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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Lewis Charles (See LSE:SPFL) | LSE:LCSS | London | Ordinary Share | GB00B0BV8078 | ORD NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.75 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMLCSS 29 September 2009 Lewis Charles Sofia Property Fund Limited ("the company") Interim Results for the six month period ending 30 June 2009 Highlights - · Valuation of the Lewis Charles Sofia Property Fund Limited, property portfolio at 30 June 2009 is EUR 40.9 million but the Board and management team do not believe these valuations are achievable in current markets. · NAV per share of 63 pence. · Appointment of Duncan Abbot to the Board. · Desmond Swayne leaves the Board. · The termination of the Management Agreement between Lewis Charles Securities Limited and the Company takes effect from 1 October 2009. The Company has announced that from 1 October 2009 arrangements have been made to internalise the management operations. · Recovery in the Sofia residential market expected to begin in H2 2010. For further enquires - Dominic Morley, Stuart Gledhill - Panmure Gordon +44 (0) 20 7459 3600 Ed Portman, Leesa Peters - Conduit PR +44 (0) 207 429 6607 / +44 (0) 7733 363 501 Charles Burton - Lewis Charles Sofia Property Fund Limited +44 (0) 20 7803 1400 Chairman's Report The Fund has faced a difficult external context over the past twelve months, with negative corrections in both the Bulgarian economy generally and residential property markets. The Board has continued to manage the Fund's operations carefully, given both this and the operating environment. Two board changes were made on 9 September, with the appointment of Duncan Abbot and resignation of Desmond Swayne. The Board wishes to thank Desmond Swayne for his invaluable contribution over the past four years. Duncan Abbot's long experience of both management and finance will prove to be of undoubted benefit to the Board's management of the fund's operations. The Company gave notice that the employment of Lewis Charles Securities as Manager would be terminated at the end of September 2009. The Board has decided to internalise the management with effect from the 1st October 2009. The benefits of internalising the management are clear and should result in a reduction of costs to the Fund. The difficult trading conditions together with the problems with raising credit in the Bulgarian banking market means that the Company is facing a tight cash position. In these circumstances the Fund has effectively mothballed development work on all of its projects in order to preserve cash. The Fund is seeking to raise additional funds through either the sale of assets or through raising equity or debt financing. This would allow the Fund to exercise the Bistritsa buy-back option which expires is mid-December 2009 and to provide the Fund with further working capital. Finally, the published valuation NAV is currently 63 pence (EUR 74 cents) as at 30 June 2009, having fallen from 92 pence (EUR 96 cents) at the end of December 2008. However, your attention is drawn to the investment managers' comments on valuations. The Board supports the Manager's opinion in that in these highly abnormal markets, even these lower valuations are probably not achievable. The accounting NAV of 60 pence (EUR 71 cents) as at 30 June 2009, from 87 pence (EUR 91 cents) per share at the end of December 2008. The end of June 2009 exchange rate used is EUR/GBP 1.1728. Charles Burton Chairman 28 September 2009 Investment Managers' Report THE BULGARIAN ECONOMY Preliminary GDP data for the first 6 months of the year show a 4.8% year-on-year contraction, the worst performance since the 1996-97 crisis. The contraction was broad-based with private consumption dropping by 8.2% year on year and unemployment rising to 7.6% in July. Consumer confidence however has recovered modestly over the last three months. Business confidence continues to be poor and with restricted access to credit Bulgaria has seen a sharp contraction in industrial production. With exports decreasing by 18.8% over the past 3 months, and an even greater 26.9% decline in import volumes the 2009 H1 current account deficit has narrowed to just 6.3% of GDP from 25% of GDP in 2008. Net FDI (Foreign Direct Investment) inflows covered nearly 75% of that gap, a considerable improvement from the 41% financing achieved in Q4 last year. Similar coverage is expected during the rest of 2009. On the positive side, inflation has fallen sharply - to just 1.6% in July - providing some support to real household incomes that have been hit by rising unemployment. Whilst the 2nd half of 2009 is also expected to be difficult culminating in GDP falling by around 4.75% for 2009 as a whole, 2010 should see a return to growth of just over 1% followed by a more normal 4.2% in 2011 (Oxford Economics). On the political front, the recent parliamentary election results gave the populist centre-right GERB party (led by Sofia's mayor Boiko Borisov) 116 seats in the 240 seat parliament, having won a convincing 39.7% of the vote on a 60.2% turnout. Other rightist parties did well, with Attack (21 seats), the Blue Coalition (15 seats) and Order, Law and Justice (10 seats) all promising to support the minority GERB government. However, Prime Minister Borisov's decision not to form a formal coalition and offer cabinet seats to allies risks instability in the months ahead. BULGARIAN PROPERTY MARKET UPDATE The international financial crisis was reflected in a very difficult first six months of 2009 for the residential property market. The de-leveraging of the real estate sector and the difficulty of obtaining mortgage finance for individual buyers caused a general fall in demand, supply and prices. Construction and sales of residential property were adversely affected by the financial limitations imposed by the banks. The number of mortgage approvals fell by 80% on an annualised basis and banks are now offering mortgages of only 70% of the value of the property. The resort sector has been especially hard hit as foreign buyers have been distracted by economic woes in their own home markets. According to data released in July by Bulgaria's National Statistics Institute (NSI), residential property prices fell by 10% quarter-on-quarter during Q2 and 22% to 25% year-on-year. The highest decreases were in Ruse (-14.4%), Plovdiv (-14.1%), Burgas (-12.3%) and Sofia (-12%). The average market price for residential properties is now EUR 539 per square metre. The Black Sea capital, Varna, has the highest prices (average EUR 913 per square metre) followed by Sofia (EUR 872) and Burgas (EUR 736). Residential property prices are now approaching 2007 levels and the fall is especially marked in properties in the most popular price range: EUR 50,000 - EUR 70,000. The only sector unaffected by the fall has been luxury property in Sofia priced over EUR 1,500 per square metre, where demand still exceeds supply. The general steep fall in demand and financial de-leveraging of the sector has caused the insolvency of many developers before their projects were completed. Other developers took their projects off the market or tried to renegotiate contracts with contractors to slowdown their projects or reduce costs. A handful of apartment buildings were completed in Sofia but these were at the luxury end of the market and priced above EUR 1,700 per square metre. They had high specifications and the design trademarks necessary to endure current market conditions. Bank repossessions might have been expected to create a secondary supply market, but overdue loans account for only 3.2% of residential mortgages. It is possible that banks are prepared to overlook some defaults simply to avoid having to absorb them on their balance sheets and have the additional problem of maintaining the assets. There is an overhang of unsold properties in Sofia at the middle to lower end of the market and it is unlikely that any new developments will break ground during the next 12 months. Recovery in the Sofia residential market is not expected to occur before the end of 2010, and successful projects will probably be those that have superior location, quality and design. GROUP PROPERTIES Land Build At Cost Valuation Area Area (EUR) (EUR) M2 M2 30/06/2009 30/06/2009 (Note 2) (Note 3) 1. Goverdartsi(Crystal Vale/ Crystal Glade) 36,581 34,604 5,579,348 5,170,000 2. Beli Iskar 19,432 19,432 1,322,379 1,223,000 (Crystal Heights) 3. Razlog/Bansko 18,354 26,119 9,091,232 6,108,000 4. Plovdiv 12,151 12,712 3,890,991 2,832,000 5. Veliko 13,443 26,886 2,493,942 1,900,000 6. Dolna Banya 48,548 57,621 1,661,755 1,450,000 7. Sofia Kambanite 100,713 100,713 9,251,412 15,460,000 Bistritsa 8. Banya 117,774 182,130 3,608,192 4,552,000 9. BuySell - Vetz 48,218 89,967 10,379,426 - Simenovo (Note 1) Vetz Simenovo - 1,298 3,198 2,196,509 2,290,000 Project 55 _________ _________ _________ _________ Total 416,512 553,382 49,475,186 40,985,000 _________ _________ _________ _________ _________ _________ _________ _________ Note 1: The Group has terminated these contracts with BuySell and accordingly they have been valued at Nil on the balance sheet. Note 2: Some build areas are estimated subject to planning approval. Note 3: Because of the provisions of IAS 2, some of these values may not be fully reflected in the balance sheet. A full reconciliation between the accounting NAV and the published valuation NAV is contained in the notes to the Financial Statements. As explained in the property report and the economic report, conditions are extremely difficult in both the residential and commercial sectors of the property market. Borrowing is tightening given that most banks are non Bulgarian and any lending to the property market has been earmarked for their home markets. The few buyers that are in the market are generally seeking distressed assets and there is very little cash. Due to this very abnormal situation, the Fund has effectively mothballed development work on all of its projects in order to preserve cash. The Fund is seeking to raise additional funds through either the sale of assets or through raising equity or debt financing. This would allow the Fund to exercise the Bistritsa buy-back option which expires is mid-December 2009 and to provide the Fund with further working capital. The valuations at the end of June were prepared by King Sturge in accordance with the Appraisal and Valuation Standards, fifth edition, published by the Royal Institution of Chartered Surveyors (RICS). Whilst the valuations show a further fall of 22% from the end of 2008 to end June 2009, it is the Manager's opinion that in todays highly abnormal market it would be unlikely that even these lower valuations could be achieved at the present time. It is also the Manager's opinion that it could take some time for Bulgarian property markets to begin to function normally. 1 GOVEDARCI CRYSTAL VALE The first phase of Crystal Vale has reached the stage of rough construction; further work has been temporarily suspended due to weak domestic and international market conditions. Sales operations will re-launch when market recovery begins, possibly in Q2 2010. The Crystal Vale site has full Ministry approval for residential use. CRYSTAL GLADE Crystal Glade is intended to be the sister resort to Crystal Vale. The two sites are only 1 km apart and are located in the foothills of the Rila Mountains only a few hundred metres from a ski lift. The site is also close to the ski resort of Borovets and approx one hour's drive from Sofia airport. Crystal Glade has now received full Ministry approval for residential use and will remain in the land bank until Crystal Vale has been substantially completed. 2 BELI ISKAR CRYSTAL HEIGHTS This land is located on the edge of the picturesque village of Beli Iskar within 500 meters of the proposed site of the new ski gondola to the Borovets resort. The land is still designated for agricultural use and will remain in the land bank until market conditions encourage development of the site. 3 RAZLOG PANORAMA VILLAS Phase 1 of the Panorama Villas has reached the stage of rough construction; further work has been temporarily suspended due to weak domestic and international market conditions. The planned sales campaign would have coincided with the worst phase of the international financial crisis and has been halted pending a recovery in markets. Until Phase 1 of the project has been substantially completed the remaining three phases will remain in the land bank. NIRVANA This undeveloped land plot will remain in the land bank. 4 PLOVDIV ROMAN VIEW It was decided not to proceed with the development of this excellent site in central Plovdiv until economic conditions improve. PLOVDIV REACH This land plot is located beside the national rowing centre on the edge of Plovdiv. It will remain in the land bank. 5 VELIKO TARNOVO This land plot is located close to the city centre and has full residential planning permission. 6 DOLNA BANYA The Fund owns four separate plots of land in good locations and residential planning permission in and around the town of Dolna Banya. It is intended that they should remain in the land bank. 7 SOFIA - KAMBANITE BISTRITSA The Fund was obliged to sell this land for EUR1.826 million in order to raise cash for working capital purposes in January 2009, with an exclusive option to repurchase the plot by 15 December 2009 for EUR4.0 million. 8 BANYA This site has now been consolidated into three contiguous plots which have all been removed from agricultural status. One of the plots has now received full Ministry approval for residential use and planning applications will be made for the other two. 9 SOFIA - VITOSHAVETS SIMEONOVO The Fund had exercised seven options to purchase properties in Sofia situated in the Vitoshavets Simeonovo, Krustovat and Dragalevtsi areas of Sofia. These properties comprised residential villas and apartment developments, together with shops, some small offices and parking to be developed by BuySell Real Estate Agent Limited ('BuySell'), a Bulgarian incorporated property development company. The Company has rescinded six preliminary sales contracts of the seven options entered into with BuySell and is taking steps to recover the sums paid under the contract to date, and a penalty that is equal to 100% of the initial deposit paid. If BuySell do not pay the Fund all amounts due, it may be necessary for the Fund to recover this money in the Bulgarian courts. The EUR 10,379,426 and a further EUR 9,000,494 in penalties from BuySell may therefore be contingent on the outcome of legal proceedings. The Board is currently considering its options in relation to pursuing any legal claim. The Fund took delivery of one building from BuySell in September 2008 (Project 55 - see Table). Sales of apartments in this building have progressed well despite difficult market conditions, and sales have been concluded for well over half of the apartments. Lewis Charles Securities Limited 28 September 2009 Condensed consolidated statement of comprehensive income for the 6 month period ended 30 June 2009 1 Jan 2008 to 30 Jun 2008 Notes Revenue Capital Total Total ? ? ? ? _______ __________ __________ __________ __________ Revenue Property sales 88,207 - 88,207 - Cost of sales (127,020) - (127,020) - Net change in (loss) / gain on revaluation of investment 3 - (11,810,816) (11,810,816) 1,083,481 properties __________ __________ __________ __________ Gross profit (38,813) (11,810,816) (11,849,629) 1,083,481 __________ __________ __________ __________ Expenses Administration fees 87,784 - 87,784 91,568 Management fees 377,406 - 377,406 456,619 Performance fees - (2,092,068) (2,092,068) (187,866) Directors' fees and expenses 31,786 - 31,786 35,138 Foreign exchange loss (20,194) - (20,194) 1,184 Other expenses 484,097 - 484,097 534,522 Impairment of inventory net 4 - (831,601) (831,601) 914,708 __________ __________ __________ __________ 960,879 (2,923,669) (1,962,790) 1,845,873 __________ __________ __________ __________ Operating loss (999,692) (8,887,147) (9,886,839) (762,392) Finance income 2,698 - 2,698 54,124 Finance cost 5 (782,011) - (782,011) - __________ __________ __________ __________ Loss before taxation (1,779,005) (8,887,147) (10,666,152) (708,268) Taxation - 793,715 793,715 (179,453) __________ __________ __________ __________ Loss for the period (1,779,005) (8,093,432) (9,872,437) (887,721) __________ __________ __________ __________ Other comprehensive income Exchange differences arising on translation of foreign operations - - - - Total comprehensive loss for the __________ __________ __________ __________ period (1,779,005) (8,093,432) (9,872,437) (887,721) __________ __________ __________ __________ __________ __________ __________ __________ Earnings per share - basic and diluted (cents per share) 2 (20.42) (1.84) All items in the above statement derived from continuing operations The accompanying notes 1 to 8 form an integral part of these financial statements Condensed consolidated statement of financial position As at 30 June 2009 Consolidated Consolidated Notes 30 June 2009 31 December 2008 ? ? ? ? _____ ______________________ ______________________ Non-current assets Investment properties 3 33,079,000 44,848,000 Current assets Inventory 4 7,812,509 6,801,000 Property options 5 5 Trade and other receivables 204,105 548,827 Cash and cash equivalents 968,997 767,920 __________ __________ 8,985,616 8,117,752 Total assets 42,064,616 52,965,752 __________ __________ Current liabilities Trade and other payables (1,541,096) (3,072,785) __________ __________ (1,541,096) (3,072,785) Non-current liabilities Loan payable 5 (2,607,663) - Trade and other payables (3,075,519) (4,386,477) Deferred taxation (620,749) (1,414,464) (6,303,931) (5,800,941) __________ __________ Total liabilities (7,845,027) (8,873,726) __________ __________ Net assets 34,219,589 44,092,026 __________ __________ __________ __________ Equity Share capital - - Special reserve 56,956,985 56,956,985 Capital reserve (10,616,334) (2,522,902) Revenue reserve (12,121,062) (10,342,057) __________ __________ Total Equity 34,219,589 44,092,026 __________ __________ __________ __________ NAV per share (Euro per share) 6 0.71 0.91 NAV per share at launch (Euro per share) 1.1781 1.1781 These condensed financial statements were approved by the Board of Directors and authorised for issue on 28 September 2009. They were signed on its behalf by G. Williams and C. Simon. G. Williams C. Simon Director Director The accompanying notes 1 to 8 form an integral part of these financial statements Condensed consolidated statement of changes in equity for the 6 month period ended 30 June 2009 Share Special Capital Revenue Total Capital Reserve Reserve Reserve Equity ? ? ? ? ? As at 31 December 2008 - 56,956,985 (2,522,902) (10,342,057) 44,092,026 Loss for the year - - (8,093,432) (1,779,005) (9,872,437) __________ __________ __________ __________ __________ Total recognised income and expenses for the year - - (8,093,432) (1,779,005) (9,872,437) Loss for the year - - (8,093,432) (1,779,005) (9,872,437) __________ __________ __________ __________ __________ As at 30 June 2009 - 56,956,985 (10,616,334) (12,121,062) 34,219,589 Loss for the year - - (8,093,432) (1,779,005) (9,872,437) __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ Share Special Capital Revenue Total Capital Reserve Reserve Reserve Equity ? ? ? ? ? As at 31 December 2007 - 56,956,985 18,138,960 (8,890,398) 66,205,547 Profit / (loss) for the year - - 1,091,894 (1,979,615) (887,721) __________ __________ __________ __________ __________ Total recognised income and expenses for the year - - 1,091,894 (1,979,615) (887,721) __________ __________ __________ __________ __________ As at 30 June 2008 - 56,956,985 19,230,854 (10,870,013) 65,317,826 __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ The accompanying notes 1 to 8 form an integral part of these financial statements Condensed consolidated statement of cash flows for the 6 month period ended 30 June 2009 1 Jan 2009 1 Jan 2008 to to 30 Jun 2009 30 Jun 2008 ? ? (Loss) for the period (9,872,437) (887,721) Adjustment for: Net finance income and expenses 779,313 (11,077) Revaluation of investment 11,810,816 (1,083,481) properties Impairment of inventory (831,601) Taxation (793,715) 179,453 ___________ ___________ Operating cash flows before movements in working capital 1,092,376 (1,802,826) (Increase) / decrease in operating and 344,722 (392,045) other receivables (Decrease) / increase in operating and (2,842,647) 767,454 other payables Increase in inventory (179,908) - ___________ ___________ (1,585,457) (1,427,417) Interest received 2,698 11,077 Taxation - - ___________ ___________ Net cash outflow from operating activities (1,582,759) (1,416,340) ___________ ___________ Investing activities Additions to investment properties (41,816) (3,158,289) ___________ ___________ Net cash outflow from investing activities (41,816) (3,158,289) ___________ ___________ Financing activities Proceeds from loan 1,825,652 - ___________ ___________ Net cash inflow from financing activities 1,825,652 - ___________ ___________ Net decrease in cash and cash equivalents 201,077 (4,574,629) Cash and cash equivalents at start of period 767,920 7,209,621 ___________ ___________ Cash and cash equivalents at end of period 968,997 2,634,992 ___________ ___________ ___________ ___________ The accompanying notes 1 to 8 form an integral part of these financial statements Notes to the condensed interim financial statements for the 6 month period ended 30 June 2009 1 SIGNIFICANT ACCOUNTING POLICIES Lewis Charles Sofia Property Fund Limited (the `Company') is a closed-ended investment company incorporated in Guernsey. The condensed financial statements of the Company for the period ended 30 June 2009 comprise the Company and its subsidiaries (together referred to as the `Group'). The unaudited condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (`IFRS') IAS 34 Interim Financial Reporting. They do not include all of the information required for the full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2008. The unaudited condensed interim financial statements were approved by the board of directors on 28 September 2009. The financial statements have been prepared on the basis of the accounting policies set out in the Group's annual financial statements for the year ended 31 December 2008 except for the adoption of standards described below. The Group's annual financial statements refer to new Standards and Interpretations none of which had a material impact on the financial statements. IFRS 8 Operating Segments (effective for annual periods beginning on or after 1 January 2009) - This is a disclosure Standard that has had no impact on the reported results or financial position of the Group. IAS 1 (revised 2007) Presentation of Financial Statements (effective for annual periods beginning on or after 1 January 2009) - The revised Standard has introduced a number of terminology changes and has resulted in a number of changes in presentation and disclosure. However, the revised Standard has had no impact on the reported results or financial position of the Group. IAS 23 Borrowing Costs (revised 2007) - The revised standard requires capitalisation of interest on development properties. 2 EARNINGS PER SHARE - BASIC AND DILUTED The consolidated deficit per Ordinary Share of 20.42 cents (2008: 1.84) is based on the net revenue loss of ?1,779,005 (June 2008: ?1,979,615) and the net capital loss for the period of ?8,093,432 (June 2008: Gain of ?1,091,894). Both calculations are made based on 48,345,000 Ordinary Shares, being the weighted average number of shares in issue during both periods. 3 INVESTMENT PROPERTIES 30 June 31 December 2009 2008 ? ? Opening market value of investment properties 44,848,000 55,127,208 Acquisitions during the period at cost - - Subsequent expenditure 41,816 361,060 Fair value adjustment in the year (11,810,816) (10,640,268) ____________ ____________ Market value of investment properties at 33,079,000 44,848,000 30 June 2009 ____________ ____________ ____________ ____________ The fair value of the Group's investment properties at 30 June 2009 and 31 December 2008 has been arrived at on the basis of valuations carried out at that date by King Sturge Kft, independent valuers not connected to the Group. The valuation basis has been market value as defined by the Royal Institute of Chartered Surveyors (RICS). The approved RICS definition of market value is the "estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion." Included in the above is the Bistritsa project valued at ?15.46 million which has been used for a financing. See note 5 for further details. 4 INVENTORY 30 June 31 December 2009 2008 ? ? Opening cost 6,801,000 15,625,171 Additions 306,928 5,998,040 Disposals (127,020) (109,807) Repayment of deposit - (865,801) Impairment (555,070) (13,846,603) Reversal of impairment 1,386,671 - __________ __________ Closing cost 7,812,509 6,801,000 __________ __________ __________ __________ At valuation 7,906,000 6,801,000 __________ __________ On 17 April 2009 the Group served a notice on BuySell to terminate the development contract due to non performance. As a result of this termination directors have decided to write down the carrying value of the BuySell project to nil. Remaining properties were valued on an open market basis as at 30 June 2009 by King Sturge Kft, independent valuers not connected to the Group. As a result of decrease in the market value of the properties, as determined by the valuers, an impairment charge has been recognised on these properties as well. The carrying value has been set as the lower of cost and net realisable value as set out under the requirements of IAS 2, Inventories. The total carrying value of all the properties impaired is 7,812,509. 5 LOAN PAYABLE 30 June 2009 ? Balance at 1 January 2009 - Proceeds 1,825,652 Interest 782,011 _____________ Balance at 30 June 2009 2,607,663 _____________ _____________ During the year Splendid Investments S.A. a wholly owned subsidiary of the Group entered into a sale and buyback transactions in which shares of Blacksea Properties were sold at ?1.825m with an option to buyback at an agreed price of ?4m. This option is required to be exercised before 15 December 2009. This arrangement is treated as a financing transaction with the intention to exercise the buyback option. 6 NAV PER SHARE 30 31 June December 2009 2008 Net Asset Value 34,219,589 44,092,026 Average number of shares in issue 48,345,000 48,345,000 Net asset value per share ? 0.71 ? 0.91 7 RECONCILIATION OF NAV PER THE FINANCIAL STATEMENTS TO PUBLISHED NAV 2009 2008 ? Per share ? Per share Net Asset Value per financial statements 34,219,589 0.71 44,092,026 0.91 Add back: Adjustment to value of properties 93,491 0.00 - - Preliminary expenses 677,701 0.02 736,896 0.02 Adjustment to calculate deferred tax 620,749 0.01 1,414,464 0.03 ___________ ___________ ___________ ___________ Published Net Asset Value 35,611,530 0.74 46,243,386 0.96 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ An adjustment is required within the financial statements to record the value of inventory from fair value, as used for the published Net Asset Value, to cost as required to ensure compliance with International Accounting Standard 2, "Inventories". The Company's principal documents require the dealing valuation of the Company's net assets to include preliminary expenses incurred in the establishment of the Company, such expenses to be amortised over the expected life of the Company. However, this accounting treatment is not permitted for financial reporting purposes and has been adjusted accordingly within these financial statements. 8 POST BALANCE SHEET EVENTS Group's Bulgarian subsidiary company Lewis Charles Sofia Property Fund Bulgaria EOOD incorporated four new subsidiary companies in Bulgaria after the period end. THE FOLLOWING PAGES DO NOT FORM PART OF THE AUDITED FINANCIAL STATEMENTS OF THE COMPANY AND ARE PRESENTED FOR INFORMATION PURPOSES ONLY Condensed consolidated statement of comprehensive income for the 6 month period ended 30 June 2009 Restated into Pounds Sterling for information purposes only 1 Jan 2008 to 30 Jun 2008 Revenue Capital Total Total _________________________________________________ GBP GBP GBP GBP Revenue Property sales 78,094) - 78,094 - Cost of sales (112,457 - (112,457) - Net change in (loss) / gain on revaluation of investment properties - (10,456,676) (10,456,676) 842,997 __________ __________ __________ __________ Total income (34,363) (10,456,676) (10,491,039) 842,997 __________ __________ __________ __________ Expenses Administration fees 77,719 - 77,719 71,244 Management fees 334,135 - 334,135 355,270 Performance fees - (1,852,207) (1,852,207) (146,168) Directors' fees and expenses 28,142 - 28,142 27,339 Foreign exchange loss (17,879) - (17,879) 921 Other expenses 428,594 - 428,594 415,882 Impairment of inventory net - (736,256) (736,256) 711,684 __________ __________ __________ __________ Total expenditure 850,711 (2,588,463) (1,737,752) 1,436,172 __________ __________ __________ __________ Operating loss (885,074) (7,868,213) (8,753,287) (593,175) Finance income 2,389 - 2,389 42,111 Finance cost (692,351) - (692,351) - __________ __________ __________ __________ Loss before taxation (1,575,036) (7,868,213) (9,443,249) (551,064) Taxation - 702,714 702,714 (139,623) __________ __________ __________ __________ Loss for the period (1,575,036) (7,165,499) (8,740,535) (690,687) __________ __________ __________ __________ Other comprehensive income Exchange differences arising on translation of foreign operations (4,279,613) - (4,279,613) 3,656,821 __________ __________ __________ __________ Total comprehensive loss for the period (5,854,649) (7,165,499) (13,020,148) 2,966,134 __________ __________ __________ __________ __________ __________ __________ __________ Condensed consolidated statement of financial position as at 30 June 2009 Restated into Pounds Sterling for information purposes only 30 June 2009 31 December 2008 GBP GBP GBP GBP Non-current assets Investment properties 28,205,150 42,921,330 __________ __________ 28,205,150 42,921,330 Current assets Inventory 6,661,416 6,508,829 Property options 4 5 Trade and other 174,032 525,249 receivables Cash and cash 826,225 734,930 equivalents __________ __________ 7,661,677 7,769,013 __________ __________ Total assets 35,866,827 50,690,343 __________ __________ Current liabilities Trade and other (1,314,031) (2,940,778) payables __________ __________ (1,314,031) (2,940,778) Non-current liabilities Loan payable (2,223,451) - Trade and other (2,622,373) (4,198,034) payables Deferred taxation (529,288) (1,353,699) __________ __________ (5,375,112) (5,551,733) __________ __________ Total liabilities (6,689,143) (8,492,511) __________ __________ Net assets 29,177,684 42,197,832 __________ __________ __________ __________ Equity Share capital - - Special reserve 38,676,000 38,676,000 Capital reserve (11,230,839) (4,065,340) Revenue reserve 1,732,523 7,587,172 __________ __________ Total Equity 29,177,684 42,197,832 __________ __________ __________ __________ NAV per share (Pence per share) 60.35 87.28 NAV per share at launch 72.80 72.80 (Pence per share) Condensed consolidated statement of changes in equity for the 6 month period ended 30 June 2009 Restated into Pounds Sterling for information purposes only Share Special Capital Revenue Capital Reserve Reserve Reserve Total GBP GBP GBP GBP GBP As at 31 - 38,676,000 (4,065,340) 7,587,172 42,197,832 December 2008 Loss for the - - (7,165,499) (1,575,036) (8,740,535) period Foreign exchange adjustment arising on translation - - - (4,279,613) (4,279,613) to Sterling _______ __________ __________ __________ __________ As at 30 June - 38,676,000 (11,230,839) 1,732,523 29,177,684 2009 _______ __________ __________ __________ __________ _______ __________ __________ __________ __________ Share Special Capital Revenue Capital Reserve Reserve Reserve Total GBP GBP GBP GBP GBP As at 31 - 38,676,000 12,503,407 (2,518,331) 48,661,076 December 2007 Profit/(loss) - - 849,542 (1,540,229) (690,687) for the period Foreign exchange adjustment arising on translation - - - 3,656,821 3,656,821 to Sterling _______ __________ __________ __________ __________ As at 30 June - 38,676,000 13,352,949 (401,739) 51,627,210 2008 _______ __________ __________ __________ __________ _______ __________ __________ __________ __________ Condensed consolidated statement of cash flows for the 6 month period ended 30 June 2009 Restated into Pounds Sterling for information purposes only 1 Jan 2009 to 1 Jan 2008 to 30 Jun 2009 30 Jun 2008 GBP GBP ___________ ___________ Loss for the year (8,740,535) (690,687) Adjustment for: Net finance income and expenses 689,962 (8,618) Revaluation of investment properties 10,456,676 Impairment of inventory (736,256) (842,997) Taxation (824,411) 139,623 ___________ ___________ Operating cash flows before movements in working capital 845,436 (1,402,679) (Increase) / decrease in operating and 305,199 (305,029) other receivables (Decrease) / increase in operating and (2,516,730) 597,114 other payables Increase in inventory (159,281) ___________ ___________ (1,525,376) (1,110,594) Interest received 2,389 8,618 Taxation - ___________ ___________ Net cash inflow outflow from operating (1,522,987) (1,101,976) activities ___________ ___________ Investing activities Additions to investment properties (37,022) (2,457,291) ___________ ___________ Net cash outflow from investing activities (37,022) (2,457,291) ___________ ___________ Financing activities Proceeds from loan 1,616,336 - ___________ ___________ Net cash inflow from financing activities 1,616,336 - ___________ ___________ Net decrease in cash and cash equivalents 56,327 (3,559,267) Exchange difference arising on (1,312,801) 342,895 translation to Sterling Cash and cash equivalents 2,082,699 5,299,071 at start of period ___________ ___________ Cash and cash equivalents 826,225 2,082,699 at end of period ___________ ___________ ___________ ___________
1 Year Lewis Charles Sofia Prop Fund Chart |
1 Month Lewis Charles Sofia Prop Fund Chart |
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