LONDON (Alliance News) - Dragon-Ukrainian Properties & Development PLC Tuesday reported a big loss from operating activities and a steep drop in net asset value in 2014 as it was hit by the crisis in Ukraine, and said it was hoping that efforts to stem the crisis and shore up the country's economy would help it in the longer term.
The company's main aim is to realise its properties in the country and return surplus cash to shareholders.
"We do not foresee a quick recovery for the real estate market in Ukraine that will allow rapid monetization of DUPD's portfolio of properties," Chairman Mark Iwashko said.
"While it is difficult to foresee a clear and final resolution to the conflict in eastern Ukraine in the near future, we are hopeful that the continued attention and diplomatic efforts of world leaders leads to its stabilization in 2015. In the meantime, we are cautiously optimistic that support from the IMF and other donors and the economic reforms that are currently underway in Ukraine lead to macroeconomic stabilization in the near term and a return to GDP growth as early as 2016," he added.
The investor in Ukrainian real estate said its net asset value stood at USD92.4 million at the end of 2014, down from USD168.5 million a year earlier, while its booked a net loss from operating activities of USD70.2 million, due to the collapse in the Ukrainian property market caused by the crisis and the economic downturn.
On a positive note, the company said it generated a record USD20.4 million in contracted sales and USD17.6 million in cash proceeds in 2014 from residential projects.
Still, it ended 2014 with a cash balance of USD16.5 million, down from USD22.1 million at the end of 2013.
Dragon-Ukrainian shares were down 4.4% at 27.00 pence on AIM Tuesday afternoon.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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