LONDON (Alliance News) - Central and Eastern European property developer Kimberly Enterprises NV Thursday said its financial condition remains weak, despite narrowing its loss in the first half.
The AIM-listed company, which is focusing on the Czech Republic and Poland because it thinks those markets are more stable, posted a pretax loss of EUR4.4 million for the six months to end-June, compared with a pretax loss of EUR4.6 million a year earlier, even though revenue fell to EUR130,000, from GBP212,000. The improvement was largely down to lower net financing costs.
Kimberly said the financial condition of the group remains "weak" and it is not certain that it will be able to meet its obligation to its employees and service providers as they fall due.
The group is in breach of an interest-bearing loan from a bank totalling EUR3.1 million, and the obligation to make lease payments totalling EUR16.8 million relating to the lease of its Marina Dorcol site in Serbia. After the reporting date Kimberly said it further breached its obligation to pay by an additional amount of EUR100,000.
At an operating level, Kimberly said it has finalised the construction of 85 units on a plot in Prague. The estimated sale value of the first phase of the scheme is EUR15.5 million.
"Kimberly is focusing on realizing 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," it said.
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 Ltd. in order to repay the group's outstanding loans from ERD," it added.
Kimberly Enterprises shares were untraded Thursday afternoon.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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