Half Yearly Report

 

TIDMBLD 
 
RNS Number : 7150W 
Bulgarian Land Development PLC 
03 August 2009 
 

  Bulgarian Land Development Plc 
 
 
Interim statement for the 6 months to 30 June 2009 
 
 
 
 
Bulgarian Land Development Plc (the "Group" or the "Company"), the AIM quoted 
Bulgarian property developer, today announces its interim results for the 6 
months to 30 June 2009. 
 
 
Unaudited Interim Results for the six months to 30 June 2009 
 
 
Financial results 
There was an unaudited loss before taxation of GBP7.803m (30 June 2008: 
GBP1.575m loss) for the period. Revenue of GBP3.427m (30 June 2008: GBP0.472m) 
comprised GBP2.899m (30 June 2008: nil) from sales of units at Harmony Hills, 
GBP0.121m (30 June 2008: nil) from the profit on off-plan units and GBP0.373m 
fee income from the Printing House joint venture (30 June 2008: GBP0.472m) and 
GBP0.034 sundry income. Cost of sales at Harmony Hills amounted to GBP2.732m 
giving a gross profit on the units sold of GBP0.167m. Following a desk-top 
valuation of the Group's properties an impairment charge has been made in the 
period to write down the carrying value of inventory in accordance with the 
Group's accounting policy. The charge amounted to GBP6.851m (30 June 2008: nil), 
of which GBP2.900m was due to a reduction in valuations and GBP3.951 was due to 
the difference in exchange rates between the Euro and sterling at the beginning 
and end of the period. 
 
 
Group overheads of GBP1.044m in the period were GBP0.364m higher than the 
equivalent period in 2008 but were GBP0.379m below those of the second half of 
2008 as cost reduction measures took effect. Net finance charges of GBP0.603m 
include GBP0.572m net imputed interest on deferred land payables charge (30 June 
2008: GBP1.367m and GBP2.082m respectively). A tax charge of GBP0.081m (30 June 
2008: GBP0.079m) has been provided for withholding tax in Bulgaria. Loss per 
share after this charge was 19.71p (2008: 4.14p loss). 
 
 
Net asset value per share 
The historical cost value of the net assets per share at 30 June 2009 was 71.1p 
(31 December 2008: 98.6p, 30 June 2008: 85p). Of the reduction of 27.5p in net 
asset value per share since 31 December 2008, 2.6p related to trading, 7.3p to 
the reduction in development valuations and 17.6p was due to fluctuations in 
exchange rates. After taking into account a professional, desk-top revaluation 
as at 30 June 2009 of the property interests of the Group (which is not 
reflected in the financial statements), the adjusted net asset value per share 
was 80.1p (31 December 2008: 122.2p, 30 June 2008: 93p). The valuers' estimate 
of the Group's interests in property was EUR35.57m (after including the Group's 
50% share in a joint venture), compared with EUR47.88m at 31 December 2008. 
 
 
Property portfolio progress 
The Group took vacant possession of the Printing House site in January 2009 and 
demolition work was completed in April 2009. Construction commenced in July 2009 
and is progressing according to plan. Negotiations are underway with a number of 
potential tenants. 
 
 
In December 2008 the Group received permission to apply for a building visa for 
the BLD Sofia Tower which was received in May 2009. The application for a 
building permit will be submitted shortly. The directors have reviewed their 
assumptions for the build area (13,899 square metres) and the timing of the 
project (commence in early 2010 for completion by the end of 2011) and have kept 
them unchanged from 31 December 2008. 
 
 
Since 31 December 2008, the Group has commenced re-zoning applications at the 
land south of Sofia and the directors will continue to make infill land 
acquisitions both there and at the land west of Sofia. 
 
 
At Riverland, Borovets the directors decided in 2008 to cease marketing the 
development pending an improvement in the market. The 4 deposits received from 
purchasers were repaid to them by the end of April 2009. The only costs incurred 
at the site since February 2009 have been for security. 
 
 
The building work at the Harmony Hills, Rogachevo development of 202 units was 
finished in 2008 and 78 units were sold in that year. After a series of 
difficulties and once electricity was finally connected to the site in April 
2009 the process of legal completion of the remaining124 units, where sales had 
been agreed but completion had not taken place, commenced immediately; at 30 
June 2009 sales of 76 of those units had completed, generating turnover of 
GBP2.9m and a profit of GBP0.2m. The directors expect sales of 31 of the 
remaining 48 units to complete by the end of 2009 with 7 to complete in 2010 as 
extended payment terms have been provided to the buyers. 10 units are being 
re-marketed as purchasers have decided not to proceed. 
 
 
The Company announced on 1 June 2009 that building would commence at July 
Morning Seaside Resort, Kavarna on a smaller than originally planned phase 1 of 
55 units, 41 of which have been pre-sold. Ground work commenced in June 2009, as 
anticipated in the announcement and is scheduled to be completed in June 2010. 
 
 
During the first six months of 2009, the Group sold the remaining 5 off-plan 
units at the coastal resort of Sozopol. At the ski resort of Bansko, the 10 
units from Phase 1 available at 31 December 2008 remain unsold. Phase 2 at 
Bansko was reduced, after negotiation with the developer, from 100 to 55 units, 
a further 5 have been sold in the first half of 2009 and 24 remain available for 
sale. The main sale season for units at the ski resort is the last quarter of 
the year. 
 
 
 
 
Per Sjöberg 
Chairman 
3 August 2009 
 
 
+----------------------------------------+---------------------------------+ 
| For further information, please        |                                 | 
| contact:                               |                                 | 
+----------------------------------------+---------------------------------+ 
|                                        |                                 | 
+----------------------------------------+---------------------------------+ 
| Bulgarian Land Development             |                   020 7067 0700 | 
+----------------------------------------+---------------------------------+ 
| Christo Iliev, Chief Executive         |                                 | 
+----------------------------------------+---------------------------------+ 
| Dimitar Savov, Executive Director      |                                 | 
+----------------------------------------+---------------------------------+ 
| Andrew Daw, Finance Director           |                                 | 
+----------------------------------------+---------------------------------+ 
|                                        |                                 | 
+----------------------------------------+---------------------------------+ 
| Weber Shandwick Financial              |                   020 7067 0700 | 
+----------------------------------------+---------------------------------+ 
| Terry Garrett                          |                                 | 
+----------------------------------------+---------------------------------+ 
| Nick Dibden                            |                                 | 
+----------------------------------------+---------------------------------+ 
| James White                            |                                 | 
+----------------------------------------+---------------------------------+ 
| Katie Matthews                         |                                 | 
+----------------------------------------+---------------------------------+ 
|                                        |                                 | 
+----------------------------------------+---------------------------------+ 
| Collins Stewart Europe Limited         |                   020 7523 8350 | 
+----------------------------------------+---------------------------------+ 
| Helen Goldsmith                        |                                 | 
+----------------------------------------+---------------------------------+ 
| Andrew Zychowski                       |                                 | 
+----------------------------------------+---------------------------------+ 
|                                        |                                 | 
+----------------------------------------+---------------------------------+ 
 
 
 
 
Consolidated Statement of Comprehensive Income 
for the period from 1 January 2009 to 30 June 2009 
 
 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      | Unaudited |    | Unaudited |    |   Audited  | 
|                                |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |   for six |    |   for six |    |    for the | 
|                                |      | months to |    | months to |    |       year | 
|                                |      |           |    |           |    |      ended | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |   30 June |    |   30 June |    |         31 | 
|                                |      |      2009 |    |      2008 |    |   December | 
|                                |      |           |    |           |    |       2008 | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                | Note |   GBP'000 |    |   GBP'000 |    |    GBP'000 | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Revenue                        |      |     3,427 |    |       472 |    |      6,618 | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Cost of sales                  |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Before impairment of           |      |   (2,732) |    |         - |    |    (2,627) | 
| inventory                      |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|   Impairment of inventory      |      |   (6,851) |    |         - |    |   (19,715) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |   (9,583) |    |         - |    |   (22,342) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Gross (loss)/profit            |      |   (6,156) |    |       472 |    |   (15,724) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Administrative expenses        |      |   (1,044) |    |     (680) |    |    (2,103) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Operating loss                 |      |   (7,200) |    |     (208) |    |   (17,827) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Finance (costs)/income, being: |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Bank and other interest        |      |       199 |    |       475 |    |        853 | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| (Loss)/gain on exchange        |      |     (230) |    |       240 |    |        397 | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Imputed interest on deferred   |      |     (572) |    |   (1,412) |    |    (2,878) | 
| land payables                  |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Change in carrying value of    |      |         - |    |     (670) |    |     18,001 | 
| financial liability in respect |      |           |    |           |    |            | 
| of deferred land payables      |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Finance (costs)/income         |      |     (603) |    |   (1,367) |    |     16,373 | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Loss before tax                |      |   (7,803) |    |   (1,575) |    |    (1,454) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Income tax expense             |    3 |      (81) |    |      (79) |    |      (300) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| LOSS FOR THE PERIOD            |      |   (7,884) |    |   (1,654) |    |    (1,754) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                       |           |    |           |    |            | 
+---------------------------------------+-----------+----+-----------+----+------------+ 
| Other comprehensive income     |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Exchange differences on        |      |   (3,105) |    |      (35) |    |      9,288 | 
| translating foreign operations |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Other comprehensive income for |      |   (3,105) |    |      (35) |    |      9,288 | 
| the period (net of tax)        |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| TOTAL COMPREHENSIVE INCOME FOR |    3 |  (10,989) |    |   (1,689) |    |      7,534 | 
| THE PERIOD                     |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
|                                                   |    |           |    |            | 
+---------------------------------------------------+----+-----------+----+------------+ 
|                                                   |    |           |    |            | 
+---------------------------------------------------+----+-----------+----+------------+ 
| Basic and diluted (loss) per share                |    |           |    |            | 
+---------------------------------------------------+----+-----------+----+------------+ 
| during the period(expressed as |    4 |           |    |           |    |            | 
| pence per share):              |      |           |    |           |    |            | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
| Basic (loss) per share                |   (19.71) |    |    (4.14) |    |     (4.39) | 
+---------------------------------------+-----------+----+-----------+----+------------+ 
| Diluted (loss) per share              |   (19.71) |    |    (4.14) |    |     (4.39) | 
+--------------------------------+------+-----------+----+-----------+----+------------+ 
 
 
 
 
Consolidated Statement of Financial Position 
as at 30 June 2009 
 
 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
|                                |      | Unaudited |    | Unaudited |    |    Audited  | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
|                                |      |     as at |    |     as at |    |       as at | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
|                                |      |   30 June |    |  30 June  |    | 31 December | 
|                                |      |      2009 |    |      2008 |    |        2008 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
|                                | Note |   GBP'000 |    |   GBP'000 |    |     GBP'000 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Assets                         |      |           |    |           |    |             | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Property, plant and equipment  |      |       127 |    |       150 |    |         150 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Amount due from joint venture  |      |     3,026 |    |     2,557 |    |       3,290 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total non-current assets       |      |     3,153 |    |     2,707 |    |       3,440 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Current assets                 |      |           |    |           |    |             | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Inventories                    |      |    36,549 |    |    52,365 |    |      50,576 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Trade and other receivables    |      |     1,977 |    |     2,184 |    |       2,109 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Taxation                       |      |         - |    |        17 |    |           - | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Cash and cash equivalents      |      |    10,510 |    |    16,768 |    |      10,252 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total current assets           |      |    49,036 |    |    71,334 |    |      62,937 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total assets                   |      |    52,189 |    |    74,041 |    |      66,377 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Equity                         |      |           |    |           |    |             | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Issued share capital           |    5 |       400 |    |       400 |    |         400 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Share premium reserve          |      |    35,359 |    |    35,280 |    |      35,359 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Foreign currency translation   |      |     5,358 |    |     (860) |    |       8,463 | 
| reserve                        |      |           |    |           |    |             | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Retained earnings              |      |  (12,657) |    |   (4,673) |    |     (4,773) | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total equity                   |      |    28,460 |    |    30,147 |    |      39,449 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Non-current liabilities        |      |           |    |           |    |             | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Deferred tax liabilities       |      |         - |    |        36 |    |           - | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Deferred land payables         |      |    10,861 |    |    28,514 |    |      11,830 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Amount due to joint venturer   |      |     3,004 |    |     2,557 |    |       3,265 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Bank loans                     |      |     7,134 |    |         - |    |       5,961 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total non-current liabilities  |      |    20,999 |    |    31,107 |    |      21,056 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Current liabilities            |      |           |    |           |    |             | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Trade and other payables       |      |     2,679 |    |     4,501 |    |       5,562 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Bank loan                      |      |         - |    |     8,286 |    |           - | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Taxation                       |      |        51 |    |         - |    |         310 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total current liabilities      |      |     2,730 |    |    12,787 |    |       5,872 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total liabilities              |      |    23,729 |    |    43,894 |    |      26,928 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
| Total equity and liabilities   |      |    52,189 |    |    74,041 |    |      66,377 | 
+--------------------------------+------+-----------+----+-----------+----+-------------+ 
 
 
 
 
Company Statement of Financial Position 
as at 30 June 2009 
 
 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
|                               |       | Unaudited |    | Unaudited |    |     Audited | 
|                               |       |           |    |           |    |             | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
|                               |       |     as at |    |     as at |    |       as at | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
|                               |       |   30 June |    |  30 June  |    | 31 December | 
|                               |       |      2009 |    |      2008 |    |        2008 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
|                               |  Note |   GBP'000 |    |   GBP'000 |    |     GBP'000 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Assets                        |       |           |    |           |    |             | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Investment in subsidiaries    |       |       184 |    |       175 |    |         175 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total non-current assets      |       |       184 |    |       175 |    |         175 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Current assets                |       |           |    |           |    |             | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Intra-group receivables       |       |    35,042 |    |    29,946 |    |      37,619 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Trade and other receivables   |       |        48 |    |       439 |    |          89 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Taxation                      |       |         - |    |         - |    |           - | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Cash and cash equivalents     |       |     7,287 |    |     8,856 |    |       9,057 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total current assets          |       |   42,377  |    |    39,241 |    |      46,765 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total assets                  |       |    42,561 |    |    39,416 |    |      46,940 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Equity                        |       |           |    |           |    |             | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Issued share capital          |     5 |       400 |    |       400 |    |         400 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Share premium reserve         |       |    35,359 |    |    35,280 |    |      35,359 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Retained earnings             |       |     6,753 |    |     3,490 |    |      11,094 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total equity                  |       |    42,512 |    |    39,170 |    |      46,853 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Current liabilities           |       |           |    |           |    |             | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Trade and other payables      |       |        49 |    |       246 |    |          87 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total current liabilities     |       |        49 |    |       246 |    |          87 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total liabilities             |       |        49 |    |       246 |    |          87 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
| Total equity and liabilities  |       |    42,561 |    |    39,416 |    |      46,940 | 
+-------------------------------+-------+-----------+----+-----------+----+-------------+ 
 
 
 
 
Consolidated Statement of Cash Flows 
for the period from 1 January 2009 to 30 June 2009 
 
 
+--------------------------------+------+-----------+---+------------++--+--------------+ 
|                                |      | Unaudited |   |  Unaudited  |  |     Audited  | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |   for six |   |   for six   |  | for the year | 
|                                |      | months to |   |   months to |  |      ended   | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |   30 June |   |    30 June  |  |  31 December | 
|                                |      |      2009 |   |        2008 |  |         2008 | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |           |   |         (as |  |              | 
|                                |      |           |   |   restated: |  |              | 
|                                |      |           |   |    see note |  |              | 
|                                |      |           |   |        2.2) |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                | Note |   GBP'000 |   |     GBP'000 |  |      GBP'000 | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Operating activities           |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Loss for the period            |      |   (7,884) |   |     (1,654) |  |      (1,754) | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Adjustments for:               |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Net financing expense/(income) |      |       603 |   |       1,367 |  |     (16,373) | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Taxation                       |      |        81 |   |          79 |  |          300 | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Depreciation                   |      |        29 |   |          28 |  |           53 | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Impairment loss in respect of  |      |     6,851 |   |           - |  |       19,715 | 
| inventories                    |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |     (320) |   |       (180) |  |        1,941 | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Decrease/(increase) in trade   |      |        19 |   |     (2,916) |  |      (2,436) | 
| and other receivables          |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| (Decrease)/increase in trade   |      |     (149) |   |       4,807 |  |        4,483 | 
| and other payables             |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Decrease/(increase) in         |      |       284 |   |    (15,431) |  |     (22,058) | 
| inventories                    |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Settlement of deferred land    |      |         - |   |           - |  |        (445) | 
| payable                        |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Cash used in operations        |      |     (166) |   |    (13,720) |  |     (18,515) | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Tax (paid)                     |      |     (340) |   |       (172) |  |        (102) | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Net cash flows from operating  |      |     (506) |   |    (13,892) |  |     (18,617) | 
| activities                     |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
|                                |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Cash flows from investing      |      |           |   |             |  |              | 
| activities                     |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Acquisition of plant and       |      |       (6) |   |        (49) |  |        (101) | 
| equipment                      |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Proceeds from sale of plant    |      |         - |   |           - |  |           27 | 
| and equipment                  |      |           |   |             |  |              | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Interest received              |      |       199 |   |         475 |  |          853 | 
+--------------------------------+------+-----------+---+-------------+--+--------------+ 
| Interest paid                  |      |     (372) |   |      (299) |   |        (354) | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Net cash flows from investing  |      |     (179) |   |        127 |   |          425 | 
| activities                     |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
|                                |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Financing activities           |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Share issue expenses           |      |         - |   |         -  |   |           79 | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Receipt from new bank loans    |      |     1,173 |   |      6,156 |   |        5,961 | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Repayment of bank loans        |      |         - |   |          - |   |      (2,130) | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Cash flows generated from      |      |     1,173 |   |      6,156 |   |        3,910 | 
| financing                      |      |           |   |            |   |              | 
| activities                     |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
|                                |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Net increase/(decrease) in     |      |       488 |   |   (7,609)  |   |     (14,282) | 
| cash and cash equivalents      |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Effect of exchange             |      |     (230) |   |        240 |   |          397 | 
| fluctuations on cash held      |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Cash and cash equivalents at   |      |    10,252 |   |    24,137  |   |       24,137 | 
| beginning of period            |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------+---+--------------+ 
| Cash and cash equivalents at   |      |    10,510 |   |     16,768 |   |       10,252 | 
| end of period                  |      |           |   |            |   |              | 
+--------------------------------+------+-----------+---+------------++--+--------------+ 
 
 
 
 
Consolidated Statement of Changes in Equity 
For the period from 1 January 2009 to 30 June 2009 
 
 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               |         |          |           |     Foreign |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               |         |          |           |    exchange |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               |   Share |    Share |  Retained | translation |     Total | 
|                               | capital |  premium |  earnings |     reserve |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               | GBP'000 |  GBP'000 |   GBP'000 |     GBP'000 |   GBP'000 | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Balance at 1 January 2009     |     400 |   35,359 |   (4,773) |       8,463 |    39,449 | 
| (audited)                     |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Total comprehensive income    |       - |        - |   (7,884) |     (3,105) |  (10,989) | 
| for the period                |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Balance at 30 June 2009       |     400 |   35,359 |  (12,657) |       5,358 |    28,460 | 
| (unaudited)                   |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| For the period from 1 January 2008  to 30 June 2008                          |           | 
+------------------------------------------------------------------------------+-----------+ 
| Balance at  1 January 2008    |     400 |   35,280 |   (3,019) |       (825) |    31,836 | 
| (audited)                     |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Total comprehensive income    |       - |        - |   (1,654) |        (35) |   (1,689) | 
| for the period                |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Balance at  30 June 2008      |     400 |   35,280 |   (4,673) |       (860) |    30,147 | 
| (unaudited)                   |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
|                               |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| For the period from 1 January 2008 to 31 December 2008                       |           | 
+------------------------------------------------------------------------------+-----------+ 
| Balance at  1 January 2008    |     400 |   35,280 |   (3,019) |       (825) |    31,836 | 
| (audited)                     |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Total comprehensive income    |       - |        - |   (1,754) |       9,288 |     7,534 | 
| for the period                |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Share issue expenses          |       - |       79 |         - |           - |        79 | 
| recovered                     |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
| Balance at  31 December 2008  |     400 |   35,359 |   (4,773) |       8,463 |    39,449 | 
| (audited)                     |         |          |           |             |           | 
+-------------------------------+---------+----------+-----------+-------------+-----------+ 
 
 
 
 
Notes 
(forming part of the unaudited interim financial information for the period from 
1 January 2009 to 30 June 2009) 
 
 
1. This unaudited interim financial information for the period ended 30 June 
2009 is unaudited and does not constitute statutory accounts within the meaning 
of the Isle of Man Companies Acts 1931 to 2004 (as amended). The comparatives 
for the full year ended 31 December 2008 are not the Company's full statutory 
accounts for that year. The auditors' report on those accounts was unqualified. 
The statutory accounts for the year ended 31 December 2008, which were prepared 
in accordance with applicable Isle of Man company law and International 
Financing Reporting Standards, as adopted by the European Union ("IFRS"), have 
been filed with the Isle of Man Companies Registry and copies can be obtained 
from the Registered Office of the Company at Top Floor, 14 Athol Street, 
Douglas, Isle of Man, IM1 1JA. This unaudited interim financial information 
includes the results of the Company and the entities controlled by the Company 
for the period under review. 
 
 
2. Significant accounting policies 
2.1 Basis of preparation 
The financial information is for the 6 months ended 30 June 2009 and has been 
prepared in accordance with the Group's accounting policies based on IFRS that 
are expected to apply for the 2009 financial year. The Group has not applied IAS 
34 - Interim Financial Reporting in the preparation of these interim financial 
statements. The functional currency of the Company is Sterling and for the 
subsidiaries is either Euro or Bulgarian lev. This unaudited financial 
information has been presented in Sterling. 
 
 
2.2 Restatement of cash flow statement 
The cash flow statement for the six months ended 30 June 2008 has been restated 
to adjust for the impact of foreign exchange on working capital movements and 
deferred land payables, tax paid and the interest capitalised in inventories. 
The effect of these changes for the six months ended 30 June 2008 comparatives 
is as follows: previously reported working capital increases of GBP15.681m in 
aggregate have been reduced to GBP13.540m in aggregate, tax paid has been 
increased from GBPnil to GBP0.172m and interest paid has been increased from 
GBPnil to GBP0.299m. 
 
3. Taxation 
There is no taxation payable on the Company's results as it is based in the Isle 
of Man where, since 6th April 2006, the Corporate Income Tax rate for Isle of 
Man resident companies has been zero percent. Provision has been made for 
GBP0.081m (30 June 2008: GBP0.064m), being 10% Bulgarian withholding tax on 
interest payable by the Bulgarian subsidiaries to the Company on inter-company 
loans. No provision has been made for deferred tax in the principal Bulgarian 
subsidiary (30 June 2008: GBP0.015). 
 
 
4. Basic (loss) per share 
Basic (loss) per share for the periods ended 30 June 2009, 30 June 2008 and 31 
December 2008 have been calculated by dividing the loss attributable to equity 
holders of the Company by the number of shares in issue for the period, being 40 
million. There are no dilutive shares, share options or similar instruments in 
existence and therefore the diluted earnings per share are the same as basic 
earnings per share. 
 
 
5. Share capital 
+---------------------------------------------+------------+-----------+-------------+ 
|                                             |    30 June |   30 June | 31 December | 
|                                             |       2009 |      2008 |        2008 | 
+---------------------------------------------+------------+-----------+-------------+ 
|                                             |    GBP'000 |   GBP'000 |     GBP'000 | 
+---------------------------------------------+------------+-----------+-------------+ 
| Authorised                                  |      1,000 |     1,000 |       1,000 | 
| 100,000,000 ordinary shares of 1p each      |            |           |             | 
+---------------------------------------------+------------+-----------+-------------+ 
|                                             |            |           |             | 
+---------------------------------------------+------------+-----------+-------------+ 
| Issued and fully paid                       |            |           |             | 
+---------------------------------------------+------------+-----------+-------------+ 
| 40,000,000 ordinary shares of 1p each       |        400 |       400 |         400 | 
+---------------------------------------------+------------+-----------+-------------+ 
 
 
Under a management incentive scheme more fully described in note 13 of the 2008 
financial statements, a performance fee can become payable wholly or partly in 
shares to a company controlled by Christo Iliev if certain share price related 
targets are met. No performance fee has yet become payable. 
 
 
6. The Board of Directors approved and authorised for issue this unaudited 
interim financial information on 3 August 2009. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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