COMPAGNIA IMMOBILIARE AZIONARIA S.P.A.
Milan, 14 May 2015
The Board of Directors of Compagnia Immobiliare Azionaria Spa (CIA) met in Milan today, to examine the activities and consolidated results for the first three months of the year.
Consolidated revenues for the period to 31 March 2015 amounted to 1.27 million euro (1.45 million euro in the corresponding period of 2014); operating costs of 0.63 million euro were essentially in line with those for the comparative period (0.64 million euro).
Gross operating profit (Ebitda) amounted to 0.64 million euro (0.81 million euro in the corresponding period of the prior year).
The consolidated income statement reports a net loss of 0.35 million euro, compared with 0.16 million euro in the first quarter of 2014.
The consolidated net financial position reflects net borrowing of 47.9 million euro at 31 March 2015, compared with 48.1 million euro at 31 March 2014 and 47.7 million euro at 31 December 2014.
During the first quarter of 2015, the Italian property market continued the growth reported in 2014 after seven years of decline, with a rise of 1.9% on average. The Milan property market, where most of the CIA Group's properties are concentrated, also experienced higher demand in early 2015 as prices fell by around
3.0% on average. Average times to complete a transaction remain long, at 9.6 months.
Against this market background, a number of negotiations have begun and are continuing for the sale of apartments and garages in the new residential block developed in the Duomo area of central Milan by Diana Bis Srl.
Exports during the first quarter of 2015 rose by 1.3% in volume terms and by 1.9% in value terms, compared with the same period in the prior year. The central attention paid to foreign markets by Italian wineries reflects the slow, but relentless, decline in domestic consumption. This is confirmed by the average 16% decline in volume experienced by both the off-trade channel (especially the chain retailers, down 15% in volume terms since 2007) and the on-trade channel, with a fall of 35-40% over the past five years.
During the first quarter of 2015, Feudi del Pisciotto experienced a slight decline in the volume of wine sold (-
10.4% compared with the same period last year), but this was offset by an increase in average prices (+28.7%
compared with the situation at 31 March 2014). As a result, the gross operating margin improved
significantly. Orders and sales forecasts are positive, with a recovery in volume expected during the second quarter of the year. This reflects the steady improvement in brand awareness, which is facilitated by the excellent ratings awarded to the wines by international critics.
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Development activities
In Sicily, work is almost finished on a restaurant, a cookery school and small spa within the complex owned by Feudi del Pisciotto. This will complete the planned investment in the Wine Relais, where there was a
37.5% increase in visitors during the first quarter of 2015, compared with the same period last year. This positive result has been confirmed and exceeded by the numerous bookings already received for the high season. As in the first year of operations, the comments made by guests are all extremely positive (sources: Booking.com and Tripadvisor).
CIA is party to a dispute following its exercise of a put option for the sale to a large Spanish listed company of a 15% interest in Donnafugata Resort Srl. The counterpart has refused to pay. Following the second arbitration award in December 2014, requiring the counterpart to pay, and given its continued failure to comply, CIA has granted powers of attorney to a leading Spanish law firm, with instructions to take legitimate enforcement action in order to collect the sum owed as quickly as possible. Also in this regard, on
19 January 2015 the Court of Milan rejected the appeal brought by the counterpart seeking annulment and/or
cancellation of the mandate granted to the valuer on 22 December 2010. This action sought to render invalid and void the appraisal made by Prof. Guatri.
Although the macroeconomic environment continues to be marked by considerable volatility and uncertainty, the outlook for the operations of the Group remains good. This reflects the stability of the long- term returns guaranteed from the property investments made and the related activities carried out by the parent company, as well as - and above all - the expectations deriving from pursuit of the property operations of Diana Bis and the commercial operations of Feudi del Pisciotto.
Following the appointment of the new Board of Directors at the Shareholders' Meeting held on 30 April
2015, the Board has made a number of internal appointments and granted the related powers: Chairman, Angelo Riccardi; Vice Chairman, Paolo Panerai, Executive Directors, Marco Fanfani and Luca Nicolo' Panerai. The Board also appointed the executive responsible for preparing corporate accounting documents.
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For additional information, please contact: Gian Marco Giura
Tel: 02-58219395
E-mail: gmgiura@class.it
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The income statement and the statement of financial position are presented below. The interim report on operations will be made available to the public on the website of Cia, www.c-i-a.it, prior to the legal deadline.
The executive responsible for preparing the corporate accounting documents of Compagnia Immobiliare Azionaria S.p.A., Walter Villa, hereby certifies that the accounting information contained in this document is consistent with the underlying document s, registers and accounting entries.
Consolidated income statement for the period ended 31 March 2015INCOME STATEMENT | 31/03/2014 | 31/03/2015 |
REVENUES | ||
Revenues from sales | 1,302 | 1,116 |
Other operating income | 145 | 153 |
Total revenues | 1,447 | 1,269 |
COSTS | ||
Operating costs | (640) | (628) |
Gross operating margin - Ebitda | 807 | 641 |
Non-recurring income/(expense) | 8 | (14) |
Depreciation, amortisation and write-downs | (386) | (390) |
Operating result - Ebit | 429 | 237 |
Net financial income (charges) | (586) | (583) |
Net result | (157) | (346) |
Non-controlling interest | -- | (1) |
Net result attributable to the Group | (157) | (347) |
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Revenues for the period are analysed as follows€ (thousands) | 31/03/2014 | 31/03/2015 | % change |
Rental income | 845 | 670 | (20.7) |
Facility management revenues | 178 | 182 | 2.2 |
Wine sale revenues | 249 | 223 | (10.4) |
Other vineyard and Wine Relais revenues | 132 | 134 | 1.5 |
Property sale revenues | - | - | -. |
Other revenues | 43 | 60 | 39.8 |
Total | 1,447 | 1,269 | (12.3) |
€ (thousands) | 31/03/2015 | 31/12/2014 | 31/03/2014 |
Net long-term borrowing | (41,682) | (40,742) | (42,380) |
Net short-term borrowing/liquid funds | (6,241) | (6,970) | (5,722) |
Of which: | |||
Financial payables | (6,328) | (7,006) | (5,993) |
Liquid funds and financial receivables | 87 | 36 | 271 |
Net financial position: net borrowing/liquid funds | (47,923) | (47,712) | (48,102) |
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