EQS-News

The Grounds ends 2023 with a decline in sales revenues and negative consolidated earnings - positive outlook for financial year 2024 - Seite 2

Ultimately, EBIT in 2023 totalled EUR -4.8 million, compared to EBIT of EUR 3.4 million in the previous year. Consolidated earnings after taxes totalled EUR -7.6 million (previous year: EUR 1.3 million). This corresponds to earnings per share of EUR -0.39 (previous year: EUR 0.07).

In a year-on-year comparison, the Grounds' total assets increased by around EUR 9 million to EUR 147.8 million, although this was also linked to changes in the balance sheet structure. Non-current assets remained almost unchanged at EUR 43.4 million (previous year: EUR 43.2 million). Impairment losses on investment property totalling EUR 1.0 million were offset by an increase in deferred income tax assets of EUR 1.4 million. The increase in current assets by EUR 9.3 million to EUR 104.4 million is mainly due to the increase in inventories by EUR 8.6 million to EUR 91.5 million. The majority of the increase is attributable to properties under construction, which together with work in progress, properties ready for sale and prepayments made, comprise the inventories. The company's cash and cash equivalents totalled EUR 3.0 million as at the balance sheet date on 31 December 2023, and were therefore around EUR 0.7 million higher than at the end of the previous year.

Financial liabilities and bonds increased by EUR 19.8 million, in particular due to the expansion-related increase in liabilities to banks and the financing provided by H.I.G. in the amount of EUR 10.0 million. The increase in current liabilities with a simultaneous decrease in non-current liabilities is partly due to the fact that the liabilities from the convertible bond in the amount of EUR 16.8 million were reclassified from non-current to current liabilities. This item also includes the financing of EUR 10.0 million concluded with H.I.G. in the fourth quarter of 2023.

Commenting on the 2023 Annual Financial Statements, Jacopo Mingazzini, Management Board of The Grounds, says: “Our expectations at the beginning of 2023 were not fulfilled in a market environment characterised by rising interest rates, high construction prices and considerable uncertainty. Nevertheless, there were some positive developments that will continue to strengthen in the current financial year and should then lead to a significant improvement in sales and earnings again. Our owner-occupied residential units in Meppen have now been completely sold, the purchase agreement for the last available flat in our new construction and re-densification project in Margaretenstrasse in Berlin-Lichtenberg was notarised a few days ago, and there were also increased sales in Dallgow-Döberitz. On the other hand, there were delays in promising negotiations for the sale of an office project and the postponement of the realisation of the debtor warrant in connection with a sold property in Hangelsberg. We were particularly pleased that we were able to gain a new investor in the shape of the UK's H.I.G. Realty, which not only provided short-term bridge financing but also secured an option to acquire a majority stake in the company via a capital increase. This gives The Grounds a solid starting point for the 2024 financial year, the first weeks of which have already seen a significant improvement in the market environment.”