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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| East Euro Prop. | LSE:EEP | London | Ordinary Share | GB00B0XQ3R24 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 28.50 | 24.00 | 33.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMEEP
RNS Number : 2540I
Eastern European Property Fund Ltd
16 June 2017
Hot Features
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16 June 2017
EASTERN EUROPEAN PROPERTY FUND LIMITED
Results for the year ended 31 December 2016
HIGHLIGHTS
* Property held at 31 December 2016 was valued at
GBP15.0 million (2015: GBP15.7 million on a
like-for-like basis).
* Net asset value at 31 December 2016 of GBP14.9
million, equivalent to 95.76p per Ordinary Share
(2015: GBP15.8 million, 101.46p per Ordinary Share).
* Loss for the year ended 31 December 2016 of GBP1.2
million, equivalent to a loss of 7.80p per Ordinary
Share (2015: loss of GBP1.0 million, 6.30p per
Ordinary Share).
* The Romanian subsidiary containing the Bucharest
property was sold in December 2016, generating
proceeds of GBP1.3 million.
* All remaining units within the Nil Passage property
in Beyoglu, Istanbul were sold during the year,
generating aggregate proceeds of GBP0.7 million.
* Two properties remain in EEP's portfolio; Markiz
Passage in Istanbul and The Atrium in Sofia.
For further information, please visit www.eepfl.com
or contact:
Steve Pearce (nominated Bob Locker
adviser) CNC Property Fund Management
Henry Freeman (corporate Limited
broker) Tel: +44 1784 424 740
Liberum Capital Limited
Tel: +44 203 100 2000
Keiran Gallagher Oliver Cadogan
Pera Pera Walnut Investments OOD
Tel: +90 212 252 6048 Tel: +40 21 451 0823
Elysium Fund Management
Limited
elysium@elysiumfundman.com
Tel: +44 1481 810 100
CHAIRMAN'S STATEMENT
EEP commenced 2016 with the disposal of the final
units of the Nil Passage property and we were pleased
to end the year with the disposal of the Romanian
subsidiary containing the Gara Progresului, Business
and Logistics Centre. However, 2016 was a predominantly
challenging year in Turkey due to political instability
and a number of bombings, including on Istiklal Street
where the Markiz Passage is located. This had a particularly
damaging effect on business confidence and tourism
and, inevitably, negatively affected domestic and
foreign interest in the Markiz building.
Activity in the commercial property market in Bulgaria
has remained very low, largely due to the business
environment and difficulty for potential buyers to
obtain commercial loans.
Results and Financial Position
EEP reported a net loss for the year ended 31 December
2016 of GBP1.2 million (2015: loss of GBP1.0 million),
representing a loss per Ordinary Share of 7.80p (2015:
loss of 6.30p). A loss of GBP0.8 million on revaluation
of investment properties and a realised loss on the
disposal of the Romanian subsidiary of GBP0.5 million
are the main reasons for the deterioration in financial
performance during the year.
Operating expenses increased by 8.7% (before accounting
for performance fees) during the year ended 31 December
2016, mainly due to increased legal and professional
fees arising from the successful settlement of legal
action for unpaid rent from a previous tenant (please
refer to note 3b).
EEP's consolidated net asset value ("NAV") at 31
December 2016 was GBP14.9 million, equivalent to
95.76p per Ordinary Share (2015: GBP15.8 million;
101.46p per Ordinary Share).
The Company's share price decreased by 0.25p during
the year to 50.50p at 31 December 2016, with the
discount to NAV narrowing from 50.3% at 31 December
2015 to 47.3% at 31 December 2016.
Property Sales, Portfolio and Valuations
The Romanian subsidiary containing the Gara Progresului,
Business and Logistics Centre was sold in December
2016 for a total of EUR1.5 million (GBP1.3 million).
EUR1.2 million was received on completion and the
balance is payable in instalments by 30 June 2018.
The deferred consideration is secured by a charge
on the property. At the date of this report, EEP
had received two instalments of the deferred consideration,
totalling EUR40,000.
All remaining units within the Nil Passage property
were sold during the first half of 2016 for a total
of US$1.0 million (GBP0.7 million) (including VAT).
Disposal proceeds were marginally above the 31 December
2015 independent valuation. EEP no longer has any
interest in the Nil Passage property.
EEP's two remaining properties continue to be marketed
for sale.
The aggregate value of these two investment properties
at 31 December 2016 decreased to the equivalent of
GBP15.0 million during the year and resulted in a
net unrealised loss on revaluation of GBP845,000
(2015: loss of GBP55,000) (please refer to note 13).
Consistent with previous years, independent valuations
of the properties were commissioned and these provide
the basis of the carrying values used in the accompanying
results.
It remains challenging to realise our remaining buildings
in the central districts of both Sofia and Istanbul
at appropriate valuations. Although illiquidity,
opaque market practices and scarcity of buyer finance
have been ongoing challenges for the Property Manager
and Investment Advisers, to date, most of EEP's property
investments have been sold close to the carrying
values.
Our valuation of the Markiz building at 31 December
2016 is supported by the pricing achieved in a recent
purchase and sale of a neighbouring property of comparable
size and location. Although further substantial new
activity in the prime Istanbul property market is
unlikely during the traditional 'quiet' period spanning
Ramadan and the summer months, the Property Manager
and Turkish Investment Adviser will continue to negotiate
the offers currently on the table and actively pursue
any new interests that may materialise. Local business
confidence should improve if the recent political
calm and stability continue, which the Board hopes
will facilitate the sale of the Markiz building.
New efforts in respect of use and different target
potential buyers are also being made to improve the
marketability of EEP's building in Sofia.
Further details of each property (but not their individual
carrying values), the prospects for sales in the
foreseeable future, recent market activity and the
investment environment are provided in the Property
Manager and Investment Advisers' Report. It remains
the Board's policy not to disclose the breakdown
of individual property values as that information
could be detrimental to commercial negotiations with
prospective buyers.
Distributions
It remains the Board's intention to distribute to
Shareholders substantially all net proceeds of property
sales, subject to the need to retain sufficient funds
for EEP's ongoing operation. However, following the
disposal of the Romanian subsidiary and receipt of
sale proceeds, the Board decided to retain the cash
and not to immediately undertake further buybacks
of Ordinary Shares whilst options for the disposal
of the Markiz property are pursued. This policy remains
under regular review.
The Company is limited to repurchasing a maximum
of 14.99% of the Ordinary Shares in issue and this
remains in force until the authority to buy back
shares is renewed at the AGM to be held later in
2017. EEP is permitted to repurchase 2,331,132 Ordinary
Shares prior to the 2017 AGM.
In order to retain flexibility, at the 2017 AGM,
Shareholders will be asked to renew the approval
for the Company to repurchase up to a maximum of
14.99% of the Ordinary Shares in issue at the date
the authority is sought. This will allow the Company
to repurchase up to 2,331,132 Ordinary Shares (valued
at approximately GBP1.0 million at the latest available
share price at the date of writing this report) assuming
no change in the prevailing number of shares in issue.
Outlook and Strategy
The Property Manager and Investment Advisers' patient
approach to disposals of the property portfolio in
recent years has been rewarded with sales at fair
prices. The Board and Manager continue to review
at each quarterly meeting the appropriateness of
continued patience to achieve higher prices and the
ongoing costs of operating EEP with its current structure.
The Board, in conjunction with the Manager, Property
Manager and Investment Adviser in Turkey, will be
working during the 'quiet' period to convert one
of the existing indicative offers for the Markiz
building into a sale. There will be a further shareholder
update on progress in September 2017 as part of the
half-yearly report and if the existing offers do
not materialise or otherwise progress significantly
in the coming months, or renewed interest is not
received, the Board intends to carry out a more detailed
evaluation of the key strategic alternatives available
in respect of the future direction of the Company.
The Board is appreciative of your continued patience.
Any shareholder wishing to discuss the Company's
affairs is welcome to contact any of the Directors,
the Property Manager or one of the Investment Advisers.
Martin M. Adams
Chairman
15 June 2017
PROPERTY MANAGER AND INVESTMENT ADVISERS' REPORT
By 31 December 2016, EEP's property holdings had
reduced to the Markiz Passage on Istiklal Street,
Istanbul and George Washington Street, Sofia. This
followed the sale of the remaining units at Nil Passage,
in Beyoglu, Istanbul in April 2016, and Gara Progresului,
Business and Logistics Centre in Bucharest at the
end of the year. The Romanian property was sold for
a total consideration of EUR1.5 million. The initial
payment was EUR1.16 million with deferred consideration
in the form of a secured loan for the remainder,
of which, EUR40,000 had been received by 31 March
2017.
Economic and market conditions have remained subdued
and slow in Istanbul following the attempted coup
in July 2016. More recently, the referendum on the
proposed transition to an executive presidency, held
on 16 April 2017, added to the political uncertainty
which, together with substantially reduced footfall
and tourism, has meant that overall business confidence
remained low with limited property transactions taking
place.
In Sofia, Bulgaria, although there are indications
that the overall economy is improving (albeit at
a slow pace), the level of commercial property activity
is very limited.
The properties held at 31 December 2016 were as follows:
The Markiz, Istanbul, Turkey
There have been fewer enquiries to buy the property
during 2016 and while all interest from buyers has
been and continues to be considered, it's a reality
that prospective buyers' expectations of price have
reduced from previous periods and the position deteriorated
leading up to the referendum. This reflects the opportunistic
nature of the current buyers in the property market
and their wish to exploit the recent political uncertainty.
EEP has explored rental options but, as with sale
opportunities, there has been less letting activity
on Istiklal Street due to its location and the impact
of terrorist activity last year with the resultant
reduction in tourism. The one remaining tenant, Food
Club, went into administration in the autumn and
had its lease formally brought to an end by the courts
in March 2017. Therefore, the property is currently
unoccupied and is available with vacant possession.
The Property Manager and Investment Adviser continue
to consider and implement procedures to remove conservation
and historic planning issues.
Overall, the commercial property market has been
quieter than usual, particularly in the months immediately
prior to the referendum, with only bargain hunters
around, but most sellers have been resistant to price
reductions as they fail to see fair value being achieved
for their assets. However, the Vastned portfolio
(which is predominantly retail orientated property
located on or around Istiklal Street) has reportedly
been sold for EUR100 million in February 2017.
The Atrium, George Washington Street, Sofia, Bulgaria
In December 2016 it was announced that the Belgian
bank, KBC, had acquired UBB Bank (EEP's main tenant
in Bulgaria). There are currently no indications
as to whether this will impact UBB's occupation of
the property.
Although the property has been on the market for
sale, there has been very limited interest shown
in it. It remains difficult for buyers to obtain
commercial loans, a key enabler in the sale of the
EEP's property in Bucharest. Other options to improve
the potential liquidity of the property are being
explored.
Turkey - Economic and Political Commentary
The Turkish economy recorded a better than expected
fourth quarter 2016 GDP growth of +3.5%. This follows
a contraction of -1.8% in the third quarter of 2016,
according to data released by the Turkish Statistical
Institute, Turkstat, and is a bounce back after the
failed coup. This was mainly due to a significant
rise in consumption, with auto sales up strongly,
along with construction activity, which came ahead
of planned tax increases.
GDP growth for 2016 as a whole was 2.9%, as reported
by the Turkish Statistics Institute. This was ahead
of the 2.4% forecast for 2016 in the Economist poll
of forecasters. For 2017, the Economist poll is again
forecasting GDP growth of 2.4%. Government finances
and debt levels appear to be at reasonable levels,
although there are concerns over private sector US
Dollar debt. However, the Turkish Lira has been relatively
stable against the US Dollar to date this year. Inflation
rose to 11.3% in March 2017 and is forecast to average
8.8% this year.
The current account deficit has improved to -4.5%
in March 2017 but is expected to deteriorate again.
Tourist arrivals appear to be increasing from a low
level and the number of visitors increased by 18%
in April 2017. The reduction in numbers of Western
European visitors is partly offset by increased arrivals
from neighbouring countries and Russia.
As indicated above, the country held a referendum
on 16 April 2017 to vote whether to create an executive
presidency. The vote in favour was carried by a slim
margin and will effectively allow President Erdogan
to stay in power until 2029, if he wishes, and subject
him to winning further elections in 2019 and 2024.
Bulgaria - Economic and Political Commentary
Parliamentary elections, the third since May 2013,
took place at the end of March 2017 and the previous
Prime Minister Boyko Borissov, leader of the centre-right
pro-EU GERB party formed his third cabinet in eight
years. This was after his party won 95 of the 240
seats, while the more pro-Russian Socialists won
80 seats.
Raiffeisen Bank, Bulgaria, has increased its projection
for Bulgaria's economic growth to 3.3% in 2017, from
the 3.0% forecast in December 2016. It expects the
unemployment rate to be 6.4% in 2017, falling to
6.0% in 2018 and the inflation rate to be contained
at 2.0% in 2018.
Prospects
During the first quarter of the year, the referendum
for the transition to an executive presidency has
been the dominating issue within Turkey. This followed
what had been a long period of economic and political
upheaval, coupled with a conflict on Turkey's south
eastern border, which added to the overall uncertainty.
Together with local acts of terrorism, this has had
a cumulative and detrimental effect on the economy
in the Pera area of Istanbul where the Markiz property
is situated. However, the property remains in a prime
location on Istiklal Caddesi, the prime shopping
high street in one of the largest and most vibrant
cities in the world and has continually generated
interest throughout the period of uncertainty. Although
the enquiries are not at the potential offer levels
previously experienced, since the referendum, more
positive news about the economy has gathered pace
and local business confidence appears to be growing
quite quickly. It is worth noting that the sale of
the Vastned portfolio completed before the referendum
and was a substantial sale of real estate in a similar
area to the Markiz building.
There is renewed hope that the economic and political
situation will stabilise for some time now and this
will enable the whole country to move forwards positively
during the remainder of 2017. As indicated previously,
initial feedback from the local business community
supports the view that overall activity will improve
considerably in 2017. However, due to the timing
of Ramadan, followed by Bayram (national holidays),
which then blends into the summer holiday period,
the pick-up in activity may be subdued before the
final quarter of 2017.
In Sofia there are indications that the residential
property sector has picked up and in this respect
it is hoped that with continued economic growth,
the potential for trading will return, but progress
is likely to remain slow. The takeover of UBB by
KBC does add to the uncertainty of UBB's occupation
at EEP's property but is a reflection of KBC's confidence
in Bulgaria in the future.
Bob Locker
CNC Property Fund Management Limited
Keiran Gallagher
Pera Pera
Oliver Cadogan
Walnut Investments OOD
15 June 2017
The financial information set out in this announcement
does not constitute the Company's statutory financial
statements for the year ended 31 December 2016.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
Year ended Year ended
Note 31 December 31 December
2016 2015
GBP'000 GBP'000
Income
Rental income 3b 938 626
Other income 74 56
Bank interest receivable 7 5
------------ ------------
Total income 1,019 687
------------ ------------
Expenses
Building maintenance, power and
management (277) (263)
Management fees 5 (198) (194)
Administration fees 5 (110) (100)
Directors' remuneration 7 (76) (85)
Performance fees 5 94 61
Other operating expenses 8 (458) (387)
------------ ------------
Total expenses (1,025) (968)
------------ ------------
Investment gains and losses
Loss on revaluation of investment
properties 13 (845) (55)
Gain on disposal of investment
properties 13 9 95
Loss on disposal of subsidiary 16 (481) -
------------ ------------
Total investment (losses)/gains (1,317) 40
------------ ------------
Net loss from operating activities
before gains and losses on foreign
currency translation (1,323) (241)
Gain/(loss) on foreign currency
translation 10 192 (42)
------------ ------------
Net loss from operating activities (1,131) (283)
Provision for estimated liquidation
costs 2b (59) -
Taxation 19 (23) (696)
------------ ------------
Loss for the year (1,213) (979)
Other comprehensive income that
may be reclassified to profit
or loss in subsequent periods
Exchange differences arising from
translation of foreign operations 10 327 372
------------ ------------
Total other comprehensive income 327 372
------------ ------------
Total comprehensive loss for the
year attributable to the Owners
of the Group (886) (607)
------------ ------------
Loss per share - basic and diluted 11 (7.80)p (6.30)p
------------ ------------
These results are unaudited and are not the Group's
statutory financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to Owners of the Group
for the year ended 31 December 2016
Foreign
currency
Share Distributable translation
capital reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2015 155 16,753 (523) 16,385
Total comprehensive income/(loss)
for the year ended 31
December 2015
Loss for the year - (979) - (979)
Other comprehensive
income - - 372 372
---------- ---------- ---------- ----------
Balance at 31 December
2015 155 15,774 (151) 15,778
Total comprehensive income/(loss)
for the year ended 31
December 2016
Loss for the year - (1,213) - (1,213)
Other comprehensive
income - - 327 327
---------- ---------- ---------- ----------
Balance at 31 December
2016 155 14,561 176 14,892
---------- ---------- ---------- ----------
These results are unaudited and are not the Group's
statutory financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2016
31 December 31 December
Note 2016 2015
GBP'000 GBP'000
Current assets
Freehold investment property 13 14,970 17,421
Intangible assets 14 3 4
Trade and other receivables 17 370 125
Cash and cash equivalents 1,918 848
Property, plant and equipment 15 - 2
---------- ----------
Total assets 17,261 18,400
---------- ----------
Current liabilities
Deferred tax liabilities 20 (2,095) (2,260)
Provision for estimated liquidation
costs 2b (59) -
Trade and other payables 18 (174) (270)
Overseas corporate tax (41) (18)
Rents received in advance - (74)
---------- ----------
Total liabilities (2,369) (2,622)
---------- ----------
Net assets 14,892 15,778
---------- ----------
Capital and reserves
Called-up share capital 21 155 155
Distributable reserve 14,561 15,774
Foreign currency translation
reserve 176 (151)
---------- ----------
Total equity attributable to
owners of the Group 14,892 15,778
---------- ----------
NAV per Ordinary Share - basic
and diluted 22 95.76p 101.46p
---------- ----------
These results are unaudited and are not the Group's
statutory financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
Year ended Year ended
31 December 31 December
Note 2016 2015
GBP'000 GBP'000
Net loss from operating activities (1,131) (283)
Adjustments for:
Bank interest receivable (7) (5)
Loss on revaluation of investment
properties 13 845 55
Gain on disposal of investment
properties 13 (9) (95)
Loss on disposal of subsidiary 16 481 -
(Gain)/loss on foreign currency
exchange 10 (192) 42
Amortisation and depreciation 8 3 3
---------- ----------
Net cash outflow from operating
activities before working capital
changes (10) (283)
Increase in trade and other
receivables (29) (10)
Decrease in trade and other
payables and other current
liabilities (138) (88)
---------- ----------
Net cash outflow from operating
activities after working capital
changes (177) (381)
Interest received in the year 7 5
Tax paid in the year (152) (186)
---------- ----------
Net cash outflow from operating
activities (322) (562)
Investing activities
Proceeds from sale of subsidiary 16 982 -
Sale of investment property 569 916
Acquisition and development
of investment property (174) (3)
---------- ----------
Net cash inflow from investing
activities 1,377 913
---------- ----------
Increase in cash and cash equivalents 1,055 351
---------- ----------
Cash and cash equivalents at
beginning of year 848 511
Increase in cash and cash equivalents 1,055 351
Foreign exchange movement 15 (14)
---------- ----------
Cash and cash equivalents at
end of year 1,918 848
---------- ----------
These results are unaudited and are not the Group's
statutory financial statements.
NOTES TO THE CONSOLIDATED RESULTS
for the year ended 31 December 2016
1. General Information
The Company is registered in Guernsey as an authorised
closed-ended investment company and its Ordinary Shares
are traded on AIM, a securities market operated by
the London Stock Exchange.
The Company's investment objective and policy is to
carry out an orderly realisation of the Company's
portfolio of assets, distribution of the net proceeds
to Shareholders and then undertake a voluntary winding-up
of the Company. Disposals may be by individual sales
or as transactions incorporating a group of properties.
2. Basis of Preparation
a) Statement of compliance
These consolidated results have been prepared in accordance
with International Financial Reporting Standards ("IFRSs")
as issued by the IASB (with the exception of IFRS
8, as explained in note 6, and IFRS 13 as explained
in note 13), they give a true and fair view and are
in compliance with the Companies (Guernsey) Law, 2008.
The consolidated results were authorised for issuance
by the Board on 15 June 2017.
b) Basis of measurement
The consolidated results have been prepared on a historic
cost basis, except for freehold investment property,
which has been measured at fair value. Certain amounts
relating to 2015 in these results have been reclassified
to better conform to the current year presentation.
The re-classification does not affect the previously
reported loss or equity.
The Board has considered cash flow forecasts and has
determined that EEP will be able to continue to meet
its liabilities as they fall due for the foreseeable
future, enabling the Company to realise its portfolio
of assets in an orderly manner.
As the Company's investment objective and policy is
to carry out an orderly realisation of the Company's
portfolio of assets, the consolidated results have
been prepared on a non-going concern basis. This has
had no significant impact on the consolidated results
as the properties have been measured at fair value
and are expected to be realised in an orderly manner.
However, a GBP59,000 provision (2015: GBPnil) for
the estimated costs of winding up the Group has been
included in the results.
It is possible that corporate income tax will arise
on capital gains on the disposal of the remaining
Turkish property. This liability has been provided
for in these consolidated results as deferred tax
and calculated on the assumption that the property
is realised at its current carrying value. However,
additional taxes, such as a 15% withholding tax, may
arise on the repatriation to Guernsey of non-capital
reserves from Turkey.
c) Functional and presentation currency
These consolidated results are presented in Sterling,
which is also the Company's functional currency (please
refer to note 3p for further details). All amounts
are rounded to the nearest thousand.
d) Use of estimates and judgements
The preparation of consolidated results in conformity
with IFRSs requires management to make judgements,
estimates and assumptions that affect the application
of policies and the reported amounts of assets and
liabilities, income and expense. The estimates and
associated assumptions are based on historical experience
and various other factors that are believed to be
reasonable under the circumstances, the results of
which form the basis of making the judgements about
carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate
is revised, if the revision affects only that period,
or in the period of the revision and future periods,
if the revision affects both current and future periods.
Judgements made by management in the application of
IFRSs that have a significant effect on the consolidated
results and estimates with a significant risk of material
adjustment in the next year are discussed in note
2b, 2c, note 13: Freehold investment property, and
note 28: Fair values.
3. Significant accounting policies
a) Basis of consolidation
These consolidated results consolidate the results
of the Company and its subsidiary undertakings to
31 December 2016. The results of the subsidiary undertakings
are accounted for in the Consolidated Statement of
Comprehensive Income from the date the subsidiaries
were formed (the subsidiaries have only ever been
owned by the Company).
Subsidiaries are those entities, including special
purpose entities, controlled by the Company. Control
is achieved when the Company is exposed, or has rights,
to variable returns from its involvement with the
investee and has the ability to affect those returns
through its power over the investee. In assessing
control, potential voting rights that presently are
exercisable are taken into account.
The results of subsidiaries are included in the consolidated
results from the date that control commences to the
date that control ceases. The accounting policies
of subsidiaries have been changed when necessary to
align them with the policies adopted by the Group.
At the date of disposal, the Company derecognises
the assets and liabilities of the subsidiary and other
components of equity. The Consolidated Statement of
Comprehensive Income includes the results of the subsidiary
up to the date of sale. The gain or loss on disposal
is the difference between the consideration received
and the carrying amount of the subsidiary at the date
of the sale.
All intercompany balances and transactions are eliminated
on consolidation.
b) Revenue
Rental income
Rental income from freehold investment property rented
under operating leases is recognised through profit
or loss in the Consolidated Statement of Comprehensive
Income on a straight-line basis over the period commencing
on the later of the start of the lease, or acquisition
of the property by the Group, and ending on the earlier
of the end of the lease and the next break point,
unless it is reasonably certain that the break option
will not be exercised. Lease incentives granted are
recognised as an integral part of the total rental
income over the terms of the lease. Rental income
revenue excludes service charges and other costs directly
recoverable from tenants. Direct costs of rental income
comprise head rents payable, irrecoverable service
charge costs and other property outgoings. Rental
income is included gross of any income tax charged.
Rental income in the year ended 31 December 2016 includes
GBP281,000 received from the settlement of a legal
claim for unpaid rent from a previous tenant.
Interest income
Interest income is accounted for on an accruals basis,
taking into account the effective yield.
c) Expenses
All expenses are accounted for on an accruals basis.
The management, performance and administration fees,
finance costs and all other expenses are charged through
profit or loss in the Consolidated Statement of Comprehensive
Income in the period in which they are incurred.
d) Taxation
Investment income is recorded gross of applicable
taxes. Tax expense is recognised through profit or
loss in the Consolidated Statement of Comprehensive
Income as incurred. The subsidiaries holding property
are subject to tax on income arising on the property
portfolio, after deduction of allowable expenses.
Withholding tax and irrecoverable VAT may also arise
on distributions and interest from the subsidiaries.
e) Deferred taxation
Deferred income tax is provided, using the liability
method, on all temporary differences at the financial
reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial
reporting purposes. Deferred income tax liabilities
are recognised for all taxable temporary differences.
Deferred income tax assets are recognised for all
deductible temporary differences and unused tax losses,
to the extent that it is probable that taxable profit
will be available in the foreseeable future against
which the deductible temporary differences and unused
tax losses can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable
that the relevant tax benefit will be realised.
Deferred tax is measured at the tax rates that are
expected to apply when the liability is settled, based
on tax rates (and tax laws) that have been enacted
or substantially enacted at the financial reporting
date.
f) Intangible assets
Intangible assets are measured at cost less accumulated
amortisation and impairment losses. Amortisation is
recognised through profit or loss in the Consolidated
Statement of Comprehensive Income on a straight-line
basis over the estimated useful lives of the intangible
assets. The estimated useful life of the trademark
is fifteen years.
The amortisation methods, useful lives and residual
values of the intangible assets are reviewed at each
reporting date.
g) Property, plant and equipment
Items of property, plant and equipment are measured
at cost less accumulated depreciation and impairment
losses. Cost includes expenditures that are directly
attributable to the acquisition of the asset.
Depreciation is recognised through profit or loss
in the Consolidated Statement of Comprehensive Income
on a straight-line basis over the estimated useful
lives of each part of an item of property, plant and
equipment. When parts of an item of property, plant
and equipment have different useful lives, those components
are accounted for as separate items of property, plant
and equipment. The estimated useful lives of the furniture
and fixtures are from five to ten years.
The depreciation methods, useful lives and residual
values of the property, plant and equipment are reviewed
at each reporting date.
h) Freehold investment property
Freehold investment property is initially measured
at cost, being the fair value of consideration given,
including related transaction costs. Additions to
freehold investment property consist of costs of a
capital nature and, in the case of investment property
under development, capitalised interest. After initial
recognition, freehold investment property is carried
at its fair value. The fair value of the freehold
investment property is largely based on estimates
using property appraisal techniques and the valuation
method outlined below. Such estimates are inherently
subjective and actual values can only be determined
in a sales transaction.
Investment properties are valued twice per year by
independent appraisers. The last valuation of the
investment properties was carried out by Cushman &
Wakefield as at 31 December 2016. Cushman & Wakefield,
which merged with DTZ Debenham Tie Leung in 2015,
has relevant professional qualification for the provision
of property services and has longstanding experience
in the valuation of properties in Bulgaria and Turkey,
having been engaged by the Company for that purpose
since 2007.
The appraisers determine the fair value by applying
the methodology and guidelines as set out in the appropriate
sections of both the current Practice Statements and
United Kingdom Practice Statements contained within
the RICS Valuation - Professional Standards 2014 Edition
(the "Red Book"). Values are determined on the basis
of near vacant possession, whereby capital values
are assessed per square metre and cross checked on
a rent and yield approach, with adjustments made for
void space and expected refurbishment costs prior
to letting. This calculation also excludes the effects
of any taxes.
The difference between the fair value of an investment
property at the reporting date and its carrying amount
prior to re-measurement is recognised through profit
or loss in the Consolidated Statement of Comprehensive
Income as a valuation gain or loss.
Investment properties are derecognised when they have
been disposed of and no future economic benefit is
expected from their disposal. The difference between
the net disposal proceeds and the carrying value of
the property is recognised in profit or loss in the
Statement of Comprehensive Income in the period of
derecognition.
i) Impairment of intangible assets and property, plant
and equipment
The assets or groups of assets are assessed for impairment
whenever events or changes in circumstances indicate
that the carrying value of an asset may not be recoverable.
Individual assets are grouped for impairment assessment
purposes at the lowest level at which there are identifiable
cash flows that are largely independent of the cash
flows of other groups of assets. If any such indication
of impairment exists, the Group makes an estimate
of its recoverable amount. An asset group's recoverable
amount is the higher of its fair value less costs
to sell and its value in use. Where the carrying amount
of an asset group exceeds its recoverable amount,
the asset group is considered impaired and is written
down to its recoverable amount. In assessing value
in use, the estimated future cash flows are adjusted
for the risks specific to the asset group and are
discounted to their present value using a pre-tax
discount rate that reflects current market assessments
of the time value of money.
j) Trade and other receivables
Trade and other receivables are carried at the original
invoice amount, less allowance for doubtful receivables.
Provision is made when there is objective evidence
that the Group will be unable to recover balances
in full. Balances are written off when the probability
of recovery is assessed as being remote.
k) Trade and other payables
Trade and other payables are carried at payment or
settlement amounts. Where the time value of money
is material, payables are carried at amortised cost.
l) Share capital
Ordinary Shares are classified as equity. Incremental
costs directly attributable to the issue of Ordinary
Shares are recognised as a deduction from equity.
When share capital recognised as equity is repurchased,
the amount of the consideration paid, which includes
directly attributable costs, is recognised as a deduction
from equity. Repurchased shares that are held in treasury
are presented as a deduction from equity. When shares
held in treasury are sold or subsequently reissued,
the amount received is recognised as an increase in
equity and the resulting surplus or deficit is transferred
to/from retained earnings.
Funds received from the issue of Ordinary Shares are
allocated as a distributable reserve.
m) Distributable reserve
All income and expenses, foreign exchange gains and
losses and realised investment gains and losses of
the Group are allocated to the distributable reserve.
Dividends are accounted for when paid and are reflected
in the Consolidated Statement of Changes in Equity.
n) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and
call deposits. Cash and cash equivalents are defined
as cash in hand, demand deposits and short-term, highly
liquid investments readily convertible to known amounts
of cash and subject to an insignificant risk of changes
in value.
o) NAV per share and loss per share
The NAV per share disclosed on the face of the Consolidated
Statement of Financial Position is calculated by dividing
the net assets by the number of Ordinary Shares in
issue at the year end.
Loss per share is calculated by dividing the loss
for the year by the weighted average number of Ordinary
Shares in issue during the year.
p) Foreign currency transactions
The currency of the primary economic environment in
which the Company operates (the functional currency)
is deemed to be Sterling as the Company's Ordinary
Shares were issued in Sterling and the majority of
the Company's expenses are in Sterling. Sterling is
also the Group's presentational currency. The functional
and presentational currencies of the majority of the
Company's subsidiaries are not Sterling. Transactions
involving currencies other than Sterling are recorded
at the exchange rates ruling on the transaction dates.
At each financial reporting date, monetary items and
non-monetary assets and liabilities that are fair
valued, which are denominated in currencies other
than Sterling, are revalued at the closing rates of
exchange. Gains and losses on revaluation are recognised
through profit or loss in the Consolidated Statement
of Comprehensive Income.
q) Translation of foreign operations
The assets and liabilities of foreign operations,
including fair value adjustments arising on consolidation,
are translated to Sterling at the foreign exchange
rates prevailing at the financial reporting date.
The income and expenses of foreign operations are
translated into Sterling at average foreign exchange
rates for the year. Foreign currency differences arising
on translation are recognised in the Consolidated
Statement of Comprehensive Income, in Other Comprehensive
Income, in accordance with IAS 1: Presentation of
Financial Statements.
Upon derecognition of a foreign operation, foreign
currency gains and losses relating to the foreign
operation are recycled from other comprehensive income
to profit or loss.
r) Segmental reporting
Following the change in the Company's investment objective
and policy in September 2012 to carry out an orderly
realisation of the investment properties, the Board
has opted not to comply with the segmental reporting
disclosure requirements of IFRS 8 for the 31 December
2016 and the 31 December 2015 consolidated results
due to reasons of commercial sensitivity and the possible
negative impact such information may have on the disposal
of individual properties.
4. Changes in accounting policy and disclosures
a) New and amended standards and interpretations
The accounting policies adopted are consistent with
those of the previous financial year. The Group adopted
the following new and amended relevant IFRS adopted
in the year commencing 1 January 2016:
IFRS Non-current Assets Held for Sale and Discontinued
5 Operations - changes in methods of disposal
IFRS Financial Instruments: Disclosures - annual improvements
7
IFRS Consolidated Financial Statements - amendments
10 regarding the application of the consolidation
exception
IFRS Disclosure of Interests in Other Entities - amendments
12 regarding the application of the consolidation
exception
IAS Presentation of Financial Statements - amendments
1 resulting from the disclosure initiative
IAS Property, Plant and Equipment - various amendments
16
IAS Interim Financial Reporting - annual improvements
34
IAS Intangible Assets - amendments regarding the clarification
38 of acceptable methods of depreciation and amortisation
The adoption of these standards and interpretations
did not have an impact on the consolidated results
or performance of the Group.
b) Standards, interpretations and amendments issued
but not yet effective
The IASB has issued/revised a number of relevant standards
with an effective date after the date of these consolidated
results. Any standards that are not deemed relevant
to the operations of the Group have been excluded.
The Board has chosen not to early adopt these standards
and interpretations and they do not anticipate that
they would have a material impact on the Group's results
in the period of initial application.
Effective
date
IFRS Financial Instruments: Disclosures -
7 annual improvements and additional hedge 1 January
accounting disclosures 2018
IFRS Financial Instruments 1 January
9 2018
IFRS Disclosure of Interests in Other Entities 1 January
12 - annual improvements 2017
IFRS Revenue from Contracts with Customers 1 January
15 2018
IFRS Leases 1 January
16 2019
IAS Statement of Cash Flows - amendments 1 January
7 as a result of the disclosure initiative 2017
IAS Income Taxes -amendments regarding the
12 recognition of deferred tax assets for 1 January
unrealised losses 2017
IAS Investment Property - amendments to clarify
40 transfers of property to, or from, investment 1 January
property 2018
In July 2014, the IASB issued the final version of
IFRS 9, Financial Instruments that replaces IAS 39,
Financial Instruments: Recognition and Measurement
and all previous versions of IFRS 9. IFRS 9 brings
together all three aspects of the accounting for financial
instruments project: classification and measurement,
impairment and hedge accounting. IFRS 9 is effective
for annual periods beginning on or after 1 January
2018, with early application permitted. Except for
hedge accounting, retrospective application is required
but providing comparative information is not compulsory.
For hedge accounting, the requirements are generally
applied prospectively, with some limited exceptions.
The Group plans to adopt the new standard on the required
effective date. The Group has performed a high-level
impact assessment of all three aspects of IFRS 9.
This preliminary assessment is based on currently
available information and may be subject to changes
arising from further detailed analyses or additional
reasonable and supportable information being made
available to the Group in the future. Overall, the
Group expects no significant impact on the consolidated
results or equity, and will perform a more detailed
assessment in 2017.
i) Classification and measurement
The Group does not expect a significant impact on
the consolidated results or equity on applying the
classification and measurement requirements of IFRS
9. It expects to continue measuring at fair value
all financial assets and liabilities currently held
at fair value.
ii) Impairment
IFRS 9 requires the Group to record expected credit
losses on any loans and trade receivables, either
on a 12-month or lifetime basis. The Group expects
to apply the simplified approach and record lifetime
expected losses on all investment income and other
receivables. Given that investment income and other
receivables have not been impaired to date, the Group
does not expect there to be a significant impact on
its equity from reviewing the expected credit losses
on investment income and other receivables over their
lifetimes, but it will need to perform a more detailed
analysis which considers all reasonable and supportable
information, including forward-looking elements to
determine the extent of the impact.
iii) Hedge accounting
The Group does not currently designate any hedges
as effective hedging relationships which qualify for
hedge accounting. Therefore, the Group does not expect
there to be any impact with respect to hedge accounting
as a result of applying IFRS 9.
The impact that IFRS 15 will have on the Group's consolidated
results is also considered to be immaterial because
the Group does not have any contracts with customers
which meet the definition under IFRS 15.
5. Management and administration fees
Elysium Fund Management Limited ("Elysium") is Manager,
Administrator and Company Secretary to the Company,
CNC Property Fund Management Limited ("CNC") is Property
Manager and Pera Pera Yönetim ve Dani manlik
Hizmetleri ve Tic Limited ("Pera Pera") and Walnut
Investments OOD ("Walnut") are the Investment Advisers.
Pera Pera is Investment Adviser in respect of the
Turkish portfolio and Walnut is Investment Adviser
in respect of the Bulgarian property.
Administration fees
The Company pays Elysium, by way of remuneration for
its administration and secretarial services, an administration
fee of 0.1% of the Gross Asset Value per annum calculated
at the close of business at each quarter end, subject
to a minimum of GBP100,000 per annum.
The total fees paid to Elysium relating to the year
ended 31 December 2016 amounted to GBP110,000 (2015:
GBP100,000), which included GBP10,000 (2015: GBPnil)
for work performed outside of the scope of the administration
agreement.
Management fees
Elysium is entitled to receive a management fee of
1.25% of the Total Assets of the Group per annum.
Total Assets is defined as the ongoing NAV of the
Group plus an amount equal to long-term borrowings
invested by the Group. The management fee is payable
quarterly in advance. The total management fee paid
to Elysium for the year ended 31 December 2016 was
GBP198,000 (2015: GBP194,000).
The Manager is responsible for the payment of the
fees to the Investment Advisers and Property Manager.
For details on the payment of commissions to the Investment
Advisers for the sale of properties, please refer
to note 23.
The Manager has the benefit of an indemnity from the
Company in relation to liabilities incurred by the
Manager in the discharge of its duties other than
those arising by reason of any fraud, wilful default,
negligence or bad faith on the part of the Manager
or its delegates.
The Manager's appointment is terminable by either
party on not less than twelve months' notice. The
Management Agreement may also be terminated by either
the Manager or the Company if the other party, or
CNC, has gone into liquidation, administration or
receivership or has committed a substantial or continuing
breach of the Management Agreement.
Performance fees
Elysium shall be entitled to receive a performance
fee only in the event of a realisation event, which
shall be paid no later than the date falling three
months after the relevant realisation event.
The value of the performance fee shall be calculated
by reference to the total distribution to Shareholders,
as follows:
Total distribution Performance fee
Less than 110 pence None.
per Ordinary Share
Greater than 110 10% of the total distribution in
pence per Ordinary excess of 110 pence per Ordinary
Share but less than Share multiplied by the number of
130 pence per Ordinary shares in issue on the date of the
Share Realisation Event.
Greater than 130 a) 10% of the amount by which the
pence per Ordinary total distribution to Shareholders
Share but less than is in excess of 110 pence per Ordinary
150 pence per Ordinary Share but less than 130 pence per
Share Ordinary Share; and
b) 20% of the amount by which the
total distribution to Shareholders
is in excess of 130 pence per Ordinary
Share but less than 150 pence per
Ordinary Share,
in each case multiplied by the number
of Ordinary Shares in issue on the
realisation date.
Greater than 150 a) 10% of the amount by which the
pence per Ordinary total distribution to Shareholders
Share is in excess of 110 pence per Ordinary
Share but less than 130 pence per
Ordinary Share; and
b) 20% of the amount by which the
total distribution to Shareholders
is in excess of 130 pence per Ordinary
Share but less than 150 pence per
Ordinary Share; and
c) 30% of the amount by which the
total distribution to Shareholders
is in excess of 150 pence per Ordinary
Share,
in each case multiplied by the number
of Ordinary Shares in issue on the
realisation date.
The total distribution to Shareholders shall be calculated
on a basis that does not recognise any liability of
the Company to Elysium in respect of: (i) any performance
fee that is, or may become, payable; and (ii) any
liquidation costs or expenses.
During the year ended 31 December 2016, the performance
fee provision decreased by GBP94,000 to GBP27,000
(2015: the provision decreased by GBP61,000 to GBP121,000).
6. Segmental analysis
In accordance with IFRS 8: Operating segments, the
Group is required to present and disclose segmental
information based on the internal reports that are
regularly reviewed by the Board in order to assess
each segment's performance and to allocate resources
to them. However, the Board has opted not to comply
with IFRS 8 due to reasons of commercial sensitivity
and the possible negative impact such information
may have on the proceeds from the sale of individual
properties.
7. Directors' remuneration
Amount due Amount due
Year ended Year ended at at
31 December 31 December 31 December 31 December
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
Martin M. Adams 36 45 8 11
Carol Goodwin 20 20 5 5
Hugh Ward 20 20 5 5
---------- ---------- ---------- ----------
76 85 18 21
---------- ---------- ---------- ----------
No bonuses or pension contributions were paid or were
payable on behalf of the Directors.
8. Other operating expenses
Year ended Year ended
31 December 31 December
2016 2015
GBP'000 GBP'000
Legal, professional and consultancy
fees 129 85
Auditor's remuneration 55 62
Administration of subsidiaries 54 53
Nominated Adviser and Broker fees 45 45
Property sales commission 27 11
Property insurance 26 23
Registrar fees 15 15
Depreciation and amortisation (notes
14 and 15) 3 3
Other expenses 104 84
Property conveyance fees - 6
---------- ----------
458 387
---------- ----------
9. Tax effects of other comprehensive income
There are no tax effects arising from the other comprehensive
income disclosed in the Consolidated Statement of
Comprehensive Income (2015: GBPnil).
10. Foreign currency
The gains and losses on foreign currency translation
included in the Consolidated Statement of Comprehensive
Income for the year ended 31 December 2016 amounted
to a net gain of GBP192,000 (2015: loss of GBP42,000).
The gains and losses include exchange differences
arising on the settlement of monetary and non-monetary
items denominated in currencies other than Sterling,
the Group's presentational and the Company's functional
currency. The changes in the value of cash and deferred
tax resulting from movements in foreign currency exchange
rates make up the majority of this balance.
The exchange difference arising from the translation
of foreign operations included within other comprehensive
income amounted to a net income of GBP327,000 for
the year ended 31 December 2016 (2015: income of GBP372,000),
adjusted for GBP28,000 relating to historic foreign
exchange translation gains of the Romanian subsidiary.
This relates to the retranslation of share capital
and reserves of the Company's subsidiary undertakings.
As stated in the Admission Document, on an on-going
basis, the Group does not intend to hedge the exchange
rate risk between Sterling, and US Dollars, Euros
and other local currencies. The Group has freehold
investment property and rental agreements denominated
in currencies other than Sterling (the Company's functional
and presentational currency).
11. Loss per share - basic and diluted
The loss per Ordinary Share is based on a loss of
GBP1,213,000 (2015: loss of GBP979,000) and on a weighted
average number of 15,551,250 (2015: 15,551,250) Ordinary
Shares in issue. There is no difference between the
basic and diluted earnings/(loss) per share.
12. Dividends
The Board does not propose an interim or final dividend
for the year ended 31 December 2016 (2015: GBPnil).
13. Freehold investment property
Year ended Year ended
31 December 31 December
2016 2015
GBP'000 GBP'000
Brought forward 17,421 18,294
Additions 177 3
Disposals (1,792) (916)
Realised gain on disposal of investment
properties 9 95
Loss on revaluation of investment
properties (845) (55)
---------- ----------
Carried forward 14,970 17,421
---------- ----------
In the opinion of the Board, the Property Manager
and the Investment Advisers, the fair value of the
properties held at the year end is equal to the values
attributed to them in the independent valuation report
prepared by Cushman & Wakefield.
Property assets in Turkey and Bulgaria are inherently
difficult to value as there is no liquid market or
transparent pricing mechanism. As a result, valuations
are subject to substantial uncertainty. There is no
assurance that the estimates resulting from the valuation
process will reflect the actual sales price even where
such sales occur shortly after the date of the valuation.
The appraisers determine the fair value by applying
the methodology and guidelines as set out in the appropriate
sections of both the current Practice Statements and
United Kingdom Practice Statements contained within
the RICS Valuation - Professional Standards 2014 Edition
(please refer to note 3h).
All investment properties are classified as Level
3 (2015: Level 3) in accordance with the fair value
hierarchy levels set in IFRS 13: Fair value measurement.
Apart from the property disposals in the year, there
were no transfers into or out of Level 3 during the
year.
In accordance with IFRS 13: Fair value measurement,
it is a requirement for the Group to present and disclose
key inputs and the sensitivity of those inputs in
the valuation of the properties. However, the Board
has opted not to fully comply with IFRS 13 due to
reasons of commercial sensitivity and the possible
negative impact such information may have on the disposal
of individual properties.
The Group invests primarily in US Dollars, Euros or
local currencies in Turkey and Bulgaria. Although
US Dollars, Euros and the local currencies of those
countries are freely convertible into other currencies,
exchange rate fluctuations could have a material effect
on the market value of the Group's property investments,
which although expressed in Sterling, are valued by
Cushman & Wakefield in either US Dollars or Euros.
14. Intangible assets
During the period ended 31 March 2007, the Group
purchased a trademark for Markiz Patisserie. The
estimated useful economic life of the trademark is
fifteen years.
Year ended Year ended
31 December 31 December
2016 2015
GBP'000 GBP'000
Cost
Brought forward 10 11
Foreign exchange movement - (1)
---------- ----------
Carried forward 10 10
---------- ----------
Accumulated Amortisation
Brought forward (6) (6)
Provided during the year (1) (1)
Foreign exchange movement - 1
---------- ----------
Carried forward (7) (6)
---------- ----------
Net book value 3 4
---------- ----------
15. Property, plant and equipment
Year ended Year ended
31 December 31 December
2016 2015
GBP'000 GBP'000
Cost
Brought forward 24 28
Foreign exchange movement - (4)
---------- ----------
Carried forward 24 24
---------- ----------
Accumulated Depreciation
Brought forward (22) (23)
Provided during the year (2) (2)
Foreign exchange movement - 3
---------- ----------
Carried forward (24) (22)
---------- ----------
Net book value - 2
---------- ----------
16. Investments in subsidiary undertakings
Details of the subsidiary undertakings held by the
Company at 31 December 2016 were as follows:
31 December 31 December
2016 2015
Principal % of ordinary
Registered activity shares held
Markiz Gayrimenkul Yatirim Property
ve Ticaret Limited irketi Turkey investment 100% 100%
Sarnia Eastern Property Investment
(Cyprus) Limited Cyprus holding 100% 100%
Sarnia Eastern Property Investment
(Malta) Limited Malta holding 100% 100%
Sarnia Real Estate (Cyprus) Investment
Limited Cyprus holding 100% 100%
Property
Southern Properties EOOD Bulgaria investment 100% 100%
Southern Properties SRL Property
(1) Romania investment 0% 100%
(1) Until Southern Properties SRL was sold, effective
23 December 2016, Sarnia Eastern Property (Cyprus)
Limited and Sarnia Real Estate (Cyprus) Limited
each held a 50% shareholding in Southern Properties
SRL. All other companies are wholly (and directly)
owned by the Company.
In determining whether the Company has control over
its subsidiary undertakings, the Company considered:
* That it holds all of the voting rights of each
subsidiary, either directly or indirectly, which
gives the Company the current ability to direct all
activities of each subsidiary;
* That the Company is exposed to variability in returns,
whether those returns are positive or negative; and
* That the Board acts as principal on behalf of
Shareholders to direct the activities of each
subsidiary.
The Company has intercompany loans due from the Bulgarian
subsidiary and will not suffer withholding tax on
the repatriation of funds from that entity until the
intercompany loans have been repaid in full. Withholding
tax on dividends paid to overseas companies from companies
in Bulgaria is currently 5%. The intercompany loan
from the Turkish subsidiary has been fully repaid
and, therefore, future distributions from the Turkish
subsidiary to the Company will incur withholding tax,
which is currently 15%. The Cypriot and Maltese subsidiaries
have limited resources and the Company financially
supports these subsidiaries so that they may continue
in operation.
Effective 23 December 2016, EEP sold Southern Properties
SRL for a total consideration of EUR1.5 million (GBP1.3
million), of which EUR1.3 million was for the repayment
of the intercompany loan immediately prior to the
disposal of the shares in Southern Properties SRL
and EUR0.2 million was received for the sale of the
shares. Of the total consideration of EUR1.5 million,
EUR1.2 million was received on completion and the
remaining balance is payable in instalments, with
the balance to be paid in full by 30 June 2018.
GBP'000
Consideration for shares (post
settlement of the intercompany
loan) 136
Less carrying amount of subsidiary
sale (after repayment of the intercompany
loan) at date of sale (617)
----------
Loss on disposal of subsidiary (481)
----------
GBP'000
Freehold investment property 1,337
Cash and cash equivalents 66
Other assets 84
Liabilities (870)
----------
Carrying amount of subsidiary at
date of sale (after repayment of
the intercompany loan) 617
----------
17. Trade and other receivables
31 December 31 December
2016 2015
GBP'000 GBP'000
Deferred consideration (1) 290 -
VAT control account 22 15
Prepaid tax 6 10
Management fees paid in advance
(2) 5 -
Other receivables and prepayments 47 100
---------- ----------
370 125
---------- ----------
(1) The deferred consideration is due for the disposal
of Southern Properties SRL and is payable in instalments
up to 30 June 2018 (refer to note 16). Effective
1 January 2017, the balance of the outstanding deferred
consideration attracts interest at a fixed rate of
4% per annum. At the date of signing these results,
EUR40,000 of the deferred consideration had been
received. The deferred consideration is secured by
a charge on the property.
(2) GBP5,000 was paid to Pera Pera during the year as
an advance of the fees due to Pera Pera for the quarter
ending 31 March 2017.
18. Trade and other payables
31 December 31 December
2016 2015
GBP'000 GBP'000
Administration fee 35 -
Withholding taxes payable 32 15
Performance fee 27 121
Directors' fees 18 21
Other payables and accruals 62 113
---------- ----------
174 270
---------- ----------
19. Taxation
The taxation charge in the Consolidated Statement
of Comprehensive Income is made up as follows:
Year ended Year ended
31 December 31 December
2016 2015
GBP'000 GBP'000
Deferred taxation (note 20) (147) 520
Overseas corporate tax 91 50
Other taxes and duties charged overseas
(1) 44 43
Withholding tax 35 83
---------- ----------
Taxation payable 23 696
---------- ----------
The Group has been granted exemption from Guernsey
taxation under The Income Tax (Exempt Bodies) (Guernsey)
Ordinance 1989 and is charged an annual exemption
fee of GBP1,200.
(1) Other taxes and duties charged overseas relate
to taxes imposed in the Turkish and Bulgarian subsidiaries
for expenses such as withholding tax, property tax,
stamp tax and legal tax.
Year ended Year ended
31 December 31 December
2016 2015
GBP'000 GBP'000
Loss before tax (1,190) (283)
---------- ----------
Tax calculated at domestic rates
applicable to the respective countries (48) 613
Current year tax losses on which
deferred tax asset previously recognised - (33)
Other taxes 71 116
---------- ----------
Taxation payable 23 696
---------- ----------
Domestic tax rates in the other jurisdictions in which
the Group operates was as follows:
Year ended Year ended
31 December 31 December
2016 2015
Turkey 20% 20%
Bulgaria 10% 10%
Romania n/a 16%
The deferred tax liability has largely been created
by the movement in unrealised gain or loss on freehold
investment property. In the year ended 31 December
2016 the following movements occurred:
* The Turkish subsidiary's deferred tax liabilities
decreased by TRY 600,000 (2015: increased by TRY
2,166,000); and
* The Bulgarian subsidiary's deferred tax was unchanged
(2015: unchanged).
Withholding tax has been deducted from interest receivable
in relation to the loan interest payable by the Turkish
and Bulgarian subsidiaries at a rate of 10%.
Corporate income tax may arise on capital gains generated
on the disposal of the remaining Turkish property.
The corporate income tax likely to arise, if the property
is realised at its current carrying value, has been
provided for in these consolidated results as deferred
tax. However, additional taxes, such as a 15% withholding
tax, may arise on the repatriation to Guernsey of
non-capital reserves from Turkey.
20. Deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable
to the items detailed in the table below:
31 December 31 December
2016 2015
GBP'000 GBP'000
Deferred tax asset 1 2
Deferred tax liability (2,096) (2,262)
---------- ----------
Net deferred tax liability (2,095) (2,260)
---------- ----------
The deferred tax assets and deferred tax liabilities
at 31 December 2016 and 31 December 2015 were as follows:
31 December 2016 31 December 2015
Assets Liabilities Assets Liabilities
GBP'000 GBP'000 GBP'000 GBP'000
Gains on freehold
investment property - (2,096) - (2,262)
Trade and other payables 1 - 2 -
---------- ---------- -------- ----------
Total 1 (2,096) 2 (2,262)
Amount netted off (1) 1 (2) 2
---------- ---------- -------- ----------
Deferred tax liability - (2,095) - (2,260)
---------- ---------- -------- ----------
21. Share capital and reserves
31 December 31 December
2016 2015
GBP'000 GBP'000
Authorised:
200,000,000 Ordinary Shares of 1
pence each 2,000 2,000
---------- ----------
Issued and fully paid:
15,551,250 (2015: 15,551,250) Ordinary
Shares of 1 pence each 155 155
---------- ----------
The Company has one class of Ordinary Shares, which
carry no right to fixed income. Ordinary Shares carry
the right to vote at general meetings and the entitlement
to receive any dividends and surplus assets of the
Company on a winding-up.
Any Ordinary Shares held in treasury do not have the
right to vote at general meetings nor do they have
an entitlement to receive any dividends or surplus
assets of the Company on a winding-up.
Foreign currency translation reserve
The translation reserve comprises all foreign currency
differences arising from the translation of the results
of foreign operations.
Reserve for own shares
The Company has the authority to utilise the distributable
reserves to buy back for cancellation up to 14.99%
of the Ordinary Shares (2,331,132 Ordinary Shares)
in issue at the time the notice of the AGM, held on
7 December 2016, was circulated. In addition, the
Company has the authority to purchase up to 10% of
the Ordinary Shares in issue and hold them in treasury
until a time when they are either re-issued or cancelled.
No shares were purchased to be held in treasury during
the year (2015: nil).
22. NAV per Ordinary Share
The NAV, in pence per Ordinary Share, is based on
the net assets attributable to equity Shareholders
of GBP14,892,000 at 31 December 2016 (2015: GBP15,778,000)
and on 15,551,250 Ordinary Shares in issue at the
end of the year (2015: 15,551,250).
23. Related parties
The relationship and transactions between the Group,
Elysium, CNC, Pera Pera and Walnut are disclosed in
the Report of the Directors and note 5. In addition,
with effect from 8 May 2012, Andrew Duquemin was appointed
as an alternate Director for Carol Goodwin. Mr Duquemin
is executive chairman of Elysium.
The Group has agreed to pay Walnut a commission equivalent
to 2% of the sales proceeds of properties in Bulgaria
and Romania, if a third party agent is involved, split
in the proportion of 1.5% to the agent and 0.5% to
Walnut. If a property sale is executed solely by Walnut,
the rate would be 1.5%. The Group has agreed to pay
Pera Pera commission on any property sales in Turkey
on the same terms as those agreed with Walnut.
The disposal of the remaining units within the Nil
Passage property during the year incurred total sales
commission of GBP9,000 (2015: GBP11,000), which was
paid to Pera Pera. The disposal of the subsidiary
containing the Gara Progresului, Business & Logistics
Centre in Bucharest in December 2016 incurred sales
commission of GBP19,000, which was paid to Walnut.
The relationship between the Company and each of its
subsidiaries is disclosed in note 16.
The Board is not aware of any immediate parent or
ultimate controlling party.
24. Maturity of financial liabilities
The maturity of the Group's financial liabilities
at 31 December 2016 was as follows:
31 December 2016 31 December 2015
Less Between Between Less Between Between
than one month six months than one month six months
one and six and one one and six and one
Total month months year Total month months year
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Trade and other
payables 174 60 87 27 270 39 108 123
Overseas tax 41 35 6 - 18 18 - -
Rents received
in advance - - - - 74 3 1 70
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
215 95 93 27 362 60 109 193
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
25. Financial risk management
The Group holds cash and cash equivalents, has trade
and other receivables/payables, tax assets and liabilities,
and receives rents in advance, all of which arise
directly from its operations.
The main risks arising from the Group's assets are
market risk, liquidity risk and credit risk. Market
risk comprises of price risk, interest rate risk and
foreign currency risk. For a more complete list of
the risks facing the Group, please refer to the risk
factors in the Admission Document.
The Manager is responsible for identifying and controlling
risks. The Board supervises the Manager and is ultimately
responsible for the overall risk management approach
within the Group. The Board reviews and agrees policies
for managing its risk exposure. These policies are
summarised below and have remained unchanged during
the year under review.
Excessive risk concentration
Concentration indicates the relative sensitivity of
the Group's performance to developments affecting
a particular industry or geographical location. Concentrations
of risk arise when a number of financial instruments
or contracts are entered into with the same counterparty,
or where a number of counterparties are engaged in
similar business activities, or activities in the
same geographic region, or have similar economic features
that would cause their ability to meet contractual
obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations
of liquidity risk may arise from the repayment terms
of financial liabilities, sources of borrowing facilities
or reliance on a particular market in which to realise
liquid assets. Concentrations of foreign exchange
risk may arise if the Group has a significant net
open position in a single foreign currency, or aggregate
net open positions in several currencies that tend
to move together.
The Company's investment objective and policy is to
carry out an orderly realisation of the Company's
portfolio of assets, distribution of the net proceeds
to Shareholders and then undertake a voluntary winding-up
of the Company. Depending on the timing of property
sales, the Group may become more greatly exposed to
a higher concentration of geographical risk than it
is now exposed to.
Market price risk
The Group's exposure to market price risk mainly arises
as a result of fluctuations in the value of the Group's
portfolio of investment properties. The Board has
contracted with CNC, Pera Pera and Walnut to provide
up-to-date information regarding the markets in which
the properties are invested. The properties are valued
on a six monthly basis by independent property valuers.
A 10% increase in the value of the freehold investment
property at 31 December 2016 would have increased
net assets by GBP1,497,000 (2015: GBP1,742,000; or
GBP1,566,000 on a like-for-like basis). A decrease
of 10% would have had an equal but opposite effect.
Liquidity risk
The Group has invested in investment properties, which,
by their nature, are illiquid. However, the Group
maintains sufficient cash balances to meet its working
capital requirements. Please refer to note 24 for
details of the contractual maturities of financial
liabilities.
Credit risk
The risk of financial loss arising from the failure
of a party to honour its obligations arises principally
in connection with property leases and the investment
of surplus cash and transactions where the Group sells
properties with an element of deferred consideration.
Tenant rent payments are monitored regularly and appropriate
action is taken to recover monies owed or, if necessary,
to terminate the lease. Credit risk is minimised through
the requirement, where possible, for tenants to pay
rent in advance. Deferred consideration terms are
only agreed with counterparties approved by the Board
or, where some additional security is available.
The bank accounts held by the Group are principally
with HSBC Bank plc and Garanti Bank. At the year end
a total of GBP1,439,000 (2015: GBP260,000) was held
with HSBC Bank plc and GBP425,000 (2015: GBP484,000)
was held with Garanti Bank. Standard & Poor's rating
agency has assigned an AA- credit rating to HSBC Bank
plc and BB- to Garanti Bank (2015: AA- and BB+, respectively).
Interest rate risk
The Group's exposure to interest rate risk is on its
cash balances. The cash balances are held in instant
access or short-term deposits earning interest at
floating rates. The Group does not hedge against movements
in interest rates.
Interest rate risk profile of assets and liabilities
Total
as per
Consolidated Assets
Statement on which
of Financial Fixed Floating no interest
Position rate rate is received
GBP'000 GBP'000 GBP'000 GBP'000
Assets as at 31 December
2016
Cash and cash equivalents 1,918 - 413 1,505
Other current assets 15,343 290 - 15,053
------------ ------------ ----------- ------------
Total assets 17,261 290 413 16,558
------------ ------------ ----------- ------------
Assets as at 31 December
2015
Cash and cash equivalents 848 - 292 556
Other current assets 17,552 - - 17,552
------------ ------------ ----------- ------------
Total assets 18,400 - 292 18,108
------------ ------------ ----------- ------------
Total
as per
Consolidated Liabilities
Statement on which
of Financial no interest
Position is paid
GBP'000 GBP'000
Liabilities as at 31 December
2016
Current liabilities 2,310 2,310
----------- -----------
Total liabilities 2,310 2,310
----------- -----------
Liabilities as at 31 December
2015
Current liabilities 2,622 2,622
----------- -----------
Total liabilities 2,622 2,622
----------- -----------
Interest sensitivity analysis
Assuming all factors remained the same, a 0.5% increase
in the US$ London interbank euro-currency deposit
rate would have decreased the loss for the year by
GBP7,000 (2015: decreased loss by GBP3,000). A decrease
of 0.5% would have had an equal but opposite effect.
Foreign currency risk
The Group conducts business in jurisdictions that
generate revenue, expenses and liabilities in currencies
other than Sterling. As a result, the Group is subject
to the effects of exchange rate fluctuations with
respect to any of these currencies.
The Group reports its consolidated results and its
consolidated financial position in Sterling. The Group
invests primarily in US Dollars, Euros or local currency
in Turkey and Bulgaria and, accordingly, it generates
revenue in currencies other than Sterling. The Group
declares its dividends (when applicable) in Sterling
and the amount received by Shareholders will be an
amount in Sterling. As a consequence, Shareholders
may experience fluctuations in the market price of
their Ordinary Shares as a result of movements in
the exchange rate between Sterling and US Dollars,
Euros and any other local currencies. Such movements
in the exchange rate may also adversely affect the
NAV of the Group and the amount of dividends paid.
In addition, the amount of any dividends declared
by the Group will be determined based on the results
of the Group's operations.
Although US Dollars, Euros and the local currencies
of Turkey and Bulgaria are freely convertible, exchange
rate fluctuations could have a material effect on
the value of the Group's property investments, which
are expressed in Sterling.
As stated in the Admission Document, on an on-going
basis, the Group does not intend to hedge the currency
risk between Sterling, and US Dollars, Euros and other
local currencies. The Group has freehold investment
property and rental agreements denominated in currencies
other than Sterling (the functional and presentational
currency).
In accordance with IFRS 7, the following foreign currency
sensitivity analysis reflects only sensitivity of
monetary items. At 31 December 2016, the Group had
exposure to the Turkish Lira amounting to net assets
of GBP8,000 (2015: net assets of GBP61,000).
Currency split of financial assets and liabilities
as at 31 December 2016
Total GBP EUR US$ TRY BGN LEU
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Financial assets:
Cash and cash
equivalents 1,918 454 1,040 420 4 - -
Trade and other
receivables 370 8 290 - 53 19 -
------------ ------------ ------------ ------------ --------- ------------ ------------
Total financial
assets 2,288 462 1,330 420 57 19 -
------------ ------------ ------------ ------------ --------- ------------ ------------
Financial
liabilities:
Trade and other
payables (174) (105) (40) - (9) (20) -
Overseas corporate
tax (41) - - - (40) (1) -
------------ ------------ ------------ ------------ --------- ------------ ------------
Total financial
liabilities (215) (105) (40) - (49) (21) -
------------ ------------ ------------ ------------ --------- ------------ ------------
Net financial
assets/(liabilities) 2,073 357 1,290 420 8 (2) -
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net exposure
to currency 100% 17.2% 62.2% 20.3% 0.4% (0.1)% -
------------ ------------ ------------ ------------ --------- ------------ ------------
Currency split of financial assets and liabilities
as at 31 December 2015
Total GBP EUR US$ TRY BGN LEU
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Financial assets:
Trade and other
receivables 125 8 - - 58 18 41
Cash and cash
equivalents 848 263 20 456 29 5 75
------------ ------------ ------------ ------------ --------- -------- ------------
Total financial
assets 973 271 20 456 87 23 116
------------ ------------ ------------ ------------ --------- -------- ------------
Financial
liabilities:
Trade and other
payables (270) (197) (39) - (10) (17) (7)
Overseas corporate
tax (18) - - - (16) (1) (1)
Rents received
in advance (74) - - (70) - - (4)
------------ ------------ ------------ ------------ --------- -------- ------------
Total financial
liabilities (362) (197) (39) (70) (26) (18) (12)
------------ ------------ ------------ ------------ --------- -------- ------------
Net financial
assets/(liabilities) 611 74 (19) 386 61 5 104
------------ ------------ ------------ ------------ --------- -------- ------------
Net exposure
to currency 100% 12.1% (3.1)% 63.2% 10.0% 0.8% 17.0%
------------ ------------ ------------ ------------ --------- -------- ------------
Foreign currency sensitivity analysis
A 15% strengthening of Sterling against each currency
would have decreased the net assets at 31 December
2016 and increased the loss for each year by the amounts
shown below. This analysis assumes that all other
variables remain constant and that any change in foreign
exchange rates would not affect the prices of the
properties.
The effect on equity of a strengthening of Sterling
by 15% against each currency is shown below. The level
of sensitivity is based on movements of Sterling against
currencies during the preceding twelve month period,
which is considered indicative of possible future
moves. The comparative period was based on a strengthening
of Sterling by 5% against each currency (20% against
the Turkish Lira) as that was indicative of possible
movements in currencies at that time.
Financial assets
and liabilities
only
31 December 31 December
2016 2015
GBP'000 GBP'000
Euro (193) 1
US Dollar (63) (19)
Turkish Lira (1) (12)
Romanian Leu - (5)
Bulgarian Lev - -
------------ ------------
Total (257) (35)
------------ ------------
A weakening of Sterling against each currency would
have an equal but opposite effect.
In order to manage the Group's exposure to foreign
currency risk, rather than purchase properties in
local currency, the Group agreed prices for the properties
and subsequently values the properties in either US
Dollars or Euros. However, all payments for the properties
were made in the relevant local currency, namely the
Bulgarian Lev or Turkish Lira, at the relevant exchange
rates at the time of payment. The same process is
used in respect of rental agreements. The Board believes
that this removes some of the volatility and reduces
the foreign exchange exposure that may be experienced
with the less stable local currencies, namely the
Bulgarian Lev and Turkish Lira.
Possible adverse economic and political conditions
The financial operations of the Group may be adversely
affected by general economic conditions and particularly
by economic conditions in Turkey and Bulgaria. The
returns that are likely to be achieved on an investment
in property or land in those countries will be materially
affected by the political and economic climate in
Eastern Europe, particularly in Turkey and Bulgaria.
In particular, changes in the rates of inflation,
currencies and interest in Turkey and Bulgaria may
affect the income generated by, and capital values
of, the investment properties.
The property and land markets in which the Group invests
are relatively immature and the economies of Turkey
and Bulgaria are not as developed as certain other
countries in Western Europe. Further, those countries
carry risks of political, legal and economic instability,
which could adversely affect the Group's results or
operations. The ability to enforce the Group's legal
rights in Turkey and Bulgaria differ from those prevailing
in certain other countries in Western Europe. With
investment in any country, there exists the risk of
adverse political or regulatory developments including,
but not limited to, nationalisation, confiscation
without fair compensation, terrorism, war or currency
restrictions. The latter may be imposed to prevent
capital flight and may make it difficult or impossible
to exchange local currency into foreign currency or
to repatriate foreign currency.
Further, deterioration in the Western European economies
could be expected to have an adverse effect on the
economies of Turkey and Bulgaria and potentially on
property values and the level of rents in those countries.
Risks of property ownership
Investments in property may be difficult, slow or
impossible to realise. The Company will be subject
to the general risks incidental to the ownership of
real property, including changes in the supply of
or demand for competing investment properties in an
area, changes in interest rates and the availability
of mortgage funds, changes in property tax rates and
landlord/tenant or planning laws, credit risks of
tenants and borrowers and environmental factors. The
marketability and value of any properties owned by
the Group will, therefore, depend on many factors
beyond the control of the Group and there is no assurance
that there will be either a ready market for any properties
held by the Group or that such properties will be
sold at a profit or will yield a positive cash flow.
Changes in law relating to foreign ownership of property
in any of the jurisdictions in which the Group invests
might also have an adverse effect on the net returns
from the property portfolio.
Property investment risk
The performance of the Group could be adversely affected
by a downturn in the property market in terms of capital
value or weakening of rental markets. In the event
of default by a tenant, the Group may suffer a rental
shortfall and incur additional costs including legal
expenses and costs of maintaining, insuring and re-letting
the property. Any future property market recession
could materially adversely affect the value of the
properties.
Returns from an investment in property depend largely
upon the rental income generated from the property
and the expenses incurred in the development or redevelopment
and management of the property, as well as changes
in its market value.
Rental income and the market value for properties
are generally affected by overall conditions in the
local economy, such as growth in GDP, employment trends,
inflation and changes in interest rates. Changes in
GDP may also impact employment levels, which in turn
may impact demand for premises, especially for office
space for commercial enterprises. Furthermore, movements
in interest rates may also affect the cost of financing
for real estate companies.
Both rental income and property values may also be
affected by other factors relevant to the real estate
market, such as competition from other property owners
and developers, the perceptions of prospective tenants
on the attractiveness, convenience and safety of properties,
the inability to collect rents because of the bankruptcy
or insolvency of tenants or otherwise, the periodic
need to renovate, repair or re-lease space and the
costs thereof, the costs of maintenance and insurance,
and increased operating costs. In addition, the owner
must meet certain significant expenditures, including
operating expenses, even if the property is vacant.
Investments in property are relatively illiquid and
more difficult to realise than investments in equities
or bonds. The comparative illiquidity has been exacerbated
following the disposal to date of easier to realise
properties in the Company's portfolio.
26. Capital commitments
All contracted capital commitments have been provided
for.
27. Subsequent events
There were no material events after the financial
reporting date that required disclosure as at 15
June 2017.
28. Fair values
For receivables and payables with a remaining life
of less than one year, the notional amount is deemed
to reflect the fair value. The fair value of the
deferred tax liabilities is linked to the fair value
of the freehold investment property and is thus carried
at its fair value. All other receivables/payables
are discounted to determine the fair value.
There is no significant difference between the carrying
amount and the fair value of the Group's assets and
liabilities.
29. Operating leases
The Group leases out its freehold investment property
under operating leases. At 31 December 2016, the
future minimum lease receipts under non-cancellable
leases were as follows:
31 December 31 December
2016 2015
GBP'000 GBP'000
Less than one year 184 522
Between one and five years 31 369
------------ ------------
215 891
------------ ------------
The total above comprises the total contracted rent
receivable as at 31 December 2016.
Leases have for the most part been negotiated for
terms of between one and five years and are either
for fixed amounts per annum over the term of the
lease or are increased annually at amounts set in
advance or are linked to various price indices. The
lessees do not have options to purchase the properties
at the expiry of the lease periods.
30. Capital management policy and procedures
The Group's capital management objectives are:
* to ensure that it will be able to continue to operate
in order to return funds in an orderly manner to
Shareholders; and
* to maximise its total return primarily through the
capital appreciation of its investments.
The Board, with the assistance of the Manager, Property
Manager and Investment Advisers, monitors and reviews
the structure of the Group's capital on an ad hoc
basis. This review includes:
* the current and future levels of gearing;
* cash flow projections for the Group;
* the working capital requirements of the Group;
* the need to buy back Ordinary Shares for cancellation
or to be held in treasury, which takes account of the
difference between the NAV per Ordinary Share and the
Ordinary Share price;
* the current and future dividend policy; and
* the return of funds to Shareholders.
Following the passing of the Discontinuation Resolution
at the AGM held on 14 September 2012 and the subsequent
passing of the resolution to amend the Company's investment
objective and policy at the EGM held on 25 September
2012, the Board and its advisers have continued to
focus on the orderly realisation of the Company's
portfolio of assets and distribution of the net proceeds
to Shareholders.
As disclosed in the Consolidated Statement of Financial
Position, the total equity Shareholders' funds were
GBP14,892,000 at 31 December 2016 (2015: GBP15,778,000).
--- ENDS ---
This information is provided by RNS
The company news service from the London Stock Exchange
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