Palm Hills Developments, Egypt's second-largest listed developer, has suffered its biggest loss, dragged down by political upheaval in the country that has hit sales.
It reported a first-quarter net loss of 36.2 million Egyptian pounds, compared with a year earlier net profit of 107m pounds.
Shares declined 3.1 per cent to 2.45 pounds yesterday, the biggest fall since May 31. The benchmark EGX 30 Index lost 0.9 per cent.
Revenues at Palm Hills weakened to 193.5m pounds from 198m pounds a year earlier. Sales in the quarter fell 75 per cent.
Egyptian developers have been hard hit by the turmoil that began on January 25 and swept Hosni Mubarak from the presidency the following month. The developers have been threatened by risks to the execution of projects, availability of financing, slower sales and weak consumer confidence.
The country's once booming property sector is also weighed down by a string of legal challenges to land holdings since a court ruled last year that a sale of government-owned land to Talaat Moustafa Group, the country's biggest developer, was illegal.
Palm Hills' share price has tumbled 61.3 per cent so far this year as investors remain nervous about the developer's debts and liabilities. The company is fighting two suits contesting its land holdings.
To reduce land liabilities and the threat of further litigation, Palm Hills has announced its intention to return its land plots on the north coast and in Cairo, a total of 900 hectares, to the government. However, this matter is still pending with the government.
"While acceptance of the offer by the government would improve the liquidity position of the company," said Ankur Khetawat, an analyst at Alembic HC Securities in Dubai, "it would significantly reduce the company's land bank."
Palm Hills would have a combined undeveloped area of 1,500ha if the plots were returned.
"The earnings don't really matter and remain secondary to the outstanding legal disputes," said Ahmed Badr, an analyst at Credit Suisse in Dubai.
halsayegh@thenational.ae
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
Timeline
1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line
1962
250 GTO is unveiled
1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company
1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens
1976
First automatic Ferrari, the 400 Automatic, is made
1987
F40 launched
1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent
2002
The Enzo model is announced
2010
Ferrari World opens in Abu Dhabi
2011
First four-wheel drive Ferrari, the FF, is unveiled
2013
LaFerrari, the first Ferrari hybrid, arrives
2014
Fiat Chrysler announces the split of Ferrari from the parent company
2015
Ferrari launches on Wall Street
2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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