Landkom expects to cut land bank to 50 ths ha

Landkom International (LKI LN) said today in a statement about the company’s interim results that it planned to decrease its land bank to about 50 ths ha. As part of the group’s restructuring plan, it has already cut its land bank from 115.0 ths ha to 65.9 ths ha this year. Landkom said its board was engaged in “advanced discussions” on merging farming activities and/or securing farming expertise and additional funding. Landkom also announced the appointment of Vitaliy Skotsyk as executive director. He previously worked at AMACO, the CIS-based large agricultural equipment and input supplier. Landkom reported that its revenues in 1H09 came to USD 1.9 mln and its loss was USD 15.4 mln. The company’s net assets as of June 30, 2009 were USD 68.8 mln. Landkom said it had no bank debt and cash of USD 0.5 mln.  Andriy Gostik: We continue to believe that the ongoing corporate restructuring indicates trouble with the company’s business reflected in the worsened financials, as well as in the board reshuffling and attempts to sell the business. We remain quite cautious on the stock in this regard.