Cham Group: High profit thanks to revaluation of Papieri site
Cham Group reports a consolidated profit of CHF 83.6 million for the first half of 2018. Because the company has sold its paper division and is now focusing only on the real estate business, the figures are hardly comparable with the same period last year, the company said.
In the first half of the year, Cham Group set the course for its realignment. The development plan for the Papieri site came into effect in January, and the market value of the site increased by CHF 45.5 million to CHF 95.5 million as a result. The sale of the paper business to the South African Sappi Group was then completed at the end of February.
The sale of the business unit, the change in accounting and the revaluation of the site in Cham resulted in a significant cash inflow and the net profit of 83.6 million in the first half of 2018, Cham Group reports. The operating result achieved after revaluation of the site (EBIT) is 45.2 million (previous year: -0.7 million, restated). Since August 17, 2018, the Group's shares are now traded in the real estate segment of the SIX Exchange.
Study contracts for the first two construction stages have begun
Cham Group is driving forward the transformation of the Papieri site in Cham into a new neighborhood. In doing so, the company intends to cover the entire life cycle of the properties - from development and construction to management and value retention. After the development plan became legally binding, two architectural study commissioning procedures also began for the first two construction stages. From the project proposals of the invited architects, the best contributions are to be selected from September 2018 onwards, followed by the preparation of the building applications and their submission to the authorities for approval.
The selling price for the paper business after transaction costs was 125 million, according to the company. A profit of 38.6 million resulted from the last two months of industrial activity and the subsequent disposal at the end of February. With the cash and cash equivalents available at the end of 2017, Cham Group now has a total of around 150 million in liquidity, which increases flexibility in the implementation of site development. For example, a higher proportion of investment properties at the expense of the proportion of condominiums is conceivable, the company said. Real estate investments beyond the Papieri site are also possible, with development and investment properties in the economic conurbations of the extended region being of particular interest.
New appointments to the Board of Directors and Executive Board
The management organization of Cham Group was also restructured: Claude Ebnöther, who has been involved in the Papieri project as a member of the Real Estate Committee since 2012, and Dr. Annelies Häcki Buhofer, Chairwoman of the Board of Directors of the main shareholder BURU Holding, were newly elected to the Group's Board of Directors. As of March 1, 2018, the new CEO of Cham Group was Andreas Friederich, who previously headed the Real Estate division. At the same time, Daniel Grab, previously Head of Finance and Controlling, took over the function of CFO. (ah)
