18th May 2016 09:05
LONDON (Alliance News) - Mirland Development Corp PLC on Wednesday said its loss widened in the first quarter, saying it continued to be hit by political and economic headwinds in Russia which are "beyond the company's control".
MirLand, the Russian residential and commercial property developer, said its net operating income fell to USD4.6 million from USD6.6 million for the same period a year earlier, which it said was mainly due to the "record high quarterly average rate of the Russian rouble against the US dollar". MirLand said this resulted in a negative fair value adjustment of investment properties of around USD18.7 million during the year, greater than the USD438,000 negative movement recorded a year earlier.
MirLand posted a pretax loss for the three months ended March 31 of USD17.7 million, greater than the USD13.2 million loss it reported for the same period a year earlier. This loss largely came from its residential division, where revenue dropped to USD499,000 from USD29.8 million a year earlier.
The company is continuing its discussions with the trustees of the Series A-F bondholders and its financing banks to agree a restructuring of its debt and will update the market in due course, MirLand added.
"Political and economic headwinds continue to create a challenging operating environment for the company, and whilst we are taking appropriate management actions to address the issues, many of the difficulties are beyond the company's control," Chief Executive Roman Rozental said.
Shares in MirLand were untraded on Wednesday, having last traded at 30.75 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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