Cham Group with "exceptionally high" net profit

Cham Group sold its industrial division in the past financial year and has been a pure real estate company since March 2018. For this reason, and also because of the appreciation of the Papieri site, it achieved an "exceptionally high" net profit of CHF 80.5 million in the 2018 financial year. However, the company emphasizes that the content of this annual report is hardly comparable with the previous year - precisely because of the new focus on the real estate business.

Important milestones were reached for the development of the Papieri site in the past financial year, according to Cham Group: At the beginning of 2018, the development plan was approved and, at the same time, two architectural study contract procedures were carried out for the first construction phase, which is divided into two areas. In parallel, a concept for the future energy supply of the Papieri site was developed, which is largely based on renewable energy. With the Purchase of the Pavatex site adjacent to the Papieri site Cham Group also acquired a strategic land reserve of around 36,500 sqm in September.

Rental income rose from 1.3 to 2.2 million in the reporting year. The reason for the increase is that Sappi has been renting part of the site since March 2018 and will continue to use it until mid-2019. In addition, the Pavatex site contributed commercial building lease interest of around 0.4 million per year.

As part of the conversion of the accounting to the standards for real estate companies, JLL carried out a market valuation of the investment and development properties. These would have resulted in a significant valuation increase of 46 million to the current 138.3 million, Cham Group informs. Reasons for the increase were the approval of the development plan and the acquisition of the Pavatex site. The operating result after revaluation (EBIT) of the group is 45.3 million.

In the current financial year, the first construction project is to be submitted for approval by the authorities. In the second half of the year, demolition work and preparations for construction will begin, which is why rental income from interim uses will be reduced, according to Cham Group. The company is therefore no longer expected to generate a positive result from operating activities until the anticipated completion of the first construction stages in 2022. However, successive increases in value from revaluations are expected from the progress of construction.

New appointments to the Board of Directors and Executive Board

Cham Group also restructured its management organization in 2018. Claude Ebnöther, a member of the Real Estate Committee since 2012, and Annelies Häcki Buhofer, Chairman of the Board of Directors of the main shareholder Buru Holding AG, were newly elected to the Board of Directors. The new CEO of Cham Group as of March 1, 2018 was Andreas Friederich, who previously headed the Real Estate division. At the same time, Daniel Grab, previously Head of Finance and Controlling, took over as CFO.

Another change in the Board of Directors is scheduled for the Annual General Meeting on April 30, 2019. Urs Ziegler is leaving the board after twelve years. Christoph Caviezel, CEO of the listed real estate company Mobimo until the beginning of April, will be proposed for election to the Board of Directors as a new member.

The Board of Directors proposes to again distribute a base dividend of CHF 6.00 per share for the financial year 2018. As soon as the Papieri site generates regular income, the dividend will be based on the profit actually generated. (ah)