RGI International reports sales growth in line with expectations

RGI International, developer of residential and commercial properties in Moscow, said trading for the fourth quarter and full year was in line with management's expectations.

The company reported sales growth, driven by the success of residential project V Lesu.

RGI sold 135 apartments at the development, compared to 91 the previous year. It brings the total sold for the first phase of the project to 715, representing 57% of the whole.

Strong sales at V Lesu enabled RGI to repay the final instalment on its bonds of $9.6m in November and reduce its overall debt.

The group has now kicked off sales for the second phase of the project which comprises of five buildings and a total of 1,501 apartments. It also includes a school and a kindergarten and construction has started on the buildings after receiving approvals.

During the quarter the Tsvetnoy Central Market department store recorded sales of 856m Russian Rubles, a 48% increase compared to the previous year of 577m Russian Rubles.

The Zemlianoy hotel project was sold in the period for $6.0m and the Maya office development was sold for $0.6m.

"[Last year] was an exceptional and challenging year. The company has concentrated its efforts on meeting the growing desire of customers in the Russian market for a product of exceptional quality," Chief Executive Officer Andrey Nesterenko said.

"Good sales growth at V Lesu and Tsvetnoy show that we have a professional team which is on the right track. This year the company will focus on sustaining its growth path by obtaining new residential projects of a similar scale and continuing the development of our Moscow projects."

Shares grew 0.24% to $2.10 at 12:15 Thursday.

RD