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Ukrproduct – Getting Another Dire Profits warning out on a quiet day

Tom Winnifrith
Friday 3 January 2014

I have noted before that the way that AIM Cesspit listed Ukrainian dairy products group Ukrproduct (UKR) announces bad news smells like a six week old pot of cream left in the baking sunlight of the Steppe in August. And so as 90% of share-watchers enjoy their last day off, the company has slipped out another dire trading statement.

You can read my comments on the curious way this company announces the departure of directors, all signed off as kosher by corporate adviser Mr Dick, HERE

Today’s statement confirms what we all suspected. EBITDA for 2013 will be sharply down on 2012. Blame higher milk prices, ripples in the soft cheese market, whatever – it is hard to imagine that doing business in the Ukraine right now is that much fun.

Worse still the heavy debt this company now carries means that the I (for Interest) number has gone up sharply. So what is the bottom line number (i.e. Profit before tax) going to be? I refer to today’s statement.

Net income will be impaired by the sizeable increase in interest charges arising from the EBRD loan leading to the negative net profitability for the year.”

Put another way this company is loss making. It blathers on about how it “plans to return to positive profitability in 2014.”

You know what? I have made plans for 2014. After watching West Ham lift the Premiership trophy on the final day of the season following a five month run of 3 points from every game with Carlton Cole scoring hat-tricks every match, I am off on a one week romantic break with Cheryl Cole in the West Indies. I cannot wait. Neither, I am sure, can Carlton and Cheryl.

on Shareprophets | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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