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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Direct Wonen | LSE:DIWO | London | Ordinary Share | NL0000817377 | ORD EUR0.02 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 25.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 3654E
Direct Wonen N.V.
26 September 2008
For Immediate Release 26 Sept 2008
DIRECT WONEN N.V.
('Direct Wonen' the 'Company' or the 'Group')
Interim Results for the period ended 30 June 2008
After restructuring back on track in 2009
Direct Wonen (AIM, DIWO), the Property and Financial Services provider based in the Netherlands, today announces interim results for the
period ended 30 June 2008.
Key Points
- Revenue decreased 35% to EUR 14.2 million (H1 2007: EUR 21.8 million)
- Low New Property Sales - EUR 0.3 million (H1 2007: EUR 9.0 million)
- EBITA a loss of EUR 1.7 million compared to a profit of EUR 8.6 million in
H1 2007, due to reduced new property sales, increased costs and exceptional
items of EUR 2.1 million including rationalisation costs
- Property Lettings revenue increased 13% to EUR 6.5 million (H1 2007: EUR 5.8
million) with a positive contribution from recent acquisitions
- New Property Sales revenues (performing well in recent years with a proven
concept and excellent performance) were extremely low due to lack of
projects meeting the Group's high standards
- Financial Services revenue increased 5% to EUR 7.3 million (H1 2007: EUR 7.0
million) due to the stable and good performance of the Acadium Bastion
Group, contribution from recent acquisitions and despite unfavourable market
conditions and write downs (mainly related to Direct Hypotheken)
- Direct Hypotheken has been discontinued, with all mortgage activities
combined within Acadium Bastion and restructuring costs taken in the first
half of 2008
- Expenses (including head office) increased by 61% to EUR 15.9 million (H1
2007: EUR 9.9 million) following acquisitions, an increase in
staff/consultancy costs and exceptional items
- Strong total equity amounts to EUR 77.7 million
- An interim dividend of 0.41 pence per share will be paid on 23 October 2008
to shareholders on the register on 9 October 2008 and with ex dividend date
of 7 October 2008
Commenting on the results, CEO Yvonne Swaans said:
" H1 2008 has been a period in which we refocused in light of the changed market circumstances. However our two strong pillars Property
Lettings and Acadium Bastion Group continued to deliver a decent performance, particularly in light of the difficult business environment.
Our New Property Sales operations suffered from a lack of high quality projects. This had a sharp negative impact on the half year
results. However new projects are currently being negotiated.
It is regretful that the high expectations for Direct Hypotheken have not materialised. Since the credit crunch market conditions have
deteriorated and gave a new entrant no chance to establish a position in the market. As a result we decided to discontinue the activities,
taking one off costs, that had a negative effect on the H1 2008 results.
Newly acquired business in consumer credit products and services contributed to revenue and are now well integrated in the Group
activities.
Cooperation between various entities has been recently strengthened to achieve more synergies and cost savings. In addition Direct Wonen
launched a project to rationalise expenses and integrate activities. The project will be completed by the end of the year.
2008 is a year of restructuring the organisation and business to prepare for the future. We appreciate the performance of our smaller
but motivated and dedicated team. Together with the new composition of the Board and a new focus on responsibilities we are confident that
the Group will be better positioned to face future challenges and further grow the business."
For more information please contact:
Direct Wonen Tel +31(0)70 711 5691
Irma de Jong i.dejong@directwonen.nl
www.
directwonencorpo
rate.com
About Direct Wonen
Direct Wonen is a residential property and financial services provider based in The Netherlands.
The Direct Wonen group of companies operates three complementary business lines:
- Residential Property Letting services
- New Property Sales services
- Financial services; intermediary promoting mortgages, consumer loans and Golden
handshakes products
All three business lines utilise Direct Wonen's database of individuals looking for housing, landlords and property developers. In 2007
www.directwonen.nl had a total of approximately 1,025,000 registered users and approximately 3.1 million unique visitors. The Direct Wonen
group of companies has a network of 26 regional offices.
Direct Wonen was formed in 1990 and has been listed on the Alternative Investment Market (AIM) of the London Stock Exchange since 1 May
2007.
Business Overview
Property Lettings Services :
- 2008 H1 revenue increased 13% to EUR 6.5 million (H1 2007: EUR 5.8 million)
- The number of subscribers to the lettings services increased 4% compared to
the same period in 2007, with a strong shift towards internet subscriptions
- Average letting charges increased by 5% with the volume of transactions at
similar levels as in the corresponding period in 2007
- Profit before tax of EUR 0.2 million (H1 2007 : Profit EUR 2.3 million) was
mainly due to the high (head office) cost base and exceptional items of EUR
0.5 million
- On line visits to our web portals increased with 22% from 2.5 million to 3.0
million
- The Business model of Lettings in Amsterdam had to be restructured following
strict regulations from the municipality which had an initial negative
effect on revenue
Trading throughout our national network of 23 rental branches, together with our web-portal www.directwonen.nl, was broadly flat
compared to H1 in 2007. The reduction in revenue in our existing business, was caused by reduced turnover following the restructuring
activities in Amsterdam and an exceptional charge of EUR 0.5 million.
Our focus on higher quality accommodation from landlords, combined with stricter regulations from certain municipalities (e.g.
Amsterdam) reduced the number of lettings by 7%. However the dedicated teams and focus from management have increased the number and quality
of accommodations which resulted in an average increase of letting charges of 4%.
The acquisition of Kamernet.nl, the market leader in consumer-to-consumer accommodation for students and low value lettings in the
Netherlands, has enabled the Group to further strengthen its dominant position in the letting market. A focused marketing campaign resulted
in a 9% increase of website visits to 4.1 million and a 31% rise of transactions compared to H1 2007. The number of rooms offered increased
by 11%.
GIS apartments has been integrated in our rental branch office in Amsterdam and we expect to see further benefits from increased
synergy, operational efficiency and good cooperation with relocators. The intensive cooperation with a relocation company from March 2008,
contributed to the revenue and profit of the lettings divisions.
Outlook:
Our strong database and brand, further growth of our network (fast growing town of Almere, August 2008), together with the full spectrum
of letting activities - from low end to luxury - places the Company in a good position to further grow the business. Together with the cost
reductions, increased synergies and an operational efficiency plan we are confident that profitability will improve in the near term.
New Property Sales Services:
- Revenue of EUR 0.3 million (H1 2007: EUR 9.0 million)
- Operating profit of EUR 0.0 million (H1 2007: EUR 3.4 million)
As previously indicated, the New Build Property market has been challenging. Despite early indications at the beginning of this
financial year that market conditions were improving, this has not yet resulted in good quality projects that could be acquired by Direct
Wonen.
Having sold the largest part of the Statendam properties in 2007, the last remaining 9 properties were sold in the first half of 2008.
Following tight controls on cost, no losses are reported.
Outlook:
Management remains confident about the future success of the business model with several projects in the pipeline which are currently
being negotiated.
The sale process of phase 7 of Funenpark (consisting of 10 properties) has recently started and will positively contribute to the
results of H2 2008.
Financial Services:
- Revenue increased with 5% to EUR 7.3 million (H1 2007: EUR 7.0 million)
- Existing business was effected by the exceptional items for the discontinuation of Direct
Hypotheken activities and restructuring costs amounted to EUR 1.6 million
- Acadium Bastion Group has continued it's good performance, leveraging their
outstanding knowledge base and strong customer network
- A loss before tax of EUR 2.2 million (H1 2007: Profit EUR 2.6 million) effected by the
high cost (head office) base and exceptional items of EUR 1.6 million
The Financial Services division suffered from the adverse negative market conditions. The Dutch mortgage market saw rising interest
rates, tighter bank lending conditions and a number of foreign providers that have left the market. The mortgage market decreased by 13%
compared to H1 2007. Combined with decreasing consumer confidence the business environment has further deteriorated.
Acadium Bastion Group, representing the majority of Financial Services, performed well, particularly in light of the harsh business
environment. With its proxies for a life insurance product with one of the leading Dutch insurance companies and its strong position at the
top end of the market it ensures a continuing flow of stable revenues and income. Excluding the one-off revenues in H1 2007, its revenue
growth was 16%.
Geldshop, the on-line consumer loans business, produced a stable result. The integration of Geldshop and Geldlenen has been successfully
completed and will show improved results in the second half of 2008.
The Direct Hypotheken activities have been dissolved and restructuring costs taken. This caused a significant one off effect on revenue
and profit, but will enable the business to focus on its core activities.
Outlook:
As previously announced, in light of the current market circumstances, a rationalization plan is being carried out that is expected to
be completed by the end of 2008. Relevant existing operations are being combined to optimise efficiency improvements and create synergy
opportunities through cooperation of the different units and improved use of database information.
Condensed consolidated interim financial statements
for the six month period ended 30 June 2008
Condensed consolidated interim income statements
for the six month period ended 30 June 2008
In thousands of euros 30 June 2008 30 June 2007
Revenue 14,156 21,772
Cost of sales 239 3,596
Gross profit 13,917 18,176
Other income 16 -
Administrative expenses 9,091 5,310
Other expenses 6,783 4,554
Profit from operations (1,941) 8,312
Finance income 905 830
Finance expenses (1,159) (2,839)
Profit before tax (2,195) 6,303
Tax 307 (1,196)
Gross profit (1,888) 5,107
Earnings per share after tax (EUR)
- Basic earnings per share (0,01) 0,09
Condensed consolidated interim balance sheet
at 30 June 2008
In thousands of euros 30 June 2008 31 December 2007
Assets
Intangible assets 43,024 30,244
Property, plant and equipment 3,238 2,832
Investments in associates - 33
Financial fixed assets 5,849 5,963
Total non-current assets 52,111 39,072
Inventories and work in progress 63 736
Current tax assets 465 194
Trade and other receivables 21,621 22,860
Other financial assets 6,654 -
Cash and cash equivalents 58,391 56,203
Total current assets 87,194 79,993
TOTAL ASSETS 139,305 119,065
Capital and reserves attributable to
equity holders of the company
Share capital 3,148 3,148
Share premium 53,468 53,468
Retained earnings 21,099 22,987
TOTAL EQUITY 77,715 79,603
Liabilities
Non-current liabilities
loans and borrowings 15,980 -
Deferred tax liabilities 413 661
Provisions 11,085 5,827
Total Non-current liabilities 27,478 6,488
Current liabilities
loans and borrowings 19,353 257
Trade and other payables 14,759 32,717
Total current liabilities 34,112 32,974
TOTAL LIABILITIES 61,590 39,462
TOTAL EQUITY AND LIABILITIES 139,305 119,065
Condensed consolidated interim statements of changes in equity
for the six month period ended 30 June 2008
Share Share Merger Retained
In thousands of euros capital premium reserve earnings Total
Position on 1 January 2007 45 48,000 (221,220) 10,448 (162,727)
Profit (loss) of the period - - - 5,107 5,107
Gross profit - - - 5,107 5,107
Other equity changes
Share issues 3,103 56,648 - - 59,751
Capital contribution - - 196,076 - 196,076
Repayment of share premium - (22,157) - - (22,157)
Write off of merger reserve - (25,144) 25,144 - -
Total changes 3,103 9,347 221,220 - 233,670
At 30 June 2007 3,148 57,347 - 15,555 76,050
At 1 January 2008 3,148 53,468 - 22,987 79,603
Profit (loss) of the period - - - (1,888) (1,888)
Gross profit - - - (1,888) (1,888)
At 30June 2008 3,148 53,468 - 21,099 77,715
Condensed consolidated interim statements of cash flows
for the six month period ended 30 June 2008
In thousands of euros 30 June 2008 30 June 2007
Operating activities
Profit for the period (2,195) 6,303
Adjustments for:
Depreciation Property, plant and equipment 643 318
Amortisation Intangible assets 228 -
Finance income (905) (830)
Finance cost 1,159 2,839
(1,070) 8,630
Change in inventories 673 749
Change in trade and other receivables (5,416) (4,587)
Change in trade and other payables (6,968) 549
Change in provisions 5,258 (489)
(7,523) 4,852
Income taxes paid (212) -
Cash flows from operating activities (7,736) 4,852
Investing activities
Acquisition of subsidiaries, net of cash (14,087) -
acquired
Purchase of fixed assets (1,048) (469)
divestments in equity accounted investees 33 -
Loan to accounted investees 114 -
Interest received 905 391
Subtotal investing activities (14,083) (78)
Financing activities
Proceeds from the issue of share capital - 58,631
Bank borrowing advances 35,078 -
Bank borrowing repayments - (1,265)
Interest paid (721) -
Repayment of share premium to shareholders (9,912) -
Subtotal financing activities 24,445 57,366
Increase in cash and cash equivalents 2,626 62,140
Net foreign exchange gain/(loss) (438) -
Cash and cash equivalents at the the 56,203 15,275
beginning of the period
Cash and cash equivalents at the the end of 58,391 77,415
the period
Notes to the condensed consolidated interim financial statements
for the six month period ended 30 June 2008
1. Basis of preparation
The condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting
Standards and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.
2. Significant accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the year ended
31 December 2007, as described in those annual financial statements except for the Financial Fixed Assets as stated below.
Financial fixed assets
Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms
require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, plus
transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at
fair value.
3. Segment information
Segment revenue Segment result
In thousands of euros 2008 2007 2008 2007
Continuing operations
Lettings 6,540 5,777 204 2,287
New build sales 304 9,001 43 3,423
Financial services 7,312 6,994 (2,188) 2,602
14,156 21,772 (1,941) 8,312
Unallocated (254) (2,009)
Profit before tax (2,195) 6,303
Income tax expense 307 (1,196)
Profit for the period (1,888) 5,107
The Company recognises three business segments based on the products, environment and risks:
* Commissions from lettings (lettings and property management)
* Commissions earned and proceeds from the sale of new build properties (as an agent or principal)
* Financial services (insurance and mortgage commissions),
4. Seasonality
The Group's Lettings segment is subject to seasonal fluctuations as a result of several conditions, In particular, a peak activity is
occurring between the months of May and October, This is based on historical figures,
5. Borrowings
During the period, the Group obtained a new short-term bank loan in the amount of Euro 15 million and is repayable within 1 year.
Furthermore the Group obtained a new middle-long-term bank loan in the amount of Euro 20 million and is repayable within 5 years. The loan
bears interest at market rates.
6. Earnings per share
2008
Profit attributable to ordinary shareholders (EUR'000) (1,888)
Weighted average number of shares 157,406,028
Basic earnings per share (EPS) after tax (EUR) (0,01)
7. Acquisitions
Cost of Acquisitions
Date of Acquisiton Cost of
In thousands of euros acquisition costs acquisition
Kamernet.nl 05-02-2008 103 8,203
VCS 06-03-2008 7 647
Settle Service B.V. 03-04-2008 103 2,653
Uw Toekomst N.V. 22-05-2008 129 3,002
14,505
Net assets acquired
Pre-acquisition Recognised
carrying Fair value values on
In thousands of euros amounts adjustments acquisition
Intangible assets 208 2,254 2,462
Property, plant and equipment 374 - 374
Trade and other receivables 1,021 - 1,021
Financial assets 7,052 - 7,052
Other assets 202 - 202
Cash and cash equivalents 418 - 418
Trade and other payables (643) - (643)
Deferred tax liability 98 - 98
Financial liabilities (125) - (125)
Other liabilities (6,732) 609 (6,123)
Net identifiable assets and 1,873 2,863 4,736
liabilities
Goodwill on acquisition 9,769
14,505
Consideration paid, satisfied (14,505)
in cash
Cash acquired 418
Net cash outflow (14,087)
The allocation of the purchase price to the net assets acquired has not yet been finalized. The goodwill recognised on the acquisition
is attributable to the business and the anticipated profitability of the distribution of the Group's products in the new markets and the
anticipated future operating synergies from the combination.
8. Commitments and contingencies
Under the terms of contracts to sell properties on behalf of developers, the Company has obligations to purchase any unsold properties
at the end of that contract. At 30 June 2008, the maximum commitment to purchase unsold apartments amounts to EUR 5,707.
9. Approval of interim financial statements
The interim financial statements were approved by the board of directors on 22 September 2008
Disclaimer
This press release contains forward-looking statements with regard to the financial position and results of Direct Wonen's activities,
These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those
expressed in the forward-looking statements, Many of these risks and uncertainties relate to factors that are beyond Direct Wonen's ability
to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in
consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, interest-rate
fluctuations, changes in tax rates, changes in law, pension costs, the actions of government regulators and weather conditions, These and
other risk factors are detailed in Direct Wonen's publicly available financial information as included in the admission document to the AIM
dated 25 April 2007, You are cautioned not to place undue reliance on these forward-looking statements, which are only relevant as of the date of this press release, Direct Wonen does not undertake any
obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these
statements, Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in
combination with management estimates,
This information is provided by RNS
The company news service from the London Stock Exchange
END
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