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11 May 2009 12:42
Cubus Lux plc ("Cubus Lux" or the "Company") Trading Update
Following the close of the 2008/9 year end, the Board is pleased to announce further progress in all areas by the Company, including advances in tenders for new projects in Croatia and in neighbouring countries.
As we announced at the end of April 2009, Cubus Lux has won the tender to develop a 3.4 million sq. metre coastal resort at Valdanos, Montenegro. Contract negotiations in respect of that project are progressing well. The Company is also tendering for further new projects in Croatia, and announcements are anticipated in due course.
Progress on the scheduled development of the Olive Island Resort in Croatia has, however, been slower than anticipated because of the impact of the worldwide banking and credit crisis. This has caused many banks to extend their lending and due diligence processes. The Company expects to be able to make a further announcement on this subject in due course. The Olive Island Resort is still expected to commence construction during the course of this calendar year.
The Company's core operations in Croatia - casinos and marina - have both started their high season and so far there is no indication of any adverse impact on tourist numbers in Croatia from the economic downturn. To the contrary, anecdotal evidence suggests that Croatia is benefiting from the slowdown in tourism to long-haul destinations, being within driving distance for most of Continental Europe. As a result, the Board anticipates another satisfactory performance by these businesses in the current financial year.
Good progress is being made with a residential/commercial development in Zadar, Croatia. All permits and planning permissions have been granted for a city centre complex including 80 residential apartments and commercial offices/ showrooms. Final designs are underway and the company is holding a tender to select the builder. Loan finance is in place with Hypo Alpe Adria Bank, construction and selling are expected to commence in the second half of the year.
Full year results to 31 March 2009 are expected to be announced in or around the last week of July 2009.
For further information please see www.cubuslux.com or contact:
Steve McCannCubus Lux plc+385 (0)99 214 9636Simon Sacerdoti/Liam Murray, Nominated AdviserDowgate Capital Advisers Limited+44 (0)20 7492 4777Claire Louise Noyce/Stephen Austin, BrokerHybridan LLP+44 (0)20 3159 5085Pam SpoonerCity Road Communications+44 (0) 20 7248 8010+44 (0)7858 477 747
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