Kimberly Enterprises N.V. Third Quarter Trading Update (1183Q)

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                         [phone] 
 
 
Cairn Financial Advisers LLP (Nomad) 
Sandy Jamieson, James Caithie          [phone] 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 24, 2016 11:52 ET (16:52 GMT)