Developer Inbesos revenues fall 98% in first quarter

The Barcelona-based Spanish developer Inbesos – one of the 13 developers listed on the Madrid stock exchange – has reported sales down by 98% in the first quarter of 2008.

With residential developments focused in Catalonia, sales revenue fell from 9.4 million Euros in the first quarter of 2007 to 212,000 Euros last quarter.

The bottom line fell from a profit of 1.6 million in Q1 2007, to a loss of 2.2 million in Q1 2008.

Gearing rose from 79% to 90% of assets, so 90% of the company’s liabilities are now made up of interest bearing debt, 88% of which are short term loans. Shareholders’ funds are just 10% of the balance sheet.

That means the company has to pay interest on 156 million Euros of debt, with very little cash reserves and negative operating cash flow. Not exactly sustainable.

Last week 7 other listed developers revealed Q1 revenues down by a collective 73%, with Reyal Urbis down 97%.

Meanwhile, trading of Aisa’s shares – another listed developer – is still suspended (since Wednesday) after its auditor refused to sign off on Q1 results, and a judge decides whether to put the company into administration.



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