Final Results

 

TIDMBPD 
 
RNS Number : 4200P 
Bulgarian Property DevelopmentsPLC 
25 March 2009 
 

 
 
 
 
FOR RELEASE 
07.00 m 
25 MARCH 2009 
 
 
BULGARIAN PROPERTY DEVELOPMENTS PLC 
 
 
("BPD", "the Company" or "the Group") 
 
 
 
 
AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008 
 
 
 
 
 
 
Key Points 
 
 
  *  Portfolio valued at GBP54.8 million as at 27 February 2009 
  *  NAV per share 65.1p at 31 December 2008 
  *  EUR6.0m sale of Trakia Retail Centre 
  *  Failure by Fairplay to complete EUR15 million purchase of BPD 50% stake in Varna 
  Logistics 
  *  Special dividend of 19p per share (GBP21 million) paid 17 July 2008 
 
 
 
 
 
Enquiries: 
 
 
Bulgarian Property Developments 
Ivo Hesmondhalgh (Joint Chief Executive) [phone] 
 
 
Matrix Corporate Capital LLP (Nominated Adviser) 
Stephen Mischler+44 (0) 20 3206 7203 
 
 
Cubitt Consulting Ltd 
James Verstringhe  [phone] 
Brian Coleman-Smith 
 
 
Background Note: 
BPD, which was incorporated in May 2004 and floated on AIM in January 2005, is 
an owner and developer of land for commercial use across Bulgaria, in particular 
for building distribution centres, retail centres and offices. 
BPD's portfolio currently includes properties in Sofia, Plovdiv, Vidin, Ruse, 
Burgas and Sandanski 
http://www.bpdplc.com 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company No. 05118060 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BULGARIAN PROPERTY DEVELOPMENTS PLC 
 
 
 
 
 
 
REPORT OF THE DIRECTORS AND 
CONSOLIDATED FINANCIAL STATEMENTS 
 
 
For the year ended 
31 December 2008 
 
 
 
 
 
 
 
 
CONTENTS 
 
 
 
 
 
 
+----------------------------------------------------------+--------------------+ 
|                                                          |               Page | 
+----------------------------------------------------------+--------------------+ 
| Company Information                                      |                  3 | 
+----------------------------------------------------------+--------------------+ 
| Chairman's Statement                                     |                  4 | 
+----------------------------------------------------------+--------------------+ 
| Report of the Directors                                  |                  6 | 
+----------------------------------------------------------+--------------------+ 
| Independent Auditors' Report                             |                  9 | 
+----------------------------------------------------------+--------------------+ 
| Consolidated Income Statement                            |                 11 | 
+----------------------------------------------------------+--------------------+ 
| Consolidated Statement of Changes in Equity              |                 12 | 
+----------------------------------------------------------+--------------------+ 
| Consolidated Balance Sheet                               |                 13 | 
+----------------------------------------------------------+--------------------+ 
| Consolidated Cash Flow Statement                         |                 14 | 
+----------------------------------------------------------+--------------------+ 
| Company Statement of Changes in Equity                   |                 15 | 
+----------------------------------------------------------+--------------------+ 
| Company Balance Sheet                                    |                 16 | 
+----------------------------------------------------------+--------------------+ 
| Company Cash Flow Statement                              |                 17 | 
+----------------------------------------------------------+--------------------+ 
| Notes to the Financial Statements                        |                 18 | 
+----------------------------------------------------------+--------------------+ 
 
 
 
COMPANY INFORMATION 
for the year ended 31 December 2008 
 
 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| DIRECTORS:    | C D L          | 
|               | Williams       | 
|               | (Non-Executive | 
|               | Chairman)      | 
+---------------+----------------+ 
|               | I L G          | 
|               | Hesmondhalgh   | 
|               | (Executive     | 
|               | Director)      | 
+---------------+----------------+ 
|               | P A            | 
|               | Pashov         | 
|               | (Executive     | 
|               | Director)      | 
+---------------+----------------+ 
|               | K J            | 
|               | Springall      | 
|               | (Finance       | 
|               | Director)      | 
+---------------+----------------+ 
|               | J S            | 
|               | Mackay         | 
|               | (Non           | 
|               | Executive)     | 
+---------------+----------------+ 
|               | N K            | 
|               | Galchev        | 
|               | (Non           | 
|               | Executive)     | 
+---------------+----------------+ 
|               | R N            | 
|               | Galtcheva      | 
|               | (Alternate)    | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| SECRETARY:    | C R            | 
|               | Delacombe      | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| REGISTERED    | 443            | 
| OFFICE:       | Stroude        | 
|               | Road           | 
+---------------+----------------+ 
|               | Virginia       | 
|               | Water          | 
+---------------+----------------+ 
|               | Surrey         | 
|               | GU25 4BU       | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| REGISTERED    | 05118060       | 
| NUMBER:       | (England       | 
|               | and            | 
|               | Wales)         | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| NOMINATED     | Matrix         | 
| ADVISER:      | Corporate      | 
|               | Capital        | 
|               | LLP            | 
+---------------+----------------+ 
|               | One Vine       | 
|               | Street         | 
+---------------+----------------+ 
|               | London         | 
|               | W1J OAH        | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| TAX           | Smith &        | 
| ADVISERS:     | Williamson     | 
|               | Limited        | 
+---------------+----------------+ 
|               | 25             | 
|               | Moorgate       | 
+---------------+----------------+ 
|               | London         | 
|               | EC2R 6AY       | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| SOLICITORS:   | Field          | 
|               | Fisher         | 
|               | Waterhouse     | 
+---------------+----------------+ 
|               | 35 Vine        | 
|               | Street         | 
+---------------+----------------+ 
|               | London         | 
|               | EC2N 2AA       | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| BANKERS:      | Clydesdale     | 
|               | Bank plc       | 
+---------------+----------------+ 
|               | 88 Wood        | 
|               | Street         | 
+---------------+----------------+ 
|               | London         | 
|               | EC2V 7QQ       | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| REGISTRARS:   | Neville        | 
|               | Registrars     | 
|               | Limited        | 
+---------------+----------------+ 
|               | Neville        | 
|               | House          | 
+---------------+----------------+ 
|               | 18             | 
|               | Laurel         | 
|               | Lane           | 
+---------------+----------------+ 
|               | Halesowen      | 
|               |                | 
+---------------+----------------+ 
|               | West           | 
|               | Midlands       | 
|               | B63 3DA        | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| AUDITORS:     | Nexia          | 
|               | Smith &        | 
|               | Williamson     | 
+---------------+----------------+ 
|               | Registered     | 
|               | Auditors       | 
+---------------+----------------+ 
|               | 25             | 
|               | Moorgate       | 
+---------------+----------------+ 
|               | London         | 
|               | EC2R 6AY       | 
+---------------+----------------+ 
|               |                | 
+---------------+----------------+ 
| STOCKBROKERS: | Matrix         | 
|               | Corporate      | 
|               | Capital        | 
|               | LLP            | 
+---------------+----------------+ 
|               | One Vine       | 
|               | Street         | 
+---------------+----------------+ 
|               | London         | 
|               | W1J 0AH        | 
+---------------+----------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAIRMAN'S STATEMENT 
for the year ended 31 December 2008 
 
 
Windsorville now majority shareholder 
Before commenting upon the Group's results, I should say how saddened I am that 
our recommendation to shareholders to reject Windsorville's cash offer has 
largely been ignored. The cash offer of 16p per BPD share, valued the Company at 
just GBP17.3 million as compared with an adjusted net asset value of 56p per BPD 
share or GBP61 million (as per the defence document dated 3 March 2009), of 
which cash represented GBP11.6 million including GBP2.9 million held in escrow. 
We certainly live in unusual times. 
 
 
Windsorville is now not just the largest shareholder but owns a majority of the 
shares in the Company. I pointed out in my recent circular to shareholders the 
risk of remaining as a shareholder in a Company that may well be delisted and 
taken private. Given the risks associated with remaining a minority shareholder 
in an unquoted company, your Directors advised shareholders on 20 March 2009 to 
accept the Offer, as indeed they have done, or intend to, in respect of their 
own shareholdings amounting to 967,936 BPD shares, representing approximately 
0.9% of the issued share capital of the Company. 
 
 
Windsorville has stated its intention to honour the existing employment rights 
of all employees of the Bulgarian Property Developments Group. Windsorville 
intends to seek the resignation or removal of all or the majority of the BPD 
directors and the appointment of such other persons as directors of Bulgarian 
Property Developments Plc ("BPD") as Windsorville considers appropriate. 
 
 
Group Results 
The results for the year ended 31 December 2008 show a loss after tax of 
GBP357,000 which is in line with expectations. This result includes increased 
rental income of GBP1.1 million (2007: GBP0.5 million) from the existing 
buildings at the Sofia Central Commercial Site and at Varna. Depreciation on the 
existing buildings has been charged in the year for the first time resulting in 
a GBP1.4 million charge to expenses. Offsetting this were realised exchange 
gains of GBP2.4 million from the conversion of Euros held back into Sterling in 
order to pay for the GBP21 million Special dividend. Sterling weakened from 
EUR1.36 as at 31 December 2007 to EUR1.02 as at 31 December 2008. 
 
 
Payment of Special dividend of GBP21 million 
Following the cancellation of the Company's share premium account and the 
Company having complied with its undertaking to the Court regarding creditor 
protection, BPD paid a dividend of 19p per share on 17 July 2008 to shareholders 
who were on the share register on 11 July 2008. 
 
 
Portfolio and Net Asset Value ("NAV") 
The portfolio was valued on 31 December 2008 by Colliers CRE at GBP66.2 million. 
However, as required under the Takeover Panel rules, BPD had its portfolio 
revalued by Colliers CRE as at 27 February 2009 and the valuation at that date 
was GBP54.8 million. 
 
 
The effect of this is that the NAV at 31 December 2008 was 65.1p per share. 
 
 
Full details of the portfolio are contained within the notes to the financial 
statements. 
 
 
 
CHAIRMAN'S STATEMENT (continued) 
for the year ended 31 December 2008 
 
 
Sale and purchase of properties with FairPlay and subsequent legal dispute 
As shareholders will be aware, FairPlay Commercial EAD ("FPC") has failed to 
complete its purchase of our 50% stake in Varna Logistics at the agreed price of 
EUR15 million and has launched a court case either to have the contract declared 
void and recover the EUR3.9 million deposit that it paid or to have the contract 
price unilaterally reduced to EUR9.3 million. Full details of this dispute are set 
out in note 25 of the financial statements. Suffice it to say, we are vigorously 
resisting these actions and are hopeful of success. 
 
 
The Sofia Central Commercial Site 
This is the Group's most important asset and represents almost half of the value 
of the Group's portfolio. 
 
 
The Group has applied for permission to increase the permitted build area on the 
site from 130,000 square metres to in excess of 290,000 square metres. The 
rezoning process is substantially complete. The directors believe that 
permission should be granted for the increase in density by the end of 2009. The 
effect of such an increase in density would be that the value of the site would 
increase from the value ascribed to it by Colliers in December 2008 of GBP32.6 
million to GBP62.4 million, the increase being equivalent to approximately 27.5p 
per BPD share (at year end exchange rate of GBP1: EUR1.026) or, using Colliers' 
February valuation, from GBP26.8 million to GBP47.9 million, an increase of 
GBP21.1 million or 19.5p per BPD share (at 27 February 2009 exchange rate of 
GBP1: EUR1.121). 
 
 
Sandanski Retail Centre OOD ("SRC") 
The Group has acquired the 50% of shares of SRC, which it did not own for a 
consideration of EUR900,000. 
 
 
Trakia Retail Centre OOD ("TRC") 
BPD purchased FairPlay International AD's 50% shareholding in TRC, which owned a 
site in the city of Plovdiv for EUR3 million (GBP2.9 million) and then sold the 
whole site for EUR6 million (GBP5.8 million) realising a gain of GBP0.7 million. 
 
 
 
 
Christian Williams 
Chairman 
 
 
24 March 2009 
 
 
 
REPORT OF THE DIRECTORS 
for the year ended 31 December 2008 
 
 
The directors present their report with the financial statements of the Group 
for the year ended 31 December 2008. 
Principal activity 
The principal activity of the Group in the period under review was that of 
property development and property trading in Bulgaria. The development of the 
Group's business and future prospects are considered in the Chairman's statement 
on page 4. 
Results and dividends 
The audited financial statements for the year ended 31 December 2008 are set out 
on pages 11 to 54. The consolidated income statement showing the results for the 
period is set out on page 11. Bulgarian Property Developments Plc paid a 
dividend of 19p per share on 17 July 2008 to shareholders who were on the share 
register on 11 July 2008. 
Business review 
Review of the Group's development and performance 
The Chairman's Report on the preceding page 4 gives a comprehensive review and 
assessment of the Group's activities during the period and its position at 31 
December 2008 and prospects for the forthcoming year. 
 
 
Business risk 
The Group's returns may be subject to the risks associated with the development 
of real estate projects. These risks include: risks relating to project 
financing, that a developer becomes unable to fulfil its obligations, that a 
suitable developer may not be available, that planning consents are delayed or 
not obtained, that the management services from Bulgarian Property Management 
Limited and the Group's management teams cease to continue, events affecting any 
Joint Venture partner or difficulties in identifying and securing attractive 
property investments in Bulgaria. 
Other risks identified by the Group include: geographical and political risks 
associated with Bulgaria, financial risks such as lack of available funds to 
meet the Group's needs, interest rate risk and currency risk (See note 1). 
The Group views effective risk management as integral to the day-to-day business 
decisions and encourages all its managers to assess risk on a continuous basis. 
Future development 
Since 5 March, Windsorville is the controlling shareholder of BPD. It is the 
current intention of the board of Windsorville that, now that the Offer becomes 
unconditional in all respects, will explore options to raise additional capital 
for BPD, which may be raised all or in part from Windsorville. The Group will 
develop and improve its existing property portfolio. 
Environment 
The Group is committed to effective environmental management, and regards 
regulatory compliance as a minimum standard. In the light of best practice in 
the property development industry, the Group will seek to set policies that 
match the Groups operations with the increasing need to manage environmental 
performance of existing and new developments; including energy and water 
consumption, waste management, water and air pollution, and contractor and 
tenant awareness. 
Key performance indicators (KPI's) 
The Group's success is principally measured in terms of the adjusted Net Asset 
Value per share. This is based upon the market value of the Group's property 
portfolio as valued by a third party valuer, Colliers, London. This allows the 
Group's management to monitor the growth in value created as projects are 
developed. 
The adjusted Net Asset Value is arrived at with reference to the Group's 
property assets as valued by Colliers, London, reflecting the actual percentages 
held by the Group. To this figure is added its non property assets minus its 
total liabilities. In calculating the adjusted Net Asset Value, no provision is 
made for tax that may arise on a sale at that value. Please refer to the 
Chairman's statement for details of the Group's performance in respect of this 
KPI. 
 
 
 
REPORT OF THE DIRECTORS (continued) 
for the year ended 31 December 2008 
 
 
Directors 
The directors during the period were: 
C D L Williams 
I L G Hesmondhalgh 
P A Pashov 
K J Springall 
J S Mackay 
N K Galchev 
R N Galtcheva (alternate) 
 
 
Following Windsorville Investments Limited becoming the owner of the majority of 
the shares in the Company, it is expected that Mr. Richard McGuire and Mr. Marek 
Piwek will be appointed as directors of the Company and that all, or the 
majority, of the current board will step down. In accordance with the Company's 
articles of association, it is expected that both Mr. Richard McGuire and Mr. 
Marek Piwek will retire from office at the Annual General Meeting, being the 
first such meeting following their appointment and, being eligible, each will 
offer themselves for re-appointment. 
 
 
The interests of the directors holding office at 31 December 2008 in the issued 
share capital of the Company are as follows: 
 
 
+---------------------------------------------+----------------+----+----------------+ 
|                                             |    31 December |    |    31 December | 
|                                             |           2008 |    |           2007 | 
+---------------------------------------------+----------------+----+----------------+ 
|                                             |   Ordinary 25p |    |   Ordinary 25p | 
|                                             |         shares |    |         shares | 
+---------------------------------------------+----------------+----+----------------+ 
|                                             |                |    |                | 
+---------------------------------------------+----------------+----+----------------+ 
| 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