Official results of Arricano activities for 2015
On April 26, 2016 Arricano Real Estate Plc - a leading developer and operator of shopping centers network of European level in Ukraine - has published the results of the company for 2015. The company notes that the significant drop in the market as a whole, the dollar revenue decline amounted to only 10% in the reporting currency. The growth of operating profit amounted to 80% according to the International Financial Reporting Standards (IFRS), which makes 25% of operating profit growth net of revaluation of investment properties and foreign exchange difference. External debt of the company remained at a conservative level equal to 37.44%.
Tatiana Kolesnik, Arricano Group CFO, notes that in 2015, while working in a complicated economic environment, the company has focused its efforts on finding and implementing innovative approaches, not only in dealing with tenants, which has resulted in high levels of profitability, but also in funds’ management, control over the budget implementation, investment assessment on the basis of commercial viability, improvement of the business processes. In 2015, the priorities of the finance department included credit load reduce. The past year resulted in the fulfillment of the company's liabilities to financial institutions in accordance with the agreements, on the one hand, and loans’ restructuration, reducing currency risk - on the other hand. Attracting the investment from the European Bank for Reconstruction and Development in the amount of $ 19 million was one of the special events in one of the most critical periods of economic crisis (spring of 2015). This confirms a high level of confidence of the company's financial partners in our company.
These factors, enhanced by effective teamwork, aimed at the achievement of operational and strategic objectives, have helped the company to maintain financial stability during the crisis period.
The level of premises’ occupancy also confirms positive dynamics. Thus, the total premises’ occupancy was fixed at the level of 96.2% in 2015 compared to 89.3% to 2014. During 2015, 187 lease agreements at five facilities under the management of Arricano company were signed.
According to Victoria Baluk, head of the legal department for cooperation with non-residents, the past year has demonstrated a qualitative leap in the group development. The crisis in the financial and economic sphere has created conditions for revision and improvement of internal policies, rules, procedures and regulations aimed at building effective communication with creditors and consultants, management and business development. Victoria notes: "Our obligations towards stock exchange, and, above all, towards our shareholders and investors mean transparently conduct of business, in accordance with the rules of corporate ethics and corporate business standards. We have formulated, seamlessly introduced and formalized updated business processes. Such innovations, which we continue to implement this year, allowed us to be more flexible, clear and effective."
Mikhail Merkulov, Arricano Real Estate Plc General Director summed up: "These activity results show the team and the market that the continuous development and consistent business practices lead to stability and success. Even during the crisis one can gain impressive results due to administrative decisions, appropriate to time and tasks."