XXI Century Announced Following Trading Update
OREANDA-NEWS On 10 November was announced, that XXI Century Investments Public Limited (LSE: XXIC), one of Ukraine's leading real estate investment, development and property management companies announces the following trading update.
The Board of XXI Century wish to advise that, since the announcement of the Company's interim results issued on 29 September 2008, the Company has experienced significant working capital constraints due mainly to the continued turmoil in global capital and financial markets that have impacted Ukraine and adversely affected the Company's operations and its ability to sell its assets. As a consequence, the Board recently adopted and announced a revised business strategy in which the Company will focus on core business segments - retail, high end residential schemes and offices.
To meet its current and ongoing financial commitments, the Company is negotiating the sale of operating properties, non-core assets and business segments, and is conducting discussions with potential investors in both individual projects, as well as participation in the equity of the Company. The Company recently received occupancy permits from Kyiv's municipal authorities for Capitoliy, our premium class residential complex, and also for Parus, our business class residential complex. With these permits in hand, buyers who have made purchase deposits on their apartments are now obliged to pay outstanding balances under their contractual obligations. In addition, the Company expects that formal commissioning of these complexes will facilitate the sale of the remaining apartments, as is evident by the recently signed binding sales agreements aggregating close to USD 2.0 million in both Capitoliy and Parus. The Board has also initiated cutbacks in administrative and other expenses, including a 30% reduction in staff, and is taking additional immediate steps to reduce operating expenses to improve the Company's cash flow.
Notwithstanding these initiatives, the Company is at possible risk that it may not be able to meet certain financial obligations in the near future, including certain significant debt related commitments.
The Board will continue its ongoing efforts to ensure that the Company will be able to meet its current and future capital commitments and, in this regard, will provide further updates.
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