Immo-news.net : the real estate information website

The Board of Directors of OJSC "LSR Group" (LSE: LSRG, MICEX, RTS: LSRG) approved consolidated financial statements for the year ended 31 December 2007 prepared in accordance with IFRS for 2007. The independent audit of the financial statements was carried out by KPMG.

In 2007 LSR Group again recorded strong growth of financial results:

Revenue increased by 81% up to US$1 403 million

EBITDA increased by 132% up to US$309 million, and EBITDA margin increased by 5% from 17% to 22%.

Operating profit before the changes in fair value of investment property grew by 170% up to US$248 million

Changes in fair value of investment property was US$315 million

Net profit increased by 787% up to US$359 million

The market value of real estate property portfolio in accordance with DTZ valuation rose by 31.12.2007 to US$5.7 billion, which is 16% up on the figure for 30.06.2007 (approximately US$4.9 billion).

Comments of the Chief Executive Officer of OJSC "LSR Group" Igor Levit:

"We are pleased with the results for 2007 and our dynamic growth is a continuation of the positive performance that the company has demonstrated ever since it began. The financial results for last year again convincingly prove the strength of our strategy and the effectiveness of the integrated business model of the company, producing synergies from the combination of development, construction and the production of building materials. On this basis, and together with the new projects that we have in hand, we see significant opportunities for further growth of the Company in the interests of all its shareholders".

About the company

OJSC LSR Group is a diversified construction company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate development. The Group includes enterprises for extraction and processing of aggregates, production and transportation of building materials, and housing construction - from mass market large-panel housing to elite property built after designs made by leading domestic and foreign architects.

LSR Group has operations and offices in a number of cities in the Leningrad Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany.


LSR Group employs over 15,000 people. In 2005 and 2006 the revenues of LSR Group (according to IFRS statements) were US$463 million and US$777 million respectively. The revenue in 2007 is US$1 403 million.


In November 2007, OJSC LSR Group conducted an IPO. LSR Group has a rating of B1; outlook stable from the rating agency "Moody’s Investors Service". In December 2007, LSR Group was bestowed a National Award in the field of business as ‘The Company of the Year’ in the ‘Construction’ category.

Source : LSR Group