31 Aug 2007 14:45
Cubus Lux plc (the "Company") AGM Statement
Cubus Lux plc, the AIM listed Croatian leisure and tourism company, is pleased to announce that all of the resolutions proposed at today's AGM have been approved by shareholders.
At the meeting, Gerhard Huber, Executive Chairman, commented on current trading, the ongoing acquisition and the current pipeline of active projects:
"Our two principle operations, the Istrian based casinos and the Olive Island Marina, are both starting to show some good improvements after a slow start to the year partly caused by external factors which are now resolved.
"The main casino in Pula is located in a hotel which, for some time, was on the market and consequently received little or no investment. This created uncertainty which we believe was not conducive to our intended customer base. The hotel has now been sold to a UK company and this situation has improved. We expect a positive and exciting ongoing partnership. The first indication of this is that we have been able to increase our floor space in the hotel by around 80% and have improved our offering by bringing in the gaming equipment from our former Medulin location. We are now in the middle of our peak season and initial indications are that the months of August 2007 and September 2007 should meet the directors' expectations.
"The marina is performing to plan in terms of the contracted berths and we have already passed the 100 contract mark. The Board is pleased with this achievement as the marina was not officially opened and fully operational until May 2007. The delay, caused primarily by the progress of the constructor, has resulted in us falling short of our targets for overnight transit business and in the start up of the restaurant. We are pleased to report that the restaurant is now fully operational and in July 2007 it generated a positive contribution ahead of our expectation. Overall, the marina is still performing below expectation, however, but we are seeing continuous trading improvements .
"A major event for us this year is expected to be the acquisition of the "Olive Island Resort" on the coast of Dalmatia in Croatia. As previously announced, the Company has two option agreements, which expire on 12 September 2007, the Company is in discussions to extend the term of these options. A further announcement will be made in due course.
"If the Company acquires this development land, we will construct the Olive Island Resort, a village resort comprising 126 villas and 305 apartments as well as accompanying facilities, such as restaurants, shops, offices and a marina (the "Villas Development"); and a four-star hotel containing 500 beds (the "Hotel Development"). The villas and apartments will be sold, and the hotel will be operated by the Company to generate ongoing revenue.
"Our due diligence work is underway and the Company is negotiating the terms of acquisition. We are currently focussing on raising the requisite financing. The exercise of the options is subject to conditions, including appropriate consents having been granted by the government of Croatia.
"Full details of the options have previously been announced but I would like to take this opportunity to note again that, in the event that the Company proceeds with it, the acquisition will most likely constitute a reverse takeover for the purposes of the AIM Rules, and will therefore require the issue of an admission document and shareholder approval.
"We are making good progress with the two Zadar apartment projects. This dual development of mixed residential and commercial properties has previously been announced and we can now report that we are close to breaking ground with construction due to start in November of this year. The Board believes that the Company should see a benefit stream over the coming three years. We have already provisionally agreed terms for the sale of much of the commercial office space.
"We are aware that in order to further create sustainable shareholder value we need to continually introduce new profitable projects and we are pleased to report that we have an exciting pipeline of projects, details of which will be announced in due course."
For further information please visit at www.cubuslux.com or contact:
Steve McCann +385 (0)99 214 9636Cubus Lux plcSimon Sacerdoti/Liam Murray +44 (0)20 7492 4777City Financial Associates LimitedGraham Herring/Josh Royston +44 (0)20 7936 9605Threadneedle Communications Limited
CUBUS LUX PLC