UPDATE CONCERNING THE IMPACT OF COVID-19 ON NEXITY’S ACTIVITIES
Paris, Friday 20 March 2020, 5:45 p.m. CET
It is too early at this stage to determine the impact that the coronavirus crisis might have on Nexity’s 2020 results or on the guidance given to the market, the main unknown being the duration of the epidemic and of the public health measures to contain its spread.
Following strong business momentum at the start of 2020, in line with that of the previous year, in recent days Nexity has seen operations at its construction sites, searches for homes or offices for purchase or rental, and buying decisions by its clients all come to a standstill, a situation that is expected to continue at least until the end of the lockdown. However, occupancy rates in serviced residences are little affected so far. Delays in obtaining building permits are lengthening, as an inevitable result of the postponement to June of the second round of local elections in France. Nevertheless, more than 30,000 municipalities elected their mayors in the first round, who are thus already in office. Most of Nexity’s sales launches for the current year had already been scheduled to take place beginning in September 2020.
In response to this unprecedented public health crisis, Nexity has put measures in place to protect the health of its employees. Business continuity plans have been rolled out and are in operation. The company is well armed to face this challenge, supported by the total commitment of its teams.
With a backlog exceeding €5 billion and a business potential of over €15 billion in development revenue, excluding recurring service activities, the Group has very good medium-term visibility. Even in periods of acute crisis, and in an environment characterised by limited supply, housing remains a basic human necessity. Nexity enjoys a sound financial structure, a cost structure consisting of largely variable costs in its development business, a nearly complete absence of inventory at risk and a proven ability to bounce back very quickly as soon as circumstances permit. The Group’s cash position is strong, with €775 million in cash and €555 million in confirmed but undrawn credit lines. Nexity confirms that it will pay a dividend of €2.70 per share in the first half of 2020.
Disclaimer
The information, assumptions and estimates that the Company could reasonably use to determine its targets are subject to change or modification, notably due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in Section 2 of the Registration Document filed with the AMF under number D.19-0272 on 4 April 2019 could have an impact on the Group’s operations and the Company’s ability to achieve its targets. Accordingly, the Company cannot give any assurance as to whether it will achieve its stated targets, and makes no commitment or undertaking to update or otherwise revise this information.
| AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVE Nexity offers the widest range of advice and expertise, products, services and solutions for individuals, companies and local authorities, so as to best meet the needs of our clients and respond to their concerns. Our business lines – real estate brokerage, management, design, development, planning, advisory and related services – are now optimally organised to serve and support our clients. As the benchmark operator in our sector, we are resolutely committed to all of our clients, but also to the environment and society as a whole. Nexity is listed on the SRD and on Euronext’s Compartment A. Nexity is included in the following indices: SBF 80, SBF 120, CAC Mid 60, CAC Mid & Small and CAC All Tradable Ticker symbol: NXI – Reuters: NXI.PA – Bloomberg: NXI:FP ISIN code: FR0010112524 ______ CONTACTS Domitille Vielle – Head of Investor Relations / +33 (0)1 85 55 19 34 – Géraldine Bop – Deputy Head of Investor Relations / +33 (0)1 85 55 18 43 – |
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