Final Results -3-

+---------------------------------------------+----------------+----+----------------+ 
|                                             |                |    |                | 
+---------------------------------------------+----------------+----+----------------+ 
| C D L Williams                              |        125,000 |    |         50,000 | 
+---------------------------------------------+----------------+----+----------------+ 
| I L G Hesmondhalgh |                        |        383,375 |    |        200,001 | 
+---------------------------------------------+----------------+----+----------------+ 
| P A Pashov *                                |        212,001 |    |        212,001 | 
+---------------------------------------------+----------------+----+----------------+ 
| K J Springall                               |              - |    |              - | 
+---------------------------------------------+----------------+----+----------------+ 
| J S Mackay                                  |         50,000 |    |         50,000 | 
+---------------------------------------------+----------------+----+----------------+ 
| N K Galchev                                 |              - |    |              - | 
+---------------------------------------------+----------------+----+----------------+ 
| R N Galtcheva (alternate)                   |              - |    |              - | 
+---------------------------------------------+----------------+----+----------------+ 
| Of the above, 88,423 are held by family trusts or by Mrs Hesmondhalgh. * Of 
the above, 12,000 are held in a family trust of which there are 4 trustees, one 
of whom is the wife of Mr Pashov. 
 
 
Related party transactions 
For details of related party transactions, including transactions with 
directors, please refer to note 24 of the financial statements. 
 
 
Statement of directors' responsibilities 
Company law requires the directors to prepare financial statements for each 
financial year which give a true and fair view of the state of affairs of the 
Company and Group and of the profit or loss of the Company and Group for that 
period. In preparing those financial statements, the directors are required to: 
  *  select suitable accounting policies and then apply them consistently; 
  *  make judgments and estimates that are reasonable and prudent; 
  *  prepare the financial statements on the going concern basis unless it is 
  inappropriate to presume that the Company and Group will continue in business; 
  and 
  *  state where applicable accounting standards have been followed, subject to any 
  material departure disclosed and explained in the financials statements. 
 
 
 
The directors are responsible for ensuring that the directors' report and other 
information included in the annual report is prepared in accordance with law in 
the United Kingdom. They are also responsible for ensuring that the annual 
report includes information required by the AIM rules. 
 
 
 
 
 
REPORT OF THE DIRECTORS (continued) 
for the year ended 31 December 2008 
 
 
The directors are responsible for keeping proper accounting records which 
disclose with reasonable accuracy at any time the financial position of the 
entity and to enable them to ensure that the financial statements comply with 
the Companies Act 1985. They are also responsible for safeguarding the assets of 
the Company and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities. 
 
 
Corporate governance 
The directors are aware of the principles underlying the provisions of Section 1 
of the Combined Code. The Company has an audit and remuneration committee and it 
will continue to implement requirements of the Combined Code as the Company 
develops. During the year, at the Board's request, KPMG Bulgaria resigned as 
auditors of Bulgarian Property Developments EOOD and Ernst & Young Audit OOD was 
appointed. 
 
 
Financial risk management 
Details of the Group's financial risk management objectives and policies and 
their exposure to risks associated with the use of financial instruments are 
disclosed in notes 1 and 21 to the financial statements. 
 
 
Directors' and officers' liability insurance 
The Company carries appropriate insurance cover in respect of possible legal 
action being taken against its directors and senior employees. 
 
 
Supplier payment policy 
The Company's normal policy, which is also applied by the Group, is to pay 
suppliers at the end of the month following that in which the supplier's invoice 
is dated. This policy is made known to all suppliers on request. The creditor 
days for the Company at 31 December 2008 were 21 days (31 December 2007: 68 
days). 
 
 
Subsequent events 
For details of all subsequent events, please refer to note 25 to the financial 
statements. 
 
 
Charity 
The Group supports the Bulgarian charity One Life (Year to 31 December 2008: 
EUR10,000, Period to 31 December 2007: GBP5,000). One Life helps children 
suffering from life shortening and life threatening diseases in Bulgaria. The 
One Life Bulgaria charity is registered in Bulgaria in accordance with the Law 
for Charitable Organisations Act in Sofia City Court File number 13378/2004, 
BULSTAT 131359582. 
Disclosure of information to the auditors 
Each of the directors of the Company have confirmed that, in fulfilling their 
duties as a director, they have: 
  *  taken all necessary steps in order to make themselves aware of any information 
  relevant to the audit and to establish that the auditors are aware of that 
  information; and 
  *  so far as they are aware, there is no relevant audit information of which the 
  auditors have not been made aware. 
 
 
 
Auditors 
A resolution to re-appoint the auditors, Nexia Smith & Williamson, will be 
proposed at the next Annual General Meeting. 
 
 
ON BEHALF OF THE BOARD: 
 
 
 
 
Keith Springall 
Director 24 March 2009 
 
 
 
 
 
 
INDEPENDENT AUDITORS' REPORT 
To the shareholders of Bulgarian Property Developments Plc 
 
 
We have audited the Group and the parent company financial statements of 
Bulgarian Property Developments Plc for the year ended 31 December 2008, which 
comprise the Consolidated Income Statement, the Consolidated and Company Balance 
Sheets, the Consolidated and Company Cash Flow Statements, the Consolidated and 
Company Statement of Changes in Equity and the related notes 1 to 27. These 
financial statements have been prepared under the accounting policies set out 
therein. 
 
 
This report is made solely to the Company's members, as a body, in accordance 
with Section 235 of the Companies Act 1985. Our audit work has been undertaken 
so that we might state to the Company's members those matters we are required to 
state to them in an auditors' report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility to anyone 
other than the Company and the Company's members as a body, for our audit work, 
for this report, or for the opinions we have formed. 
 
 
Respective responsibilities of directors and auditors 
The directors' responsibilities for preparing the Annual Report and the 
financial statements in accordance with applicable law and International 
Financial Reporting Standards (IFRSs) as adopted by the European Union applied 
in accordance with the provisions of the Companies Act 1985 are set out in the 
Statement of Directors' Responsibilities. 
 
 
Our responsibility is to audit the financial statements in accordance with 
relevant legal and regulatory requirements and International Standards on 
Auditing (UK and Ireland). 
 
 
We report to you our opinion as to whether the financial statements give a true 
and fair view and are properly prepared in accordance with the Companies Act 
1985. We report to you whether in our opinion the information given in the 
Directors' Report is consistent with the financial statements. The information 
given in the Directors' Report includes that specific information presented in 
the Chairman's Statement that is cross-referred from the Business Review section 
of the Directors' Report. We also report to you if, in our opinion, the Company 
has not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if the information 
specified by law regarding Directors' remuneration and transactions with the 
Company is not disclosed. 
 
 
We read other information contained in the Annual Report and consider whether it 
is consistent with the audited financial statements. This other information 
comprises only the Chairman's Statement and the Directors' Report. We consider 
the implications for our report if we become aware of any apparent misstatements 
or material inconsistencies with the financial statements. Our responsibilities 
do not extend to any other information. 
 
 
Basis of audit opinion 
We conducted our audit in accordance with International Standards on Auditing 
(UK and Ireland) issued by the Auditing Practices Board. An audit includes 
examination, on a test basis, of evidence relevant to the amounts and 
disclosures in the financial statements. It also includes an assessment of the 
significant estimates and judgements made by the directors in the preparation of 
the financial statements, and of whether the accounting policies are appropriate 
to the Group's and Company's circumstances, consistently applied and adequately 
disclosed. 
 
 
We planned and performed our audit so as to obtain all the information and 
explanations which we considered necessary in order to provide us with 
sufficient evidence to give reasonable assurance that the financial statements 
are free from material misstatement, whether caused by fraud or other 
irregularity or error. In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the financial statements. 
 
 
 
INDEPENDENT AUDITORS' REPORT (continued) 
To the shareholders of Bulgarian Property Developments Plc 
 
 
Opinion 
In our opinion: 
  *  the financial statements give a true and fair view, in accordance with IFRSs as