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Kimberly Enterprises N.V.  -  KBE   

Third Quarter Trading Update

Released 16:52 24-Nov-2016

RNS Number : 1183Q
Kimberly Enterprises N.V.
24 November 2016


Kimberly Enterprises N.V.

("Kimberly" or the "Company")


Third quarter trading update


Kimberly Enterprises N.V., the AIM-listed Central and Eastern European property developer (KBE: L), is today issuing its third quarter trading update in respect of the year ending 31 December 2016.

The Company has continued to dispose of its property interests and simplify its corporate structure.  Following the sale of its Canadian property interests, the Company completed the disposal of its investment in the wholly owned subsidiary, Arces International B.V. to a third party for an immaterial amount on 15 July 2016.  In addition, the Company has continued to sell residential units from its Veleslavin project in the Czech Republic.  During the 9 month period to 30 September 2016, the Company completed the sale of 27 units.

In the third quarter of this year, the Company has repaid €1.45m of its debt to Engel Resources and Development Ltd. ("ERD").  As of 30 September 2016, the outstanding debt to ERD stood €25.0m and is due by 31 December 2016. The Company is reliant on the continued support of ERD to extend the repayment date of its loans to Kimberly beyond 31 December 2016.

Further to the announcements released on 6 June 2016, the termination of the lease agreement between Marina Dorcol d.o.o ("MD") (a 95% owned subsidiary of the Company) with the Municipality of Belgrade (the "Municipality") has resulted in a non cash income of €23.5m, which has been recognised in profit and loss under "other income" in the Company's condensed consolidated financial statements.

Management expects that following the termination there will also be a net cash inflow from the above restitution, however, the net cash flow and the timing to conclude the settlement with the Municipality cannot be predicted at this stage with certainty. Based on the advice received by MD, the range of the restitution is likely to be between €2.7m to €3.9m, although there is no certainty of the amount that MD will be able to settle with the Municipality.

For the nine month period to 30 September 2016, after recognising the €23.5m non cash income set out above, the Group had post tax profits of €22.7m.  As at 30 September 2016, the Group had current liabilities totalling €27.8m, which exceeded its current assets which amounted to €5.3m, and had negative equity of €21.7m.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:


Kimberly Enterprises N.V.


Assaf Vardimon

+31 20 778 4141





Cairn Financial Advisers LLP (Nomad)


Sandy Jamieson, James Caithie

+44 20 7213 0880




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Third Quarter Trading Update - RNS