Riga, Latvia, 2016-08-30 12:25 CEST (GLOBE NEWSWIRE) -- Acme Corporation SIA (hereinafter - ‘the Company’ or ‘Acme Corporation’) and its subsidiaries (hereinafter - ‘the Group’) invest in the operation and management of rental real estates (offices and land development) in Latvia. As at 30 June 2016 Acme Corporation was the parent for four Latvian registered limited liability companies – Slokas 161 SIA (DIY anchored retail real estate), Neatkarīgā patentu aģentūra SIA (office anchored real estate), Big Truck SIA (logistic development) and Muižas Parks SIA (logistic development).
In both office and retail segments rents have stabilized. Delinquent rents are being well managed at the moment by our property manager. The financial performance of the Group during first half of 2016 was as expected.
Retail
Property at Slokas iela 161 has recently been let to Gym LV SIA doing business as Lemon Gym. With Cita Santehnika and Gym LV the Slokas property appears to be stable.
Office
The office sector is fully let out. For our offices gross rent has settled to a market rate of €10.00 to €12.00 per square meter per month. There are some historical outliers to the current market rate pulling the offices average below current market.
Land
Management has engaged an architectural firm to prepare the detailed planning for the property. Detailed planning is expected to be complete during 2016.
Bond
Whilst the bond is listed, it continued to demonstrate a significant level of illiquidity in the first half of 2016. The Group repurchased 73 bonds during first half of 2016 from one of the bondholders. Acme Corporation has made repayment of principal to bondholders of record with the January, April and July 2016 payments. Acme Corporation has made all coupon payments on the bonds to date.
Senior Debt
At the time of writing one month EURIBOR is quoted at approximately minus 0.37%. These rates continue to be unprecedentedly low and have positive effect onto the Group’s cash flow; movements up in interest rates will have negative impact on the Group’s cash flows. Management is considering a seven year interest rate derivative to fix our borrowing base rate.
The Group is open to consider acquisition of new assets. Nevertheless the key focus is on conservative cash flow management, improvement of operations and paying down bank debt.
| Note | 6m 2016 | 6m 2015 | |
| EUR | EUR | ||
| CONTINUING OPERATIONS | |||
| Revenue | 674 650 | 637 761 | |
| Cost of sales | (373 612) | (337 879) | |
| Gross profit | 301 038 | 299 882 | |
| Selling expenses | (3 854) | (1 539) | |
| Administrative expenses | (44 116) | (193 974) | |
| 6 | Other operating income | 573 789 | - |
| Other operating expenses | (14 144) | (25 371) | |
| Operating profit | 812 713 | 78 998 | |
| Finance income | - | 140 147 | |
| Finance costs | (99 273) | (191 909) | |
| Profit before income tax | 713 440 | 27 236 | |
| Income tax | (19 294) | (21 063) | |
| Profit for the year from continuing operations | 694 146 | 6 173 | |
| DISCONTINUED OPERATIONS | |||
| Profit for the year from discontinued operations | - | 13 578 145 | |
| PROFIT FOR THE YEAR | - | 13 584 318 | |
| Other comprehensive income | - | - | |
| Total comprehensive income for the year | 694 146 | 13 584 318 | |
| Attributable to: | |||
| Equity holders of the Company | 694 146 | 13 584 318 |
Real Estate Asset Manager Aiga Hercoga aiga@rbm.lv +371 67333504
