YOUNIQ AG, the leading provider of high-quality student apartments in Germany, has published its results for the first half of 2011. The company generated 16.46 million of total revenue in the reporting period (previous year: 19.95 million).
At 11.23 million, the major proportion of this amount was generated from the core 'Student Housing' business (previous year: 14.90 million). This decline is primarily attributable to a reduction in revenues from construction contracts, a business that is to be discontinued in the future.
Correspondingly, EBIT amounted to 2.64 million in the period under review, compared with 4.45 million in the prior-year period. Following the first six months of 2011, YOUNIQ AG reported a net income of -0.76 million (previous year: 2.25 million), whereby the loss incurred in the first quarter of 2011 could be reduced in the second quarter.
It should be noted in this context that interest expenses of around 1.67 million for shareholder loans impacted the 2011 first-half result. The Group would have reported a positive net income excluding these expenses. These interest expenses will essentially no longer be incurred from the second half of 2011 due to the waiver of shareholder loans that was implemented as of June 30, 2011.
The company's financing structure strongly improved as of June 30, 2011. The company's balance sheet equity underwent a marked increase from 47.9 million as of the 2010 year-end to 108.5 million as a result of the successful completion of the capital increase in June 2011, and the controlling shareholder's subsequent waiver of 37.6 million of loan receivables. Net asset value (NAV) increased strongly from 6.77 to 10.41. At the same time, the loan to value ratio - the ratio between net financial debt, including shareholder loans, and real estate assets - improved from 66% to 37%.
Marcel Crommen, CFO of YOUNIQ AG, commented as follows: "We have significantly improved the Group's financing structure in the past half-year. This creates a very solid basis for the further growth of our core business."
In view of this situation, Rainer Nonnengässer, CEO of YOUNIQ AG, looks with optimism to the future: "We are planning further acquisitions in the second half of the year to further extend our market leadership in the Student Housing business. Overall conditions also reflect a positive trend since student numbers in Germany continue to grow as a result of the doubled number of high school graduates due to the G8 reform, and the suspension of military service.
"Studying at higher education level in Germany is also becoming more attractive as a result of the recent ruling by the German Supreme Tax Court that the costs of education are likely to be offset against future taxable income under certain preconditions."
Given the positive overall environment, and the earnings impact as a consequence of the waiver agreements, the Executive Board anticipates an improved result in the second half of 2011, particularly due to the fact that further positive income effects are expected from planned acquisitions. As a consequence, the Executive Board is forecasting a positive net income for the full 2011 year on the basis that the company's projects progress as planned, and in light of its continued acquisition activity.
Source: cometis AG