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AFI Development Sees Two Directors Leave Following Shareholder Vote

LONDON (Alliance News) - Real estate firm AFI Development PLC Thursday said all of its board ...

Alliance News 22 October, 2015 | 9:48AM
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LONDON (Alliance News) - Real estate firm AFI Development PLC Thursday said all of its board members were re-elected to the board at its annual general meeting apart from Executive Director Mark Groyson and Non-Executive Director John Porter.

Although Groysman has been removed as an executive board member, he will remain as the chief executive of the company's main Russian subsidiary, AFI RUS LLC. Moving forward, he will be solely focused on managing the Russian operations.

Following the meeting, Lev Leviev remains as executive chairman, whilst Avraham Noach Novogrocki, Christakis Klerides, Moshe Amit and Panayiotis Demetriou will remain on as non-executive directors of the board.

AFI Development does not have a chief executive officer.

In the first half of 2015, AFI swung to a USD34.1 million pretax loss from a USD5.9 million profit a year earlier, after it booked USD42.3 million in impairments against the value of its properties, driven by the downturn in Russia's economy and the depreciation of the ruble against other major currencies.

Also thanks to the ruble's weakness against the dollar, along with the macroeconomic problems in the country which have hit consumer spending power and sentiment, revenue for AFI was down to USD51.1 million from USD76.2 million, with rental and hotel operating income falling 33% and the contribution from its AFIMALL City shopping centre down 32%.

AFI shares were down 5.8% to 0.203 pence per share on Thursday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2015 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
AFI Development PLC B Ords 0.31 USD 1.64 -

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