TIDMAISI
RNS Number : 0485M
Aisi Realty Public Limited
09 August 2011
Aisi Realty Public Limited
("Aisi" or the "Company")
Final Results for the year ended 31 December 2010
Aisi Realty Public Limited (AIM: AISI), a property investment
company focusing on development projects and related investments in
Ukraine, announces its audited results for the year ended 31
December 2010.
Highlights:
Financial Summary:
o Investment portfolio valued by DTZ at $43.9 million (2009:
$58.2 million)
o Net asset value was $25.0 million (2009: $49.7 million)
o Net asset value per share of $0.06 (2009: $0.12)
o Loss before tax was $25.2 million (2009: 39.2 million)
Operational Summary:
o Brovary warehouse is now 21% leased
o Continuing negotiations with a number of international
logistics operators
o In May 2011 the Group signed a restructuring agreement with
EBRD for the repayment of the outstanding principal amount of
$15.5m to be deferred until September 2012.
Enquiries:
AISI Realty Public Ltd
Paul Ensor, Chairman +44 (0)7595 219011
Beso Sikharulidze +38 (0)44 459 3000
Seymour Pierce Limited
Nandita Sahgal / David Foreman (Corporate
Finance) +44 (0)20 7107 8000
Leti McManus (Corporate Broking)
REPORT OF THE BOARD OF DIRECTORS
The Board of Directors presents its report and audited
consolidated financial statements of Aisi Realty Public Limited
(the Company) and its subsidiaries (the Group) for the year ended
31 December 2010.
Principal activity
The principal activity of the Group, which is unchanged from
last year, is the investment in real estate in major population
centers in Ukraine, with a particular focus on the capital city,
Kiev.
Review of current position, future development and significant
risks
Whilst we have only one bank debt and numerous uncharged assets,
the Group's financial position as presented in the consolidated
financial statements is not considered satisfactory by the
Directors, and they have been working on a number of strategic
opportunities to secure adequate working capital and make the
Group's operations profitable.
In May of 2011 the Group signed a restructuring agreement with
EBRD for the repayment of the outstanding principal amount of
US$15.5m to be deferred until September 2012. This is the only bank
debt of the Group.
Whilst the restructuring of the EBRD facility is the first step
in securing the ongoing financial position of the Group, given the
small contracted rental income to date, the available working
capital of the Group continues to be very tight. On 20 June 2011
the Group was not able to meet the interest payment due, and plans
to remedy the situation once the funding explained below is
concluded.
On 1 June 2011 the Company made a further announcement that it
had requested that trading in the Existing Ordinary Shares on AIM
be suspended until such time that it had secured all necessary
funding to enable to it to carry on as a going concern.
The discussions with an independent third party investor group,
namely South East Continent Unique Real Estate (SECURE) Management
("Secure Management"), have now been concluded and the Board is
pleased to announce that the Company has entered into a
Subscription Agreement with Narrowpeak Consultants Limited (the
"Investor"), a member of the Secure Management group, conditional
on, inter alia, the Proposed Investment Resolutions (as set out in
the Notice of First EGM) being passed by the shareholders at the
First EGM and completion of due diligence to the satisfaction of
the Investor, following which the Investor proposes to make a
substantial investment in the Company on certain terms.
The Brovary Warehouse is currently 21% leased and we are pleased
to report that we are continuing negotiations (some being at an
advanced stage) with a number of international logistics operators,
and expect a positive conclusion in the near future such as full
coverage of leasable area, which should provide improved visibility
on the ongoing cash generation of the property.
The Board of Directors has discussed and agreed on the potential
structure of the management internalisation which will be proposed
to the shareholders at a General Meeting in the coming few
weeks.
Considering the current market conditions, the Board of
Directors has decided to focus the strategy of the Group away from
speculative development to investing in income generating assets.
The focus will now be on warehouses and big box retail, with well
established international tenants with long term leases. We have
built a strong pipeline of potential new investments. All other
non-core assets will be used to generate additional equity for
implementing a new strategic focus.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2010
2010 2009
US$ US$
Revenue from operations
Fair value losses on investment
property (19 965 122) (17 470 085)
Other income, net 25 292 (523)
(19 939 830) (17 470 608)
Expenses
Administration expenses (5 978 087) (5 946 723)
Finance income/(costs), net 115 527 (4 872 270)
Other income/(expenses), net 561 733 (10 882 650)
Loss before tax (25 240 657) (39 172 251)
Tax - (10)
Net loss for the year (25 240 657) (39 172 261)
Other comprehensive income
Translation to presentation currency 22 430 973 378
Total comprehensive income for
the year (25 218 227) (38 198 883)
-------------- -------------
Loss attributable to:
Equity holders of the parent (24 934 873) (38 901 144)
Non controlling interest (305 784) (271 117)
-------------
(25 240 657) (39 172 261)
============== =============
Loss and total comprehensive income
attributable to:
Equity holders of the parent (24 933 034) (37 879 359)
Non controlling interest (285 193) (319 524)
-------------
(25 218 227)) (38 198 883)
============== =============
Losses per share attributable
to equity holders
of the parent (cent) (6) (14)
-------------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2010
2010 2009
US$ US$
ASSETS
Non current assets
Property, plant and equipment 54 783 72 764
Investment property under construction 10 300 000 35 319 000
Investment property 33 631 000 22 873 000
Advances for investments 6 000 000 9 297 945
VAT non-current 2 926 939 3 213 709
52 912 722 70 776 418
------------- -------------
Current assets
Accounts receivable 3 487 598 1 776 063
Cash and cash equivalents 291 053 5 020 657
3 778 651 6 796 720
------------- -------------
Total assets 56 691 373 77 573 138
------------- -------------
EQUITY AND LIABILITIES
Equity and reserves attributable
to owners of the parent
Share capital 5 431 918 5 431 918
Share premium 94 523 283 94 523 283
Accumulated losses (74 217 972) (49 283 099)
Advances from shareholders 223 118 -
Other reserves 68 390 68 390
Translation reserve (1 068 153) (1 069 992)
------------- -------------
24 960 584 49 670 500
------------- -------------
Non-controlling interest 1 030 793 1 315 986
Total equity 25 991 377 50 986 486
------------- -------------
Non current liabilities
Long - term borrowings 15 529 412 15 529 412
Obligations under finance leases 591 245 589 249
Accounts payable 673 078 766 365
------------- -------------
16 793 735 16 885 026
------------- -------------
Current liabilities
Short - term borrowings 41 237 508 555
Accounts payable 13 234 905 8 534 465
Obligations under finance leases 44 969 73 675
Current tax liabilities 510 240 510 240
Provision for litigation claims 74 910 74 691
------------- -------------
13 906 261 9 701 626
------------- -------------
Total liabilities 30 699 996 26 586 652
------------- -------------
Total equity and liabilities 56 691 373 77 573 138
============= =============
On 8 August 2011 the Board of Directors of Aisi Realty Public
Limited authorised these financial statements for issue.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010
Other
reserves Advances
Share Share Accumulated (Note for issue Translation Non-controlling
capital premium loss 10) of shares reserve Total interest Total
US$ US$ US$ US$ US$ US$ US$ US$ US$
--------- --------- ---------------- ---------- ----------- ------------ -------- ---------------- ---------------
Balance as at 1 2 283 92 683 (10 381 (2 091 82 540 1 635 84 175
January 2009 299 930 955) 46 710 - 777) 207 510 717
========= ========= ================ ========== =========== ============ ======== ================ ===============
Total
comprehensive
income for the (38 901 (38 901 (39 172
year - - 144) - - - 144) (271 117) 261)
Increase of 3 148 1 839 4
share capital 619 353 - - - - 987972 - 4 987972
Translation to
presentation 1
currency - - - - - 1 021 785 021785 (48 407) 973 378
Directors'
options - - - 21 680 - - 21 680 - 21 680
Balance as at 31
December 2009 / 5 431 94 523 (49 283 (1 069 49 670 1 315 50 986
1 January 2010 918 283 099) 68 390 - 992) 500 986 486
========= ========= ================ ========== =========== ============ ======== ================ ===============
Total
comprehensive
income for the (24 934 (24 934 (25 240
year - - 873) - - - 873) (305 784) 657)
Advances from
shareholders - - - - 223 118 - 223 118 - 223 118
Translation to
presentation
currency - - - - - 1 839 1 839 20 591 22 430
Balance as at 31 5 431 94 523 (74 217 (1 068 24 960 1 030 25 991
December 2010 918 283 972) 68 390 223 118 153) 584 793 377
========= ========= ================ ========== =========== ============ ======== ================ ===============
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December 2010
2010 2009
US$ US$
Operating activities
Profit/(loss) before tax (25 240 657) (39 172 251)
Adjustments for:
Depreciation of property, plant and
equipment 81 183 60 881
Advances for investments impairment
(reversal) / loss (780 267) 6 128 205
Foreign exchange losses/(gain) (263 388) 2 301 804
Loss on revaluation of investment property 19 965 122 17 470 085
Loss/(gain) from discounting VAT (1 050 843) 2 398 890
Other non-cash changes in investment
property (3 541 458)
Receivables impairment loss 111 899 1 253 167
Property, plant and equipment impairment
loss - 95 772
Other expenses - 141 218
Interest income (84 694) (15 553)
Interest expense 1 150 869 7 209
Operating loss before working capital
changes (9 652 234) (9 330 573)
Increase in advances to related parties (4) (1 252)
(Increase)/Decrease in prepayments and
other
current assets (1 311 786) (314 523)
Increase in trade and other payables 1 110 659 2 515 095
Increase in payables due to related
parties 3 652 706 2 752 894
Cash flows used in operating activities (6 200 659) (4 378 359)
------------- -------------
Investing activities
Decrease in prepayments under development
contracts - 2 511 292
Decrease/(Increase) in advances for
investments 4 640 494 68 244
(Decrease)/Increase in payables to
constructors (156 212) (196 767)
Additions to investment property (1 946 719) (13 106 851)
Changes of property, plant and equipment (2 498) (20 883)
Increase in VAT receivable (871 735) (2 055 671)
Increase/(Decrease) in financial lease
liabilities (26 710) 576 941
Interest received 84 694 15 553
Cash flows used in investing activities 1 721 314 (12 208 142)
------------- -------------
Financing activities
Proceeds from shareholders advances
/ proceed 223 118 4 987 972
from issue of share capital
Proceeds from bank loan (470 588) 16 000 000
Proceeds from other borrowings 12 4 321
Net cash (used in) / from financing
activities (247 458) 20 992 293
------------- -------------
Effect of foreign exchange rates on
cash and cash equivalents (2 801) 579 132
Net (decrease) / increase in cash and
cash equivalents (4 729 604) 4 984 924
------------- -------------
Cash and cash equivalents:
At beginning of the year 5 020 657 35 733
At end of the year 291 053 5 020 657
============= =============
NOTES TO THE ACCOUNTS
Basis of preparation
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union (EU) and the requirements of the
Cyprus Companies Law, Cap.113. The consolidated financial
statements are presented in United States Dollars (US$). The
consolidated financial statements have been prepared under the
historical cost convention as modified by the revaluation of
investment property and investment property under construction to
fair value.
The preparation of financial statements in conformity with IFRSs
requires the use of certain critical accounting estimates and
requires management to exercise its judgement in the process of
applying the Group's accounting policies. It also requires the use
of assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Although these
estimates are based on management's best knowledge of current
events and actions, actual results may ultimately differ from those
estimates.
The Company's Annual Report and Accounts for the year ended 31
December 2010 have been posted to shareholders and copies are
available on the Company's website: www.aisicap.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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