Strong operating profit in a cautious market
Summary of the third quarter 2017
- Net sales decreased to 104.1 MSEK (189.7).
- Operating profit increased to 124.9 MSEK (63.1) and the operating margin rose to 120.0% (33.3).
- Earnings per share went up to 2.95 SEK (1.52).
- Cash flow from operating activities totaled -24.9 MSEK (15.4).
- Acquisition of 520 building rights in Rotebro and Jakobsberg.
- Sales start for 90 cooperative apartments and sold units amounted to 50.
- Establishment of a joint venture together with global Partners Group for Tellus Towers, Järla Station and Metronomen projects at a project value of 7.6 SEKbn. The transaction has initially had a positive net effect of 107.7 MESK on SSM’s liquidity and an impact of 112.6 MSEK on profits.
Summary of the first nine months 2017
- Net sales increased to 408.9 MSEK (392.7).
- Operating profit went up to 165.9 MSEK (125.4) and the operating margin rose to 40.6% (31.9).
- Earnings per share increased to 3.72 SEK (3.13).
- Cash flow from operating activities totaled -257.1 MSEK (-30.5).
- Acquisition of 1,535 building rights (2,601).
- Sales start for 591 cooperative apartments, number of sold units increased 27.7% to 231 (167) units.
- 1,414 apartments in production (1,479) with a sales rate of 97.1% (94.0)
- Stock exchange listing on Nasdaq Stockholm’s main list (Mid-Cap) on April 6, 2017 together with a new issue that contributed a net of 509 MSEK to the company.
Significant events after the balance sheet date
- Sales start of three additional projects with a total of 512 cooperative apartments.
- Appointment of the Nomination Committee which comprises Eurodevelopment AG, Länsförsäkringar Fondförvaltning AB, Tredje AP-fonden (AP3, Third Swedish National Pension Fund) and SSM’s Chairman.
- Acquisition of 250 building rights in Hägersten, Stockholm Municipality.
Mattias Roos, President & CEO, comments on the third quarter:
The operating profit in the third quarter was 124.9 MSEK. SSM continues to develop at excellent speed and on the balance sheet date, all of the Group’s financial targets were exceeded seen over a 12-month period. The number of homes SSM sold grew by 27.7 percent in the first nine months of the year, and the sales of units in production remained stable during the quarter at a sales rate of 97.1 percent. In line with our goals for the year, as of right now, we have started the sale of 1,103 apartments. Many people are interested in our new projects, but the more cautious market that has prevailed this fall due to consumer uncertainty has had a dampening effect on the conversion rate in projects where sales have started. It is our assessment that our desired sales rate of 75 percent will not be achieved in these projects before the end of the year. As a result, the planned production start for these projects will be moved to 2018.
We believe that the market will remain cautious for a while longer before stabilizing. When this occurs, we will have several attractive projects for sale and under development together with a high debt/equity ratio that is currently 57.8 percent. Taken together, this makes us well equipped for continued good growth and profit development.”
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 07.30 CET on November 15, 2017.
|For more information, please contact:||Ann-Charlotte Johansson|
|Mattias Roos, President & CEO||Chief Communications & IR Officer|
|Email: Mattias.email@example.com||Email: firstname.lastname@example.org|
|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 November 2017, the company had approximately 6,700 building permits in its portfolio. SSM was listed on Nasdaq Stockholm (Mid-cap) April 6, 2017 www.ssmlivinggroup.se