TIDMKBE
RNS Number : 6771N
Kimberly Enterprises N.V.
10 August 2017
Kimberly Enterprises N.V.
('Kimberly' or 'the Company')
Results for the six month period ended 30 June 2017
Kimberly Enterprises N.V., the AIM-listed Central and Eastern
European property developer (AIM: KBE), announces its unaudited
results for the six month period ended 30 June 2017.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Financial Summary
For the For the
six months year ended
ended 30 31 December
June 2017 2016
------------ -------------
EUR'000 EUR'000
------------ -------------
Net liabilities (24,104) (23,165)
NAV/share (EUR) (0.27) (0.26)
Revenue 360 5,605
Write-down of inventory - (430)
Gross loss (190) (357)
Other income from lease
termination - 23,510
Other income 891 3,834
Operating profit 394 26,028
Net financing costs (957) (5,444)
Share of profit (loss)
of equity-accounted investments,
net of tax (1) 310
Profit (loss) before
tax (564) 20,894
Profit (loss) for the
year (539) 21,173
Profit (loss) per share
(EUR) (0.006) 0.232
Enquiries:
Kimberly Enterprises N.V.
Sagee Kadosh Tel: +31 (0) 20 778 4141
Cairn Financial Advisers LLP (Nomad)
Sandy Jamieson, James Caithie Tel: +44 (0) 207 213 0880
Financial Position - going concern
In order to manage its financial situation, in previous periods,
the Company approached Engel Resources and Development Ltd.
("ERD"), the parent company of the Company's immediate parent
company, Engel General Developers Ltd. ("EGD"), to provide
financial assistance to fund the Company's immediate
liabilities.
As of 30 June 2017, the outstanding debt toward ERD is EUR
26,541 thousands and is due by 31 October 2017. During the
reporting period, ERD did not provide any additional bridge loans
to the Company.
In order to finance the Company's immediate liabilities and to
stabilize its financial position, management has acted to realize
several assets during the previous reporting periods.
ERD support is still required to extend the repayment date of
its loans beyond 31 October 2017.
At 30 June 2017, the Group has current liabilities totalling EUR
27,899 thousands, which exceeds its current assets amounting to EUR
3,145 thousands and a negative equity which amounts to EUR 24,104
thousands.
The financial statements are prepared based on a going concern
basis. However, management believes that the above mentioned
condition (i.e. the need to extend the repayment date of the loans
granted by ERD) indicates the existence of material uncertainty
which cast significant doubt on the Group's ability to continue as
a going concern.
Should the going concern assumption not be appropriate,
adjustments would have to be made to reflect a situation where the
assets may need to be realized other than in the normal course of
business and at amounts which could differ significantly from the
amounts stated in the consolidated financial statements
Trading Performance
During the period the Company sold 3 units of the Velaslavin
project in Czech republic.
In addition, on March 29, 2017, the Company sold its investment
in wholly owned subsidiary, ENMAN B.V. for an amount of 1 EUR and
as a consequence recognized income of EUR 891 thousands (see note
9).
Condensed consolidated interim statement of financial
position
30 June 31 December
2017 2016
Thousands Euro
-----------------------
ASSETS
Cash and cash equivalents 686 510
Trade receivables - 554
Prepayments and other assets 1,099 1,331
Inventories of housing units
and land 1,275 1,776
Current tax assets 85 35
--------- ------------
Current assets 3,145 4,206
--------- ------------
Inventories of land 696 698
Property and equipment - 1
Loans and amounts to equity-accounted
investment 37 43
Non-current assets 733 742
--------- ------------
Total assets 3,878 4,948
========= ============
LIABILITIES
Loans and amounts due to related
parties, joint venture and other 27,086 26,265
Trade payables 243 211
Other payables 421 1,355
Provisions 149 146
Current liabilities 27,899 27,977
--------- ------------
Deferred tax liabilities 83 136
--------- ------------
Non-current liabilities 83 136
--------- ------------
Total liabilities 27,982 28,113
--------- ------------
EQUITY
Share capital 878 878
Share premium 39,298 39,298
Accumulated losses (63,490) (62,933)
Reserves (48) 330
--------- ------------
Equity attributable to owners
of the Company (23,362) (22,427)
Non-controlling interests (742) (738)
--------- ------------
Total equity (24,104) (23,165)
Total liabilities and equity 3,878 4,948
========= ============
Condensed consolidated interim statement of profit or loss
For the six months
ended 30 June
2017 2016
------------------- --------
Thousands Euro
Revenue 360 2,932
Write down of inventory - (51)
Cost of sales excluding
write down of inventory (550) (3,013)
------------------- --------
Gross loss (190) (132)
Selling, general and administrative
expenses (307) (565)
Other income (see note 9) 891 115
------------------- --------
Operating income (loss) 394 (582)
Net foreign exchange income
(loss) (11) (87)
Finance income - 576
Finance costs (946) (2,870)
------------------- --------
Net finance income (costs) (957) (2,381)
------------------- --------
Share of profit (loss) of
equity-accounted investments,
net of tax (1) 315
------------------- --------
Income (Loss) before tax (564) (2,648)
Income tax benefit 25 67
------------------- --------
Income (Loss) for the period (539) (2,581)
=================== ========
Income (Loss) attributable
to:
Owners of the Company (557) (2,467)
Non-controlling interests 18 (114)
Income (Loss) for the period (539) (2,581)
=================== ========
Income (Loss) per share:
Basic Income (loss) per
share (Euro) (0.006) (0.028)
------------------- --------
Diluted (Income) loss per
share (Euro) (0.006) (0.028)
------------------- --------
Condensed consolidated interim statement of comprehensive
income
For the six months
ended 30 June
---------------------------
2017 2016
----------- --------------
Thousands Euro
-----------------------------
Income (Loss) for the period (539) (2,581)
Other comprehensive income
(loss):
Items that may be reclassified
subsequently to profit or
loss
Foreign operations - foreign
currency translation differences (400) 620
----------- --------------
Other comprehensive income
(loss) (400) 620
----------- --------------
Total comprehensive loss
(939) (1,961)
=========== ==============
Total comprehensive income
(loss) attributable to:
Owners of the Company (935) (1,873)
Non-controlling interests (4) (88)
----------- --------------
Total comprehensive loss (939) (1,961)
=========== ==============
Condensed consolidated interim statement of changes in
equity
Attributable to owners of
the Company
-----------------------------------------------------------
Translation
and
Share Share capital Accumulated Non-controlling Total
capital premium reserve losses Total interests equity
---------
Thousands Euro
----------------------------------------------------------------------------------------
Balance at 1 January
2016 878 39,298 2,688 (83,258) (40,394) (1,385) (41,779)
Loss for the period - - - (2,467) (2,467) (114) (2,581)
Other comprehensive
income for the
period - - 594 - 594 26 620
Balance at 30
June 2016 878 39,298 3,282 (85,725) (42,267) (1,473) (43,740)
========= ========= ============ ============ ========= ================ =========
Balance at 1 January
2017 878 39,298 330 (62,933) (22,427) (738) (23,165)
Income (Loss)
for the period - - - (557) (557) 18 (539)
Other comprehensive
loss for the period - - (378) - (378) (22) (400)
Balance at 30
June 2017 878 39,298 (48) (63,490) (23,362) (742) (24,104)
========= ========= ============ ============ ========= ================ =========
Condensed consolidated interim statement of cash flows
For the six months
ended 30 June
---------------------
2017 2016
--------- ----------
Thousands Euro
---------------------
Cash flows from operating activities
Loss for the period (539) (2,581)
Adjustments for:
- Net finance costs 957 2,381
- Income tax benefit (25) (67)
- Share of loss (profit) of
equity-accounted investments,
net of tax 1 (315)
- Other income (see note 9) (891) (115)
- Write down of inventories - 51
(497) (646)
Change in:
- Inventories of housing units 530 3,020
- Trade receivables 554 67
- Provisions - (29)
- Prepayments and other assets 179 3
- Trade payables 27 (15)
- Other payables (31) (906)
--------- ----------
Cash from operating activities 762 1,494
Interest paid - (70)
Income taxes paid (76) (142)
--------- ----------
Net cash from operating activities 686 1,282
--------- ----------
Cash flows from investing activities
Proceeds from sale of investment - 812
Short term loans and amounts
repaid by related parties - 1,242
Change in restricted bank deposit - 728
--------- ----------
Net cash from investing activities - 2,782
--------- ----------
Cash flows from financing activities
Repayment of interest-bearing
bank loans - (2,960)
Loans and amounts received
from related parties and other - 2,164
Loans and amounts repaid to
related parties and other (503) (2,164)
Payment of finance lease liability - (90)
Net cash used in financing
activities (503) (3,050)
--------- ----------
Net increase in cash and cash
equivalents 183 1,014
Cash and cash equivalents at
1 January 510 652
Effect of exchange rate fluctuations
on cash held (7) (2)
--------- ----------
Cash and cash equivalents at
30 June 686 1,664
========= ==========
Notes to the condensed consolidated interim financial
statements
NOTE 1 - REPORTING ENTITY
Kimberly Enterprises N.V. (the "Company") is a company domiciled
in The Netherlands. These condensed consolidated interim financial
statements ("interim financial statements") as at and for the six
months ended 30 June 2017 comprise the Company, its subsidiaries
(together referred to as the "Group") and the Group's interests in
an associate and a joint venture.
The Group is primarily involved in holding, developing and
selling real-estate assets in Eastern Europe.
The Company has been listed on the Alternative Investment Market
("AIM") of the London Stock Exchange, United Kingdom since 15
December 2005.
NOTE 2 - BASIS OF ACCOUNTING
These interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union, and should be read in conjunction with the
Group's last annual consolidated financial statements as at and for
the year ended 31 December 2016 ("last annual financial
statements"). They do not include all the information required for
a complete set of IFRS financial statements. However, selected
explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in the
Group's financial position and performance since the last annual
financial statements.
These interim financial statements were authorised for issue by
the Company's Board of Directors on 10 August 2017.
NOTE 3 - USE OF JUDGEMENTS AND ESTIMATES
In preparing these interim financial statements, management has
made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 31 December
2016.
NOTE 4 - GOING CONCERN
In order to manage its financial situation, in previous periods,
the Company approached Engel Resources and Development Ltd.
("ERD"), the parent company of the Company's immediate parent
company, Engel General Developers Ltd. ("EGD"), to provide
financial assistance to fund the Company's immediate
liabilities.
As of 30 June 2017, the outstanding debt toward ERD is EUR
26,541 thousands and is due by 31 October 2017. During the
reporting period, ERD did not provide any additional bridge loans
to the Company.
In order to finance the Company's immediate liabilities and to
stabilize its financial position, management has acted to realize
several assets during the previous reporting periods.
ERD support is still required to extend the repayment date of
its loans beyond 31 October 2017.
At 30 June 2017, the Group has current liabilities totalling EUR
27,899 thousands, which exceeds its current assets amounting to EUR
3,145 thousands and a negative equity which amounts to EUR 24,104
thousands.
The financial statements are prepared based on a going concern
basis. However, management believes that the above mentioned
condition (i.e. the need to extend the repayment date of the loans
granted by ERD) indicates the existence of material uncertainty
which cast significant doubt on the Group's ability to continue as
a going concern.
Should the going concern assumption not be appropriate,
adjustments would have to be made to reflect a situation where the
assets may need to be realized other than in the normal course of
business and at amounts which could differ significantly from the
amounts stated in the consolidated financial statements.
NOTE 5 - FINANCIAL RISK MANAGEMENT
All the aspects of the Group's financial risk management
objectives and policies are consistent with that disclosed in the
consolidated financial statements as at and for the year ended 31
December 2016.
a. Liquidity risk
Liquidity risk is the risk that the Group will encounter
difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another
financial asset. The Group's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity
to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or
risking damage to the Group's reputation.
In order to handle the liquidity risk of the Company, the
management realised several assets during the previous reporting
periods in Czech Republic and Canada. In addition the Company is
acting to minimise its operational costs.
See note 4 which includes the Group's going concern analysis and
describes the financial difficulties and liquidity risks.
b. Carrying amounts and fair values
The carrying amounts of certain short term financial assets and
liabilities expected to be settled within 12 months, including cash
and cash equivalents, trade payables and other payables were deemed
to be equal to their fair values.
The fair values of other financial assets and financial
liabilities, together with the carrying amounts shown in the
statement of financial position, are as follows:
31 December
30 June 2017 2016
------------------------------------------------------------ ------------ -------
Carrying Fair Carrying Fair
Amount value amount value
--------- ------- ------------ -------
Thousands Euro
-----------------------------------------
Total financial assets
Loans and amounts to
related parties 545 546 573 574
--------- ------- ------------ -------
545 546 573 574
========= ======= ============ =======
Total financial liabilities
Loans and amounts due
to related parties and
joint ventures 27,086 26,931 26,265 25,978
27,086 26,931 26,265 25,978
========= ======= ============ =======
Reconciliation of the financial assets carrying amounts:
30 June 31 December
2017 2016
-------- ------------
Thousands Euro
----------------------
Loans and amounts to related
parties 545 573
Impairment: Accumulated share
of loss of equity-accounted
investees allocated to loans
granted by the Company that
is considered as a part of the
net investment (508) (530)
Loans and amounts to related
parties 37 43
======== ============
The fair value of loans and amounts to related parties has been
calculated using market interest rate of 0.5% (31 December 2016:
0.5%) taking into consideration specific conditions (securities
provided, currency, etc.).
The fair value of loans and amounts due to related parties and
joint ventures has been calculated using market interest rate of
4.95% (31 December 2016: 4.95%) taking into consideration specific
conditions (securities provided, currency, etc.).
NOTE 6 - RELATED PARTIES
a. Related party transactions
1. Support due to the Company's financial situation
At 30 June 2017, the outstanding debt due to Engel Resources and
Development Ltd. ("ERD") is EUR 26,541 thousands and is due by 31
October 2017. During the reporting period, ERD did not provide any
additional bridge loans to the Company.
During the reporting period the Company repaid part of the loan
granted by ERD to the amount of EUR 503 thousands.
In order to secure this debt, the Company has pledged the shares
of Marina Dorcol D.o.o to ERD.
2. Trading transactions
The Group recognised interest and adjustment in relation to the
Israeli CPI expense relating to the loans granted by ERD in the
total amount of EUR 936 thousands.
The Group recognised a loss of EUR 382 thousands in net foreign
exchange loss (in relation to loans received which are denominated
in ILS) due to the weakening of the EUR against the ILS (1.4%)
during the reporting period.
b. Directors
During the first quarter of 2017 a new executive director was
appointed (Mr. Sagee Kadosh).
At 30 June 2017, the Company has 3 directors (31 December 2016:
2 directors).
NOTE 7 - OPERATING SEGMENTS
Basis of segmentation
The Group's CODM (the chief operating decision maker) considers
the whole operation as one operating segment while trying to ensure
sufficient liquidity to meet the liabilities when due. The
liquidity issues the Group is currently facing require a general
decision making process which is different from a company or group
of companies operating in a liquid position.
The basis of segmentation is the same as that presented in the
annual consolidated financial statements for the year ended 31
December 2016.
NOTE 8 - LOANS AND AMOUNTS TO EQUITY-ACCOUNTED INVESTMENT
At 30 June 2017, the Company holds interest in one joint
venture, Montreal Residential Holdings Master Limited Partnership
("MLP").
MLP is not a publicly listed entity and consequently does not
have published price quotation.
Details as per the investment and loan in MLP
Montreal Residential Holdings Master Limited Partnership ("MLP")
is a holding partnership domiciled in Canada.
The Company owns ECG Trust Canada Holding Trust ("ECG") (95%
interest) which holds 20% interest in future distributions of MLP
(The Company owns 50% of the voting rights in MLP).
The remaining 80% in future distributions is owned by Lehman
Brothers Real Estate Partners II ("Lehman Brothers") represented by
Silverpeak Real Estate Partners ("Silverpeak").
The following table summarises the financial statement of MLP as
included in its own consolidated financial statements (figures in
the table represent 100% of the joint venture's financial
statements). The table also reconciles the summarised financial
statement to the carrying amount of the Group's interest in
MLP.
30 June 31 December
2017 2016
------------------- ---------------------
Thousands Euro
------------------------------------------
Percentage ownership interest 20% 20%
-------------------------------------- ------------------- ---------------------
Current assets
(MLP does not have cash and
cash equivalent at 30 June
2017 and at 31 December 2016) 1,253 1,376
-------------------------------------- ------------------- ---------------------
Non-current assets -
-------------------------------------- ------------------- ---------------------
Current liabilities
(including loans and amounts
due to related parties in
the amount of EUR 2,877 thousands
at 30 June 2017 and EUR 3,007
thousands at 31 December 2016) (3,794) (4,027)
-------------------------------------- ------------------- ---------------------
Non-current liabilities -
-------------------------------------- ------------------- ---------------------
Net liabilities (100%) (2,541) (2,651)
Group's share of the net liabilities
(ii) - -
Net investment (i) 37 43
-------------------------------------- ------------------- ---------------------
Loans granted by the Company,
net of impairment (i,ii) 37 43
-------------------------------------- ------------------- ---------------------
Revenue - 13,095
Cost of sales - (10,257)
Selling, general and administrative
expenses (6) (78)
Net foreign exchange income - 4
Income tax expense - (848)
Profit (loss) for the period
(100%) (6) 1,916
Other comprehensive income
(loss):
Foreign operations - foreign
currency translation differences 115 (95)
------------------- ---------------------
Total comprehensive income
for the period (100%) 109 1,821
Profit (loss) allocated to
loans granted by the Company
and being part of the net
investment (i) (1) 383
Impairment loss on loans given - (73)
The Group's share of profit
(loss) of equity-accounted
investment, net of tax (1) 310
=================== =====================
Group's share of other comprehensive
income (loss) 23 (19)
Comments in respect to the investment in MLP:
i. In previous periods the joint venture continued to
accumulated losses and thus the Company recognised a loss related
to the loan given to MLP that was part of the net investment and
presented the loss as share of profit (loss) of equity-accounted
investment in the consolidated statement of profit or loss.
ii. The Company did not provide any guarantees for the joint
venture and has not incurred legal and constructive obligation on
behalf of the joint venture; therefore losses are accounted for to
the extent that the Company's interest is reduced to zero.
iii. Loans granted by the Company to joint venture -
-- Are denominated in CAD currency.
-- Bear no interest.
-- Have not set repayment date. Repayment is expected from the
proceeds of the sale of the related projects financed by the
loans.
NOTE 9 - SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
On March 29 2017, the Company sold its investment in the wholly
owned subsidiary, ENMAN B.V. ("ENMAN") to a third party for an
amount of 1 EUR ("Sale of ENMAN").
As a consequence of the sale of ENMAN, the Company no longer
controls ENMAN, therefore ceased consolidating ENMAN in its
consolidated financial statements. The Company recognized income of
EUR 891 thousands under "other income" in profit or loss on the
sale of its investment in ENMAN.
The income was mainly due to liability recorded in previous
years under Enman's statement of financial position for a finance
exposure with respect to interest-bearing bank loans that financed
the Ingatlan project in Budapest, Hungary. ENMAN provided
guarantees to the lender bank for interest payments and cost
overruns; however, no official legal claim has been filed by any of
the parties.
The Company did not provide any guarantees for ENMAN's and its
subsidiaries' liabilities.
The following table summarises the derecognised amounts of
assets and liabilities disposed at the date of the sale.
Thousands
Euro
----------------------
Other payables (908)
Total identifiable net liabilities disposed (908)
Selling expenses 17
----------------------
Income on de-recognition, net (891)
Cash and cash equivalents disposed of -
Net cash outflow -
======================
***
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BDGDIIDBBGRG
(END) Dow Jones Newswires
August 10, 2017 08:31 ET (12:31 GMT)
Grafico Azioni Kimberly Ent. (LSE:KBE)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Kimberly Ent. (LSE:KBE)
Storico
Da Mag 2023 a Mag 2024