31st Mar 2014 12:59
LONDON (Alliance News) - AIM-listed Eastern European property developer Kimberly Enterprises NV Monday said its losses widened in 2013, despite an increase in revenue, partly due to a lower positive revaluation of investment properties.
The Netherlands-based real-estate development company posted a pretax loss of EUR7.6 million for the year ended December 31, 2013, compared with losses of EUR7.2 million the prior year.
The loss after tax for the year increased to EUR9.5 million from EUR6.7 million in 2012, the firm said, partly due to an increase in income tax expenses.
In 2013, the company made a EUR172,000 profit on the fair value adjustment of investment properties, compared with a EUR1.6 million profit in 2012. Kimberly said that the positive revaluation of the investment property for 2013 reflects the change in the Serbian market.
Total revenue for the year increased to EUR412,000, compared with only EUR132,000 a year earlier, which Kimberly said was driven mainly by the commencement of management fees being charged for the Veleslavin project in the Czech Republic.
Kimberly said that its current assets decreased to EUR245,000, down from EUR13.5 million a year earlier. It said that this was mainly due to its decision to reclassify the plot of land at Marina Dorcol in Belgrade as long-term land, due to uncertainties in relation to completing the development of the plot or selling it at the determined normal operating cycle.
It said that uncertainties relate to its ability to raise finance or alternatively to find an investor to initiate the project development.
"Despite the difficulties the group is experiencing, we will strive to be able to go forward and continue to develop additional projects from the company's portfolio, while selling some of them in the course of 2014, in order to strengthen the company's cash position," the firm said in a statement.
Shares in the property developer dropped 7.7% Monday afternoon to 0.300 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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