28th May 2015 16:35
LONDON (Alliance News) - AIM-listed property developer Kimberly Enterprises NV Thursday posted a narrowed pretax loss for its first quarter, but warned that its financial position "remains weak", and it is not certain it will be able to meet obligations to employees and service providers as they fall due.
For the quarter to end-March Kimberley Enterprises posted a pretax loss of EUR3.8 million, narrowed from a pretax loss of EUR10.4 million in the previous year, as revenue fell to EUR33,000 from EUR387,000, but losses from changes in the fair value of investment property and the write-down of inventory did not recur, and financing costs were reduced.
Kimberley Developments said that since the start of 2011 it has been in breach of its obligation to make the lease payments for Marina Dorcol. During the quarter it reported an expense of EUR832,000 on the unpaid overdue lease contracted payments.
As at the end of the quarter it is in breach of EUR22.7 million, it said.
It has approached Engel Resources and Development Ltd, the parent company of its immediate parent company Engel General Developers Ltd, to provide it with financial assistance to fund its immediate liabilities. It is also examining other solutions to fund its immediate liabilities and stabilise its financial positions.
"Kimberly is focusing on realising the assets that are part of the joint ventures with Heitman, concluding the sales of apartments in finished projects in Prague and Warsaw and finding strategic partner for the Marina Dorcol project in Serbia. Kimberly's main target is to try and meet its obligations towards its creditors and to reach a payments schedule with Engel Resources and Development in order to repay the group's outstanding loans from ERD," said Chief Executive Officer Liron Or in a statement.
Shares in Kimberly Enterprises last closed at 0.166 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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