Bangkok--19 Nov--Francom Asia
Raimon Land PLC (‘Raimon Land’ or the ‘Company’) today announced its Q3 2010 financial results and relaunched its investor relations programme in a presentation to fund managers and analysts. Raimon Land also announced its intention to acquire the remaining 15% of The River project and a plan to launch a new project in Pattaya called Zire Wongamat early in 2011.
In the third quarter of 2010, Raimon Land returned to profitability with Earnings before interest, tax, deprecation and amortization (‘EBITDA’) of Bt 134 million and Net Income of Bt 24 million versus losses in the previous quarter. The consolidated Shareholder’s Equity at the end of the quarter was up slightly at Bt 2,243 million. A more detailed financial summary is shown below in the annex to this release. Mr Hubert Viriot, the Chief Executive Officer of Raimon Land commented on the results:
“Raimon Land has returned to profitability in the third quarter of 2010 after just over a year of restructuring and rationalization. While the immediate outlook is likely to be bumpy in terms of earnings performance, due to financial provisions made at the beginning of the year, the medium term picture is very strong. We have achieved sales on our four projects in hand of Bt 16.3 billion so far, of which only Bt 8.4 billion has been recognized to date in our accounts. We also have another Bt 14.6 billion of future potential sales from these projects.”
The value of sales contracted at The River project in Bangkok currently stands at approximately Bt 9.7 billion, representing 65% of the total target sales value with eighteen months to go until completion of the project. Sales recognized in the Company’s consolidated financial statements from The River had reached Bt 4.1 billion by the end of the quarter. Also in Bangkok, the 185 Rajadamri project was launched in the third quarter and by 30th September had contracted sales worth approximately Bt 2.2 billion with an additional Bt 0.5 billion in bookings with contracts pending signature.
In Pattaya, the Northpoint project was completed in the fourth quarter of 2009 and by the end of the third quarter of 2010 had contracted sales worth Bt 3.3 billion against the target project value of Bt 5.0 billion. Raimon Land’s next project in Pattaya, Zire Wongamat, will be launched early in 2011 with a target sales value of Bt 2.8 billion. The average target sales price of Zire Wongamat is expected to be around Bt 100,000 per square metre, but initial units will be priced at Bt 70,000 or approximately Bt 2.5 million per unit.
At the results presentation meeting, Mr Viriot also explained what he and his team have done to turn the Company around since he took over as Chief Executive in March 2009 and how Raimon Land’s strategy has changed to focus on Thai buyers and strong high-end domestic demand.
Since mid-2009 Mr Viriot and team have implemented a radical rationalization and restructuring programme including cutbacks in the number of expatriate staff, a 55% reduction in administration, advertising and marketing costs, debt restructuring, a reduction in gearing and improved corporate governance procedures. The team has also taken measures to rationalize and simplify the group corporate structure including the acquisition of all minority interests in project companies. The recently announced acquisition of the remaining 15% in The River is part of this process.
Concurrently, Raimon Land has implemented a new marketing programme focused primarily on domestic buyers and a development strategy which will expand the range of Raimon Land properties to include more high-end ‘A’ grade projects in Bangkok. Mr Viriot gave the following explanation:
“Throughout the development chain, from site acquisition through to unit design, pricing and advertising, Raimon Land now has domestic buyers at the forefront of its thinking. Our management team has also changed to reflect this. We now have senior Thai executives heading up our sales, marketing and research efforts – and Thai architects providing most of the design input to our properties. Looking to the longer term in Bangkok, Raimon Land intends to launch one or two Bt 2.5 - Bt 5.5 billion high end projects each year and one new Bt 8 - 15 billion top end project every couple of years.”
For more information, please visit www.raimonland.com
PRESS ENQUIRIES :
Kharittha Khumpong
Raimon Land Public Relations
C/O Francom Asia
Tel: 02 233 4338 ext. 22
Fax: 02 236 8030
E-mail: [email protected] Kwanrudee Maneewongwatthana
Deputy Vice President,
Corporate Communications & Brandings
Raimon Land PLC.
Tel : +66 (0) 2651-9601 to 4
Fax : +66 (0) 2651-9614
E-mail : [email protected]
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