March 21, 2013
Good 4th quarter of 2012 for J.W. Construction Holding S.A.
J.W. Construction Holding S.A., one of the leading Polish developers, received the revenue from sales in the amount of 144,2m zloty and the net profit of 7,1m in the 4th quarter of 2012. The gross margin in this period constituted 20,2%. In aggregate, the Company plans to introduce for sale another 6,100 units within the next 2 years.
The entire year of 2012 for J.W. Construction Holding S.A. meant not only a period of taking further steps to aimed at the diversification of its business activity, but also it was the time of arranging internal business processes. The Company significantly reduced its overhead costs, and, at the same time, it undertook activities with an eye to launch new residential projects.
“Changes are unavoidable elements of growth for any company. Therefore, I think that they will help our company to take advantage of the market opportunities even better. I believe that we are fully prepared for them. Industry experience gained over many years and our stable financial situation constitute the grounds for us to take bold business decisions in order to be one step ahead of our competition,” says Malgorzata Szwarc-Sroka, the Head of Economic Department at J.W. Construction Holding S.A.
In 2012, the Company received the revenue from sales in the amount of 355,6m zloty and the net profit at the level of 9,6m zloty. The gross margin in the analyzed period constituted 22,6%. In the analysis, 709 units were taken into account. The level of earned gross profit from sales after the year of 2012 constituted 80,37 m zloty, including 56,48 m zloty from residential developer projects. To this amount, the sales value of settled units contributed as follows:
1.Residential segment – development of spectacular projects
In 2012, the Company ran 9 residential projects with 2,138 units in total. Those were the projects in Warsaw and other towns where J.W. Construction conducts its business activity. The works were performed in the following projects: Zielona Dolina (Warsaw), Osiedle Swiatowida (Warsaw), Osiedle Lewandow, buildings 3-6 (Warsaw), Villa Campina, multifamily homes with a community of single-family homes (Ożarów Mazowiecki), Oaza Piatkowo (Poznan), Osiedle Centrum II (Lodz), Rezydencja Redlowo (Gdynia) and Oxygen apartments (Warsaw), where J.W. Construction fulfilled the role of general contractor.
Last year, the Company bought land by Kasprzaka street in Warsaw. Ultimately, in this project there are approximately 3,000 units and 70,000 sq. m. of useable area to be erected.
“The project in Warsaw’s Wola with a working name of Miasteczko Kasprzaka (literally translated as Kasprzaka’s town) is our flagship project. On its territory of 81,000 sq. m. we intend to arrange not only a friendly living space, but also a place where parents can relax with their children. That is why there is a walking path, a system of fountains and tot-lots in the project,” says M. Szwarc-Sroka, the Head of Economic Department at J.W. Construction Holding S.A.
In 2012, the Company obtained building permits for 2 of its residential communities. The first one is located in Gdynia by Powstania Wielkopolskiego Street, and the other is by Tysiaclecia Street in Katowice. It is worth noting that a community under construction in Gdynia is the first project of J.W. Construction Holding S.A. with an escrow account.
“Financing of Rezydencja Redlowo meets the criteria of the Polish Developer Act. The security guarantee of the project is J.W. Construction’s vast, 20-year experience and its sound financial position, as well as an escrow account at Bank Zachodni WBK, a planned co-financing entity,” adds M. Szwarc-Sroka, the Head of Economic Division at J.W. Construction Holding S.A.
J.W. Construction Holding S.A. is making preparations for launching new projects in 2013. Those will be the following communities:
- by Kasprzaka Kasprzaka, Warsaw (156 units in Phase 1 and 965 units in Phase 2)
- by Berensona street, Warsaw (236 units)
- by Aluzyjna street, Warsaw (30 units in Phase 1, 68 units in Phase 2)
- by Spokojna street, Gdynia (196 units in Phase 1)
- by Baltycka street, Katowice (259 units)
- by Tysiaclecia street, Katowice (149 units, Phase 1)
2. Commercial segment
One of the key elements of the introduced strategy is the strengthening of commercial part of the Company’s offer. In 2012, J.W. Construction Holding S.A. conducted construction of 3 commercial and hospitality projects with the useable area of almost 60,000 sq. m. in Szczecin, Sopot and Krynica Zdroj. In the same year, the project in Krynica Zdroj became fully operational. The opening of a 4-star conference and hotel resort with a 5-star SPA & Wellness center in Krynica took place in September, 2012. Czarny Porok Resort & Spa, which is the full name of the property, comprises 231 luxury suites, 4 restaurants, a dancing club and the largest conference center in the region. The property, just after 3 months, earned the title of “Investment of the Year 2012”. The prize was awarded by the Central Office of National Certification, which appreciated its innovative project and the highest standard of the property construction and finishing.