RONSON DEVELOPMENT SE Ronson Development SE
Interim Financial Report for the six months ended
30 June 2022
Including the Interim Condensed Consolidated Financial Statements of Ronson Development SE for the six months ended 30 June 2022
and the Interim Condensed Company Financial Statements of Ronson Development SE for the six months ended 30 June 2022
CONTENTS
Page | |
Management Board Report | 2 |
Interim Condensed Consolidated Financial Statements for the six months ended 30 June 2022 | |
Interim Condensed Consolidated Statement of Financial Position | 19 |
Interim Condensed Consolidated Statement of Comprehensive Income | 20 |
Interim Condensed Consolidated Statement of Changes in Equity | 21 |
Interim Condensed Consolidated Statement of Cash Flows | 22 |
Notes to the Interim Condensed Consolidated Financial Statements | 23 |
Interim Condensed Company Financial Statements for the six months ended 30 June 2022 | |
Interim Condensed Company Statement of Financial Position | 53 |
Interim Condensed Company Statement of Comprehensive Income | 54 |
Interim Condensed Company Statement of Changes in Equity | 55 |
Interim Condensed Company Statement of Cash Flows | 56 |
Notes to the Interim Condensed Company Financial Statements | 57 |
Ronson Development SE
Management Board Report
Introduction
Ronson Development SE ('the Company'), formerly named Ronson Europe N.V., is an European Company with its statutory seat in Warsaw, Poland. The registered office is located at al. Komisji Edukacji Narodowej 57. The Company was incorporated in the Netherlands on 18 June 2007 as Ronson Europe N.V. with statutory seat in Rotterdam. During 2018, the Company changed its name and was transformed into an European Company (SE) and, effectively as of 31 October 2018, transferred its registered office of the Company from the Netherlands to Poland.
The shares of the Company were traded on the Warsaw Stock Exchange until 28 April 2022. As at 30 June 2022, 100% of the shares are controlled by Amos Luzon Development and Energy Group Ltd. ('A. Luzon Group'), whereas 32.98% of the shares are controlled directly by A. Luzon Group, 66.06% of the shares are controlled via I.T.R. Dori B.V., a fully owned subsidiary of A. Luzon Group and 0.96% of the shares are held by the Company. The number of shares held by the investors is equal to the number of votes, as there are no privileged shares issued by the Company.
Overview of the Activity of the Company and the Group
The Company (together with its subsidiaries, 'the Group') is active in the development and sale of residential units, primarily apartments, in residential real-estate projects to individual customers in Poland as well as in the PRS rental sector. The Company has been operating through its subsidiaries on the following markets in Poland: Warsaw, Wrocław, Poznań and Szczecin.
During the six months ended 30 June 2022, the Group realized sales of 213 units with the total value of PLN 96.1 million, which is a decrease of 64.5% comparing to sales of 604 units with the total value PLN 291.4 million during the six months ended 30 June 2021.
Until 30 June 2022 the Group delivered 339 units in 100% owned projects which represent a total revenue of PLN 137.7 million comparing to delivery of 445 units in 100% owned projects with a total revenue value of PLN 247 million.
As at 30 June 2022, the Group has 1,581 units available for sale in 10 locations, of which 1,560 units are in ongoing projects and the remaining 21 units are in completed projects. The ongoing projects comprise a total of 2,288 units, with an aggregate floor space of 124,127 m2. The construction of 611 units with a total area of 33,923 m2 is expected to be completed during remaining period of 2022.
The Group has a pipeline of 20 projects in different stages of preparation, representing approximately 4,756 units with an aggregate floor space of approximately 274,652 m2 for future development of the residential and rental business in Warsaw, Poznań, Wrocław and Szczecin.
During the remaining period of 2022, the Group is considering commencement of 1 stage of the currently running project comprising 11 units with a total area of 2,870 m2.
In addition to the above as at 30 June 2022 the Group is in different stages of process for finalizing the purchase of 8 plots located in Warsaw with a total projected PUM of 169,424 m2 with an estimated 3,557 units for construction for a total purchase price of PLN 251 million.
2
Ronson Development SE
Management Board Report
Business highlights during the six months ended 30 June 2022
- Results breakdown by project
The following table specifies revenue, cost of sales, gross profit and gross margin during the six months ended
30 June 2022 on a project by project basis:
Information on the | Revenue (1) | Cost of sales (2) | Gross | Gross | ||||||
delivered units | profit | margin | ||||||||
Project | Number | Area of | PLN | % | PLN | % | PLN | % | ||
of units | units (m2) | thousands | thousands | thousands | ||||||
Ursus Centralny IIa | 194 | 10,400 | 81,518 | 59.2% | 61,754 | 58.5% | 19,765 | 24.2% | ||
Nowe Warzymice II | 60 | 3,010 | 19,411 | 14.1% | 13,987 | 13.2% | 5,424 | 27.9% | ||
Miasto Moje IV | 46 | 2,063 | 16,872 | 12.3% | 12,756 | 12.1% | 4,116 | 24.4% | ||
Panoramika VI | 24 | 1,087 | 7,464 | 5.4% | 6,942 | 6.6% | 521 | 7.0% | ||
Nova Królikarnia 3a | 2 | 251 | 3,325 | 2.4% | 2,812 | 2.7% | 513 | 15.4% | ||
Nova Królikarnia 3c | 1 | 115 | 1,401 | 1.0% | 1,146 | 1.1% | 255 | 18.2% | ||
Nowe Warzymice I | 2 | 171 | 1,254 | 0.9% | 1,024 | 1.0% | 231 | 18.4% | ||
other | 10 | 785 | 6,435 | 4.7% | 5,172 | 4.9% | 1,263 | n.a. | ||
Total / Average | 339 | 17,881 | 137,680 | 100% | 105,592 | 100% | 32,088 | 23.3% | ||
Impairment recognized | n.a. | n.a. | n.a. | 485 | (485) | n.a. | ||||
Results after write-down adjustment | 339 | 17,881 | 137,680 | 106,077 | 31,604 | 23.0% | ||||
Wilanów Tulip(3) | 21 | 1,490 | 14,033 | 10,907 | 3,126 | 22.3% | ||||
Economic results | 360 | 19,371 | 151,713 | 116,984 | 34,730 | 22.9% |
- Revenue is recognized when the performance obligations are satisfied and when the customer obtains control of the good, i.e. upon signing of the protocol of technical acceptance and the transfer of the key of the residential unit to the buyer and total payment obtained.
- Cost of sales allocated to the delivered units proportionally to the total expected revenue of the project.
- The project presented in the Interim Condensed Consolidated Financial Statements under investment in joint ventures; the Company's share is 50%.
Revenue from the sale of residential units is recognized when the performance obligations are satisfied and when the customer obtains control of the good, i.e. upon signing of the protocol of technical acceptance and the transfer of the key to the buyer of the residential unit and total payment obtained. Revenue from sales and services of residential projects recognized during the six months ended 30 June 2022 amounted to PLN 137.7 million, whereas cost of sales before write- down adjustment amounted to PLN 105.6 million, that resulted in a gross profit before write-down adjustment amounting to PLN 32.1 million representing a gross margin of 23.3%. Total economic revenue from sales and services of residential projects, when results from joint ventures are presented on a fully consolidated basis, amounted to PLN 151.7 million, whereas cost of sales amounting to PLN 117.0 million, that resulted in a gross profit amounting to PLN 34.7 million, representing a gross margin of 22.9%.
Projects completed during the six months ended on 30 June 2022
The table below presents information on the projects that were completed (i.e. completing all construction works and receiving occupancy permit) during the six months ended 30 June 2022:
Units | Units sold not | |||||
Area of units | Total units sold | delivered in | delivered as at | |||
Project name | Location | Number of units | (m2) | until 30 June 2022 | 2022 | 30 June 2022 |
Nowe Warzymice II | Szczecin | 66 | 3,492 | 63 | 60 | 3 |
Total | 66 | 3,492 | 63 | 60 | 3 |
3
Ronson Development SE
Management Board Report
Business highlights during the six months ended 30 June 2022
- Results breakdown by project
Projects completed in previous years with their impact on current year results
The table below presents information on the projects that were completed in previous years and the income that was recognised based on units delivered during the six months ended 30 June 2022:
Total | Total | Units | Left to | ||||||||
units | units | sold not | Units | sale/ | |||||||
sold | delivered | Units | Recognised | delivered | for sale | deliver | |||||
Total | Total Area | until 30 | until 31 | delivere | income during | as at 30 | as at 30 | after 30 | |||
Completion | Project | of units | June | December | d during | year 2022 | June | June | June | ||
Project name | Location | date | Units | (m2) | 2022 | 2021 | 2022 | (PLN'000) | 2022 | 2022 | 2022 |
Ursus Centralny IIa | Warsaw | Q4 2021 | 251 | 13,509 | 251 | 57 | 194 | 81,518 | - | - | - |
Miasto Moje IV | Warsaw | Q4 2021 | 176 | 8,938 | 172 | 123 | 46 | 16,872 | 3 | 4 | 7 |
Panoramika VI | Szczecin | Q4 2021 | 75 | 3,591 | 75 | 51 | 24 | 7,464 | - | - | - |
Nova Królikarnia 3a | Warsaw | Q2 2021 | 31 | 3,188 | 31 | 29 | 2 | 3,325 | - | - | - |
Nova Królikarnia 3c | Warsaw | Q2 2021 | 23 | 2,298 | 23 | 22 | 1 | 1,401 | - | - | - |
Nowe Warzymice I | Szczecin | Q2 2021 | 54 | 3,234 | 51 | 47 | 2 | 1,254 | 2 | 3 | 5 |
Panoramika V | Szczecin | Q3 2020 | 115 | 5,992 | 115 | 113 | 2 | 1,159 | - | - | - |
Młody Grunwald I | Poznań | Q2 2014 | 148 | 8,575 | 148 | 144 | 2 | 982 | 2 | - | 2 |
Miasto Moje I | Warsaw | Q2 2018 | 205 | 10,917 | 205 | 204 | 1 | 819 | - | - | - |
Verdis | Warsaw | Q4 2015 | 441 | 26,039 | 441 | 436 | 2 | 758 | 3 | - | 3 |
Młody Grunwald III | Poznań | Q4 2017 | 108 | 7,091 | 107 | 106 | 1 | 694 | - | 1 | 1 |
Ursus Centralny Ia | Warsaw | Q1 2021 | 138 | 7,542 | 138 | 137 | 1 | 686 | - | - | - |
Grunwald2 | Poznań | Q2 2020 | 268 | 14,456 | 268 | 267 | 1 | 624 | - | - | - |
Others | 7 | 542 | 1 | - | - | 328 | 1 | 6 | 7 | ||
Total excluding JV | 2,040 | 115,912 | 2,026 | 1,736 | 279 | 117,883 | 11 | 14 | 25 | ||
Wilanów Tulip | Warsaw | Q3 2021 | 149 | 9,574 | 145 | 122 | 21 | 14,033 | 2 | 4 | 6 |
Total including JV | 2,189 | 125,486 | 2,171 | 1,858 | 300 | 131,916 | 13 | 18 | 31 |
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Ronson Development SE published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 06:20:02 UTC.
