Press releases

SODIC announces its Q3 Financial Results showing consolidated net profit of EGP 107 million

Sixth of October Development & Investment Company ("SODIC") has released its consolidated financial results for the third quarter of 2010. The third quarter shows revenues of EGP 197 million with net consolidated profit of EGP 107 million. In the third quarter, SODIC achieved EGP 271 million of contracted sales that are well diversified across projects and segments. SODIC has also initiated the Allegria delivery process in the end of Q3 and is expecting to deliver and recognize revenues of 800 units over the next 12 month period. SODIC has over EGP 4.0 billion of unrecognized contracted sales achieved over the last 3 years. Those sales are expected to be recognized in the Company's income statement over the next 3 years as the Company delivers its backlog of sold units.

Maher Maksoud, SODIC Managing Director said: "We are pleased with the rate of sales and execution that SODIC is achieving. We are constantly growing our capacity to manage and deliver our different projects. Allegria has proven to be a great success with delivery of units ahead of our contractual obligation. With the initiation of the delivery cycle, SODIC will be finally reaping the benefits of the EGP 4.0 billion of unrecognized contracted sales achieved over the past few years. The introduction of a well diversified product range in 2010, has contributed to an EGP 1.7 bln of contracted sales year to date (EGP 800 million of contracted sales achieved in 2009). Looking forward we are planning to launch more projects over the next 6 months period:

• Esplanade, a residential apartment development in Eastown designed by Nabil Gholam comprised of 160,000 Sqm of BUA.
• Eastown Square, a commercial development in Eastown designed by OMA comprised of 80,000 Sqm of BUA of offices and retail.

With regards to progress on Galleria Mansoura, we are building a critical mass in tenants and starting construction with the plan to have it operational by early 2012. In Syria we are starting construction mobilization of the Telal Al Yasmin project in October and expect delivery in 24 months. We are also launching a new project during first quarter 2011 that is planned to be developed over a 1.0 million sqm plot. " 

Financial Summary:

The Q3 2010 results show revenues of EGP 197 million on profits of EGP 107 million. The results are due to the recognition of the second Shaker Consultancy Group Sub development, the Mobica Office building and showrooms.

Performance:

Receivables: EGP 2 billion reflecting the majority of the Company's future cash flows based on its current sales. 5% increase vs. H1 2010 shows the continued growth in contracted sales.

Total Equity: EGP 2.3 billion reflecting the financial strength of the Company and its ability to adequately raise financing 5% increase vs. H1 2010.

Work In Process: EGP 2.37 billion reflecting the execution undertaken by the Company to deliver its various projects. 10% increase vs. H1 2010.

Customer deposits: reflect the majority of SODIC's unrecognized revenues Profits: EGP 107 million of profits due to the immediate recognition of Sub development sales.