We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Kdd Group | LSE:KDDG | London | Ordinary Share | NL0006146185 | ORD EUR0.01 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 7.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jun 2019 to Jun 2024
TIDMKDDG
RNS Number : 3910F
KDD Group NV
26 April 2011
26 April 2011
KDD GROUP N.V.
("KDD", "KDD Group" or the "Group")
Preliminary Audited Results for the year ended 31 December 2010
KDD Group, the holding company of one of Ukraine's leading real estate investment and development groups, today reports its preliminary final results for the year ended 31 December 2010 and announces that its annual report and accounts have today been uploaded onto the Group's website at www.kddgroup.com.ua.
Financial Highlights
-- The improving macroeconomic situation, positive outlook within the real estate sector and progresswith several portfolio projects has allowed the Group to achieve an increased valuation of the Group's assets, undertaken by Colliers International Ukraine, to US$ 472.0 million (Euro 353.3 million).
-- The Group's profit before income tax was Euro 0.33 million.
-- The Group maintained a solid financial position in 2010, ending the year with cash and deposits of Euro 8.1 million.
-- General and administrative expenses were reduced from Euro 7.7 million in 2008 to Euro 3.7 million in 2009and Euro 3.3 million in 2010.
- Ends -
Further Information:
KDD Group Tel: +38 050 516 6091 Petro Radchuk Strand Hanson Limited Tel: +44 207 409 3494 Stuart Faulkner / James Spinney www.strandhanson.co.uk / Liam Buswell
CHAIRMAN'S STATEMENT
As a result of the challenging economic climate of the past few years, many real estate assets remain undervalued. Accordingly, investors have been able to identify and invest in strong investment opportunities within the developed and mature real estate markets and, as a result, investments in emerging markets, such as Ukraine, have remained at a depressed level.
Ukraine was no exception to this trend, with most investors still waiting for the market conditions to improve further before committing investment capital. On the other hand, Ukrainian businessmen are no longer prepared to accept distressed valuations for their assets and, consequently, there were only few acquisitions of assets in the Ukrainian real estate sector during 2010.
Unlike in 2009, commercial banks again started looking at real estate opportunities in Kyiv, which came as no surprise to the Company, given that private individuals have been returning their deposits, thus substantially improving the liquidity of the banking system. In addition, banks' in industrial sector loan portfolio and mortgages have been growing very modestly. As a result, the real estate sector again attracts investors' attention.
Despite this, financing remains challenging because of, inter alia, the following factors:
-- banks are much more demanding towards the quality of projects and it is challenging to source projects with a good location, concept, profitability;
-- many developers defaulted during the economic crisis, thus loosing credibility resulting in poor financial condition; and
-- interest rates remain very high: 18-22% in the local currency.
KDD Group remains a trustworthy partner and the quality of our projects remains very high. Therefore, we expect to attract more debt financing in the second half of 2011, once the interest rate is expected to be reduced to 15%. Our goal during 2011 is to double our number of projects under construction from two to four.
We maintain our confidence that the Ukrainian real estate sector remains an attractive sector and has significant upside potential.
Alexander Levin,
Chairman
April 2011
GROUP SUMMARY
The Group is one of the leading real estate investment and development groups in Ukraine, based on the net asset value of its properties, with a diversified portfolio of real estate projects comprising offices, hotels, residential complexes, retail centres and mixed-use projects. The Group currently owns nine projects, with two projects at the construction phase and seven under development. These projects, which have a total planned gross area of approximately 2.7 million m-(2) , are located in the capital region of Kyiv with the exception of one residential project in L'viv. As at 31 December 2010, the market value of the Group's properties was estimated by Colliers International Ltd, Ukraine to be USD 472.0 million.
The Group's business was developed in 1994 out of the operations of its current largest shareholders, who are private individuals. These individuals became active in real estate in 1997 and were amongst the first developers of modern commercial and residential properties in Kyiv. The Group's management team has a strong track record of implementing large-scale development projects, which include the 8,000 m-(2) Kiev-Donbass office centre, the 33,000 m-(2) Vvedensky residential and office complex, the 78,000 m-(2) Diplomat-Hall residential and office complex and the 38,000 m(2) Botanic Towers residential and office complex, all of which are located in central Kyiv.
As at 31 December 2010, the Group employed 139 people (31 December 2009: 135). The Group's management has not planned significant change in the number of specialists employed in 2011, however the slight increase in the Group's personnel number is within budget and in line with the tendency of recovery of the Group's operations.
GROUP OBJECTIVES
The Group aims to become the largest real estate developer in Ukraine by market capitalisation and by the aggregate value of its completed projects. It intends to do this by:
-- focusing on high investment grade properties;
-- prudent financial management;
-- focusing on prime locations; and
-- selective outsourcing of the project development process to leading partners.
FINANCIAL RESULTS
The financial results included at the back of this announcement should be read in conjunction with the Auditors Report to the members of the Group contained in "KDD Group N.V. IFRS Consolidated Financial Statements and Financial Statements of the Parent for the year ended 31 December 2010" (the "Report") and with the notes to accounts found in the Report and posted in full on the Group's website: www.kddgroup.com.ua.
Consolidated IFRS Financial Statements and Financial Statements of the Parent for the year ended 31 December 2010
All amounts in thousands of euro unless otherwise stated
(i) Consolidated Statement of Comprehensive Income and Statement of Comprehensive Income of the Parent
Hot Features
Premium
Note Group Parent
31 31 31 31
December December December December
2010 2009 2010 2009
Revenue from
operations 6 304 318 1,229 1,508
Cost of operations (63) (145) - -
Gross profit 241 173 1,229 1,508
Increase/(decrease)
in fair value of
investment property
and investment
property under
development 11,12 (5,143) 100,168 - -
Reversal of
impairment of
trading property
net realisable
value 16 3,881 3,940 - -
General and
administrative
expenses 7 (3,283) (3,736) (1,448) (1,097)
Other
income/(expenses),
net 9 2,217 (3,484) - (24)
Profit/(loss) from
operations (2,087) 97,061 (219) 387
Financial
income/(expense),
net 8 2,416 2,646 376 (380)
Profit/(loss) before
income tax 329 99,707 157 7
Income tax
(expense)/benefit 10 23,915 (25,392) - -
Profit/(loss) for
the year 24,244 74,315 157 7
Other comprehensive
income
Translation reserve
from functional to
presentation
currency 14,629 (11,816) - -
Total comprehensive
income for the
year 38,873 62,499 157 7
Total comprehensive
income attributable
to:
Equity holders 38,873 62,499 157 7
Earnings/(losses)
per ordinary share
(basic and
diluted) 0.149 0.457 N/A N/A
(ii) Consolidated Statement of Financial Position and Statement of Financial Position of the Parent
Note Group Parent
31 31 31 31
December December December December
2010 2009 2010 2009
Assets
Non-current
assets
Investment
property 11 145,736 114,235 - -
Investment
property
under
development 12 183,331 168,729 - -
Prepayments 13 12,915 11,411 - -
Investment in
subsidiaries 14 - - 52,973 47,193
Property,
plant and
equipment 15 646 2,400 - -
Intangible
assets 15 5 - -
Deferred tax
assets 10 3,031 253 - -
VAT
recoverable 17 5,734 1,125 - -
Loans granted
to
subsidiaries - - 33,110 27,614
Promissory
notes
received 95
Total
non-current
assets 351,503 298,158 86,083 74,807
Current
assets
Inventories 16 27,147 21,638 - -
Trade and
other
receivables 18 2,324 1,409 1,079 1,795
Cash and cash
equivalents 19 8,076 16,308 924 6,543
Total current
assets 37,547 39,355 2,003 8,338
Total assets 389,050 337,513 88,086 83,145
(iii) Consolidated Statement of Financial Position and Statement of Financial Position of the Parent (continued)
Note Group Parent
31 31 31 31
December December December December
2010 2009 2010 2009
Equity
Share
capital 20 1,627 1,627 1,627 1,627
Share
premium 80,535 80,535 80,535 80,535
Reserves 173,174 134,301 916 759
Total equity 255,336 216,463 83,078 82,921
Liabilities
Non-current
liabilities
Long-term
loans and
borrowings 21 82,210 44,526 4,790 -
Finance
lease
liabilities 22 2,306 1,602 - -
Deferred tax
liabilities 10 39,281 55,717 - -
Total
non-current
liabilities 123,797 101,845 4,790 -
Current
liabilities
Short-term
loans and
borrowings 21 4,563 13,144 - -
Trade and
other
payables 23 5,278 5,949 218 224
Financial
lease
liabilities 22 75 98 - -
Income tax
payable 1 14 - -
Total current
liabilities 9,917 19,205 218 224
Total
liabilities 133,714 121,050 5,008 224
Total equity
and
liabilities 389,050 337,513 88,086 83,145
(iv) Consolidated Statements of Cash Flows and the Cash Flows of the Parent
Note Group Parent
31 31 31 31
December December December December
2010 2009 2010 2009
Operating activities
Profit/(loss) before
tax 329 99,707 157 7
Adjustments for:
(Increase)/decrease
in fair value of
investment property
and investment
property under
development 11,12 5,143 (100,168) - -
Reversal of
impairment of
trading property
net realisable
value 16 (3,881) (3,940) - -
Depreciation and
amortisation 7 247 327 - -
Loss/(gain) from sale
of property plant and
equipment 9 (142) (240)
Interest expense 8 2,402 6,220 2 13
Interest income 8 (1,024) (2,989) (164) (170)
Foreign exchange
loss/(gain) (1,372) (167) 3,384 536
Amortisation of
promissory notes
issued 8 (2,454) (601) - -
Interest on
financial lease
liability 8 222 12 - -
Impairment of VAT
receivable 17 (2,191) 1,960 - 24
Doubtful and bad
debts 11 1,875 - -
Cash flows used in
(from) operating
activities before
changes in working
capital (2,710) 1,996 3,379 410
Decrease/(increase)
in trade and other
receivables (909) 584 864 (1,559)
Decrease in
inventories 620 244 - -
(Increase)/decrease
in VAT recoverable (2,346) (2,401) 18 51
Increase/(decrease)
in trade and other
payables (902) (356) (13) (196)
Cash flows from
(used in)
operations (6,247) 67 4,248 (1,294)
Interest paid (3,683) (6,220) (2) (13)
Interest received 1,024 2,989 - 3
Income tax paid (12) (5) - -
Cash flows from
(used in) operating
activities (8,918) (3,169) 4,246 (1,304)
(v) Consolidated Statements of Cash Flows and the cash flows of the Parent (continued)
Note Group Parent
31 31 31 31
December December December December
2010 2009 2010 2009
Financing activities
Proceeds from
borrowings 35,102 17,441 4,790 -
Repayment of
borrowings (7,755) (4,074) - -
Cash flows from
financing
activities 27,347 13,367 4,790 -
Investment
activities
Acquisition of
property, plant and
equipment, and
intangibles 15 (297) (944) - -
Additions to
investment
property 11 (707) (1,570) - -
Additions to
investment property
under development 12 (26,003) (21,499) - -
Increase in
prepayments to
constructors (561) (3,864) - -
(Decrease)/increase
in loans issued to
group companies - - (8,886) 4,500
Increase in
investments in
group companies - - (5,780) (241)
Proceeds from sale
of property, plant
and equipment 938 273 - -
Cash flows used in
investing
activities (26,630) (27,604) (14,666) 4,259
Effect of foreign
exchanges rates on
cash and cash
equivalents (31) 174 11 166
Net
(decrease)/increase
in cash and cash
equivalents (8,232) (17,232) (5,619) 3,121
Cash and cash
equivalents at the
beginning of year 19 16,308 33,540 6,543 3,422
Cash and cash
equivalents at the
end of the year 19 8,076 16,308 924 6,543
(vi) Statement of Changes in Equity of the Parent
Attributable to equity shareholders of the Parent
Company
Share Share
capital premium Reserves Total equity
Other Retained
reserves earnings
Balance as at
1 January
2009 1,627 80,535 821 (69) 82,914
Comprehensive
income
Net profit for
the period - - - 7 7
Total
comprehensive
income - - - 7 7
Balance as at
1 January
2010 1,627 80,535 821 (62) 82,921
Comprehensive
income
Net profit for
the period - - - 157 157
Total
comprehensive
income - - - 157 157
Balance as at
31 December
2010 1,627 80,535 821 95 83,078
(vii) Consolidated Statement of Changes in Equity
Attributable to equity shareholders of the Parent
Company
Share Share
capital premium Reserves Total equity
Other Translation Retained
reserves reserve earnings
Balance as at
1 January
2009 1,627 80,535 821 43,654 27,327 153,964
Comprehensive
income
Net profit for
the period - - - - 74,315 74,315
Other
comprehensive
income
Translation
reserve from
functional to
presentation
currency - - - (11,816)) - (11,816)
Total
comprehensive
income - - - (11,816) 74,315 62,499
Balance as at
1 January
2010 1,627 80,535 821 31,838 101,642 216,463
Comprehensive
income
Net loss for
the period - - - - 24,244 24,244
Other
comprehensive
income
Translation
reserve from
functional to
presentation
currency - - - 14,629 - 14,629
Total
comprehensive
income 14,629 24,244 38,873
Balance as at
31 December
2010 1,627 80,535 821 46,467 125,886 255,336
Selected notes to the accounts
7. General and administrative expenses
General and administrative expenses for the year ended 31 December 2010 and 2009 are as follows:
Group Parent
31 December 31 December 31 December 31 December
2010 2009 2010 2009
Salary expense
and related
charges 1,453 1,434 698 692
Professional
services 551 565 691 399
Land lease and
land tax
expense 471 667 - -
Depreciation
and
amortization 247 327 - -
Office rent 222 357 - -
Materials and
maintenance 67 118 - -
Travel expenses 63 11 59 6
Transportation 55 49 - -
Tax expenses,
other than
income tax 28 81 - -
Communication 50 52 - -
Other general
and
administrative
expenses 76 75 - -
Total 3,283 3,736 1,448 1,097
All personnel costs for the year ended 31 December 2010 and 2009 are recorded in selling and distribution expenses.
8. Financial income/(expense), net
Financial income and expense for the year ended 31 December 2010 and 2009 are as follows:
Group Parent
31 December 31 December 31 December 31 December
2010 2009 2010 2009
Net
amortisation
effect of
promissory
notes
issued 2,454 601 - -
Foreign
exchange
gain/(loss) 2,085 167 240 (545)
Interest
income on
current
accounts and
deposits 1,024 2,989 164 170
Bank charges
and
commissions (523) (181) (5) (5)
Interest
expense on
bank loans
and other
financial
instruments (2,402) (918) (23) -
Financial
lease
interest
expense (222) (12) - -
Total 2,416 2,646 376 (380)
9. Other income/(expenses), net
Other income and expenses for the year ended 31 December 2010 and 2009 are as follows:
Group Parent
31 31 31 31
December December December December
2010 2009 2010 2009
Reversal of
impairment/(impairment)
of VAT recoverable 2,191 (1,960) - (24)
Gains from sales of
property, plant and
equipment 142 240 - -
Write off of VAT
recoverable - (1,875) - -
Other operating
(expenses)/income (116) 111 - -
Total 2,217 (3.484) - (24)
Considering the provision of the Ukrainian legislation of 3-year period, when VAT recoverable is allowed to be offset against VAT liabilities, future estimated proceeds from projects indicated in the Colliers report were compared to the ageing of the VAT recoverable. The portion of VAT recoverable that will not be offset against VAT liability was impaired as at 31 December 2010 and 2009.
10. Income tax benefit/(expense)
Income tax benefit/(expense) for the year ended 31 December 2010 and 2009 are as follows:
Group
31 December 2010 31 December 2009
Current income tax expense/(benefit) (5) (5)
Change in deferred taxes recognised
in profit or loss 23,920 (25,387)
Total 23,915 (25,392)
A reconciliation of the expected income tax benefit/(expense) to the actual income tax benefit/(expense) calculated by multiplying the profit (loss) before tax by the statutory income tax rates for the year ended 31 December 2010 and 2009 are as follows:
Group
31 December 2010 31 December 2009
(Loss)/profit before tax 329 99,707
Income tax in Ukraine at applicable
rate at 25% (42) (24,927)
Income tax in Netherlands at
applicable rate at 25% (40) -
Effect of change in tax rate 21,901 -
Tax losses carried forward 2,467 -
Non-deductible expenses (371) (465)
Total 23,915 (25,392)
Tax loss carried is recognised by the Parent in its tax return for 2008 and is confirmed by tax authority in March 2010.
Effect of change in income tax rate represents the effect of change in income tax rates in Ukraine from 25% in 2010 to 16% starting from 1 January 2014. Change in income tax rates is in line with the new Tax Code of Ukraine effective since December 2010 and has the effect on the deferred tax position attributable to investment property only.
Recognised deferred tax assets and liabilities
Recognised deferred tax assets and liabilities as at 31 December 2010 and 2009 are attributable to the following items:
Group
Assets Liabilities
31 December 31 December 31 December 31 December
2010 2009 2010 2009
Investment
property and
investment
property
under
development - - (35,565) (52,094)
Property,
plant and
equipment,
and
intangible
assets 41 1 (5) (64)
Inventory - - (3,114) (3,559)
Trade and
other
accounts
receivable 8 - (17) -
Trade and
other
accounts
payable 515 252 (580) -
Tax losses
carried
forward 2,467 - - -
Total 3,031 253 (39,281) (55,717)
Movements in deferred tax assets and liabilities during the year ended 31 December 2010 are as follows:
Group
Recognised
1 January in profit or Exchange 31 December
2010 loss differences 2010
Investment
property and
investment
property
under
development (52,094) 20,941 (4,412) (35,565)
Property,
plant and
equipment,
and
intangible
assets (63) 105 (6) 36
Inventory (3,559) 744 (299) (3,114)
Trade and
other
accounts
receivable - (9) - (9)
Trade and
other
accounts
payable 252 (340) 23 (65)
Tax losses
carried
forward - 2,479 (12) 2,467
Total (55,464) 23,920 (4,706) (36,250)
Movements in deferred tax assets and liabilities during the year ended 31 December 2009 are as follows:
Group
Recognised in
profit or Exchange
1 Jan 2009 loss differences 31 Dec 2009
Investment
property and
investment
property
under
development (30,233) (24,632) 2,771 (52,094)
Property,
plant and
equipment,
and
intangible
assets (13) (54) 4 (63)
Inventory (2,809) (942) 192 (3,559)
Trade and
other
accounts
payable 25 241 (14) 252
Total (33,030) (25,387) 2,953 (55,464)
11. Investment property
Investment property projects of the Group as at and for the year ended 31 December 2010 are as follows:
1 Additions Exchange Fair 31
January / rate value December
Project 2010 Transfers Disposals effect effect 2010
Zhitomir
Highway 13,965 61 - 1,176 (3,243) 11,959
Diplomat
Park 18,678 592 - 1,557 (2,837) 17,990
Lukki 3,083 32 - 286 300 3,701
Zazimye 13,865 - - 1,161 (2,553) 12,473
Metro
City 64,644 22 (904) 5,301 8,532 77,595
Kureni - 2,002 - (104) 20,120 22,018
Total 114,235 2,709 (904) 9,377 20,319 145,736
Kureni is the KDD Group's investment project which is planned to be luxury hotel-type apartments located on a 0.52 hectare site 400 metres away from the Dnipro river and the Parliament. Estimated start of construction is in 2011 and the approved planned completion date is the fourth quarter of 2013.
Investment property projects of the Group as at and for the year ended 31 December 2009 are as follows:
1 Additions Exchange Fair 31
January / Capitalised rate value December
Project 2009 Transfers interest effect effect 2009
Zhitomir
Highway 15,492 193 - (766) (954) 13,965
Diplomat
Park 18,769 165 2 (1,018) 760 18,678
Lukki 1,809 118 - (165) 1,321 3,083
Zazimye 18,009 - - (768) (3,376) 13,865
Metro
City - 7,002 - (3,297) 60,939 64,644
Total 54,079 7,478 2 (6,014) 58,690 114,235
Investment property comprises land plots in the preliminary preparation stages for future development into residential and commercial property as well as offices and hotels.
12. Investment property under development
Investment property under development projects of the Group as at and for the year ended 31 December 2010 are as follows:
1 Additions Exchange Fair 31
January / Capitalised rate value December
Project 2010 transfers Disposals interest effect effect 2010
Sky
Towers 115,939 15,639 (257) 10,580 9,717 (31,510) 120,108
WTC 52,790 41 - - 4,344 6,048 63,223
Total 168,729 15,680 (257) 10,580 14,061 (25,462) 183,331
Investment property under development projects of the Group as at and for the year ended 31 December 2009 are as follows:
1 Additions Exchange Fair 31
January / Capitalised rate value December
Project 2009 transfers interest effect effect 2009
Sky
Towers 63,179 16,301 5,300 (6,157) 37,316 115,939
WTC 51,603 (102) - (2,873) 4,162 52,790
Total 114,782 16,199 5,300 (9,030) 41,478 168,729
Investment property under development consists of non-residential property (e.g. office and commercial), where the construction work on the projects has already been started. The fair value of investment property under development as at 31 December 2010 is estimated by the independent appraiser.
As at 31 December 2010, capitalised borrowing costs related to the development of the Sky Tower project amounted to EUR 10,580 thousand (31 December 2009: EUR 5,581 thousand).
On 10 June 2010 the Group signed a set of agreements with Swissotel management GmbH and Fairmont Raffles Hotels International (Switzerland) GmbH related to management of the hotel component of Sky Towers project.
During the year ended 31 December 2010 the development activity for the investment project WTC has been suspended according to the decision of the Board of Directors. The Group is currently searching for credit facilities for further project development.
13. Prepayments
Prepayments of the Group as at 31 December 2010 and 2009 are as follows:
Group
31 December 2010 31 December 2009
Prepayments to constructors 12,915 11,449
12,915 11,449
Allowance provision for prepayments
to constructors - (38)
Total 12,915 11,411
As at 31 December 2010, prepayments to constructors include EUR 12,096 thousand of prepayments to Kommerz Zhytlo Invest the key contractor engaged with respect to the Sky Towers Project (31 December 2009: EUR 6,668 thousand) under a commission agreement for equipment delivery and construction works(note 28).
14. Investments in subsidiaries
Investments in subsidiaries of the Parent as at and for the year ended 31 December 2010 are as follows:
Parent
1 January 2010 Cash contribution 31 December 2010
KDD Group LLC 32,624 - 32,624
Modern
Construction
Technology LLC 13,586 - 13,586
Vysokyi Status LLC 729 4,837 5,566
Lisova LLC 5 - 5
Patriacom LLC 5 131 136
Integra Holding
LLC 244 812 1,056
Total 47,193 5,780 52,973
Investments in subsidiaries of the Group as at and for the year ended 31 December 2009 are as follows:
Parent
1 January 2009 Cash contribution 31 December 2009
KDD Group LLC 32,624 - 32,624
Modern
Construction
Technology LLC 13,586 - 13,586
Vysokyi Status LLC 729 - 729
Lisova LLC 5 - 5
Patriacom LLC 5 - 5
Integra Holding
LLC 2 242 244
Total 46,951 242 47,193
Investments in subsidiaries are valued at purchase costs of the shares unless a write down has been necessary. Net Group contributions to subsidiaries are reported as increased share cost price.
15. Property, plant and equipment
Movements in property, plant and equipment for the year ended 31 December 2010 are as follows:
Buildings
and leased Furniture
property and
improvements Vehicles Equipment computers Total
Cost
As at 1
January
2010 2,206 213 74 424 2,917
Additions 290 - 25 49 364
Disposals (9) - (8) (44) (61)
Transfer to
investment
property (1,991) - (26) (156) (2,173)
Foreign
exchange
differences 162 17 5 36 220
As at 31
December
2010 658 230 70 309 1,267
Accumulated
depreciation
As at 1
January
2010 249 70 25 173 517
Depreciation 155 27 27 59 268
Disposals (1) - (7) (27) (35)
Transfer to
investment
property (104) - (18) (49) (171)
Foreign
exchange
differences 20 6 2 14 42
As at 31
December
2010 319 103 29 170 621
Net book
value
As at 31
December
2010 339 127 41 139 646
As at 1
January
2010 1,957 143 49 251 2,400
Movements in property, plant and equipment for the year ended 31 December 2009 are as follows:
Buildings and
leased
property Furniture and
improvements Vehicles Equipment computers Total
Cost
As at 1
January
2009 1,013 254 77 359 1,703
Additions 1,311 - - 89 1,400
Disposals (56) (29) - (6) (91)
Foreign
exchange
differences (62) (12) (3) (18) (95)
As at 31
December
2009 2,206 213 74 424 2,917
Accumulated
depreciation
As at 1
January
2009 119 46 16 91 272
Depreciation 189 34 10 94 327
Disposals (50) (6) - (2) (58)
Foreign
exchange
differences (9) (4) (1) (10) (24)
As at 31
December
2009 249 70 25 173 517
Net book
value
As at 31
December
2009 1,957 143 49 251 2,400
As at 31
December
2008 894 208 61 268 1,431
As at 31 December 2010, property, plant and equipment with carrying amount of EUR 766 thousand is pledged as collateral to secure loans and borrowings (31 December 2009: EUR 708 thousand) (Note 21).
16. Inventories
Inventories of the Group as at 31 December 2010 and 2009 are as follows:
Group
31 December 2010 31 December 2009
Trading properties 26,333 20,735
Raw materials and consumables 775 872
Merchandise 39 31
Total 27,147 21,638
Movements in trading property for the year ended 31 December 2010 are as follows:
1 Exchange Reversal 31
January Capitalised rate of December
Project 2009 Additions Disposals interest effect impairment 2010
PecherSky 20,735 262 (184) - 1,639 3,881 26,333
Movements in trading property for the year ended 31 December 2009 are as follows:
Exchange Reversal
1 Jan Capitalised rate of 31 Dec
Project 2009 Additions interest effect impairment 2009
PecherSky 17,202 576 136 (1,119) 3,940 20,735
17. Value Added Tax Recoverable
Value added tax recoverable as at 31 December 2010 and 2009 are as follows:
Group Parent
31 December 31 December 31 December 31 December
2010 2009 2010 2009
Long -term VAT
recoverable,
gross 10,591 7,708 - -
Less
impairment
provision (4,857) (6,583) - -
Long-term VAT
recoverable,
net 5,734 1,125 - -
Short-term VAT
recoverable 1,683 470 2 20
Total 7,417 1,595 2 20
Movements in VAT impairment provision in 2010 is as follows:
Notes
Balance as at 31 December 2009 (6,583)
Add: reversal of impairment/(impairment) of VAT recoverable 9 2,191
Less: currency translation difference (465)
Balance as at 31 December 2009 (4,857)
As at 31 December 2010 and 2009, the Group estimates that part of accumulated Value Added Tax ("VAT") recoverable will be recovered later than in 12 months.
Long-term VAT recoverable relates to the prepaid construction and pre-construction works.
Considering the provision of the Ukrainian legislation of 3-year period, when VAT recoverable is allowed to be offset against VAT liabilities, future estimated proceeds from projects indicated in the Colliers report were compared to the ageing of the VAT recoverable. The portion of VAT recoverable, that will not be offset against VAT liability, was impaired as at 31 December 2010 and 2009.
18. Trade and other receivables
Trade and other receivables as at 31 December 2010 and 2009 are as follows:
Group Parent
31 December 31 December 31 December 31 December
2010 2009 2010 2009
Short-term
VAT
receivable 1,683 470 2 20
Prepayments
to
suppliers 235 354 - -
Deferred
expenses 145 - - -
Trade
receivables 134 89 591 1,432
Accounts
receivable
for
promissory
notes sold 95 59 - -
Interest
accrued 63 - 486 323
Other
accounts
receivable 66 31 - 20
Loans
extended to
related
parties - 492 - -
2,421 1,495 1,079 1,795
Allowance
provision
for trade
and other
receivables (97) (86) - -
Total 2,324 1,409 1,079 1,795
The fair values of trade and other receivables approximates to their carrying amounts.
As at 31 December 2010, trade receivables of EUR 97 thousand (31 December 2009: EUR 86 thousand) are impaired and provided for. The individually impaired receivables mainly relate to prepayments made to contractors on the suspended projects. It was assessed that a portion of the receivables is expected to be recovered.
The creation and release of provision for impaired receivables has been included in other operating costs in the statement of comprehensive income. Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash. The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Group does not hold any collateral as security.
19. Cash and cash equivalents
Cash and cash equivalents as at 31 December 2010 and 2009 are as follows:
Group Parent
31 December 31 December 31 December 31 December
2010 2009 2010 2009
Deposits
placed in
EUR 6,285 9,649 - -
Deposits
placed in
UAH 311 40 - -
Deposits
placed in
USD 1 41 - -
6,597 9,730 - -
Current
accounts in
USD 796 560 777 560
Current
accounts in
EUR 629 5,979 146 5,979
Current
accounts in
UAH 53 36 - 3
Current
accounts in
GBP 1 3 1 1
1,479 6,578 924 6,543
Total 8,076 16,308 924 6,543
As at 31 December 2010, deposits placed include guarantee deposits that are restricted in use with a nominal value amounting to EUR 6,493 thousand (31 December 2009: 0). These deposits serve as collateral for loans received by the Group (Note 21).
20. Share capital
As at 31 December 2010, the authorised share capital was 650,000,000 ordinary shares (31 December 2009: 650,000,000 ordinary shares). The issued and fully paid ordinary shares were 162,687,763 as at 31 December 2010 (31 December 2009: 162,687,763).
Weighted average number of shares as at 31 December 2010 and 2009 is as follows:
31 December 2010 31 December 2009
Share Share
Nominal capital, Nominal capital,
Number of value, EUR Number of value, EUR
shares EUR thousand shares EUR thousand
Authorised 650,000,000 0.01 6,500 650,000,000 0.01 6,500
Issued and
fully
paid 162,687,763 0.01 1,627 162,687,763 0.01 1,627
The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at annual and general meetings of the Company.
The direct and indirect interest of the directors in the issued share capital of the Company as at 31 December 2010 and 2009 is as follows:
Parent
31 December 2010 31 December 2009
Mr. Alexander Levin 22.63% 22.63%
Mr. Petro Slipets 8.79% 8.79%
Mr. Sergey Sukalo (resigned in
December 2010) 0.5% 0.5%
Total 31.92% 31.92%
Shareholders with holding of at least 5% of the issued share capital of the Company as at 31 December 2010 and 2009 are as follows:
Parent
31 December 2010 31 December 2009
Mr. Alexander Levin 22.63% 22.63%
Computershare Company nominees
limited 22.45% 22.45%
Yornia Investmements Limited 16.92% 16.92%
Parsel Inveestments limited 16.92% 16.92%
Welstock Consultants Limited 8.79% 8.79%
Arpanet Holdings Limited 8.46% 8.46%
Other (below 5%) 3.83% 3.83%
Total 100% 100%
Earnings per ordinary share as at 31 December 2010 and 2009 are as follows:
31 December 2010 31 December 2009
Weighted average number of shares 162,687,763 162,687,763
Earnings in thousands of EUR 24,244 74,315
Earnings per ordinary share in EUR 0.149 0.457
Difference in equity between the Company's financial statements and the consolidated financial statements in accordance with Article 389 (10) of the Dutch Civil Code, the difference in is explained as follows:
31 December 2010 31 December 2009
Equity of the Parent 83,078 82,921
Effect of fair value adjustments on
the Investment property and
Investment property under
development and the way the
consolidated financial statements
have been prepared, i.e. assuming a
common control acquisition 172,258 133,542
Equity of the Group 255,336 216,463
21. Loans and borrowings
Loans and borrowings as at 31 December 2010 and 2009 are as follows:
Group
31 December 2010 31 December 2009
Non-current
Bank loans 77,837 41,160
Long-term promissory notes issued 4,373 3,366
82,210 44,526
Current
Bank loans 3,069 3,106
Interest payable 1,161 635
Short-term promissory notes issued 333 5,813
Loans from related parties - 3,590
4,563 13,144
Total 86,773 57,670
As at 31 December 2010 interest bearing loans and borrowings are summarised as follows:
Group
Nominal Effective
Interest interest interest Year of Nominal Carrying
type rate rate maturity amount amount
Non-current
Loan from
Ukreximbank
in UAH fixed 19.00% 19.00% 2012 53,811 53,811
Loan from
Ukreximbank Libor +
in USD floating 6.6% 11.00% 2012 16,002 16,002
Loan from
Ukrsotsbank
in UAH fixed 22.00% 22.00% 2012 3,229 3,229
Loan from
Ukrsotsbank
in UAH fixed 18.00% 18.00% 2012 4 4
Loan from
Indexbank
in USD fixed 12.80% 12.80% 2012 1 1
Blufos Ltd
in USD fixed 5.08% 5.08% 2012 4,790 4,790
Long-term
promissory
notes 2012 -
issued fixed Nil 18.50% 2015 8,663 4,373
86,174 82,210
Current
Loan from
Ukrsotsbank
in UAH fixed 22.00% 22.00% 2011 2,862 2,862
Loan from
Astrabank
in UAH fixed 20.00% 20.00% 2011 201 201
Loan from
Indexbank
in USD fixed 12.80% 12.80% 2011 6 6
Short-term
promissory
notes
issued fixed Nil 14,70-20,80% 2011 333 333
3,402 3,402
Total 89,576 85,612
For more information about exposure to interest rates and foreign currency risks, refer to note 24.
Loans amounting to EUR 69,813 thousand as at 31 December 2010 (31 December 2009: EUR 40,863 thousand) were received by the Agency of Office Construction LLC from Ukreximbank according to the contract of credit line, with a credit limit of USD 104 million. Annual interest rate ranged from 11% for the USD portion up to 19% for the UAH portion (2009: 12% for USD portion, 20% for UAH portion). Under pledge agreement obligations, the credit contract is guaranteed by right on the lease of land plot, an area of which is 0.74 hectares and which is leased from Visokiy Status LLC, according to the lease contract on this land plot. Freehold land of 80 ha is a pledge for this loan agreement.
A loan amounting to EUR 201 thousand as at 31 December 2010 (31 December 2009 EUR 285 thousand was received by Kureni Subsidiary Company in UAH from Astrabank, according to the contract of the credit line with a limit of USD 752 thousand and an annual interest rate of 20%. Under pledge agreement obligations, the credit contract is guaranteed by the restaurant complex and determined properties of this restaurant complex, the fair value of which as at 31 December 2010 amount to EUR 22,018 thousand (Note 11).
A loan amounting to EUR 6,091 thousand as at 31 December 2010 (31 December 2009: EUR 3,101 thousand) was received by Integra-Holding LLC from Ukrsotsbank. The interest rate for the UAH loan is stated at the level of 22% per annum and is guaranteed by Ukreximbank and pledged by the Group deposit.
As at 31 December 2009 interest bearing loans and borrowings are summarised as follows:
Group
Nominal Effective
Interest interest interest Year of Nominal Carrying
type rate rate maturity amount amount
Non-current
Loan from
Ukreximbank
in UAH fixed 20.0% 20.0% 2012 26,041 26,041
Loan from
Ukreximbank Libor +
in USD floating 6.6% 6.9% 2012 14,822 14,822
Loan from
Astrabank
in UAH fixed 20.0% 20.0% 2011 285 285
Loan from
Indexbank
in USD fixed 12.8% 12.8% 2012 6 6
Loan from
Ukrsotsbank
in UAH fixed 18.0% 18.0% 2012 6 6
Long-term
promissory
notes 12.0 - 2011 -
issued fixed Nil 20.8% 2014 4,752 3,366
45,912 44,526
Current
Loan from
Ukrsotsbank
in USD fixed 12.0% 12.0% 2010 3,101 3,101
Loan from
Indexbank
in USD fixed 12.8% 12.8% 2010 5 5
Loan from
related
party fixed Nil Nil 2009 3,590 3,590
Short-term
promissory
notes 14.7 -
issued fixed Nil 20.8% 2010 6,142 5,813
12,838 12,509
Total 58,750 57,035
Future maturities of non-current loans and borrowings as at 31 December 2010 and 2009 are as follows:
31 December 2010 31 December 2009
From
From one two to From one From two
to two five to two to five
years years Total years years Total
Bank loans 77,837 - 77,837 285 40,875 41,160
Long-term
promissory
notes
issued 1,097 3,276 4,373 281 3,085 3,366
78,934 3,276 82,210 566 43,960 44,526
The carrying amounts of short-term borrowings approximate their fair value as the impact of discounting is not significant.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ZFLFLFZFEBBV
1 Year Kdd Group Chart |
1 Month Kdd Group Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
