TECHNOPOLIS PLC PRESS RELEASE May 7, 2014 at 8:05 a.m.
Investments in 2013 Accelerated Technopolis Growth
In the first quarter of 2014 EPRA-based (European Public Real Estate Association) the direct result rose by 56.0% from 8.0 million euros to 12.8 million euros compared to 2013. The direct result per share rose from 0.10 euros to 0.12 euros. Net sales rose 33.5% from 29.7 million euros to 39.7 million euros and EBITDA by 47% from 14.0 million euros to 20.6 million euros.
CEO Keith Silverang:
“It was already clear at the end of last year that Technopolis would experience a significant growth in both net sales and EBITDA during 2014. We also knew that the successful integration of our acquisitions, taking advantage of better scale and operational efficiency, would play a key role in our success this year.”
The Technopolis concept gives the company significant chain-related scale advantages. Revenue growth has outstripped administrative costs, and this is visible in the rising EBITDA margin.
Investors are worried about the Ukrainian crisis and its effects on Russian economy. But as Silverang points out, Technopolis has a well-diversified portfolio with limited direct exposure to Russia.
“Our direct Russian risk is limited to 4.5% of net sales, 2.9% of EBITDA and 5.0% of fair values. Most of the foreign exchange impact is related to the translation risk of St. Petersburg balance sheet items”, Silverang says. “In Russia we operate only in St. Petersburg and we have no plans to expand our operations beyond it. We see St. Pete as part of our Baltic Rim campus network.”
According to Silverang 2014 has been primarily about business basics and will remain so for the remainder of the year.
“We will focus on the integration of new campuses, improving profitability and operational efficiency”, says Silverang “We will not rule out acquisitions should the opportunity arise, but they have to meet strict investment criteria. We can execute these investments with our existing debt and equity resources, as well as strong operational cash flow.”
Technopolis remains confident in its 2014 growth guidance. It expects net sales to grow by 27-32% and EBITDA by 35-40%.
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Technopolis provides the best addresses for companies to operate and succeed in five countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 21 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,500 companies and their 39,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.