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HELMA Eigenheimbau AG announces preliminary figures for the 2007 financial year and outlook on 2008

HELMA Eigenheimbau AG / Preliminary Results
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HELMA Eigenheimbau AG announces preliminary figures for the 2007 financial year and outlook on 2008

- Consolidated gross performance declined to around € 45 million, lower EBIT at € -5.0 million
- Incoming orders increased by 7.7 percent to € 58.9 million - Key structural measures implemented
- Cost reduction program set to deliver € 2.0 million savings, fully effective in 2008
- Consolidated sales of € 50 – 60 million, as well as positive EBIT expected for 2008

Isernhagen, February 29, 2008 – According to preliminary figures the gross performance of the HELMA Group dropped to around € 45 million in the 2007 financial year. The preliminary earnings before taxes and interest (EBIT) have dropped to around € -5.0 million, and are thereby considerably below the last forecast issued.

The decline in results is attributable to the difficult market situation in construction of owner-occupied houses and the associated weak domestic demand, which have also impacted on HELMA Eigenheimbau AG. As a result, sales revenues have developed below planned figures, and the company has failed to generate significant planned earnings contributions. Moreover, the unexpectedly long throughput times in the newer regions, as well as personnel investments required for expansion have had negative effects on the result. The partial final settlements effected in 2006 due to the value added tax rise as of January 1, 2007, also incurred additional burdens on the result.

On the other hand, in 2007 HELMA Eigenheimbau AG succeeded in considerably expanding its market share and increased the number of houses sold against the very weak branch trend from 365 to 380 units. At an average net sales price of T€ 155, this results in net order intake of € 58.9 million, representing a gain of 7.7 percent over the prior year. As of December 31, 2007, the net orders on the books came in at € 47.9 million, which is 6.4 percent above the prior year figure.


The management of HELMA Eigenheimbau AG has responded to the developments of the past business year and has given the company a new structure and leaner organization with the aim of achieving a rapid return to profitability. Moreover, the implementation of a cost reduction program started in October 2007 that will generate cost savings of up to € 2 million (€ -1.2 million personnel costs, € -0.8 million non-personnel costs) and will already be fully effective in the 2008 financial year.
In connection with the expansion in the new sales regions, a considerable decline in the gross margin to as far as 12 percent had occurred in 2007. The problems attributable to the very rapid pace of growth, which also incurred an increase in average throughput times to 13 months, have been successfully solved in the meantime. Consequently, the average throughput times will be reduced to well below 12 months in 2008.
Moreover, thanks to the structural measures implemented, the gross margin has already returned to a current level of 17 to 18 percent.
In future, given the structural and cost saving measures conducted, the breakeven point in consolidated EBIT is expected to be already attained at a performance of € 45 million, corresponding to the construction of around 300 houses. Nevertheless, the upwards potential has also not been too strongly limited, as the company’s current structures and capabilities would also enable the construction of up to 500 houses.

The expansion of sales regions envisaged for the 2007 business year and the associated construction of a numerous model houses was implemented as planned. In the years 2006 and 2007, the funds from the stock market flotation were used according to planning and invested with the aim of advancing HELMA Eigenheimbau AG from a regional player to a nation-wide provider of construction services, thereby generating considerable additional sales potentials.

With regard to the 2008 business year, further major investments are neither intended, nor necessary. The completion of the new company location in Lehrte will not result in any further impact on liquidity in this year, as the entire appropriated own funds have already been expended, and further work necessary for completion can be covered by external financing.

As of December 31, 2007, HELMA held cash in hand of € 3.9 million; at present, free liquidity amounts to some € 5.0 million. In addition, the company has credit lines available of several million euros. With these resources at hand, HELMA has adequate liquid funds for the implementation of the further company strategy, as well as the attainment of the short and medium term company goals.


With regard to the 2008 financial year, the management board of HELMA Eigenheimbau AG is anticipating consolidated sales of € 50 to 60 million. EBIT is expected to come in between the breakeven point as lower limit, and a figure of € 1.0 million as upper limit. In view of the extended sales region, HELMA is assuming sales of between 450 and 550 houses in 2008. This planning is based on a stagnating market environment.
The annual report presenting the final figures for the 2007 business year and a detailed outlook will be published on April 21, 2008.

HELMA Eigenheimbau AG is a customer-oriented full-service construction service provider. The company’s focus lies on the development, planning, sale and construction management of turn-key or partly finished single-occupancy and semidetached houses in massive construction or element massive construction. The company’s tailored planning and individualisation at no extra cost as well as its in-depth expertise in the field of energy-efficient construction are particularly perceived by the market as a unique selling point of HELMA Eigenheimbau AG. As a property developer, the HELMA Wohnungsbau GmbH & Co. KG subsidiary complements the service range of the HELMA Group. HELMA Eigenheimbau AG (ISIN: DE0000A0EQ578) has been listed in the Entry Standard of the Frankfurt Stock Exchange since 19 September 2006.


April 21, 2008: Annual report 2007
April 29-30, 2008: Entry and General Standard Conference, Frankfurt July 4, 2008: Annual General Meeting
September 30, 2008: Semi-annual report 2008
October 21-22, 2008: Specialist Conference of the Real Estate Equity Initiative

UBJ. GmbH 
Gerrit Janssen
Haus der Wirtschaft, Kapstadtring 10 
D-22297 Hamburg
Telephone: +49 (0)40 – 63 78 – 54 14 
Telefax: +49 (0)40 – 63 78 – 54 23

29.02.2008  Financial News transmitted by DGAP

Language:     English
Issuer:       HELMA Eigenheimbau AG
              Jathostrasse 10
              30916 Isernhagen
Phone:        +49 (0)511 90190 13
Fax:          +49 (0)511 90190 11
ISIN:         DE000A0EQ578
WKN:          A0EQ57
Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart; Entry               Standard in Frankfurt
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