Fewer Launches but a Growing Order Book: Where Icade and Nexity Stand

Both companies have recently published their first-half results. Leaving their financial performance aside, they have also revealed how their property development businesses fared.

Nexity's housing reservations are down 15% on the first half of 2011. In detail, the number of homes fell from 5,325 to 4,633, with a 21% drop in value. Reservations of building plots are also down, by 22% in both number and value.

Nexity's first-half results are broken down by client type (maîtrise d'ouvrage). Sales to individuals and private investors are down 33%, while sales to institutional investors are sharply up, by 46%. In these times of crisis, there has also been a reduction in the floor area of homes sold (-6.1%), for a value down 4.2%. There are, however, signs of improvement, as the order book at the end of June 2012 is up one and a half points on 2011. It stands at €3.37 billion, representing 20 months of the group's activity.

At Icade, the order book is up 2.7% on the previous half-year, standing at €1,856.5 million. In detail, housing is the big winner, with a rise of 10.1%. It is worth noting that residential accounts for two thirds of the company's turnover. The Engineering subsidiary is also up, by 19%, while commercial property activity is down 8.8%, as is public facilities and healthcare, down 11.9%, mainly owing to the completion of the CSN (Cité Sanitaire Nazairienne), designed by Groupe 6.

Icade records a 16.3% drop in the size of its homes (from 61.8 m² to 51.7 m²), while the price per square metre is up 2.8% on the first half of 2011, at €3,539 including VAT.