RNS Number : 6371B
Hirco plc
30 October 2009
News Release
Preliminary results for the year ended 30 September 2009
October 30, 2009
HIRCO REPORTS FULL YEAR RESULTS
Full year results reveal strong turnaround from first half at Hirco;
Second half profit of £13.2 million versus first half loss of £30.9 million;
Net Asset Value increases from £6.72 as last reported to £6.89 per share; and
continued steady progress in construction and strong increase in sales.
LONDON - Hirco PLC (AIM:HRCO), an investment vehicle for Hiranandani, India's largest
developer of mixed-use townships and the country's largest residential builder, today announced
its audited fiscal 2009 year-end financial results for the full year ended 30 September 2009.
Fiscal 2009 Highlights
• As of 30 September 2009, Hirco's Net Asset Value (NAV) was £6.89 per share, which
represents an increase of 2.5% from a NAV of £6.72 per share as of 31 March 2009, and
a decrease of 3.2% from £7.12 per share as of 30 September 2008. Hirco's NAV as of 30
September 2009 represents a cumulative increase of 45% from an NAV of £4.74 per
share at the time of the IPO on the London Stock Exchange's Alternative Investment
Market (AIM) on 13 December 2006.
• For the second half of the year, Hirco reported a gain after tax of £13.2 million. For the
first half of the year, Hirco reported a loss after tax of £30.9 million resulting in a loss
after tax of for the full year ended 30 September 2009 of £17.7 million. This represents a
loss per share for the full year of 23 pence based on 76,526,984 shares outstanding.
• As of 30 September 2009, the value of Hirco's investments in these projects was £414.6
million. The new valuation represents an 18% increase from the total acquisition cost of
approximately £350.8 million but a decrease of £58.1 million from the valuation at 30
September 2008.
Recent Developments
• Chennai: As of 30 September 2009, sales consideration for the Chennai residential
township had been accepted on approximately 2.1 million square feet of buildable area at
an average price of INR 4,214 (£55) per square foot. The value of sales contracts in the
Chennai township was £114.6 million.
• Panvel: As of 30 September 2009, sales consideration for the Panvel residential township
had been accepted on approximately 2.0 million square feet of buildable area at an
average price of INR 4,384 (£57) per square foot. The value of sales contracts in the
Panvel township was £115.1 million.
Niranjan Hiranandani, Chairman of Hirco PLC, said:
"The severity and speed of the global downturn during the first half of our 2009 reporting year
(October 2008 to March 2009) was even more dramatic than most people had anticipated,
although this has been countered to some extent by the improvements seen in the second half of
the reporting year (April to September 2009), resulting in two very different operating climates.
"Within this challenging and dynamic environment for most of the year, the Company's
operating performance has been very creditable. I am pleased to report a year of continued
advancement towards our core objective of creating long-term value for our shareholders.
"The rising confidence in the second half of the year that the worst was over for the Indian
economy translated into strong increases in both sales and sales enquiries in the last quarter. We
also continued to make steady progress in the construction of phase 1 of our developments, with
the first residential buildings in the Chennai township expected to be ready for delivery in the
next several months.
"The operating companies' prudent strategy of maintaining a strong balance sheet has allowed us
to maintain our focus on growth and not be diverted by the pressures of raising equity or
servicing debt as has befallen some of our competitors. This fiscal discipline has left us well
placed to benefit from the recovery in the broader market.
"The last three months of trading in our 2009 reporting year have given us reason to be
cautiously optimistic that India will emerge from the global financial crisis more quickly than
other major economies.
"We believe Hirco is still unmatched in its ability to create townships of such high quality and at
an affordable price. Its strategy of staying focused on its area of expertise - managing its costs
and trusting its market experience - has served it well this year, and it has emerged from the
economic downturn in a strong financial position and reinforced its status as a trusted brand."
This preliminary announcement was approved by the board on 29 October 2009.
About Hirco
Hirco PLC is an investment vehicle that invests in India with Hiranandani, India's largest
developer of prestigious mixed-use townships for the country's increasingly affluent middle
class. Its modern, large-scale developments - combining high-quality residential, commercial
and retail components with green space and social and recreational facilities - are strategically
located in suburban areas outside major city centres.
Hirco shares are traded on London Stock Exchange's AIM market under the symbol HRCO. At
the time of its admission to trading on AIM in December 2006, Hirco was the largest-ever real
estate investment company IPO on the AIM and that year's largest IPO on AIM.
For further information about the Company, please visit www.hircoplc.com .
To view construction progress at the company's Chennai project please visit
www.youtube.com/watch?v=VK5s9j6WFuU
Contacts:
Hirco Gutenberg Communications
Jasper Reiser US - Hugh Burnham / Michael Gallo
+91 22 6671 8522 +1 212 239 8595 / +1 212 239 8594
jreiser@hirco.com hugh@gutenbergpr.com
mgallo@gutenbergpr.com
UK - Maxine Ambrose
+ 44 (0) 7785 280930
Maxine@gutenbergpr.com
India - Pranav Kumar
+91 98 1007 7898
pranav@gutenbergpr.com
Click on, or paste the following link into your web browser to view the complete press release, including the consolidated financial statements.
http://www.rns-pdf.londonstockexchange.com/rns/6371B_1-2009-10-29.pdf
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