Rising earnings, stable cash flow lift Lekki Garden’s revenue to N20.9bn
Following its record of project delivery supported by rising earnings, stable cash flows and moderate gearing metrics, Lekki Gardens has posted a revenue increase of 6.7 per cent to hit N20.9 billion in its 2020 operations.
This comes as Global Credit Ratings Company Limited (GCR) upgraded the national scale long-term and short-term issuer ratings of the firm to BBB+ (NG) and A2 (NG) respectively.
According to GCR, Lekki Gardens remains resilient with revenue increase of 6.7 per cent to N20.9 billion in full year 2020 performance, underpinned by rising off-take and sale volumes.
EBITDA margin remained firmer and well above peers at 10 per cent, supported by the delivery of higher-margin projects and cost rigour despite the COVID-19 crisis and the attendant impact on the already challenged operating climate in Nigeria.
GCR said the ratings reflect Lekki Gardens Estate Limited’s strong competitive position within the Nigerian real estate sector, evidenced by its strong track record of project delivery, which has supported rising earnings, stable cash flows and moderate gearing metrics.
“As of 1H FY21, LGE has achieved a 29 per cent annualised revenue growth, with an EBITDA margin registering at 18 per cent. GCR expects the latent housing demand to continue to drive growth prospects, but the deferral of key discretionary spending, such as home purchases, will likely impact demand and pricing,” says GCR.
Speaking on the significance of the Global Credit Ratings for the company, the Executive Director, Lekki Gardens Estate Limited, Emily Atebe, said the investment-grade ratings affirmed the company’s financial stability and ability to meet its financial obligations to all stakeholders.
“The ratings further validate the company’s consistent and sustained strong financial performance and its resilience despite the very challenging
operating environment.” she said.