The company, which was issued only last week and raised NIS 78 million, presents a good report, the net profit jumped to NIS 30 million, the backlog stands at NIS 221 million, with 2/3 of it recognized in 2022.
Beit VeGag, one of the oldest companies in Israel in the field of urban renewal, which promotes 47 projects in areas of demand in Israel, reports its financial results for 2021.
Emphasis on the company’s results:
Revenues in 2021 amounted to NIS 298.5 million, an increase of 145.8% compared to revenues of NIS 121.5 million in the corresponding year last year. The increase in revenue is due to the sale of apartments in the company’s projects as well as income from the provision of construction services to the owners of the apartments evicted in the company’s various projects, the main ones being unknown projects, renaissances and Chinese fighters. In the second half of 2021, there was a 29.5% increase in revenues compared to those in the first half of 2021, and they amounted to NIS 168.4 million.
Gross profit in 2021 amounted to NIS 55.6 million (18.6% of revenues), a jump of 228.2% compared to NIS 16.9 million (13.9% of revenues) in 2020. The sharp increase in gross profit and profitability is due to the recognition of profit from projects with Higher profitability rate and completion of projects with lower profitability rate. In the second half of 2021, gross profit amounted to NIS 29.9 million, compared with NIS 25.7 million in the first half of 2021.
The net profit in 2021 amounted to NIS 30.9 million, compared with a loss of NIS 2.9 million last year. The transition to net profit is due to the increase in the Company’s revenues and the increase in gross profit as presented, along with maintaining stability in the Company’s expenses. In the second half of 2021, the net profit amounted to NIS 18.2 million, an increase of about 50% compared to a net profit of NIS 12.8 million in the first half of 2021.
Accumulated income and advances The total income to be recognized in respect of binding sales contracts amounts to NIS 221 million, of which NIS 147.5 million will be recognized in 2022. Total advances and payments expected to be received in respect of binding sales contracts amount to NIS 169.2 million, of which NIS 89.5 million will be recognized in 2022
As of the end of 2021, shareholders’ equity amounts to NIS 157.5 million, approximately 44.9% of the total balance sheet.
Ronen Akavia, CEO of Beit VeGag, said: “We are pleased to report for the first time on our results as a public company. The results reflect the significant progress the company has made in the scope of its activities, the nature of the projects, the sale of apartments and the construction services it provides. We are working hard to fully realize our backlog of projects and to locate investments in urban renewal projects in other high-demand areas in Israel. In return, the recruitment will help us accelerate the company’s growth and continue to be a leading player in the urban renewal market that is being revitalized in Israel. “