Dubeņi, Latvia, 2015-06-02 15:42 CEST (GLOBE NEWSWIRE) -- In 2014 company has worked with neto turnover of EUR 2879 362, which is 23% less than neto turnover in 2013. In year 2014 company's loss is EUR 1,657,441, but in year 2014 neto loss per share is EUR -3,315, when in year 2013 the neto profit per share was EUR 1,567 ,because in year 2014 in 12 months were sold 94,849 mink skins at an average price 28.39 Eur/pcs, which exceeded the Finnish auction house's average mink skin auction sales price and however, was lower than the production cost.
As JSC "Grobiņa" management had already predicted , that in 2014 fur worldwide price fall had temporary nature, since the beginning of the new fur sales season in 2015, the average mink skin realization price already exceeded 50 EUR / skin and reached 100% sales. All this confirms that in this season the fur market has recovered and returned back to the sales price what was in 2011-2013 selling season limits.
Consequently, the JSC „Grobiņa” has actively worked during all 2014, for the restructuring of accrued liabilities and the payment deadline postponement until products will be realized in 2015 ,with the company's existing business partners and creditors, to obtain financial stability. Since 29.05.2015. were signed a long-term loan repayment agreements with JSC "Citadele banka", and also entered into a long-term loan agreement with a limited partnership FlyCap Investment Fund I AIF for loan in amount 1 million euros - JSC "Grobiņa" management has successfully complete work on the JSC "Grobiņa" liabilities restructuring plan as a result all by JSC "Citadele banka" application announced the JSC "Grobiņa" real estate voluntary auctions in July 6,2015 have been withdrawn. Until in May 29, 2015 implemented the JSC "Grobiņa" liabilities restructuring plan and signing long-term agreement with JSC "Citadele banka" significantly have affected 2014 financial report valuation principles and assumptions of the company's future activities . Considering the above the JSC "Grobiņa" management in 2015 will be able to stabilize the company’s cash flow and make deleting of accured creditor debts in 2014, and also will continue work on company's development strategies, focusing on the increase in production, while ensuring the resulting product to high quality and low-cost price.
Despite to global fur price fall in year 2014, the JSC „Grobiņa” in this reporting period has been able to realize in year 2013 launched investment projects, as a result the JSC „Grobiņa” long-term investments to the end of year 2014 is 15 223 427 EUR, which is 6 022 704 EUR more than in year 2013. Thanks to the made investments in year 2014, JSC „Grobiņa” has increased their production volumes and got 120 000 mink skins.
The JSC "Grobiņa"
Chairman of the Board Gundars Jaunsleinis
