DGAP-Ad hoc: HELMA AG

HELMA Eigenheimbau AG publishes new order intake figures and confirms 2017 earnings estimates / Guidance for 2018-2019 converted to consolidated earnings before tax

Lehrte, January 12, 2018 - HELMA Eigenheimbau AG achieved consolidated new order intake of EUR 245.4 million in the 2017 financial year (FY 2016: EUR 286.8 million), around 5% below the expected minimum for 2017 new order intake of EUR 258,1 million. While subsidiary HELMA Ferienimmobilien GmbH reached a new record level, as planned, in the financial year elapsed, HELMA Eigenheimbau AG and subsidiary HELMA Wohnungsbau GmbH fell short of their targeted new order intake levels for 2017.

As a direct consequence of this, the company will not achieve its expected consolidated revenue level of at least EUR 290.0 million for 2017, and now anticipates consolidated revenue in 2017 approximately at, or slightly above, the previous year's record level (FY 2016: EUR 263.8 million). Nonetheless, consolidated earnings before tax in 2017 will most likely lie in the targeted range, and amount to between EUR 18.5 million and EUR 19.5 million. This was due to an adjusted EBIT margin above planning. Based on an approximately 31% tax rate and 4,000,000 shares outstanding, this would generate earnings per share of between EUR 3.19 and EUR 3.36 for the 2017 financial year, thereby meeting both the company's and consensus analyst estimates.

Guidance for 2018-2019 converted to consolidated earnings before tax

The market environment for residential property in Germany remains characterised by very high demand, which is even more pronounced in conurbation regions than in other parts of the country.

Firstly, this continues to generate very attractive market opportunities for HELMA Group products. In individual cases, such market opportunities can also include the resale of developed land plots to investors, although the company's clear focus remains on selling owner-occupier homes and holiday properties to private end-buyers. The HELMA Group possesses an important competitive advantage in this market environment, having been an early mover in securing many land plots in sought-after locations.

On the other hand, due to very high market demand, resources to construct such products at high quality levels are not always available in the scope needed to realise all projects that are not yet in the sales stage by the desired, earliest possible date, while at the same time achieve stably high margins. In 2017, this prompted the Management Board of HELMA Eigenheimbau AG to decide to continue to focus clearly on high quality and the highest possible margin, consequently entailing a lower than originally expected revenue growth rate.

For this reason, the company's Management Board at its meeting today passed a resolution to withdraw its revenue planning for 2018 and 2019 and to instead issue a forecast for consolidated earnings before tax. While the previous multi-year revenue planning envisaged a mid-range compound annual growth rate (CAGR) of around 14%, this growth rate is now taken as the benchmark to forecast consolidated earnings before tax for 2018 and 2019. Accordingly, consolidated earnings before tax of between EUR 21.0 million and EUR 22.5 million are expected for the 2018 financial year, and between EUR 23.5 million and EUR 26.0 million for 2019. This generates a range for budgeted earnings per share of between EUR 3.62 and EUR 3.88 for 2018, and between EUR 4.05 and EUR 4.49 for 2019. Given unchanged framework conditions, from today's perspective nothing would suggest that the company could not achieve a double-digit percentage growth rate in consolidated earnings before tax in 2020, too.

The detailed preliminary results for the 2017 financial year will be published on March 15, 2018.

Investor Relations Contact:
Gerrit Janssen, Management Board member/CFO
Tel.: +49 (0)5132 8850 345
E-mail: ir@helma.de