Polnord to follow Robyg?

In Q1, the Polnord group generated PLN 84.3 mln in sales revenues (an 555 pct increase on the figure of PLN 12.9 mln a year earlier). This significant increase in revenue is due to the tripling – from 109 to 323 – of the number of units counted in its latest financial data. Its gross profit from sales in Q1 2018 amounted to PLN 12.4 mln and its net profit came to around PLN 3.3 mln. The Group ended the quarter with net financial debt at a stable, y-o-y comparable level of PLN 295.9 mln.

“The growing prices of plots, which are an issue for most developers, are of little concern to us. We have such a large land bank that we do not have to buy aggressively,” insists Dariusz Krawczyk, the CEO of Polnord SA. “Companies that want to buy land at any price in the current situation, when plot prices are high in addition to other investment costs, will regret these decisions in six months," he adds.

The net sales of premises, according to Polnord’s weighted share in its subsidiaries, amounted to 299 units in Q1 2018 (compared to 336 units sold in the first three months of 2017). According to the company, this decrease is the result of the ending of the Apartments for the Young programme. The developer also reported its investment plans for the next few months.

“This year we are looking forward to a ‘sales bonanza’ in Wilanów – we are launching three projects there with a total of almost 300 units,” reveals the CEO of Polnord.

These are the Wilania, Wiktoria and Wioletta projects, scheduled for launch in Q2 and Q3 of this year. The developer is also starting work in Olsztyn (in the latest stages of its Tęczowy Las project, a total of 150 units in five buildings), in Łódź (259 units in its Zgierska development) and Gdańsk (the Żabi Kruk aparthotel with 257 units and the first stage of the W Dolinie estate comprising 23 cottages). Polnord intends to engage its executive company Polnord Construction, Polnord Construction, which was established to take over construction sites from KB Dom.

“Initially we did not plan to entrust other projects to Polnord Construction, but we changed our mind because in the TriCity we have had to face price fixing among contractors,” claims Dariusz Krawczyk. “We have therefore decided to demonstrate that we will not succumb to this kind of pressure because we do not have to accept the unreasonable terms offered to us,” he insists. Polnord’s management board has also announced that it has started “a review of strategic options related to the further development of the company's operations,” which may mean that the developer is about to secure a strategic investor. “The acquisition of Robyg by a company from the Goldman Sachs group also meant that financial institutions interested in entering our shareholding structure have started to contact us,” reveals Dariusz Krawczyk. “The proposals that we have received have varied greatly from each other; therefore, in order to make this process more organised and maintain its transparency, we have decided to find an advisor who would analyse all the possibilities and suggest which direction to take. We have sent inquiries to several consultancies and are currently talking to them, so soon we should be able to choose an advisor," he concludes.