Kimberly Enterprises N.V. Third Quarter Trading Update (1183Q)
November 24 2016 - 10:52AM
UK Regulatory
TIDMKBE
RNS Number : 1183Q
Kimberly Enterprises N.V.
24 November 2016
Kimberly Enterprises N.V.
("Kimberly" or the "Company")
Third quarter trading update
Kimberly Enterprises N.V., the AIM-listed Central and Eastern
European property developer (KBE: L), is today issuing its third
quarter trading update in respect of the year ending 31 December
2016.
The Company has continued to dispose of its property interests
and simplify its corporate structure. Following the sale of its
Canadian property interests, the Company completed the disposal of
its investment in the wholly owned subsidiary, Arces International
B.V. to a third party for an immaterial amount on 15 July 2016. In
addition, the Company has continued to sell residential units from
its Veleslavin project in the Czech Republic. During the 9 month
period to 30 September 2016, the Company completed the sale of 27
units.
In the third quarter of this year, the Company has repaid
EUR1.45m of its debt to Engel Resources and Development Ltd.
("ERD"). As of 30 September 2016, the outstanding debt to ERD stood
EUR25.0m and is due by 31 December 2016. The Company is reliant on
the continued support of ERD to extend the repayment date of its
loans to Kimberly beyond 31 December 2016.
Further to the announcements released on 6 June 2016, the
termination of the lease agreement between Marina Dorcol d.o.o
("MD") (a 95% owned subsidiary of the Company) with the
Municipality of Belgrade (the "Municipality") has resulted in a non
cash income of EUR23.5m, which has been recognised in profit and
loss under "other income" in the Company's condensed consolidated
financial statements.
Management expects that following the termination there will
also be a net cash inflow from the above restitution, however, the
net cash flow and the timing to conclude the settlement with the
Municipality cannot be predicted at this stage with certainty.
Based on the advice received by MD, the range of the restitution is
likely to be between EUR2.7m to EUR3.9m, although there is no
certainty of the amount that MD will be able to settle with the
Municipality.
For the nine month period to 30 September 2016, after
recognising the EUR23.5m non cash income set out above, the Group
had post tax profits of EUR22.7m. As at 30 September 2016, the
Group had current liabilities totalling EUR27.8m, which exceeded
its current assets which amounted to EUR5.3m, and had negative
equity of EUR21.7m.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Kimberly Enterprises N.V.
Assaf Vardimon +31 20 778 4141
Cairn Financial Advisers LLP (Nomad)
Sandy Jamieson, James Caithie +44 20 7213 0880
This information is provided by RNS
The company news service from the London Stock Exchange
END
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