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Abitare In
Quarterly Report • Aug 7, 2024
4293_rns_2024-08-07_aa43a41c-7b73-45f7-8e32-09bbd17f5489.pdf
Quarterly Report
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STILISTI URBANI - MADE IN MILAN
INTERIM DIRECTORS' REPORT AS AT 30 JUNE 2024
| MANAGEMENT AND CONTROL BODIES 3 |
|---|
| GROUP STRUCTURE AS AT 30 JUNE 2024 4 |
| INTRODUCTION5 |
| ABITARE IN GROUP'S INTERIM REPORT ON OPERATIONS 7 |
| Highlights8 |
| Pipelines under development10 |
| Group operating performance in the period ending 30 June 202412 |
| Reclassified consolidated income statement 12 |
| Reclassified consolidated statement of financial position 14 |
| Financial debt 15 |
| Main activities and events in the period 16 |
| Events after 30 June 202416 |
| Outlook 17 |
| Research & Development activities17 |
| Overview of the main pending litigations17 |
| Other information17 |
| Consolidated Statement of Financial Position19 |
| Consolidated Income Statement 20 |
| Consolidated Statement of Comprehensive Income21 |
| Statement of Changes in Equity22 |
| Consolidated Statement of Cash Flows (indirect method)23 |
MANAGEMENT AND CONTROL BODIES
Board of Directors
Luigi Francesco Gozzini - Chairman and Chief Executive Officer Marco Claudio Grillo - Chief Executive Officer Antonella Lillo - Independent Board member Stefano Massarotto - Independent Board member Mario Benito Mazzoleni - Independent Board member Nicla Picchi - Independent Board member Eleonora Reni - Board member Giuseppe Carlo Vegas - Board member
Board of Statutory Auditors
Ivano Passoni - Chairman Matteo Ceravolo - Standing statutory auditor Elena Valenti - Standing statutory auditor Fanny Butera - Substitute statutory auditor Marco Dorizzi - Substitute statutory auditor
Auditing firm BDO Italia S.p.A.
Manager in charge of preparing the accounting documents Cristiano Contini
Group structure as at 30 June 2024
MyTime S.r.l., GMC Holding S.r.l.
INTRODUCTION
On 18 March 2016, Legislative Decree no. 25 of 15 February 2016 (the "Decree"), transposing Directive 2013/50/EU amending Directive 2004/109/EC on information about listed issuers (so-called Transparency Directive) came into force. The Decree eliminated the obligation to publish the interim directors' report in order to reduce administrative charges for listed issuers and to mitigate the focus on short-term results by issuers and investors.
With its notice of 21 April 2016, Borsa Italiana specified that for issuers with shares listed in the Star segment, the provisions of the Stock Exchange Regulations on the publication of the interim directors' report and, in particular, Article 2.2.3, paragraph 3, of the Stock Exchange Regulations, will continue to apply.
Consequently, this interim directors' report has been prepared to follow on from the previous interim reports, as indicated by the existing Article 154-ter, paragraph 5, of the Consolidated Law on Finance ("TUF"). Therefore, the provisions of the international accounting standard on interim financial reporting (IAS 34 "Interim financial reporting") are not adopted.
The International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the related interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), endorsed by the European Commission and in force at the time of approval of this Report, have been applied for the valuation and measurement of the accounting figures included in this Interim Directors' Report. The accounting standards and criteria are consistent with those used for the preparation of the financial statements at 30 September 2023, which should be referred to for further details.
In view of the fact that Abitare In S.p.A. (hereinafter also "Abitare In") holds controlling interests, the Interim Directors' Report has been prepared on a consolidated basis. All the information included in this Re
port relates to the consolidated data of the Abitare In Group.
The Interim Directors' Report at 30 June 2024 was approved by the Board of Directors on 7 August 2024.
The subsidiaries' quarterly reports, used for the preparation of this Consolidated Interim Directors' Report, were reclassified for consistency with the parent company.
The data in this document are expressed in Euro, unless otherwise indicated.
| Subsidiaries Registered office |
Share Capital | % of ownership | ||
|---|---|---|---|---|
| Abitare In Development 3 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Abitare In Development 4 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Abitare In Development 5 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Abitare In Development 6 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Abitare In Development 7 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Abitare In Maggiolina S.r.l. | Milan, via degli Olivetani 10/12 | 100,000 | 100% | |
| Accursio S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Citynow S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Costruire In S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Creare S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Deametra Siinq S.r.l. | Milan, via degli Olivetani 10/12 | 50,000 | 70.96% | |
| Edimi S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Homizy Siiq S.p.A. | Milan, via degli Olivetani 10/12 | 115,850 | 70.96% | |
| Hommi S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Housenow S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Hub32 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Immaginare S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Just Home S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Lambrate Twin Palace S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Milano City Village S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Mivivi S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| MyCity S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| MyTime S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| New Tacito S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Palazzo Naviglio S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Porta Naviglio Grande S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Savona 105 S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Smartcity Siinq S.r.l. | Milan, via degli Olivetani 10/12 | 50,000 | 70.96% | |
| TheUnits S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Trilogy Towers S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Volaplana S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% | |
| Ziro S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% |
The following companies are included in the scope of consolidation (on a line-by-line basis):
*: 70.96% owned by Abitare In S.p.A. through Homizy SIIQ S.p.A.
Compared to the previous year, the following company entered the scope of consolidation:
| Subsidiaries | Registered office | Share Capital | % of ownership |
|---|---|---|---|
| GMC Holding S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 | 100% |
Compared with the previous year, the following company has left the scope of consolidation as a result of its sale of its entire equity investment to third parties on 24 November 2023:
| Subsidiaries | Registered office | Share Capital |
|---|---|---|
| City Zeden S.r.l. | Milan, via degli Olivetani 10/12 | 10,000 |
ABITARE IN GROUP'S INTERIM REPORT ON OPERATIONS
The AbitareIn Group specializes in the creation of residential projects focused on urban regeneration and redevelopment. This includes the acquisition of disused or abandoned properties, their demolition, and the construction of new residential complexes (demolition and construction are fully outsourced through the signing of contracts). The Group primarily targets families, focusing its development activities mainly in the semi-central and semi-peripheral areas of Milan. The selection of these areas is the result of careful research conducted by an internal team of the Company, based on socio-economic fabric, demographic dynamics, and the supply-demand ratio.
Urban regeneration, at the core of our daily work, is also an ethical challenge for us: to give new dignity to spaces and the people who inhabit them. For this reason, we select properties and areas with characteristics that favor their value increase over time and positively contribute to the quality of urban living.
In this context, innovation and building performance are essential factors that enable us to maintain leadership and competitiveness in a market where the demand for homes is increasingly oriented towards high-energy performance buildings, characterized by responsible management of natural resources, and with particular attention to the well-being of the residents.
AbitareIn is aware of operating in a context of urban regeneration that involves various interests: therefore, our goal is to pursue the sustainability of projects from not only an economic but also a social and environmental perspective.
In this effort, we are guided by a system of values that centers on environmentally respectful architecture and territorial dynamics (Built for Planet), with attention to people, starting with customers and our resources who help them develop and personalize their home projects (Built for People). AbitareIn looks beyond the horizon of individual residential developments, with a long-term industrial vision, transparent governance, and scalable regeneration projects that have indirect impacts on the city and its inhabitants (Built for Prosperity).
Thus, our model is capable of creating value for all stakeholders: shareholders, customers, employees, and the city. To achieve these results, we are constantly working on several fronts:
- Refining the business model, which, thanks to the corporate structure, project financing methods, and realization timelines, guarantees our shareholders;
- Paying strong attention to the environmental impact of projects, through the construction of only highly energy-efficient buildings and significant green areas;
- Maximizing effects on the city and territory through urban regeneration projects that help increase the qualitative standard of buildings;
- Investing resources in continuous training for employees and collaborators, both on professional topics and to create a positive and proactive working environment.
The realization of our sustainable urban regeneration projects contributes to creating value for the city and its neighborhoods:
-
- The recovery of abandoned and dilapidated buildings immediately results in the revitalization of not only the targeted space but the entire neighborhood, leading to an increase in the value of surrounding properties.
-
- Housing projects are often integrated with the construction of public works benefiting the entire neighborhood.
-
- In the case of old buildings affected by significant environmental issues, the intervention also includes soil remediation and the removal and disposal of hazardous materials such as asbestos, benefiting the safety and well-being of all citizens.
-
The construction of residential complexes comprising hundreds of apartments leads to an increase in the population in the area, thereby increasing the demand for services, which translates into higher revenue for neighborhood businesses and the emergence of new activities.
Since the end of 2019, the Group has launched the "Homizy" project. Homizy SIIQ S.p.A. is now an Innovative SME, 70.7% owned by the parent company Abitare In S.p.A., dedicated to developing a new strategic business line, specifically the development and leasing of residential properties through co-living solutions, listed on the Euronext Growth Milan, Professional segment.
In particular, Homizy aims to offer young people, aged between 20 and 35, who are embarking on a career in a city different from their place of origin or who are seeking housing autonomy from their families, a housing solution that guarantees efficient management and maintenance, innovative services, and socialization spaces.
Highlights (at the date of approval of this report)
Statement of financial position highlights
as at 30.06.2024
1. Of which 19,900 sqm to be developed under affordable and/or social housing, and 16,500 m2 of net saleable area for development with the co-living formula by the subsidiary Homizy
2. No. of apartments, considering an average surface area of 92 m2 for the marketing in unrestricted building and 82 m2 for social housing. the actual number of apartments built and for which contracts have been signed - without prejudice to the combined floor area, may vary depending on the level of customisation of the real estate units
Pipeline under development (at the date of approval of this report)
As of the approval date of this report, the AbitareIn Group is the owner or has binding agreements to purchase 20 areas, corresponding to 223,0001 square meters of commercial development, equivalent to 2,450 standard-size apartments2 (the Development Pipeline). The various initiatives included in the Pipeline are located in strategic areas of the City of Milan (with the exception of one area located in Rome) and are at different stages of development, according to the Company's business model:
Of the apartments in the pipeline, 4902 apartments have been sold (on a preliminary basis) to date, for a total value of approximately €223 million, with contracted advances (guaranteed by an insurance surety bond) amounting to €67.3 million. Currently, 3742 apartments are under construction.
Delivered units
To date, the Group has delivered 8392 apartments across various projects, including Abitare In Poste, Abitare In Maggiolina, Olimpia Garden, Milano City Village, Palazzo Naviglio, and Trilogy Towers, for a total value of approximately €313 million.
1Of which 19,900 sqm to be developed under affordable and/or social housing, and 16,500 sqm of net saleable area for development with the co-living formula by the subsidiary Homizy
2 No. of apartments, considering an average surface area of 92 m2 for the marketing in unrestricted building and 82 m2 for social housing. the actual number of apartments built and for which contracts have been signed - without prejudice to the combined floor area, may vary depending on the level of customisation of the real estate units
Group operating performance in the period ending 30 June 2024
The main elements of the reclassified consolidated income statement and the reclassified consolidated statement of financial position are presented below.
| % on core | % on core | |||
|---|---|---|---|---|
| Description | 30.06.2024 | business | 30.06.2023 | business |
| Amounts in Euro units | revenues | revenues | ||
| Revenue from the sale of real estate | 13,614,881 | 26.06% | 198,972,179 | 199.81% |
| Changes in inventory of work in progress and finished products | 58.95% | (117,076,655) | -117.57% | |
| Change in inventory of real estate complexes purchased | 2,690,254 | 5.15% | 2,550,000 | 2.56% |
| Other revenue | 9.85% | 15,137,575 | 15.20% | |
| Total consolidated revenues | 52,251,739 | 100.00% | 99,583,099 | 100.00% |
| Production costs | 36,140,566 | 69.17% | 60,825,710 | 61.08% |
| ADDED VALUE | 16,111,173 | 30.83% | 38,757,389 | 38.92% |
| Personnel expenses | 3,127,842 | 5.99% | 2,712,216 | 2.72% |
| Other operating expenses | 2,212,325 | 4.23% | 2,396,635 | 2.41% |
| EBITDA | 10,771,006 | 20.61% | 33,648,538 | 33.79% |
| Depreciation/amortisation, impairment and other provisions | 978,332 | 1.87% | 965,028 | 0.97% |
| EBIT | 9,792,674 | 18.74% | 32,683,510 | 32.82% |
| Financial income and expenses and adjustments to financial assets | (3,686,868) | -7.06% | (7,409,472) | -7.44% |
| EBT | 6,105,806 | 11.69% | 25,274,038 | 25.38% |
| Income taxes | (3,212,077) | -6.15% | (2,409,125) | -2.42% |
| Profit (loss) for the year | 2,893,729 | 5.54% | 22,864,913 | 22.96% |
Reclassified consolidated income statement
The evaluation of the economic performance of the Group is carried out considering some alternative performance indicators (Alternative Performance Measures), as required by the European Securities and Markets Authority (ESMA) following the issue of CONSOB communication of 3 December 2015 n.92543 /15, which makes applicable the guidelines published on 5 October 2015 by ESMA regarding their presentation in the regulated information disclosed or in the prospectuses published starting from 3 July 2016.
Below is the description of the indicative economic performance indicators used by the Group:
- Added Value (or VA): represents an indicator of operational performance and is calculated by subtracting production costs from the revenues of the Group's core management;
- EBITDA (or Gross Operating Margin): represents an indicator of operating performance and is calculated by adding amortization, depreciation and other provisions to EBIT.
The third quarter of the financial year closed with CONSOLIDATED REVENUES equal to € 52.3 million (€ 99.6 million in the same period of the previous financial year, which were substantially influenced by the deliveries of the apartments of three projects and the conclusion of the 'operation in via Cadolini), deriving from the sum:
-
€ 13.61 million in Revenues from Sales (€ 198.97 million in the third quarter of the last financial year) deriving mainly from the deliveries of the remaining real estate units of the Milano City Village projects for an amount equal to € 3.27 million, Palazzo Naviglio for an amount equal to € 3.20 million and Trilogy Towers for an amount equal to € 3.74 million. Revenues from sales also include the sale of the area located in the Corvetto district of Milan for a total amount of € 3.00 million and the conclusion of the operation in the Greco Pirelli area of Milan for a total amount of €0.40 million. The operation was concluded through the sale of the total shareholding of the company which stipulated the purchase and sale contract for the purchase of the area;
-
€ 2.69 million change in inventories for the purchase of new real estate complexes (€ 2.55 in the third quarter of the last financial year), relating to the purchase of the area located in the Nolo district of Milan;
- € 30.8 million of positive change in inventories due to work progress, net of the warehouse release mainly linked to the deliveries (consequent to the sale deed) of the apartments to the customers of Milano City Village, Palazzo Naviglio and Trilogy Towers (€ 117, 08 million negative change in inventories due to work progress in the third quarter of the last financial year). Production progress is equal to €43.6 million (€53.2 million as at 30 June 2024). Work is progressing on Porta Naviglio Grande - due for delivery at the end of the year -, The Units, Lambrate Twin Palace, Palazzo Sintesy and BalduccioDodici.
- Other operating revenues of € 5.14 million at 30 June 2024 (€ 15.14 million at 30 June 2023) mainly include:
• increases in tangible fixed assets in progress relating to investments in properties intended for rental in the form of co-living by the Smartcity Siinq S.r.l. subsidiaries. and Deametra Siinq S.r.l. respectively for an amount of € 0.74 million and € 1.86 million;
• Operating contribution according to art. 14 of Legislative Decree no. 63/2013 pertaining to the subsidiary Trilogy Towers S.r.l. for an amount equal to € 0.94 million; • Other revenues for services to third parties relating to pre- and post-sales services pertaining to the holding company Abitare In S.p.A. for an amount equal to € 1.15 million.
The CONSOLIDATED EBT, equal to € 6.1 million (€ 25.27 million in the third quarter of 2023, positively influenced by the conclusion of the via Cadolini operation), is affected by the failure to start the new projects.
The EBT figure is negatively affected by € 0.77 million, by the devaluation of the investment in Tecma Solutions S.p.A. deriving from the fair value measurement at the closing date of the reference period (as of 30 June 2023 it had had a negative impact of € 2.69 million).
CONSOLIDATED EARNINGS amounted to € 2.89 million (€ 22.86 million as at 30 June 2023).
| Reclassified consolidated statement of financial position | ||||
|---|---|---|---|---|
| -- | ----------------------------------------------------------- | -- | -- | -- |
| Investments | ||
|---|---|---|
| Amounts in Euro units | 30.06.2024 | 30.09.2023 |
| Intangible assets | 2,137,215 | 2,315,962 |
| Property, plant and equipment | 30,395,993 | 27,525,067 |
| Financial assets | 115,169 | 184,544 |
| Equity investments in other companies | 1,243,374 | 2,022,472 |
| Other non-current assets | 1,830,878 | 2,080,880 |
| Other current assets | 20,517,448 | 28,868,549 |
| Inventory | 204,641,146 | 169,786,314 |
| Other current and non-current liabilities | (81,012,715) | (84,610,342) |
| NET INVESTED CAPITAL | 179,868,508 | 148,173,446 |
| Cash and cash equivalents | (17,221,112) | (28,917,054) |
| Financial receivables | (3,473,867) | (2,200,000) |
| Financial assets carried at fair value | (14,489,779) | (15,220,554) |
| Current financial payables | 16,819,136 | 11,105,340 |
| Non-current financial payables | 89,843,996 | 73,751,305 |
| FINANCIAL DEBT | 71,478,374 | 38,519,037 |
| Share capital | 133,075 | 133,004 |
| Reserves and profit (loss) carried forward | 105,213,043 | 85,231,865 |
| Profit (loss) for the year | 3,044,016 | 24,289,540 |
| EQUITY | 108,390,134 | 109,654,409 |
| SOURCES OF FINANCING | 179,868,508 | 148,173,446 |
The change in intangible assets is mainly due to the increase of € 0.43 million, net of amortization for the period, relating to the investments made by the Group in the development and integration activities of the AbitareIn Corporate E-Commerce platform, fully integrated with all business processes, aimed at selling homes online and developing and integrating an online configurator for personalizing apartments. These costs relate to services rendered by third parties.
The increase in tangible assets is mainly due to investments in properties intended for rental in the co-living formula by the subsidiary Homizy SIIQ S.p.A. for a total amount of € 2.6 million.
The change in financial assets is due exclusively to the mark to market valuation of the cash flow hedge derivatives stipulated by the holding company Abitare In S.p.A. and by the subsidiary Porta Naviglio Grande S.r.l.
Equity investments in other companies were reduced by an amount equal to € 0.77 million resulting from the devaluation of the investment in Tecma Solutions S.p.A. at fair value.
The change in warehouse inventories, net of discharges resulting from the deliveries of the real estate units of the Milano City Village, Palazzo Naviglio and Trilogy Towers projects, is mainly due to the progress of the works on the Porta Naviglio Grande, TheUnits, Lambrate Twin construction sites Palace, BalduccioDodici and Palazzo Sintesy.
Financial Debt
| Financial Debt | ||||
|---|---|---|---|---|
| 30.06.2024 | 30.06.2024 | 30.09.2023 | Change | |
| amounts in Euro units | ||||
| A . | Cash and cash equivalents | 17,221,112 | 28,917,054 | (11,695,942) |
| B. | Means equivalent to cash and cash equivalents | - | - | - |
| C. | Other current financial assets | 17,963,646 | 17,420,554 | 543,092 |
| D. | Liquidity (A) + (B) + (C) | 35,184,758 | 46,337,608 | (11,152,850) |
| E | Current financial payables | - | - | - |
| F. | Current portion of non-current debt | 16,819,136 | 11,105,340 | 5,713,796 |
| G . | Current financial debt (E) + (F) | 16,819,136 | 11,105,340 | 5,713,796 |
| H. | Net current financial debt (G) - (D) | (18,365,622) | (35,232,268) | 16,866,646 |
| I. | Non-current financial payables | 89,843,996 | 73,751,305 | 16,092,691 |
| J. | Debt instruments | - | - | - |
| K. | Trade payables and other non-current payables | - | - | - |
| L. | Non-current financial debt (I) + (J) + (K) | 89,843,996 | 73,751,305 | 16,092,691 |
| M. Total financial debt (H) + (L) | 71,478,374 | 38,519,037 | 32,959,337 |
Net financial debt represents an indicator of the financial structure and is calculated as a sum of short-term financial debts ("Current financial debt" and "Current portion of non-current debt") and long-term financial debts ("Non-current financial debt", "Debt instruments" and "Trade payables and other non-current payables") net of cash and cash equivalents ("Cash and cash equivalents", "Cash equivalents" and "Other current financial assets"). This index is calculated as required by guideline no. 39 issued on 4 March 2021, applicable from 5 May 2021 in line with warning no. 5/21 issued by CONSOB on 29 April 2021.
The other current assets mainly consist of investment lines carried out by the holding company Abitare In S.p.A. whose duration does not exceed 12 months.
Current and non-current financial debts are mainly made up of financial debts to credit institutions for a total amount of € 105.45 million and the residual part equal to € 1.21 million deriving from leasing contracts signed by the holding company Abitare In S.p.A.
Financial debt at 30 June 2024 amounted to € 71.48 million, compared to € 38.52 million at 30 September 2023. This change is mainly attributable to the outlay due to the payment of the dividend which took place on 4 October 2023 (resolved in the 2023 financial year), for € 9.9 million, and from the execution of the treasury share purchase plan for € 3.9 million. Debt is also negatively affected by the payment of advances relating to the future purchase of new areas for an amount of € 1.1 million, by the purchase of new areas for an amount of € 0.9 million (net of advances paid in previous years), from the payment of taxes for an amount of € 4.7 million and from overall investments of € 31 million for the progress of construction sites.
Debt is positively influenced by the proceeds deriving from the deeds of the properties in Milan City Village, Trilogy Towers and Palazzo Naviglio for a total amount of € 7.4 million, by the deposits and advances collected relating to the preliminaries of the projects marketed for a total amount equal to € 8 million and from the proceeds relating to the sale of the area located in the Corvetto district of Milan for an amount of € 3 million.
The trend in liquid assets is mainly attributable to the generation of cash from operating activities for an amount of € 14.93 million, from investment activities for an amount of € 3.64 million, from the taking out of financing for an amount equal to € 28.8 million, from the repayment of loans for an amount equal to € 7.1 million, from the payment of dividends for an amount equal to € 9.9 million, and from the purchase of treasury shares for an amount equal to € 3.9 million, as reported in the financial statement.
Main activities and events in the period
During the reference period, the Group continued its operational activities on the areas of the pipeline, both on those with ongoing construction activities and those in less advanced stages. The preparatory development activities for the project realization are carried out continuously by the Group, which currently has a pipeline of 20 projects in various stages of development.
In November, the contract for the implementation of the BalduccioDodici project was awarded, and construction works were initiated.
Also in November, the Company announced the expansion of its business model by providing services to third-party developers. The first project of this kind emerged in collaboration with Techbau S.p.A., a leading engineering and construction company, and the main developer and general contractor in the private sector nationwide. Techbau recently initiated a new residential development project in Milan called "Corte dei Principi." Additionally, there is another project, Aurelia New Living, also developed by Techbau, in the city of Rome.
AbitareIn has made its technological platform and expertise available for marketing and communication activities, product optimization, floor plan refinement, apartment customization, and customer care in support of these projects.
On December 19, 2023, the final contract was signed for the sale of the entire shareholding in the capital of City Zeden Srl and the shareholder loan granted to it, for a total consideration of €2.1 million. The sold company was the prospective buyer of a property located in Milan, in the Greco district.
In January, a company within the Group signed a preliminary purchase agreement for a plot located in Milan, in the area of Porta Romana Scalo. The contract involves a total consideration, payable at the notarial deed, of approximately €4.5 million.
On January 23, 2024, the Shareholders' Assembly of AbitareIn approved the appointment of the new Board of Directors and the new Board of Statutory Auditors, in office until the approval of the financial statements closing on September 30, 2026. The composition is as follows:
Board of Directors:
- Luigi Francesco Gozzini Chairman and CEO
- Marco Claudio Grillo CEO
- Eleonora Reni Director
- Mario Benito Mazzoleni Independent Director
- Giuseppe Vegas Independent Director
- Nicla Picchi Independent Director
- Antonella Lillo Independent Director
- Massimo Massarotto Independent Director
Board of Statutory Auditors:
- Ivano Passoni Chairman
- Elena Angela Maria Valenti Effective Auditor
- Matteo Ceravolo Effective Auditor
- Dorizzi Marco Substitute Auditor
- Fanny Butera Substitute Auditor
During the reporting period, the Company also continued with its share buyback plan. As of the closing date of the period, the Company holds 913,727 treasury shares, equivalent to 3.43% of the share capital.
On May 9, 2024, the Group completed the sale of an area located in the Corvetto district, due to a regulatory change (which would have required modifications to the type of project that could be developed) and the well-known stagnation in the issuance of permits by the Municipality of Milan. The sale was completed for an amount of €3 million.
In May, the marketing of the first project under development by AbitareIn, in partnership with Techbau S.p.A., in the city of Rome commenced: the Bombay Palace project. This project involves the renovation of an existing building and will result in the creation of approximately 90 apartments.
Events after 30 June 2024
On July 26, 2024, the Company became aware, through some press articles, of the existence of an investigation related to the "Lambrate Twin Palace" real estate complex, regarding which it has not received any formal communication.
In July, the delivery phase of the housing units of the Porta Naviglio Grande project (already fully sold) began, with finalization visits starting with the prospective buyers.
Also in July, the structures and cladding of the Palazzo Sintesy project were completed, with sales reaching a total value of €40 million.
Outlook
In the ongoing fiscal year, AbitareIn will continue its project marketing activities, utilizing the strategy of so-called "micro-campaigns." This approach allows for better alignment of sale prices with potential market prices and reduces the time between sales and the delivery of real estate units, all without increasing the level of business risk.
As previously announced, the Company has expanded its business model through partnerships with other operators. In these collaborations, AbitareIn provides its technological platform and expertise in marketing and sales activities, product optimization, floor plan refinement, apartment customization, and customer care.
Currently, AbitareIn is serving as a service provider for third parties on two projects, one in Milan and one in Rome.
The Company is also considering expanding its presence in the Rome market, especially in light of the current situation in Milan. AbitareIn is investing in the study of new products that involve the preservation of existing properties, aiming to reduce construction timelines and environmental impact both during construction and in terms of energy efficiency.
Research & Development activities
During the third quarter, the development and integration of the Home-configurator platform was continued. The total investment incurred in the reporting period amounted to Euro 426 thousand.
Overview of the main pending litigations
There were no changes with respect to those described in the half-yearly consolidated financial statements at 30 September 2023.
Other information
Adoption of the legislative simplification process adopted with CONSOB resolution no. 18079 of 20 January 2012
On 10 December 2020, the Board of Directors of Abitare In S.p.A. resolved to adopt the simplification regime provided for in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Regulation adopted by CONSOB with resolution no. 11971 of 14 May 1999, as amended, thus availing itself of the right to waive the obligations to publish the information documents envisaged in Annex 3B of the aforementioned CONSOB Regulation at the time of significant mergers, demergers, capital increases through the contribution of assets in kind, acquisitions and disposals.
Consolidated Statement of Financial Position
| 30.06.2024 | 30.09.2023 | |
|---|---|---|
| Property, plant and equipment | 30,395,993 | 27,525,067 |
| Intangible assets | 2,137,215 | 2,315,962 |
| Financial activities | 115,169 | 184,544 |
| Equity investments in other companies | 1,243,374 | 2,022,472 |
| Deferred tax assets | 1,830,878 | 2,080,880 |
| TOTAL NON-CURRENT ASSETS | 35,722,629 | 34,128,925 |
| Inventory | 204,641,146 | 169,786,314 |
| Financial receivables | 3,473,867 | 2,200,000 |
| Financial assets carried at fair value | 14,489,779 | 15,220,554 |
| Trade receivables | 1,991,131 | 808,301 |
| Other current assets | 12,643,130 | 23,933,618 |
| Current tax assets | 5,883,187 | 4,126,630 |
| Cash and cash equivalents | 17,221,112 | 28,917,054 |
| TOTAL CURRENT ASSETS | 260,343,352 | 244,992,471 |
| TOTAL ASSETS | 296,065,981 | 279,121,396 |
| Share capital | 133,075 | 133,004 |
| Reserves | 46,637,753 | 50,713,330 |
| Profit (loss) carried forward | 54,940,269 | 30,710,405 |
| Profit (loss) for the year | 3,044,016 | 24,289,540 |
| EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT | 104,755,113 | 105,846,279 |
| Profit and reserves attributable to non-controlling interests | 3,635,021 | 3,808,130 |
| EQUITY | 108,390,134 | 109,654,409 |
| Non-current financial liabilities | 89,843,996 | 73,751,305 |
| Employee benefits | 317,700 | 389,915 |
| Other non-current liabilities | 390,975 | 335,184 |
| Customer down payments and deposits | 52,204,794 | 44,181,101 |
| Deferred tax liabilities | 5,411,723 | 3,316,613 |
| TOTAL NON-CURRENT LIABILITIES | 148,169,188 | 121,974,118 |
| Current financial liabilities | 16,819,136 | 11,105,340 |
| Trade payables | 9,940,678 | 7,161,139 |
| Other current liabilities | 9,280,008 | 19,188,275 |
| Customer down payments and deposits | 512,246 | 3,029,646 |
| Current tax liabilities | 2,954,591 | 7,008,469 |
| TOTAL CURRENT LIABILITIES | 39,506,659 | 47,492,869 |
| TOTAL LIABILITIES | 187,675,847 | 169,466,987 |
| TOTAL LIABILITIES AND EQUITY | 296,065,981 | 279,121,396 |
Consolidated Income Statement
| 30.06.2024 | 30.06.2023 | |
|---|---|---|
| Revenue from sales | 13,614,881 | 198,972,179 |
| Change in inventory for progress of works | 30,801,416 | (117,076,655) |
| Change in inventory for new sites purchased | 2,690,254 | 2,550,000 |
| Other revenue | 5,145,188 | 15,137,575 |
| TOTAL REVENUE | 52,251,739 | 99,583,099 |
| Property purchased for redevelopment for sale | 2,690,254 | 2,550,000 |
| Property purchased for redevelopment for rental | - | 12,500,000 |
| Raw materials, consumables, supplies and goods | 90,438 | 164,562 |
| Services | 33,243,383 | 45,539,456 |
| Rentals and similar | 116,491 | 71,692 |
| Personnel expenses | 3,127,842 | 2,712,216 |
| Depreciation/Amortisation | 944,070 | 925,223 |
| Impairment losses and provisions | 34,262 | 39,805 |
| Other operating expenses | 2,212,325 | 2,396,635 |
| TOTAL OPERATING EXPENSES | 42,459,065 | 66,899,589 |
| EBIT | 9,792,674 | 32,683,510 |
| Financial income | 2,652,433 | 240,766 |
| Financial expenses | (6,339,301) | (7,650,238) |
| EBT | 6,105,806 | 25,274,038 |
| Income taxes | (3,212,077) | (2,409,125) |
| PROFIT (LOSS) FOR THE YEAR | 2,893,729 | 22,864,913 |
| Of which: | ||
| Net profit (loss) attributable to non-controlling interests | (150,287) | (47,539) |
| Net profit (loss) attributable to the owners of the Parent | 3,044,016 | 22,912,452 |
Consolidated Statement of Comprehensive Income
| 30.06.2024 | 30.06.2023 | |
|---|---|---|
| Profit (loss) for the year | 2,893,729 | 22,864,913 |
| Other comprehensive income | ||
| That will not be subsequently reclassified in profit or | ||
| loss for the year | ||
| Employee benefits | (37,892) | (18,488) |
| Tax effect | 9,094 | 4,436 |
| Total | (28,798) | (14,052) |
| That will be subsequently reclassified in profit or loss | ||
| for the year | ||
| Hedging instruments | (69,375) | (69,304) |
| Tax effect | 16,650 | 16,633 |
| Total | (52,725) | (52,671) |
| Total change in OCI reserve | (81,523) | (66,723) |
| Comprehensive income for the period | 2,812,206 | 22,798,190 |
| Of which: | ||
| Net profit (loss) attributable to non-controlling interests | (150,287) | (47,539) |
| Net profit (loss) attributable to the owners of the Parent | 2,962,493 | 22,845,729 |
| Earnings per share | 0.11 | 0.86 |
| Diluted earnings per share | 0.11 | 0.83 |
Statement of Changes in Equity
| Share capital | Share premium reserve |
Legal reserve |
Stock grant reserve |
FTA reserve | Treasury stock reserve |
Consolidatio n reserve |
OCI reserve | Profit from previous years |
Profit for the year |
Total | Equity attributable to non-controlling interests |
Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity at 1 October 2022 | 132,654 | 40,743,801 | 39,651 4,113,251 280,589 | - | 5,876,568 248,466 | 32,743,810 | 7,892,419 | 92,071,209 | 3,936,171 | 96,007,380 | |||
| Profit (loss) for the year | 22,912,452 | 22,912,452 | (47,539) | 22,864,913 | |||||||||
| Actuarial valuation of TFR | (14,052) | (14,052) | (189) | (14,241) | |||||||||
| Hedging derivates valuation | (52,671) | (52,671) | (52,671) | ||||||||||
| Stock grant plan | 350 | 336,687 | 130,894 | 467,931 | 467,931 | ||||||||
| Allocation of the profit for the year | 7,892,419 (7,892,419) | - | - | ||||||||||
| Equity at 30 June 2023 | 133,004 | 41,080,488 | 39,651 4,244,145 | 280,589 | - | 5,876,568 181,743 | 40,636,229 22,912,452 115,384,869 | 3,888,443 119,273,312 |
| Share capital | Share premium reserve |
Legal reserve |
Stock grant reserve |
FTA reserve | Treasury stock reserve |
Consolidatio n reserve |
OCI reserve | Profit from previous years |
Profit for the year |
Total | Equity attributable to non-controlling interests |
Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity at 1 October 2023 | 133,004 | 41,080,488 | 39,651 4,401,853 280,589 (1,115,515) 5,876,568 149,696 | 30,710,405 24,289,540 105,846,279 | 3,808,130 109,654,409 | ||||||||
| Profit (loss) for the year | 3,044,016 | 3,044,016 | (150,287) | 2,893,729 | |||||||||
| Actuarial valuation of TFR | (28,798) | (28,798) | (28,798) | ||||||||||
| Hedging derivatives valuation | (52,725) | (52,725) | (52,725) | ||||||||||
| Purchase of own shares | (3,993,983) | (3,993,983) | (3,993,983) | ||||||||||
| Change in consolidation scope | (59,676) | (59,676) | (22,822) | (82,498) | |||||||||
| Stock grant plan | 71 | 67,767 | (67,838) | - | - | ||||||||
| Allocation of the profit for the year | 24,289,540 (24,289,540) | - | - | ||||||||||
| Equity at 30 June 2024 | 133,075 | 41,148,255 | 39,651 4,334,015 280,589 (5,109,498) 5,876,568 | 68,173 | 54,940,269 | 3,044,016 104,755,113 | 3,635,021 108,390,134 |
Consolidated Statement of Cash Flows (indirect method)
| 30.06.2024 | 30.06.2023 | |
|---|---|---|
| Operating activities | ||
| Profit (loss) for the year | 2,893,729 | 22,864,913 |
| Income taxes | 3,212,077 | 2,409,125 |
| Financial income | (2,652,433) | (240,766) |
| Financial expenses | 6,339,301 | 7,650,237 |
| (Capital gains)/losses from asset disposals | - | - |
| Net accruals to provisions | 122,365 | 140,366 |
| Accrual to stock grant reserve | - | 467,931 |
| Impairment and depreciation/amortisation of property, plant and | ||
| equipment and intangible assets | 944,070 | 925,223 |
| Cash flows before changes in net working capital | 10,859,109 | 34,217,029 |
| Decrease/(increase) in inventory | (34,854,832) | 116,022,403 |
| Increase/(decrease) in trade payables | 2,779,541 | (13,459,518) |
| Decrease/(increase) in trade receivables | (1,182,830) | (476,291) |
| Change in other current/non-current assets and liabilities | 16,699,416 | (45,408,090) |
| Net financial income/expenses collected/paid | (4,316,363) | (4,800,983) |
| Taxes paid | (4,721,821) | 192,474 |
| Use of provisions | (194,713) | (82,107) |
| Cash flows from (used in) operating activities (A) | (14,932,493) | 86,204,917 |
| Investing activities | ||
| Investments in property, plant and equipment | (560,700) | (295,282) |
| Disposal of property, plant and equipment | - | - |
| Real estate investments | (2,603,591) | (13,546,211) |
| Investments in intangible assets | (471,957) | (256,313) |
| Disposal of intangible assets | - | - |
| Other equity investments | - | (23,604) |
| Sale of company, net of cash and cash equivalents | - | - |
| Cash flows from (used in) investing activities (B) | (3,636,248) | (14,121,410) |
| Financing activities | ||
| Bank loans raised | 28,753,542 | 30,693,035 |
| Bank loan repayments | (7,131,036) | (86,431,331) |
| Change in current/non-current financial liabilities | (204,309) | (201,081) |
| Net change in current financial assets | (543,092) | (20,200,000) |
| Change in consolidation scope | (82,498) | - |
| Investment in own shares | (3,993,983) | - |
| Dividends paid | (9,925,824) | - |
| Share capital increase against consideration | - | - |
| Cash flows from (used in) financing activities (C) | 6,872,800 | (76,139,377) |
| Net cash flows in the period (A)+(B)+(C) | (11,695,941) | (4,055,870) |
| Cash and cash equivalents at the beginning of the year | 28,917,053 | 32,365,487 |
| Increase/(decrease) in cash and cash equivalents from 1 October to 30 June | (11,695,941) | (4,055,870) |
| Cash and cash equivalents at the end of the year | 17,221,112 | 28,309,617 |
DECLARATION PURSUANT TO ARTICLE 154 BIS, PARAGRAPH 2 OF LEGISLATIVE DECREE NO. 58/191
The Manager in charge of preparing the accounting and corporate documents Cristiano Contini declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Law on Finance (Legislative Decree 58/1998), that the Interim Directors' Report at 30 June 2024 corresponds to the documentary results, accounting books and records.
The Manager in charge of preparing the accounting and corporate documents Cristiano Contini
On behalf of the Board of Directors The Chairman Luigi Gozzini