IMPACT Developer & Contractor – 100% EBITDA increase and 49% gross profit increase in Q1 2022 compared to the same period last year

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 IMPACT Developer & Contractor obtained, at consolidated group level, a 16.96 million lei gross profit in the first quarter of 2022, with a 49% increase compared to the same period of last year;

  • The gross margin registered by the IMPACT group was 45%, increasing from 29% compared to the first quarter of 2021;
  • At March 31, 2022 the total value of IMPACT assets adjusted to fair value, in accordance with EPRA standards, was 293 million euros;
  • As of March 31, 2022, IMPACT had concluded reservations and pre-sale contracts for 509 units worth 288.83 million lei;
  • In the first quarter of 2022 IMPACT sold and pre-sold 118 units with a 94.33 million lei value;
  • IMPACT is in the second year of the new production cycle and will deliver over 800 apartments in Bucharest and Constanța by the end of the year;
  • The value of an IMP share increased by 29% from 0.49 lei on March 31, 2021 to 0.63 lei on March 31, 2022.

IMPACT Developer & Contractor closes the first quarter of 2022 with a 16.96 million lei gross profit, up 49% compared to the same period last year, despite of a difficult start of the year, marked by the last wave of the Covid-19 pandemic and the conflict in Ukraine.

 “The beginning of the year was a positive one for IMPACT, with a successful share capital increase action and increasing sales amid the entry into force of the new law on housing VAT. Unfortunately, the war in Ukraine had a negative impact on all markets, industrial and especially on the middle segment of residential developments, where most customers buy on loans and where an attitude of expectation was observed, as a direct effect of the increasing interest rates. On the other hand, we noticed a very large increase in demand from small investors for completed medium-high projects and we are glad that we were able to respond to this request with the Luxuria Residence project “, said Constantin Sebesanu, CEO Impact Developer & Contractor.

In the second of a 3-year production cycle, IMPACT had signed as of March 31, 2022 pre-sale and reservation contracts for 509 apartments, with a 288.83 million lei value, which is expected to turn into revenue from the second quarter of 2022 until 2024.

The first quarter of the year also brought the inclusion of IMP shares in the Global Micro Cap FTSE Russell indices, part of the FTSE Global Equity Index Series (GEIS) for Emerging Markets. IMPACT’s inclusion in the index series came as a result of meeting the capitalization and liquidity criteria. At the time, only 5 other Romanian companies had been included in the FTSE Russell indices, and the increase of the Romanian companies share brought an increase of visibility and opportunities to attract capital not only for the company, but for the entire local business environment.

In January 2022, IMPACT successfully carried out the first share capital increase action of the year, concluded by registering at the Central Depository the 84,231,295 new shares totaling 58,961,906.50 lei, subscribed through Private Placement. IMPACT’s share capital was thus increased from 393,750,000 lei to 414,807,823.75 lei, with 16 investors participating, 6 of which were institutional investors.

The Company plans to continue implementing the 6-year investment strategy, approved last year, aimed at developing new projects both in Bucharest and in other important cities of the country.

As of March 31, 2021, IMPACT owned 89.4 ha of land with an EPRA value estimated at 799.2 million lei, of which 73.5 ha with immediate development potential, on which new large-scale projects with mixed functions and infrastructure projects will be erected. In addition to the expansion process at national level, the Company has diversified its current portfolio of projects, getting involved in the development of the largest community center in a private residential complex, which will include wellness club, shopping center, office building, public school and kindergarten.

About Impact Developer & Contractor S.A.

With 31 years of experience on the market, IMPACT Developer & Contractor SA is the first real estate developer listed on the Bucharest Stock Exchange. The shares of IMPACT Developer & Contractor SA (“IMP”) are listed on the Premium category of the Bucharest Stock Exchange, the company having a market capitalization of 1,028,723,402.90 lei (as of May 13, 2022). The Company uses the best practices of corporate governance, transparency, accountability and communication with investors, obtaining the 10th rating at the VEKTOR valuation made by the Association for Investor Relations on the Romanian Stock Exchange. The mission of IMPACT Developer & Contractor is to develop communities, through sustainable projects, at BREEAM Excellent quality standards, nZEB certified, both in Bucharest and in the major cities of the country. Among the developer’s reference projects are GREENFIELD Băneasa and Luxuria Residence, the latter being the only residential project in Bucharest with BREEAM Excellent certification. As part of the expansion strategy at national level, in 2020 IMPACT started in Constanta the construction of the Boreal Plus residential project, a mixed project consisting of villas and apartment blocks, and this year it will start the construction of the Greenfield Copou residential project, in Iasi.

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