The Management Board of AS VALMIERAS STIKLA ŠĶIEDRA (the ‘Company’, with registration no: 40003031676, legal address: Cempu iela 13, Valmiera, LV-4201), hereby informs that the audited annual consolidated and standalone financial statements for the year 2018 were not possible to be distributed by 14 June 2019 as previously anticipated. Please refer to the respective previous announcement here.
Auditors performing work related to the Company’s financial statements for 2018 requested (further) additional documentation to be prepared relating to the operations of P-D VALMIERA GLASS USA Corp., the majority-owned US subsidiary of the Company (the ‘US facility’). This was not possible to complete in due time and therefore receive an audit opinion.
Moreover, on 17 June 2019, the Company announced that the Management Board of the Company has submitted with Vidzeme District Court an application for the initiation of legal protection proceedings (‘LPP’) of the Company (please refer to the respective announcement here).
The Management Board of the Company presently estimates that the 2018 audited annual consolidated and standalone financial statements are anticipated to be distributed by September 16, 2019.
At the same time, the Management Board of the Company had already prepared the Corporate Governance and Sustainability reports for the 2018 financial year, as these were prepared in a timely manner and not subject to external delays and are therefore enclosed to this announcement. This provides shareholders, investors, partners and the public with more detailed information about the Company and its subsidiaries, their operations and management.
In light of the decision taken to apply for LPP status and the latest in-house accounting and operational data made available to the Company’s management, it is necessary to withdraw the financial guidance published for 2019 and 2020. This was initially published in the 2018 unaudited report and available here.
The forecasts were deemed achievable if the earnings situation of the US Company improved as described in this particular financial report. New financial guidance can be expected after LPP status has been initiated and the restructuring plan has been confirmed by creditors.
It is important to reiterate here that both the Latvian and UK-based operations have been consistently cash flow positive and profitable in recent years.
The Management Board of AS VALMIERAS STIKLA ŠĶIEDRA