Ukrproduct Group Ltd — Operating & EBRD Financing Facility Update

(LSE:UKR) Ukrproduct Group Ltd reports a further deterioration of operating conditions in the six months to 30 June 2026. The company experienced repeated energy outages during the period. Diesel and transport costs have risen, impacting operations. There has been damage to both production and warehousing facilities. A major distribution partner has lost more than 60% of its warehousing capacity. This loss has constrained distribution capabilities for Ukrproduct. As a result, revenue in sterling has fallen in the six months to 30 June 2026, despite modest growth in local currency terms. The Group warns of material uncertainty regarding its ability to continue as a going concern. There is also a warning of potential asset impairments. Separately, Ukrproduct's subsidiary DTC will acquire the European Bank for Reconstruction and Development's (EBRD) remaining claim for EUR 335,000. The acquisition will be funded from internal resources, with no new equity or external financing required. This transaction may result in a material non-cash consolidated accounting gain for the Group. However, the transaction will not provide a cash injection or improve liquidity. The company has not announced any new financing arrangements in connection with this acquisition.

Operational Update

Ukrproduct Group Ltd (AIM: UKR), a leading dairy processor in Ukraine, has issued an operational update following large-scale Russian missile and drone attacks on Ukraine. The company confirmed that two of its office locations sustained physical damage, including broken windows, damaged walls, doors, ceiling panels, and displaced equipment and furniture. No fires occurred, and importantly, no employees were injured. The company is currently assessing the extent of repairs required and implementing temporary measures, with one location undergoing engineering assessment for possible structural damage. Ukrproduct does not expect any material impact on manufacturing operations, customer deliveries, contractual obligations, or overall business continuity, and does not currently anticipate a material impact on the Group's financial position or outlook. The company remains committed to supporting its employees and the continuity of its operations in support of Ukraine's population and food supply chain. Further updates will be provided as appropriate.