28 Oct 2010 10:00
AGM statement28 October 2010 Cubus Lux plc ("Cubus Lux" or the "Company") AGM Statement
At the AGM of Cubus Lux plc to be held today the following statement will be made by the Chairman, Gerhard Huber:
"Progress towards our goal of establishing Cubus Lux as the leading tourism and leisure-related property developer and operator in the northern Adriatic has necessarily slowed over the past year, given the continued tighter credit markets and the background of general recession across Europe. Indeed, as we warned at last year's AGM, the knock-on effects of 2008's banking collapse has lasted years rather than months.
However, credit conditions are now easing, albeit slowly, for long-term development projects such as ours. In addition, your Board has made substantial progress in relation to a number of the projects and is also in discussions with third parties in relation to a variety of financing options for individual developments.
Furthermore, the tourism market in the northern Adriatic has proved resilient in the past year and in Croatia, in particular, where total visitor numbers and nights spent in the country have risen by 4.1% and 1.5% respectively in the year to July 2010 (source: Ministry of Tourism). Government statistics also indicate that `sea-based' tourism now accounts for around 10% of all tourism revenues in Croatia.
Alongside the improvement in general economic conditions, the Government of Croatia also continues to progress its agenda for tourism and allied development, with specific focus on marine facilities. In December 2009, ministers agreed a strategy to add 15,000 new berths and "at least 15 new priority excellent locations" by 2018; targeting a near trebling of revenues from this segment of tourism.
This positive political background in Croatia is also apparent in neighbouring countries, and as a result we are seeing several high quality development opportunities arising along the Adriatic coast. Your Board's confidence in the long-term attractions and potential of this part of southern Europe remains intact.
The Company has identified, for example, seven new locations in Croatia and Montenegro for marina developments and is working with local administrations and finance sources to achieve its vision of a `String of Pearls' across the Adriatic.
Other significant high quality leisure developments are also available to us and, subject to financing, the Directors believe the Company will realise substantial opportunities in the year ahead. Economies in this part of Europe have proved generally more resilient than elsewhere, and your Board believes the time is right to look beyond the recession and towards recovery, with a focused strategy for the future.
This is likely to include the disposal of the casino operations and licences which will allow the Directors' to concentrate all their energies on the various real estate and tourism projects available to us across the region.
Positive progress has been made on the re-negotiation of the Erste Bank construction loan for the marina in Plava Vala d.o.o , the Euro loan notes issued for the acquisition of the Olive Island Project and the Hypo Alpe Adria loan in Cubus Lux Projektiranje and we expect to be able to make further announcements on these in the near future. We are also close to finalising the funding for the Olive Island Resort and Molatska developments.
The marina developments - including the extension of the existing Olive Island Marina - will be a major focus for the Board this year, as will be the commencement of the Olive Island resort and completion of the mixed residential and commercial `Molatska' site in Zadar . The 3.4 million sq metres `Valdanos' project in Montenegro continues to make progress, with final contracts with the Government of Montenegro near signing.
We are making progress on all fronts and with other significant projects also available to the Company, I look forward to a busy and fruitful year."
Gerhard Huber28 October 2010For further information about the Company please see www.cubuslux.com orcontact:Cubus Lux plc Steve McCann +44 (0) 7787 183 184 Astaire Securities Luke Cairns / Rod Venables +44 (0) 20 7492 4750plc (Nomad) Hybridan LLP Claire Louise Noyce +44 (0) 20 7947 4350(Broker) City Road Pam Spooner +44 (0) 20 7248 8010Communications
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