København, 2017-08-31 15:46 CEST (GLOBE NEWSWIRE) -- Earnings before special items for the period is DKK 3.9 million against DKK 7.5 million in 2016. Profit for the period after tax is DKK 52.6 million against DKK 2.8 million in 2016 driven by one off gains at DKK 55.4 million related to restructuring, and the equity is positive with DKK 19.6 million against DKK -33.1 million as at 31 December 2016. The restructuring of Park Street Nordicom A/S is making progress, and merger of subsidiary entities has been completed. The restructuring including recapitalisation and implementation of new financial terms is progressing as expected. The Board of Directors of Park Street Nordicom A/S today discussed and approved the company's Interim report 2017, which contained the following: Park Street Nordicom's restructuring process In 2017, Park Street Nordicom continued recent years' efforts to implement financial restructuring. In the first half of 2017, this resulted in agreements with key financial creditors regarding refinancing of existing loan facilities into long-term debt. As part of the restructuring plan, the Group's company structure has been simplified by merging all active subsidiaries into Park Street Nordicom A/S. The overall purpose of the restructuring plan is to re-establish Park Street Nordicom and create the financial foundations for future growth in the company. Next phase in the restructuring plan is recapitalisation involving capital injection in form of conversion of debt into capital and cash injection, which is expected to be executed according to the plan. The period in outline -- The period produced a profit of DKK 52.6 million including special items of DKK 55.4 million (1st half of 2016: DKK 2.8 million). -- During the period, Park Street Nordicom achieved EBVAT (earnings before value adjustments and tax) of DKK 2.1 million (1st half of 2016: DKK 11.2 million). The EBVAT achieved is thus DKK 9.1 million lower than the corresponding amount achieved in 2016. -- Compared with the 1st half of 2016, the EBVAT achieved was affected by both positive and negative factors, including the increase in financial cost at DKK 9.5 million and lower corporate overheads DKK 2.1 million primarily other external cost. -- The vacancy rate (calculated by rental value) in investment properties was 11.9% in the 1st half of 2017 against 11.6% in the 1st half of 2016 and thereby at the same level. -- During the period, Park Street Nordicom had limited major property sales: -- Randlevvej, Odder (2 plots). -- A total of DKK 1.8 million in fair value adjustments to investment properties and liabilities is included in the income statement (1st half of 2016: DKK -0.5 million). -- The Group's equity was positive at DKK 19.6 million at 30 June 2017 (31 December 2016: DKK -33.1 million). -- Park Street Nordicom's total cash flow in the 1st half of 2017 was DKK -60.9 million (1st half of 2016: DKK 27.3 million), primarily utilised to repay financial debt. The management of Park Street Nordicom reduce its expectations for EBVAT to DKK 25 - 35 million in 2017 from previous DKK 30 – 40 million, in view of the recent delays in implementation of financial restructuring and refinancing plans. Management comments on the Annual report In connection with the interim report for Q2 2017, CEO Pradeep Pattem states the following: ”There has been a significant progress in the restructuring of Park Street Nordicom and after the final credit committee approval of the respective key financial creditors in July, refinancing of the existing facilities into long term debt is expected to be executed, along with merger of subsidiary entities. With the recapitalization of Park Street Nordicom progressing as planned, the focus going forward will be on growing the portfolio and EBVAT. The company expects that the EBVAT for the year 2017 will be within the range DKK 25-35 million.” Further information If further information is required, CEO Pradeep Pattem of Park Street Nordicom can be contacted by phone on 33 33 93 03. Attached files Interim report 2017 is attached to this announcement. Copenhagen, Andrew La Trobe Pradeep Pattem Chairman CEO This company announcement contains some forward-looking statements, including statements about Park Street Nordicom's activities. Such forward-looking statements are based on information, assumptions and assessments that Park Street Nordicom finds reasonable. These forward-looking statements cover known and unknown risks, uncertainties and other material factors that may cause Park Street Nordicom's actual profits, growth or performance to differ considerably from the future profits, growth and performance expressed or implied in connection with these forward-looking statements. If one or more of these risk factors or elements of uncertainty is triggered or if an underlying assumption turns out to be incorrect, Park Street Nordicom's actual financial position or operating profits may differ considerably from that which is described as assumed, assessed, estimated or expected.