REG - Ukrproduct Group Ltd - Half Yearly Report <Origin Href="QuoteRef">UKR.L</Origin> - Part 2

UkrproductAnnouncement

30/09/2015 07:02

- Part 2: For the preceding part double click  ID:nRSd6264Aa 

31, 2011. The 
                                                                 total overdue 
                                                                 amount payable 
                                                                 by the Group  
                                                                 to the EBRD is 
                                                                 EUR 900       
                                                                 thousand.Such 
                                                                 breach of the 
                                                                 provisions    
                                                                 relating to   
                                                                 the loan      
                                                                 repayment     
                                                                 gives the bank 
                                                                 a formal right 
                                                                 to demand     
                                                                 early         
                                                                 repayment of  
                                                                 loans. The    
                                                                 Board notified 
                                                                 the EBRD in   
                                                                 advance about 
                                                                 all breaches  
                                                                 of terms of   
                                                                 the Loan      
                                                                 Agreement and 
                                                                 expected to   
                                                                 obtain a      
                                                                 waiver on the 
                                                                 date of       
                                                                 signing these 
                                                                 condensed     
                                                                 consolidated  
                                                                 financial     
                                                                 statements.   
                                                                 However, the  
                                                                 EBRD did not  
                                                                 provide waiver 
                                                                 in respect of 
                                                                 breach of the 
                                                                 repayment     
                                                                 schedule in   
                                                                 2015. The     
                                                                 representative 
                                                                 s of EBRD     
                                                                 provided a    
                                                                 letter on 29  
                                                                 September     
                                                                 2015 to the   
                                                                 Group's Board 
                                                                 stating that: 
                                                                 1) EBRD is    
                                                                 aware of the  
                                                                 breach of the 
                                                                 repayment     
                                                                 schedule in   
                                                                 2015; 2) EBRD 
                                                                 is currently  
                                                                 considering a 
                                                                 restructuring 
                                                                 of the terms  
                                                                 of the Loan   
                                                                 Agreement,    
                                                                 including     
                                                                 extension of  
                                                                 the maturity  
                                                                 date under the 
                                                                 Loan Agreement 
                                                                 and; 3) as of 
                                                                 the date of   
                                                                 signing of the 
                                                                 letter did not 
                                                                 exercise any  
                                                                 of its rights 
                                                                 in accordance 
                                                                 with the      
                                                                 Agreement. The 
                                                                 Board believes 
                                                                 that the EBRD 
                                                                 will not      
                                                                 demand        
                                                                 accelerated   
                                                                 repayment of  
                                                                 the loans due 
                                                                 to the breach 
                                                                 of the        
                                                                 repayment     
                                                                 schedule in   
                                                                 2015 and will 
                                                                 continue to   
                                                                 support the   
                                                                 Group through 
                                                                 their capital 
                                                                 projects,     
                                                                 during a time 
                                                                 of political  
                                                                 unrest. Based 
                                                                 on the        
                                                                 existence of  
                                                                 these         
                                                                 conditions,   
                                                                 the condensed 
                                                                 consolidated  
                                                                 financial     
                                                                 statements    
                                                                 have been     
                                                                 prepared on a 
                                                                 going concern 
                                                                 basis, because 
                                                                 management    
                                                                 believes that 
                                                                 it has        
                                                                 employed      
                                                                 sufficient and 
                                                                 appropriate   
                                                                 measures to   
                                                                 underpin its  
                                                                 cost cutting  
                                                                 strategy      
                                                                 including but 
                                                                 not limited   
                                                                 to:           
                                                                 reconstruction 
                                                                 of            
                                                                 manufacturing 
                                                                 facilities in 
                                                                 Starokonstanti 
                                                                 nov location, 
                                                                 decrease in   
                                                                 the number of 
                                                                 subsidiaries  
                                                                 and           
                                                                 streamlining  
                                                                 its business  
                                                                 processes     
                                                                 aimed to      
                                                                 minimise non  
                                                                 -value adding 
                                                                 activities and 
                                                                 related costs 
                                                                 etc.          
                                                                 
                                                                 
                                                                 2. Earnings                                                                                                   
                                                                 per share                                                                                                     
                                                                                                                                                                                                     
                                                                 Basic earnings 
                                                                 per share have 
                                                                 been          
                                                                 calculated by 
                                                                 dividing net  
                                                                 loss/profit   
                                                                 attributable  
                                                                 to the        
                                                                 ordinary      
                                                                 shareholders  
                                                                 (loss/profit  
                                                                 for the year) 
                                                                 by the        
                                                                 weighted      
                                                                 average number 
                                                                 of shares in  
                                                                 issue.        
                                                                 
                                                                                                                                                                                                     
                                                                                                                                       Six months ended  Six months ended            
                                                                                                                                       30 June 2015      30 June 2014                
                                                                                                                                                                                 
                                                                 Net (loss) /    (1 081)     (2 007)               
                                                                 profit                                            
                                                                 attributable                                      
                                                                 to ordinary                                       
                                                                 shareholders,                                     
                                                                 £'000                                             
                                                                 Weighted        39 673 050  39 673 050            
                                                                 number of                                         
                                                                 ordinary                                          
                                                                 shares in                                         
                                                                 issue                                             
                                                                 Basic earnings   (2,72)      (5,06)                
                                                                 per share,                                        
                                                                 pence                                             
                                                                 Diluted         39 629 619  39 629 619            
                                                                 average number                                     
                                                                 of shares                                         
                                                                 Diluted         (2,72)      (5,06)                
                                                                 earnings per                                      
                                                                 share, pence                                      
                                                                                                                                                                                                     
                                                                 3. Approval of                                                         
                                                                 interim                                                               
                                                                 financial                                                             
                                                                 statements                                                            
                                                                 The unaudited 
                                                                 condensed     
                                                                 consolidated  
                                                                 financial     
                                                                 statements    
                                                                 were approved 
                                                                 by the board  
                                                                 of directors  
                                                                 on 29         
                                                                 September     
                                                                 2015.         
 
 
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