Ukraine Opportunity results reflect the turmoil that that country has been through over the course of 2014. Over the year the net asset value fell by 45%. The share price move wasn’t quite so bad however – it fell by 19.5% to end the year on a discount of 13.2% rather than the 40% it had been trading on at the end of 2013.
The report says that they think their 19 per cent stake in Food Master is their most exciting investment. This company was planning to roll out restaurants across the Ukraine but put that plan on hold and is now considering expanding in Germany and France – this may mean a revised investment policy is needed for the fund and they will ask shareholders’ permission before embarking on a dramatic change in strategy. Food Master did open one of its `Murakami’ branded Japanese restaurants in St Martin’s Lane in London last December, which they say is performing very well and now is operating 57 restaurants.
Vitalux (Chalsen Trade) saw a sharper sales decline of near 20 per cent in US Dollars as consumers reduced consumption of higher cost imported pharmaceuticals and beauty products.
They have restructured their holding in Korsando, splitting the company into its constituent parts, a holding company for its land assets, UKRO Land Invest, and an operating company for the office building, Elcinory. They say this split should result in lower administrative costs in the future.
UKRO : Ukraine Opportunities considering change of strategy