Six parcels of 27.2 thousand square meters are being sold for a minimum of 1.16 million euros, or 42.5 euros per square meter, while a parcel of 9.9 thousand squares is being sold at a minimum of 23.800 euros.
"We have accessed the sale of parts of assets that do not serve the business purpose for which Plantations are registered. These are plots that are unrelated to production processes, and for this reason, they burden the total business, and when valorizing the funds these contribute to investment and other business functions of the company. All the parcels we announced on sale are entirely owned by the Plantation and are in accordance with the terms and conditions stated in the sales ad," said the state company.
The sales also saw the comment of the company Fidelity Consulting. According to them, the sale of assets is an expected management move in the view of the present company's situation.
"Due to business problems, Plantations will start with de-investing (selling property). Let’s recall, stocks at the end of 2017 amounted to EUR 47 million and are largely related to revalued inventories (estimated stock value), while revenues amounted to only EUR 31 million. For years, the profit of Plantation is the result of permitted accounting techniques that are called the revaluation of inventories. Increase in inventories in the balance sheet has directly led to an increase in revenue based on revaluation in the income statement. If these effects are excluded, Plantations work at the limit of profitability or even loss. In addition, the company has a multi-million tax debt that is neatly serviced. The cream on this financial cake is paying dividends from the such obtained profit, so the Plantations simply do not have the money. The only logical move is this asset sale to replenish liquid assets because you cannot pay your financial obligations by upgraded stocks and profits, but only with money," said Fidelity Consulting.
Asked if the Plantations sell the assets to replace liquid assets, and whether the sale has to do with estimated stock value, Verica Maraš and Veselin Vukotić, who have run the company for years, say they reject such claims.
Text by Dan, on October 18th, 2018, read more at CdM
