8th May 2008 07:30
Engel East Europe N.V.08 May 2008 FOR IMMEDIATE RELEASE 8 May 2008 Engel East Europe N.V. Accounting policy re joint ventures Engel East Europe N.V. ("the Company") and its professional advisors togetherwith its parent company, Engel Resources and Development Limited ("Engel"), arein the process of reviewing the accounting policy regarding the Company's jointventures ("JVs"). This arises from a business review initiated by the Company'sBoard at the end of 2007 together with the current public offering process inwhich Engel is involved. The review of accounting policy relates to the Company's share in the Heitman II JV formed in December 2005, which resulted in the recognition of profits of €10.1 million in 2006 and €1.8 million in 2007. As a result of this review of accounting policy and delays to this JV whichaffect the Company's share of profits from the JV from an assumed fifty percentinterest to a forty percent interest, the Company estimates that there will be arequirement to restate the results for the years ended 31 December 2006 and 2007to reflect a reduction in profits of €2.0 million in 2006 and €0.3 million in2007. This will change the Company's equity from €47 million to €44.7 million asof 31 December 2007. ENDS Enquiries: Engel East Europe N.V.Eitan Padan Tel: +972 (9) 970 7004Sam Salman Tel: +1 (646) 214 2000 Dawnay, Day Investment Banking Tel: +44 (0) 20 7630 4148Corporate FinanceGerald RaingoldNick Lovering Bankside Consultants Tel: +44 (0) 20 7367 8888Simon BloomfieldAndy Harris This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kimberly Enterprises