Final Results

RNS Number:5963Q
Bulgarian Property DevelopmentsPLC
30 August 2005



Bulgarian Property Developments Plc - Unaudited Preliminary Results for the
period ended 30 June 2005

Chairman's Statement

I am pleased to announce the results of the Company for the period ended 30 June
2005 and would like to welcome our new shareholders and thank them for their
support in our flotation.  We look forward to keeping you informed of progress
and to deliver some very worthwhile results in the years ahead.

Although Bulgarian Property Development plc was established in May 2004, it did
not commence trading until January 2005, when its shares were admitted to
trading on the AIM Market of the London Stock Exchange, having raised just under
#4.2m after expenses to fund investments in an initial property portfolio in
Bulgaria.

The results for the period under review show a loss before taxation of #0.27m.
As the Company only commenced trading in January 2005, there are no comparable
figures for the corresponding period of the previous year. The directors do not
propose to declare a dividend.

During the period the directors have assembled and acquired five plots of land
in the capital, Sofia, and one plot in Bansko, the principle ski resort situated
some two hours' drive from Sofia. The total purchase price amounted to Euro3.52m
(#2.44m). Colliers International has provided a valuation of the key components
of the portfolio, excluding land purchased for Euro1.24m, as at 31st March 2005. In
Colliers' view there has been a 43% uplift in value against the aggregate
purchase price of the portfolio that it valued, which had a cost of Euro2.28m. This
gives a value to that land of Euro3.27m. Colliers have stated that once the
re-zoning process has been completed the land would be worth Euro3.58m, an increase
in value of 57%.

Taking a conservative view (based on the increase in values to the other parts
of the portfolio valued by Colliers) the directors believe that the value of the
Euro1.24m of land excluded from Colliers valuation has increased by 30% to E1.61m.

The total value of the Company's portfolio on this basis amounts to Euro4.88m
(#3.39m). Under current accounting standards, the Company is unable to include
these revaluations in the Company's accounts as the portfolio is shown as
trading stock not investment properties, and only investment property can be
revalued. If the increased value of the portfolio is taken into account then the
NAV of the Company would be in the region of 55-56 pence per share.

Your board believes that this is an ideal time to invest in the Bulgarian
property market. Bulgaria joined NATO in April 2005 and is scheduled to join the
European Union in January 2007. This approaching accession and harmonization
should see current domestic annual interest rates of 8-9% decline towards
Euro-zone rates, which should provide a stimulus for the property market.

Your board intends to build up a property portfolio and will add value through:
     
*    The consolidation of agricultural land with substantial development sites
*    Gaining zoning and planning permission to immediately enhance the value and 
     to enable the development of sites held
*    Maintaining a portfolio for trading to generate regular profits
*    Undertaking the development of commercial and residential property on a 
     predominantly pre-let basis

My fellow non-executive directors join me in thanking Ivo Hesmondhalgh and
Philip Pashov for the efforts they have made in our first year of trading.
Without their commitment we would not have achieved such an excellent launch of
the Company.

I should also like to thank Rumen Beremski for his advice and encouragement
during his short tenure on the board.  Additionally, I am particularly proud to
welcome to the board Mr Nikolay Galchev, who runs one of Bulgaria's leading
construction companies.  He has appointed Radka Galcheva as his alternate
director who will attend board meetings when he is unable to do so.  I feel that
Nikolay Galchev' appointment to the Board will significantly help the Company's
operations in Bulgaria.



Christian Williams
Chairman

30 August 2005





Consolidated Profit and Loss Account for the period ended 30 June 2005


                                              Notes       #'000

Turnover                                                      -

Administrative expenses                                    (318)

Operating Loss                                             (318)

Interest receivable and similar income                       45

Loss on ordinary activities before taxation                (273)

Tax on loss on ordinary activities                            -

Loss for the financial period after taxation               (273)

Deficit carried forward                                    (273)

Basic and fully diluted loss per share            5         5.3p


All of the above results derive from continuing activities





Consolidated Statement of Total Recognised Gains and Losses

                                                          #'000

Loss on ordinary activities after taxation                 (273)

Currency translation differences on
foreign currency net investments                             (1)

Total recognised gains and losses for the period           (274)





Consolidated Balance Sheet as at 30 June 2005

                                              Notes       #'000

Current assets:
Stock                                             1       2,409
Debtors                                                      66
Cash at bank                                              1,550

                                                          4,025

Creditors: Amounts falling
due within one year                                         (47)

Net current assets:                                       3,978

Total assets less current liabilities                     3,978

Capital and reserves:
Called up share capital                                   2,226
Share premium                                             2,026
Profit and loss account                                    (274)

Shareholders' funds:                              6       3,978






Consolidated Cashflow Statement for the period ended 30 June 2005

                                                          #'000

Net cash outflow from operating activities               (2,746)

Returns on investments and servicing of finance
Interest paid                                                 -
Interest received                                            45

Net cash inflow from returns on investments and
servicing of finance                                         45

Capital expenditure
Purchase of tangible fixed assets                             -
Sale of tangible fixed assets                                 -

Net cash outflow before financing                        (2,701)

Financing
Issue of ordinary shares                                  4,452
Less: costs of share issue                                 (200)
     
                                                          4,252

Net cash inflow during the year                           1,551

Translation differences                                      (1)

Cash at 30 June 2005                                      1,550




Notes
     
1.   The accounts have been prepared in accordance with applicable accounting 
     standards, in particular, the accounting policy for stock.

     The land held as trading stock is valued in the accounts at the lower of 
     cost and net realisable value in accordance with Statement of Standard
     Accounting Practice 9 Stocks and Long Term Contracts.
     
2.   The summarised financial information has been extracted from the unaudited 
     accounts of the Group for the period ended 30 June 2005.  The above
     information does not amount to statutory accounts within the meaning of the
     Companies Act 1985.  The auditors have not reported on the accounts for the
     period ended 30 June 2005, nor have any such accounts have been delivered 
     to the Registrar of Companies.

3.   Copies of the annual report and accounts will be posted to shareholders in 
     early October 2005 and will be available from Matrix-Securities Limited, 
     One Jermyn Street, London, SW1Y 4UH.
     
4.   No dividends have been proposed.
     
5.   Earnings per share have been calculated based on the weighted average of 
     5,163,324 ordinary shares being in issue during the period to 30 June 2005.
     
6.   The movements in shareholders' funds is analysed as follows:

                                                          Group
                                                          #'000

     Loss for the period                                   (273)
     Currency translation differences
     on foreign currency net investments                     (1)
     New shares issued                                    4,252

     Net additions to shareholders' funds                 
     Opening shareholders' funds                          3,978

     Closing shareholders' funds                          3,978




Enquiries:

Ivo Hesmondhalgh        [phone]



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FR UROURVARWOAR