Chagala Group, the London-listed Kazakh real estate developer-owner, has announced its revenues rose 18% to $22.07mln (EUR 14.24 mln) in the first year as a listed company from EUR 12.1mln in 2006. Operating profit increased by 20.3% to EUR 3.87mln from EUR 3.22mln. Pre-tax profit dropped 13.8% to EUR 1.35mln. Fair value of land, premises and equipment rose 53% to EUR 79.87mln.
Chagala Group, the London-listed Kazakh real estate developer-owner, has announced its revenues rose 18% to $22.07mln (EUR 14.24 mln) in the first year as a listed company from EUR 12.1mln in 2006. Operating profit increased by 20.3% to EUR 3.87mln from EUR 3.22mln. Pre-tax profit dropped 13.8% to EUR 1.35mln. Fair value of land, premises and equipment rose 53% to EUR 79.87mln.
The credit crisis' effect on liquidity in Kazakhstan and delays in developing the Kashagan oil field presented significant obstacles in 2007 and led to a slowdown of the company's development projects. But Chagala said that the resolution of the Kashagan issues and securing of new financing facilities left it well-positioned to move forward with its development plans for 2008. Among the company's operational highlights were the signings of joint ventures to develop a residential and recreational facility in Aksai as well as five 30,000 m2 shopping malls.
Tim Abson, chief executive of Chagala, commented: 'Revenue was strong and we achieved a significant rise in the fair value of our land, premises and equipment on an IFRS basis. In line with this we also expect to announce an increase in market NAV as appraised by DTZ in June 2008. We have proved to be a strong and resilient company capable of meeting the challenges posed by turmoil in the financial markets and uncertainty in the Kazakh energy industry to deliver high-quality projects that improve the living and working conditions of our clients.'
