BWG Homes Group: Improved sales, increased order backlog and positive cash flow (NO)
Wednesday 26 August 2009
BWG Homes Group's operating revenues for Q2 2009 amounted to NOK 667 million. This is a reduction of 28.8% in relation to Q2 2008. Operating profit (EBITDA) was NOK 65 million, a reduction of 44.3%. The EBITDA margin for Q2 2009 was 9.8%.
The Group's order backlog at the end of Q2 was NOK 1,279 million, down 26.1% compared to the same period in 2008. The order backlog shows an increase of 14.3% when compared with the end of Q1 2009. Net cash flow from operating activities was positive at NOK 77 million, and net interest-bearing debt has been reduced by NOK 279 million from year-end.
"House sales have seen a positive development throughout the first half of 2009. Many customers who have postponed buying houses have now returned to the market due to the historically low interest rate for mortgages, a more stable development in unemployment and a second-hand market which is once again functional.
"Sales during the quarter saw an increase of 15.9% in comparison with Q1 2009. For the first half 2009, sales were 104% higher than the second half of 2008. Further positive development in sales combined with an increasing order backlog will allow a gradual escalation of production throughout the autumn," comments Lars Nilsen, CEO of BWG Homes ASA.
The decline in turnover is due to the fact that the Group's production capacity was significantly reduced both in Norway and in Sweden in 2008 and Q1 2009. A continued pressure on the Group's operating revenues and margins in Q3 2009 is expected.
"The fact that the decline in turnover in the first half is not higher than 25% can be explained by high sales during the first quarter of houses which had already been built. The number of registered housing starts in both Norway and Sweden will be extremely low in 2009. A pent-up demand for new houses is expected to provide increased demand for the Group's products", Lars Nilsen comments further.