On the 24th June the Homes & Holiday AG issued an invitation to its first general meeting since the IPO in July 2018. Most shareholders used their power of attorney so that, although around 90 % of the voting-eligible share-capital was represented, the amount of people present was relatively limited.
The venue was the library of the Literature House on Placa Salvator. The meeting was chaired by the chairmen of the supervisory board Michael Vogel who shared the podium together with board members Joachim Semrau and Philip Kohler and notary Dr. Sebastian Franck. The other two deputy chairpersons Carl-Peter Gerlach and Ulrike Eschenbecher were also personally present.
Report of the board
During his welcoming speech Joachim Semrau critically reviewed the past year which had turned out to be quite different than had been imagined. The CEO apologised to the shareholders and emphasised that the negative development of the share price has also seriously effected the executive bodies and staff, who own around 75% of the shares.
Despite later purchasing by the management board and supervisory board to the value of some 120.000 euros in 2018 the negative price development could not be stopped. It is, however, all the more pleasing that the price for a takeover could be realised in the main by a non-cash capital increase up to 2,50 euros.
On the core market of Mallorca the Air Berlin breakdown early in 2018 severely decimated the number of flights from Germany, thereby restricting property viewings and consequently the number of purchases. This could not be completely compensated even by a strong summer season. As a result a prognosis-adjustment had to be published in October 2018.
Previously focussed on strong growth, this corporate group with its priority the holiday real estate market in the Balearic islands underwent a stringent austerity programme. The franchise headquarters in Düsseldorf was dissolved, and since January 2019 the German city-locations are serviced from the head office in Palma.
This new strategic orientation also had personnel consequences. In January 2019 the previous Germany-manager Stephan Bruns left the company, and in February the managing director Spain, Ralf Spielvogel, also departed. Joachim Semrau emphasised that the achievement of sustainable profitability as the highest premise for the group.
Key figures 2018
Following the introductory words of CEO Joachim Semrau CFO Philip Kohler took the floor and reported on the figures for the financial year 2018. Included in the negative balance results of 4.115 million euros are 1 million euros stock exchange costs, according to the CFO.
A positive feature is that the Homes & Holiday group is practically free of debts. All the previous shareholder loans were converted into equity at the end of 2017, and in addition at the same time a capital increase of 1 million euros took place. Thereafter equity increased by a further 4.8 million euros with pre-IPO and stock exchange launch. Click here for the full annual report.
Buy and build successful – number 2 with holiday rentals in Mallorca
With the acquisition of Top Villas Mallorca and asset deals with other smaller holiday rental companies the subsidiary of Homes & Holiday AG, Porta Holiday rose to be number two within the holiday brokerage companies in Mallorca. The number of fincas, holiday homes and apartments under contract in Mallorca increased five-fold to around 1.300 properties.
CFO Philip Kohler confirmed:
‘After the takeovers Porta Holiday can expect an improvement in turnover and profit situation.’
In the real estate sector the market potential when focussing on the Balearics is also large enough. Philip Kohler estimates the market volume only of foreign buyers – the main target group of the subsidiary Porta Mallorquina and Porta Mondial – at 1.2 billion euros.
Strategic realignment
After the presentation of the current austerity programme, which concentrated mainly on location mergers and staff reductions, Joachim Semrau once more took the floor and gave a forecast of the future and the current business year.
Our ultimate goal in 2020 is to break even with the whole group. To that end we will concentrate on our core markets and continue to implement the cost-reduction plans so that everything interlocks in 2020.
On site in Mallorca the board will be supported operationally in the holiday rental business by Janine Klein, the founder of Top Villas Mallorca and since the end of 2018 managing director of Porta Holiday. For the real estate business a new MD will be appointed who has been an advisor to the board since mid-2019.
In closing Joachim Semrau issued a positive message:
Up to April 2019 the sales of our subsidiary Porta Mallorquina Real Estate increased by 24% compared to the previous year. In total real estate to the value of around 24 million euros was brokered in Mallorca during this period.
Agenda approved
After a short round of questions a vote was taken in which all items on the agenda were approved by a large majority. The next general meeting of Homes & Holiday AG is scheduled for June 22nd, 2020.