’s lower profits and operating margin are chiefly due to lower profits from joint venture projects, items affecting comparability and increased central costs. In order to get a true and fair view of the company’s development, it is therefore important to look at our business development over a longer period of time, which shows that our development is in line with our operational and financial goals.
The year’s planned production starts and the initial positive sales start have created the right conditions to reach our targets in 2017.”
The information in this press release is such, which SSM Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 07.15 CET on 18 May 2017 .
For more information, please contact:
Mattias Roos, President & CEO
Chief Communications & IR Officer
Phone: +46 761 65 17 71
About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group — the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 60 percent cooperative apartments, 30 percent rental units and 10 percent student housing. SSM is the leading property developer in its niche within the Greater Stockholm area and in May 2017, the company had approximately 6,000 building permits in its portfolio. SSM was listed on Nasdaq Stockholm (Mid-cap) April 6, 2017 www.ssmlivinggroup.se