OREANDA-NEWS. May 04, 2011. PIK (LSE: PIK), a leading Russian residential developer, today announces its consolidated IFRS financial results for 12 months ended December 31 2010, audited by KPMG.

Financial Summary
Total revenues were down by 7.5% to RUB38.0billion (2009: RUB41.17billion); this fall was anticipated following the low level of construction activity in 2009;
Revenues from the sale of apartments declined by 11.7% to RUB27.1billion (2009: RUB30.7billion) due to decreased transfers to customers;
Revenue from construction services, sale of construction materials and others increased by 4.8% to RUB10.9billion (2009: 10.4billion)
Consolidated gross profit margin fell to 6.5% (2009: 19.3%) due to a revision of social infrastructure costs;
Adjusted EBITDA from development activities was negative and amounted to RUB0.8billion (2009: RUB4.5billion);
Adjusted EBITDA from development activities before revision of social infrastructure costs fell to RUB3.35billion (2009: RUB4.5billion);
Normalized net loss was RUB3.04billion (2009: RUB2.03billion);
Total assets as of December 31 2010 increased by 19.1% reaching RUB122billion (December 31 2009: RUB115billion);
Net debt as of December 31 2010 was up to RUB39.6billion (December 31 2009: RUB34.8billion) upon drawdown of funds available from open credit facilities;

Pavel Poselenov, CEO of PIK Group comments:

"PIK always faced a tough outcome for 2010 following the very low levels of development activity in 2009. During 2010, however, we were able to move forward and launched 25 new apartment buildings onto the market. An additional 11 have gone on sale in the first quarter of 2011.

Looking ahead, we are comfortable that the market recovery will continue and management is encouraged by the 1Q2011 presales pattern which shows restored consumer confidence.

The outlook for the real estate sector is bright and longer-term the positive fundamentals remain unchanged".