A significant 24.4% rise in 2002 results ~ Dividend increase to €, 0.64 per share ~ Positive outlook for 2003

Key consolidated and audited figures

An activity growing by 16.2%

Consolidated turnover, published on 27 January, totalled M€ 208.5, up 16.2% compared to 2001. Compared to a rate of 12% in 2001, this performance reflects the calibre of activity growth within the group.

Organic growth totalled 10% for the year as a whole, while acquisitions represented 6.2%. Turnover growth was recorded in all the group’s activities.

As indicated, the rate of acquisitions negotiated accelerated significantly during the second half of the year. Over the full year, 42 acquisitions of property management companies have been realized, and their turnover will be for the most part integrated in the first half of 2003. The network growth dynamic (property rental and property management, rental and sales) was thus confirmed with the number of agencies increasing from 150 at the end of 2001 to 167 at the end of 2002.

Results rising more quickly than activity growth

Operating income rose 15.1% from M€ 30.8 to M€ 35.4. The operating margin remained stable at 17%, despite a decrease in net interest margin on principal funds.

Profit from ordinary activities totalled M€ 32.6, up 21.1% on 2001, the increase being greater than the rise in operating income. The group has notably reduced its financial charges thanks to the drop in indebtedness and to the positive impact of reduced interest rates.

Net profit for the period rose 24.4% from M€ 16.4 to M€ 20.4. This increase, which exceeded the rise in profit from ordinary activities, was attributable to the lower rise in minority interests (from M€ 0.33 to M€ 0.37) and taxes (from M€ 9.75 to M€ 11.14).

As net profit growth fo??r the period was again higher than turnover growth, the FONCIA net margin (net profit to turnover) increased from 9.1% in 2001 to 9.8% in 2002.

Strong and improved financial structure

Growth of results has enabled FONCIA to improve again its financial structure, maintaining its ability to develop through acquisitions. The debt/equity ratio continues therefore to fall, from 45% at the end 2001 to 39% at the end of 2002. The year’s group investments were nearly fully covered by cash flow from operations.

In his comments on these results, Jacky Lorenzetti, FONCIA Chairman and Chief Executive Officer, explained: “As in 2001, the FONCIA 2002 results have exceeded the forecasts. This was made possible by the increasing need for services in the residential property sector that steadily grows in the long-term and remains almost unaffected by fluctuations in the economic climate. In addition, a highly fragmented market gives room for growth by acquisition. Thus, the FONCIA business model continues to bear fruit both in terms of activity and profitability.

I am confident about 2003, which should herald an increase of around 15% for our activities and continuous growth for our results. We are now considering opening our acquisition strategy to other European countries, while maintaining the same careful acquisition and integration policies which contributed to our profitable growth in France.”

Dividends

At the Annual General Meeting of 27 May 2003, the FONCIA Board of Directors will propose the distribution of a net dividend of € 0.64 per share, up 64%. The dividend payment date is set at 16 June 2003.

FONCIA:

FONCIA is the French leader in residential real estate services. The FONCIA trade name combines the proximity of a network of local offices??, with the efficiency of a national group currently number one for property management and sales. Manager, joint property manager, rental agent and agent for the purchase and sale of property, FONCIA also specialises in the management of real estate investment trusts (REIT) and corporate real estate advisory services.

Source : Actus