LONDON (Alliance News) - Kimberly Enterprises NV, an AIM-listed Eastern European property developer, on Thursday reported an annual loss and said "material uncertainties" put into question its ability to continue as a going concern.
Its pretax loss widened to EUR10.6 million in 2015 from EUR10.4 million in 2014. Revenue rose to EUR1.8 million from EUR387,000, but net finance costs widened to EUR11.1 million from EUR7.8 million.
Kimberly said it approached Engel Resources and Development, the parent company of Kimberly's immediate parent company, Engel General Developers Ltd, to provide additional financial assistance to fund its immediate liabilities.
"During 2015 the main strategy of the company was to reduce its obligations toward third parties. As of today, apart from the outstanding loans granted by its parent company Engel Resources & Development Ltd, the company does not itself have any material obligations towards any creditors," Kimberly said.
During the first and second quarters of 2015, Engel provided several bridge loans for a total amount of EUR304,000. At the end of 2015, Kimberly owed EUR25.1 million to Engel. That money is due by April 30.
Kimberly said it sold assets to stabilise its financial position, including in Poland, Czech Republic and Canada.
The group's current liabilities totalled EUR70.8 million at the end of December, exceeding its current assets of EUR9.8 million. It had negative equity of EUR41.8 million.
"Management believes that the above mentioned conditions indicate the existence of material uncertainties which cast significant doubt on the group's ability to continue as a going concern," Kimberly said.
Earlier this week, Liron Or resigned as Kimberly's chief executive as the company saw a change in shareholder control.
The transfer of control of 2.9 million shares in Engel Resources & Development Ltd to GBES Ltd completed. Engel Resources & Development Ltd controls Engel General Developers Ltd, which owns a 68.35% stake in Kimberly.
GBES will hold a 21.9% economic interest in Kimberly and the Gabay Group will hold a 21.1% economic interest in Kimberly.
Shares in Kimberly were up 22% at 1.77 pence on Thursday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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