TIDMOCH

RNS Number : 1242K

Orchid Developments Group Ltd

16 August 2012

16 August 2012

Orchid Developments Group Ltd.

("Orchid" or the "Group")

Update re financial position

The economic environment in which the Group is operating remains extremely difficult. The quantum of free cash flow, which may be generated in the short to medium term including from the sales of apartments and other assets, remains difficult to predict and unclear. In addition, the margin of forecast available cash over requirements, as stated on 3 July 2012, remains modest.

Most recently, the sale of an asset which the Group's board had anticipated did not proceed as planned for reasons beyond the control of the Group. In addition, the Group cannot be certain that it can continue to operate with the full support of its creditors. The consequences of these factors mean that the cash position of the Company is more uncertain than forecast at the time of the announcement made on 3 July 2012.

As a result, the Directors believe that the Group is likely not to be able to operate as planned, unless additional capital is raised. Consequently, the Board is considering the best manner in which to address its immediate working capital needs. A further announcement will be made in due course.

Guy Meyohas, Chief Executive Officer of Orchid, said:

"The Board remains focused on resolving its financing needs. Additional capital will not only strengthen the Group's balance sheet but also will undoubtedly strengthen the position of the Group in negotiating the disposal of its assets in order to deliver shareholder value."

Ends

 
 Contacts: 
 Orchid Developments                    www.orchid-dev.com 
  Guy Meyohas                              +41 798 200 200 
 Shore Capital and Corporate Limited 
  Bidhi Bhoma / Toby Gibbs                +44 20 7408 4090 
 MHP Communications 
  Reg Hoare / Tim McCall / Vicky 
  Watkins                                 +44 20 3128 8100

Notes to Editors:

Orchid Developments Group Ltd (OCH.L), which listed on the AIM market in June 2005, was established with the aim of generating value for shareholders by investing in real estate and leisure business opportunities initially in Bulgaria.

The company is active in all principal sub-sectors of the Bulgarian real estate and leisure markets and currently holds three residential and six commercial property developments in Sofia and Varna. Its principal investment is Grand Mall Varna, one of Bulgaria's leading shopping malls.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTDMGMRGKZGZZZ

Orchid Developments (LSE:OCH)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Orchid Developments Charts.
Orchid Developments (LSE:OCH)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Orchid Developments Charts.