AEDAS Homes quadruples revenues and reports a net profit of €32 million in 2019
- The homebuilder’s gross margin has increased to 32.7%, and it is reporting an EBITDA of €55.7 million.
- The company will pay shareholders €1 per share and is scaling up its share buyback program from €50 million to €150 million.
- The company will issue its first interim dividend of €0.50 per share in November 2020.
February 2020 - AEDAS Homes, a leading residential developer in Spain’s new real estate cycle, had a net profit of €31.6 million in 2019, compared to the €2.5 million it reported last year, according to its Annual Results. These figures confirm that the company’s ramp-up phase is going as planned and underscore the strength of its Business Plan.
The homebuilder led by CEO David Martinez has reported €311.5 million in revenue, almost quadrupling the previous year’s results. Sales of new-build homes comprise the bulk of the company’s revenues, with the sale of non-strategic plots contributing a small part.
These transactions delivered a gross margin of 32.7%, which is in the upper range presented at IPO. Additionally, the company reported an EBITDA of €55.7 million and a resulting rise in its EBITDA margin, 17.9%.
Shareholder Remuneration Policy Announced
With the aim of sharing the value created by the company with its shareholders, in its next Annual General Meeting AEDAS Homes will propose the first distribution of ordinary dividends. Dividends will be distributed semi-annually, and a dividend of €1 per share will be paid out of 2020 results, with an interim dividend of €0.50 per share paid out starting in November 2020.
In the coming years, AEDAS Homes expects to generate free cash flow of €1 billion, which will allow the company to assure its future business activity, with investment in new land and the rollout of an attractive shareholder remuneration policy.
Tripling the share buyback program
The company has announced that it is expanding its share buyback program from €50 million to €150 million. As of 31 December 2019, the company had invested €30.8 million to acquire 1.4 million own shares, which means the company has bought back 3% of its free float.
“These financial results are a clear indicator that over the course of 2019, the company cemented its already strong foundations, and above all, demonstrate the company’s capacity for profitability and cash generation,” explained David Martinez, the homebuilder’s CEO.
The developer also informed the market about its decision to change its fiscal year, which will now run from 1 April to 31 March. This decision was taken to avoid having to schedule significant deliveries during the month of December and the holiday season, which will ensure a smoother process for customers who would prefer to finalize the sale of their new homes at a more convenient time of year.
