Egyptian Resorts reports net loss for 2010

Reuters, Monday 4 Apr 2011

Hit hard by global financial crisis, Red Sea developer hasn't sold land since late 2008

Developer Egyptian Resorts reported a consolidated net loss of 9.4 million Egyptian pounds (US$1.6 million) for the full year of 2010, the firm said on Sunday.

The company, which makes most of its money selling land in a large plot on Egypt's Red Sea coast, has not sold any since the third quarter of 2008, when the global financial crisis dampened appetite for big real estate purchases in Egypt.

Egyptian Resorts reported a consolidated net profit of LE4.7m pounds a year earlier.

The firm said in August its board of directors agreed to take back a plot had sold for about $11 million after the buyer failed to meet sale requirements.

Last week, Egyptian Resorts already reported an 18 per cent rise in unconsolidated net profit to LE10.6m for 2010, while unconsolidated net revenue nearly halved to LE16.9m.

The unconsolidated numbers did not include losses the company had registered against some land sales.

The company's shares closed 9.7 per cent higher on Sunday, while the benchmark index .EGX30 gained 1.7 per cent.

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