In the first half of 2019, J.W. Construction Group achieved sales revenues of PLN 172.1 million, which means almost doubling them compared to the same period of the previous year and generated a gross profit on sales of PLN 35.8 million and a net profit of PLN 1.4 million. Gross sales margin remains at the level of over 20%.
Małgorzata Szwarc-Sroka, Member of the Supervisory Board of J.W. Construction Holding S.A. comments on the Company's results:
The financial result reflects the number of transferred units - in the first half of the year there were 380 units, mainly from previously completed investments, including Zielona Dolina in Warsaw's Białołęka district. There is potential for a much higher number of transfers but will have a measurable impact on the result only in the second half of the year, because in the first half of 2019, the Company completed the construction of Stage E of the Bliska Wola residential estate, for a total of over 1100 units, but plans to obtain an occupancy permit only in the third quarter (671 units have already already obtained occupancy permit in August). Thus, in Q3 2012, the number of units which will be recognized as a result of this year's results will increase substantially.
In H1 2019 the Group carried out 12 investments for a total of 3,782 units and an area of 177,000 m2, including 139,000 m2 of residential area and over 38,000 m2 of commercial area, including the construction of the last stage of the flagship investment in Wola - Bliska Wola Tower with almost 1500 units with a total area of 62,000 m2 and construction of Hanza Tower apartment building in Szczecin, with a total area of nearly 33,000 m2.
Other 19 projects are currently under preparation for a total of 5,131 units with an area of over 417,000 m2 (including warehouse and commercial space for over 161,000 m2.) These investments are located in Warsaw and the surrounding area(1660 units with a useable area of 168,000 m2.) and in Cracow, Poznan, Łodz, Szczecin and Gdansk, where the Group is preparing an offer for 1,3471 units and an area of over 248,000 m2
It should be remembered that the JWCH Group is not only a development activity. The Group manages real estate, including 30 housing communities with 11,000 units and seven hotels and aparthotels built by the Group, which in total offer 1174 rooms and suites for over 2,600 guests. These buildings also have a rich conference facilities, over 3 thousand conference seats and 1677 restaurant seats.
In the first half of the year, the Company increased its land bank by making purchases for PLN 26 million, which resulted in the value of purchased land in the last two years exceeding PLN 200 million. Recent purchases in Warsaw, Szczecin and Łódź will allow to build 1,335 units with a total area of over 70,000 m2.
During this period, the Company operated in a favourable market environment, in which low interest rates and a dynamically growing credit action, record low unemployment and growing affluence of the society strengthened the high propensity to consume and invest, among others, in flats. This resulted in an increase in the prices of flats sold in the largest urban agglomerations in the second quarter of 2019 by over 8% compared to the same period of the previous year (in the first quarter this increase was at the level of 9%). The market was also affected by negative factors, mainly uncertainty as to the direction of legal changes related to the real estate market, difficulties in finding employees, growing costs of materials, construction and purchase of land and lengthy processes of obtaining necessary administrative decisions for current and planned projects.
Member of the Supervisory Board supervising the Economic Division and the Investor
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J.W. Construction Holding S.A. – one of the largest Polish residential developers, listed on the Warsaw Stock Exchange since 2007. Present in Warsaw, Kraków, Katowice, Łódź, Poznań, Gdynia and Szczecin, as well as abroad. Leader in the capital's housing market, where it has been operating since 1993. Winner of many awards (including 2015 Developer of the Year, QI order - top quality management, Consumer's Laurel, Top Brand 2011, Polish Hercules 2011), winner of the Eurobuild CEE ranking for the largest developers in Central and Eastern Europe. Aktywny także na rynku nieruchomości komercyjnych i luksusowych, m.in. jako właściciel I operator sieci Hoteli 500, Czarny Potok Resort&SPA, Hotelu Dana w Szczecinie I aparthotelu Varsovia Apartamenty Jerozolimskie oraz inwestor realizujący projekty aparthotelowokomercyjne.