“We delivered good results in 2023 and taking the market situation into account the profitability of the projects and the company was good. Due to a higher number of deliveries, the fourth quarter alone was significantly better than the same period of 2022 with a doubling of operating revenues and a significant improvement in results. This is reflected in the proposed dividend,” says CEO
In the fourth quarter,
At the end of the year, the company had 784 homes with a total sales value of
“The housing market was challenging throughout 2023, but we still succeeded in selling 435 homes. The level of activity in the company is high and the order backlog is still at a solid level, although it has fallen due to fewer construction starts than completions. We believe that the market conditions will improve, and we plan for more sales and construction starts.
“We have around 400 homes for sale and if market conditions allow we can start selling a further 600 during the first half of the year. Our total land bank can provide approximately 11 000 homes. We are thus well positioned for increased demand and growth in both the short and long term,” Molvik says.
The live webcast of the presentation can be viewed from 0830 here. An English transcript of the presentation will be made available on the company’s website.
Highlights of the fourth quarter 2023 (fourth quarter 2022)
- Gross sales* amounted to 99 homes (49) with a sales value of
NOK 602 million (NOK 255 million ) - Net sales* were 88 homes (44) with a sales value of
NOK 531 million (NOK 220 million ) - Net construction starts for130 homes (146), net completions of 331 (160) and net deliveries of 276 to buyers (147)
- Net construction under way on 784 homes (1,253) with a combined sales value of
NOK 4,496 million (NOK 6,408 million ) - 62 per cent (67 per cent) of homes under construction sold at 31 December
- 95 (31) completed homes unsold at 31 December
- IFRS**: Operating revenues of
NOK 1,247 million (NOK 669 million ), EBITDA adjusted for financial expensesNOK 203 million (NOK 87 million ), corresponding to a margin of 16.3 per cent (13 per cent) - Earnings per share:
NOK 1.16 (NOK 0.48 ) - NGAAP***: Operating revenues of
NOK 565 million (NOK 526 million ), EBITDA ofNOK 39 million (NOK 71 million ), corresponding to a margin of 7 per cent (13.5 per cent)
Highlights of 2023 (2022)
- IFRS**: Operating revenues of
NOK 3,255 million (NOK 2,896 million ), EBITDA adjusted for financial expensesNOK 452 million (NOK 517 million ), corresponding to a margin of 13.9 per cent (17.9 per cent) - Earnings per share:
NOK 2.62 (NOK 3.63 ) - The board proposes a dividend of
NOK 1.00 per share (NOK 2.00 ) for the second half. Total ordinary dividend for the year will beNOK 2.00 per share (NOK 4.00 ) - NGAAP***: Operating revenues of
NOK 2,153 million (NOK 2,856 million ), EBITDA ofNOK 202 million (NOK 377 million ), corresponding to a margin of 9.4 per cent (13.2 per cent) - Gross sales* amounted to 435 homes (561) with a sales value of
NOK 2,585 million (NOK 2,963 million ) - Net sales* were 360 homes (448) with a sales value of
NOK 2,108 million (NOK 2,328 million ) - Net construction starts for 275 homes (517), net completions of 744 (586) and net deliveries of 655 to buyers (585)
* Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act and the Tenancy Act in
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the percentage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.
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