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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nanette | LSE:NAT | London | Ordinary Share | NL0000685246 | ORD EUR0.02 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 8.00 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMNAT
RNS Number : 8659X
Nanette Real Estate Group N.V.
24 August 2009
Nanette Real Estate Group NV
"Nanette" or "the Group"
Q2 Financial Results 2009
Nanette Real Estate Group, the Central & Eastern European focused residential
real estate developer is pleased to announce its reviewed financial results for
the 6 months ended 30 June 2009.
Financial Highlights
* Turnover EUR2 m (EUR10.6 m Q2 2008)
* EUR 2 m income from sales of apartments (EUR10.6 m Q2 2008)
* Loss before tax : EUR5.6 m (Profit EUR4.4 m Q2 2008)
* Profit before tax in the 3 month ended on June: EUR1.9 m (Profit EUR3.9 m Q2 2008)
Operational Highlights
* 221 apartments sold in the period (192 Q2 2008)
* 151 apartments were reflected in the revenues (out of which 41 were in the
revenue of these consolidated financial statements and 110 from Poland as the
market picked up); (276 Q2 2008 - 61 apartments in Hungary and 215 apartments in
Poland)
* 2,781 apartments sold in total
* Total land-bank not recognized to profit app. 11,200, apartments (11,460 Q2
2008) excluding investment properties, which includes land of app. 620,000
sqm. in Hungary Poland and Ukraine.
Important Notice
Nanette's board of directors believe the costs of maintaining the Company's
listing exceed the benefits, and therefore believe that the cancellation of the
Company's listing on AIM is in the best interests of shareholders. Consequently
the Company will shortly convene an Extraordinary General Meeting ("EGM") at
which a resolution proposing the cancellation of the Company's AIM listing will
be tabled. The date of the EGM will be announced within 7 days. Further details
were given in a separate announcement released on Friday the 21st of August,
titled "Notice Regarding Delisting".
Outlook
The loss in these financial statements was caused by exposure to weakening
currencies in CEE and devaluation of our investment in Ukraine. This resulted in
unrealised foreign exchange losses for the company, without effecting the local
market activity, where each country is independently operated. In the current
foreign exchange rate of the Zloty the company will recognize back another part
of the losses in the third quarter.
Despite the current global weakening, the company is encouraged by the positive
activity in Poland that continued to grow in the second quarter, where the
market has picked up again at the end of February and in the last six months it
sold more than 170 apartments, which represents a substantial growth, compared
to the total number of flats it sold (86) during the whole year of 2008.
Shaul Lotan, Chairman, and Oscar Kazanelson CEO, commented:
"Despite the current global economic situation, which affected the real estate
development sector in the region, the company has continued to present
sustainable sales for long term profitability. The company believes that there
is still a significant demand for high quality residential property in Central
and Eastern Europe, as recently was demonstrated in Poland."
The Company, with its highly capable management team and diversified portfolio,
combined with its recent financing and refinancing facilities, will expedite the
projects' development in accordance with its business plan. These facilities are
providing Nanette an additional leverage and demonstrating the Company's strong
positions in the local markets where it is active.
The board had a long discussion about the future of the Company and came to the
conclusion that due to lack of liquidity and the opportunities on the AIM the
Company will be better served de-listed from AIM, the board voted to recommend
the Company shareholders to de-list Nanette from AIM.
24st August 2009
Enquiries:
+-----------+-----------+--------------------------+----------------------+-----------+
| | |
+--------------------------------------------------+----------------------+
| Nanette Real Estate | |
+--------------------------------------------------+----------------------+
| | Shaul Lotan | + 31 20 778 4141 |
+-----------------------+--------------------------+----------------------------------+
| | Eyal Keltsh | + 48 606 141 201 |
+-----------------------+--------------------------+----------------------------------+
| | |
+--------------------------------------------------+----------------------------------+
| Global Equity IR | |
+--------------------------------------------------+----------------------------------+
| | Amira Bardichev | 07956 206270 |
+-----------------------+--------------------------+----------------------------------+
| | | |
+-----------------------+--------------------------+----------------------------------+
| KBC Peel Hunt | |
+--------------------------------------------------+----------------------------------+
| | Capel Irwin | 0207 418 8900 |
+-----------+-----------+--------------------------+----------------------+-----------+
CONSOLIDATED BALANCE SHEETS
Euro in thousands
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | June 30, | | December 31, |
+----------------------------------------------+-+--------------------------+--+--------------+
| | | 2009 | | 2008 | | 2008 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | Unaudited | | Audited |
+----------------------------------------------+-+--------------------------+--+--------------+
| ASSETS | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| CURRENT ASSETS: | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Cash and cash equivalents | | 8,960 | | 38,376 | | 22,056 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Deposits | | 8,298 | | 26,804 | | 22,657 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Trade and other receivables | | 6,488 | | 3,131 | | 7,351 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Inventory of land and housing units | | 34,890 | | 39,081 | | 24,330 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | 58,636 | | 107,392 | | 76,394 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| NON-CURRENT ASSETS: | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Land | | 32,754 | | 27,873 | | 43,130 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Investment properties | | 15,899 | | 47,273 | | 17,036 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Furniture and equipment | | 66 | | 147 | | 170 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Other financial assets | | 17,500 | | 7,120 | | 16,746 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Goodwill | | 420 | | 1,148 | | 455 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Deferred tax asset | | 1,348 | | 572 | | 357 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Investment in associates (Note 3) | | 56,972 | | 68,084 | | 52,114 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | 124,959 | | 152,217 | | 130,008 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Total assets | | 183,595 | | 259,609 | | 206,402 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
CONSOLIDATED BALANCE SHEETS
Euro in thousands
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | June 30, | | December 31, |
+----------------------------------------------+-+--------------------------+--+--------------+
| | | 2009 | | 2008 | | 2008 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | Unaudited | | Audited |
+----------------------------------------------+-+--------------------------+--+--------------+
| LIABILITIES AND EQUITY | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| CURRENT LIABILITIES: | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Interest bearing loans and | | 15,565 | | 17,360 | | 32,929 |
| borrowings | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Trade and other payables | | 8,366 | | 15,107 | | 6,302 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Customer advances | | 10,191 | | 16,248 | | 9,484 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | 34,122 | | 48,715 | | 48,715 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| NON-CURRENT LIABILITIES: | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Interest bearing loans and | | 73,361 | | 105,233 | | 75,206 |
| borrowings | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Other liabilities | | 2,632 | | 9,175 | | 2,482 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Deferred tax liability | | 538 | | 1,844 | | 96 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | 76,531 | | 116,252 | | 77,784 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Total liabilities | | 110,653 | | 164,967 | | 126,499 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| EQUITY: | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Equity attributable to equity | | | | | | |
| holders of the parent: | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Share capital | | 3,449 | | 3,449 | | 3,449 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Share premium | | 67,473 | | 67,473 | | 67,473 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Treasury shares | | (527) | | (527) | | (527) |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Other reserves | | (971) | | 2,038 | | 486 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Retained earnings | | 3,421 | | 21,972 | | 8,906 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | 72,845 | | 94,405 | | 79,787 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Minority interests | | 97 | | 237 | | 116 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Total equity | | 72,942 | | 94,642 | | 79,903 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| | | | | | | |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
| Total liabilities and equity | | 183,595 | | 259,609 | | 206,402 |
+----------------------------------------------+-+-----------+--+-----------+--+--------------+
+---------------------+--+-------------------+--+-------------------+--+-------------------+
| August 19, 2009 | | | | | | |
+---------------------+--+-------------------+--+-------------------+--+-------------------+
|Date of approval of | | Shaul Lotan | |Oscar Katzenelson | | Ran Jacobs |
| the | | | | | | |
+---------------------+--+-------------------+--+-------------------+--+-------------------+
| financial | | Chairman of the | | Director and CEO | | Director and CFO |
| statements | | Board of | | | | |
| | | Directors | | | | |
+---------------------+--+-------------------+--+-------------------+--+-------------------+
CONSOLIDATED STATEMENTS OF INCOME
Euro in thousands (except per share data)
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | Six months ended | | Three months ended | | Year ended |
| | | June 30, | | June 30, | | December |
| | | | | | | 31, |
+------------------------------+-+-----------------------+-+-----------------------+-+------------+
| | | 2009 | | 2008 | | 2009 | | 2008 | | 2008 |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | Unaudited | | Audited |
+------------------------------+-+-------------------------------------------------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Revenues | | 2,091 | | 10,562 | | 1,135 | | 1,193 | | 26,529 |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Cost of | | 1,764 | | 8,156 | | 1,022 | | 905 | | 20,921 |
| revenues | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Gross profit | | 327 | | 2,406 | | 113 | | 288 | | 5,608 |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Fair value | | (683) | | 1,786 | | (683) | | 1,786 | | 1,969 |
| adjustment of | | | | | | | | | | |
| investment | | | | | | | | | | |
| property | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | (356) | | 4,192 | | (570) | | 2,074 | | 7,577 |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Marketing, | | 2,537 | | 2,654 | | 1,347 | | 1,257 | | 6,351 |
| general and | | | | | | | | | | |
| administrative | | | | | | | | | | |
| expenses | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Operating | | (2,893) | | 1,538 | | (1,917) | | 817 | | 1,226 |
| profit (loss) | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Financial costs | | (8,642) | | (9,765) | | (6,503) | | (5,900) | | (27,685) |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Financial | | 7,519 | | 12,474 | | 12,276 | | 8,433 | | 25,272 |
| income | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Share in profit | | (1,607) | | 506 | | (1,947) | | 706 | | 1,180 |
| (loss) of | | | | | | | | | | |
| associates | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Other income | | - | | 450 | | - | | (138) | | 6,330 |
| (expenses) | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Profit (loss) | | (5,623) | | 5,203 | | 1,909 | | 3,918 | | 6,323 |
| before taxes on | | | | | | | | | | |
| income | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Taxes on income | | (213) | | 600 | | 399 | | 256 | | 701 |
| (tax benefit) | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Profit | | (5,410) | | 4,603 | | 1,510 | | 3,662 | | 5,622 |
| (loss) for the | | | | | | | | | | |
| period | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Attributable | | | | | | | | | | |
| to: | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Equity | | (5,485) | | 4,437 | | 1,431 | | 3,710 | | 5,529 |
| holders | | | | | | | | | | |
| of the | | | | | | | | | | |
| parent | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Minority | | 75 | | 166 | | 79 | | (48) | | 93 |
| interest | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | (5,410) | | 4,603 | | 1,510 | | 3,662 | | 5,622 |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Earnings (loss) | | | | | | | | | | |
| per share | | | | | | | | | | |
| attributable to | | | | | | | | | | |
| equity holders | | | | | | | | | | |
| of the parent | | | | | | | | | | |
| (in Euro): | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Basic | | (0.03) | | 0.03 | | 0.01 | | 0.02 | | 0.03 |
| and | | | | | | | | | | |
| diluted | | | | | | | | | | |
+------------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | Six months ended | | Three months ended | | Year ended |
| | | June 30, | | June 30, | | December |
| | | | | | | 31, |
+----------------------------+-+-----------------------+-+-----------------------+-+------------+
| | | 2009 | | 2008 | | 2009 | | 2008 | | 2008 |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | Unaudited | | Audited |
+----------------------------+-+-------------------------------------------------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Profit (loss) for the | | (5,410) | | 4,603 | | 1,510 | | 3,662 | | 5,622 |
| period | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Other comprehensive income | | | | | | | | | | |
| (loss): | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Currency translation | | (692) | | 1,125 | | (158) | | 786 | | (392) |
| differences | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Group's share in other | | (775) | | 1,048 | | 663 | | 1,045 | | (2,198) |
| comprehensive income | | | | | | | | | | |
| (loss) of associates | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Other comprehensive income | | (1,467) | | 2,173 | | 505 | | 1,831 | | (2,590) |
| (loss) for the period, net | | | | | | | | | | |
| of tax | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Total comprehensive income | | (6,877) | | 6,776 | | 2,015 | | 5,493 | | 3,032 |
| (loss) for the period, net | | | | | | | | | | |
| of tax | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Attributable to: | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Equity holders of the | | (6,942) | | 6,533 | | 1,949 | | 5,476 | | 2,910 |
| parent | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| Minority interests | | 65 | | 243 | | 66 | | 17 | | 122 |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | | | | | | | | | |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
| | | (6,877) | | 6,776 | | 2,015 | | 5,493 | | 3,032 |
+----------------------------+-+----------+-+----------+-+----------+-+----------+-+------------+
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Euro in thousands
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | Attributable to equity holders of the parent | | | | |
+------------------------------------------------------+-----+---------------------------------------------------------------------------------------------+-----+-----------+-----+----------+
| | | Share | | Share | | Treasury | | Other | | Retained | | | | Minority | | Total |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | capital | | premium | | Shares | | reserves | | earnings | | Total | | interests | | equity |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Balance at January 1, 2008 (audited) | | 3,435 | | 67,415 | | - | | (58) | | 17,535 | | 88,327 | | 568 | | 88,895 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Total comprehensive income (loss) for the period | | - | | - | | - | | (2,619) | | 5,529 | | 2,910 | | 122 | | 3,032 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Exercise of options | | 14 | | 58 | | - | | - | | - | | 72 | | - | | 72 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Treasury shares | | - | | - | | (527) | | - | | - | | (527) | | - | | (527) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Dividend paid | | - | | - | | - | | - | | (10,995) | | (10,995) | | - | | (10,995) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Dividend to minority interest | | - | | - | | - | | - | | - | | - | | (159) | | (159) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Acquisition of minority interest | | - | | - | | - | | - | | - | | - | | (415) | | (415) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Reclassification according to statutory requirements | | - | | - | | - | | 3,163 | | (3,163) | | - | | - | | - |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | 14 | | 58 | | (527) | | 3,163 | | (14,158) | | (11,450) | | (574) | | (12,024) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Balance at December 31, 2008 (audited) | | 3,449 | | 67,473 | | (527) | | 486 | | 8,906 | | 79,787 | | 116 | | 79,903 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Total comprehensive income (loss) for the period | | - | | - | | - | | (1,457) | | (5,485) | | (6,942) | | 65 | | (6,877) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Sale of shares of subsidiaries | | - | | - | | - | | - | | - | | - | | (84) | | (84) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Balance at June 30, 2009 (unaudited) | | 3,449 | | 67,473 | | (527) | | (971) | | 3,421 | | 72,845 | | 97 | | 72,942 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Balance at January 1, 2008 (audited) | | 3,435 | | 67,415 | | - | | (58) | | 17,535 | | 88,327 | | 568 | | 88,895 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Total comprehensive income | | - | | - | | - | | 2,096 | | 4,437 | | 6,533 | | 243 | | 6,776 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Exercise of options | | 14 | | 58 | | - | | - | | - | | 72 | | - | | 72 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Treasury shares | | - | | - | | (527) | | - | | - | | (527) | | - | | (527) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Dividend to minority interest | | - | | - | | - | | - | | - | | - | | (159) | | (159) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Acquisition of minority interest | | - | | - | | - | | - | | - | | - | | (415) | | (415) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | 14 | | 58 | | (527) | | - | | - | | (455) | | (574) | | (1,029) |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| | | | | | | | | | | | | | | | | |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
| Balance at June 30, 2008 (unaudited) | | 3,449 | | 67,473 | | (527) | | 2,038 | | 21,972 | | 94,405 | | 237 | | 94,642 |
+------------------------------------------------------+-----+---------+-----+---------+-----+----------+-----+----------+-----+----------+-----+----------+-----+-----------+-----+----------+
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Euro in thousands
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | Attributable to equity holders of the parent | | | | |
+--------------------------------------------------+-----+--------------------------------------------------------------------------------------------+-----+-----------+-----+--------+
| | | Share | | Share | | Treasury | | Other | | Retained | | | | Minority | | Total |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | capital | | premium | | shares | | reserves | | earnings | | Total | | interests | | equity |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Balance at April 1, 2009 (unaudited) | | 3,449 | | 67,473 | | (527) | | (1,489) | | 1,990 | | 70,896 | | 115 | | 71,011 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Total comprehensive income (loss) for the period | | - | | - | | - | | 518 | | 1,431 | | 1,949 | | 66 | | 2,015 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Sale of shares of subsidiaries | | - | | - | | - | | - | | - | | - | | (84) | | (84) |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Balance at June 30, 2009 (unaudited) | | 3,449 | | 67,473 | | (527) | | (971) | | 3,421 | | 72,845 | | 97 | | 72,942 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Balance at April 1, 2008 (unaudited) | | 3,435 | | 67,415 | | - | | 272 | | 18,262 | | 89,384 | | 280 | | 89,664 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Total Comprehensive income | | - | | - | | - | | 1,766 | | 3,710 | | 5,476 | | 17 | | 5,493 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Exercise of options | | 14 | | 58 | | - | | - | | - | | 72 | | - | | 72 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Treasury shares | | - | | - | | (527) | | - | | - | | (527) | | - | | (527) |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Dividend to minority interest | | - | | - | | - | | - | | - | | - | | (57) | | (57) |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Acquisition of minority interest | | - | | - | | - | | - | | - | | - | | (3) | | (3) |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | 14 | | 58 | | (527) | | - | | - | | (455) | | (60) | | (515) |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| | | | | | | | | | | | | | | | | |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
| Balance at June 30, 2008 (unaudited) | | 3,449 | | 67,473 | | (527) | | 2,038 | | 21,972 | | 94,405 | | 237 | | 94,642 |
+--------------------------------------------------+-----+---------+-----+---------+-----+-----------+-----+----------+-----+----------+-----+--------+-----+-----------+-----+--------+
CONSOLIDATED STATEMENTS OF CASH FLOWS
Euro in thousands
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | Six months ended | | Three months ended | | Year |
| | | June 30, | | June 30, | | ended |
| | | | | | | December |
| | | | | | | 31, |
+----------------------------------+-+----------------------------+-+----------------------------+-+-------------+
| | | 2009 | | 2008 | | 2009 | | 2008 | | 2008 |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | Unaudited | | Unaudited | | Audited |
+----------------------------------+-+----------------------------+-+----------------------------+-+-------------+
| Cash flows from | | | | | | | | | | |
| operating | | | | | | | | | | |
| activities: | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Profit (loss) | | (5,410) | | 4,603 | | 1,510 | | 3,662 | | 5,622 |
| for the period | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Adjustments | | | | | | | | | | |
| for: | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Non-cash: | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Depreciation | | 13 | | 23 | | 6 | | 4 | | 40 |
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Financial | | 8,642 | | 9,765 | | 6,503 | | 5,900 | | 27,685 |
| costs | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Financial | | (7,519) | | (12,474) | | (12,276) | | (8,433) | | (25,272) |
| income | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Taxes | | (213) | | 600 | | 399 | | 256 | | 701 |
| on | | | | | | | | | | |
| income | | | | | | | | | | |
| (tax | | | | | | | | | | |
| benefit) | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Other | | - | | (413) | | - | | 69 | | 370 |
| income | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Share | | 1,607 | | (506) | | 1,947 | | (706) | | (1,180) |
| of | | | | | | | | | | |
| loss | | | | | | | | | | |
| (gain) | | | | | | | | | | |
| in | | | | | | | | | | |
| associate | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Gain | | (84) | | - | | (84) | | - | | (6,527) |
| on | | | | | | | | | | |
| sale | | | | | | | | | | |
| of | | | | | | | | | | |
| interest | | | | | | | | | | |
| in joint | | | | | | | | | | |
| ventures | | | | | | | | | | |
| and | | | | | | | | | | |
| subsidiaries | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Fair | | 683 | | (1,786) | | 683 | | (1,786) | | (1,969) |
| value | | | | | | | | | | |
| adjustment | | | | | | | | | | |
| of | | | | | | | | | | |
| investment | | | | | | | | | | |
| property | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | 3,129 | | (4,791) | | (2,822) | | (4,696) | | (6,152) |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Working capital | | | | | | | | | | |
| adjustments: | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Decrease | | (1,450) | | 3,144 | | (5,046) | | (781) | | (1,114) |
| (increase) | | | | | | | | | | |
| in trade | | | | | | | | | | |
| and other | | | | | | | | | | |
| receivables | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Decrease | | (936) | | (14,090) | | 910 | | (1,382) | | (29,310) |
| (increase) | | | | | | | | | | |
| in | | | | | | | | | | |
| inventory | | | | | | | | | | |
| of land | | | | | | | | | | |
| and | | | | | | | | | | |
| housing | | | | | | | | | | |
| units | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Increase | | 3,386 | | (4,984) | | 3,517 | | (3,402) | | (4,014) |
| (decrease) | | | | | | | | | | |
| in trade | | | | | | | | | | |
| and other | | | | | | | | | | |
| payables | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Increase | | 912 | | 9,657 | | 570 | | 8,675 | | 2,462 |
| in | | | | | | | | | | |
| customer | | | | | | | | | | |
| advances | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | 1,912 | | (6,273) | | (49) | | 3,110 | | (31,976) |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Interest paid | | (2,317) | | (5,837) | | (2,038) | | (2,317) | | (9,294) |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Interest | | 999 | | 4,884 | | 211 | | 1,286 | | 8,973 |
| received | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Income tax paid | | (852) | | (888) | | (614) | | - | | (958) |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | (2,170) | | (1,841) | | (2,441) | | (1,031) | | (1,279) |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
| Net cash | | (2,539) | | (8,302) | | (3,802) | | 1,045 | | (33,785) |
| provided by | | | | | | | | | | |
| (used in) | | | | | | | | | | |
| operating | | | | | | | | | | |
| activities | | | | | | | | | | |
+----------------------------------+-+------------+-+-------------+-+-------------+-+------------+-+-------------+
CONSOLIDATED STATEMENTS OF CASH FLOWS
Euro in thousands
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | Six months ended | | Three months | | Year |
| | | June 30, | | ended | | ended |
| | | | | June 30, | | |
| | | | | | | December |
| | | | | | | 31, |
+----------------------------------+-+-----------------------------+-+-----------------------------+-+-------------+
| | | 2009 | | 2008 | | 2009 | | 2008 | | 2008 |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | Unaudited | | Unaudited | | Audited |
+----------------------------------+-+-----------------------------+-+-----------------------------+-+-------------+
| Cash flows from investing | | | | | | | | | | |
| activities: | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Acquisition of | | - | | (29,855) | | - | | (29,855) | | (29,855) |
| subsidiaries, net | | | | | | | | | | |
| of cash acquired | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Proceeds upon sale | | - | | - | | - | | - | | 24,152 |
| of interest in | | | | | | | | | | |
| jointly controlled | | | | | | | | | | |
| entity | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Deconsolidation of | | - | | (4,624) | | - | | (4,624) | | (4,624) |
| proportionately | | | | | | | | | | |
| consolidated | | | | | | | | | | |
| company (a) | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Acquisition of | | - | | (3) | | - | | (3) | | (582) |
| minority interest | | | | | | | | | | |
| in subsidiaries | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Loans granted, net | | (8,635) | | (10,772) | | (3,785) | | (5,799) | | (5,862) |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Restricted bank | | 13,074 | | (13,189) | | 13,652 | | 20,141 | | (12,735) |
| deposits, net | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Purchases of | | - | | - | | - | | - | | (74) |
| furniture and | | | | | | | | | | |
| equipment | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | 4,439 | | (58,443) | | 9,867 | | (20,140) | | (29,580) |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Cash flows from | | | | | | | | | | |
| financing | | | | | | | | | | |
| activities: | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Short-term loans, | | (981) | | 2,077 | | (981) | | 2,077 | | 2,995 |
| net | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Issue of | | - | | 24,402 | | - | | 24,402 | | 24,402 |
| debentures, net of | | | | | | | | | | |
| issuance costs | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Repayments of | | (1,924) | | (2,994) | | (694) | | (2,994) | | (18,025) |
| debentures | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Receipt of | | 2,330 | | 19,529 | | 1,063 | | 4,825 | | 32,363 |
| long-term loans | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Repayments of | | (14,434) | | (8,961) | | (14,434) | | (2,126) | | (14,584) |
| long-term loans | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Dividend paid | | - | | - | | - | | - | | (10,995) |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Exercise of | | - | | 72 | | - | | 72 | | 72 |
| options | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Treasury shares | | - | | (527) | | - | | (527) | | (527) |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Net cash provided by | | (15,009) | | 33,598 | | (15,046) | | 25,729 | | 15,701 |
| financing activities | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Effect of exchange rate | | 13 | | 618 | | 1,713 | | 552 | | (1,185) |
| changes on cash and cash | | | | | | | | | | |
| equivalents | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Increase (decrease) in | | (13,096) | | (32,529) | | 7,268 | | 7,186 | | (48,849) |
| cash and cash | | | | | | | | | | |
| equivalents | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Cash and cash | | 22,056 | | 70,905 | | 16,228 | | 31,190 | | 70,905 |
| equivalents at beginning | | | | | | | | | | |
| of period | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
| Cash and cash | | 8,960 | | 38,376 | | 8,960 | | 38,376 | | 22,056 |
| equivalents at end of | | | | | | | | | | |
| period | | | | | | | | | | |
+----------------------------------+-+-------------+-+-------------+-+-------------+-+-------------+-+-------------+
CONSOLIDATED STATEMENTS OF CASH FLOWS
Euro in thousands
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | Six months | | Three months | | Year |
| | | ended | | ended | | ended |
| | | June 30, | | June 30, | | December |
| | | | | | | 31, |
+--------------------------------------------+-+------------------------+-+------------------------+-+-------------+
| | | 2009 | | 2008 | | 2009 | | 2008 | | 2008 |
+--------------------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | Unaudited | | Unaudited | | Audited |
+--------------------------------------------+-+------------------------+-+------------------------+-+-------------+
| | | | | | | | | | | |
+--------------------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| (a) | Acquisition of | | | | | | | | | | |
| | subsidiaries, net | | | | | | | | | | |
| | of cash acquired | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Assets and | | | | | | | | | | |
| | liabilities | | | | | | | | | | |
| | at date of | | | | | | | | | | |
| | acquisition: | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Working | | - | | - | | - | | - | | 3,713 |
| | capital | | | | | | | | | | |
| | (excluding | | | | | | | | | | |
| | cash and | | | | | | | | | | |
| | cash | | | | | | | | | | |
| | equivalents) | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Investment | | - | | - | | - | | - | | (33,568) |
| | property | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | - | | - | | - | | - | | (29,855) |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| (b) | Deconsolidation of | | | | | | | | | | |
| | proportionately | | | | | | | | | | |
| | consolidated | | | | | | | | | | |
| | company: | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Assets and | | | | | | | | | | |
| | liabilities at date | | | | | | | | | | |
| | of deconsolidation: | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Working | | - | | 49,352 | | - | | 49,352 | | 49,336 |
| | capital | | | | | | | | | | |
| | (excluding | | | | | | | | | | |
| | cash and cash | | | | | | | | | | |
| | equivalents) | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Furniture and | | - | | 26 | | - | | 26 | | 26 |
| | equipment | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Investment | | - | | 10,515 | | - | | 10,515 | | 10,515 |
| | property | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Goodwill | | - | | 1,217 | | - | | 1,217 | | 1,085 |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Deferred | | - | | (1,900) | | - | | (1,900) | | (1,900) |
| | taxes | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Long-term | | - | | (11,848) | | - | | (11,848) | | (11,848) |
| | receivables | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Long-term | | - | | (39,205) | | - | | (39,205) | | (39,205) |
| | liabilities | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Minority | | - | | (16) | | - | | (16) | | - |
| | interest | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Investment in | | - | | (12,765) | | - | | (12,765) | | (12,633) |
| | associate | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | - | | (4,624) | | - | | (4,624) | | (4,624) |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| (c) | Deconsolidation of | | | | | | | | | | |
| | proportionately | | | | | | | | | | |
| | consolidated | | | | | | | | | | |
| | company | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Assets and | | | | | | | | | | |
| | liabilities | | | | | | | | | | |
| | at date of | | | | | | | | | | |
| | deconsolidation: | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Working | | - | | - | | - | | - | | (2,227) |
| | capital | | | | | | | | | | |
| | (excluding | | | | | | | | | | |
| | cash and | | | | | | | | | | |
| | cash | | | | | | | | | | |
| | equivalents) | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Investment | | - | | - | | - | | - | | 26,812 |
| | properties | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Long-term | | - | | - | | - | | | | (6,113) |
| | receivables | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Long-term | | - | | | | - | | - | | 5,026 |
| | liabilities | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Deferred | | - | | | | - | | - | | (207) |
| | taxes | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Currency | | - | | | | - | | - | | (407) |
| | translation | | | | | | | | | | |
| | adjustment | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | Gain on | | - | | - | | - | | - | | 1,268 |
| | disposal | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | | | | | | | | | |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
| | | | - | | - | | - | | - | | 24,152 |
+--------+-----------------------------------+-+--------+-+-------------+-+--------+-+-------------+-+-------------+
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
NOTE 1:- GENERAL
The interim condensed consolidated financial statements of the Company for six
months ended June 30, 2009, were authorized for issue in accordance with a
resolution of the directors on August 19, 2009.
The Company is a limited liability company incorporated and domiciled in the
Netherlands. The address of its registered office is Rapenburgerstraat 204, 1011
Mn Amsterdam, The Netherlands. The Company's shares are publicly traded on AIM
in London. In addition, the Company has debentures outstanding which are
registered for trading on the Tel-Aviv Stock Exchange.
The Company and its investee companies ("the Group") are engaged in the
development, construction and sale of real estate residential projects in
Hungary, Poland, Romania, Croatia and Ukraine.
NOTE 2:-BASIS OF PREPARATION AND ACCOUNTING POLICIES
a. Basis of preparation:
The interim financial statement as of June 30, 2009 and for the six months and
three months then ended ("the interim statements") have been prepared in a
condensed format in accordance with IAS 34, "Interim Financial Reporting", and
should be read in conjunction with the Group's audited annual financial
statements and accompanying notes as of December 31, 2008 ("2008 annual
financial statements").
b. Accounting policies:
The accounting policies and methods of computations applied in preparation of
the interim condensed consolidated financial statements are consistent with
those applied in the 2008 annual financial statements, except for the adoption
of new Standards and Interpretations commencing January 1, 2009, as noted below:
IAS 1 - Revised Presentation of Financial Statements
The revised Standard separates owner and non-owner changes in equity. The
statement of changes in equity includes only details of transactions with
owners, with non-owner changes in equity presented as a single line. In
addition, the Standard introduces the statement of comprehensive income: it
presents all items of recognized income and expense, either in one single
statement, or in two linked statements. The Group has elected to present two
statements.
IFRIC 9 - Reassessment of Embedded Derivatives and IAS 39 Financial
Instruments: Recognition and Measurement
These amendments to IFRIC 9 require an entity to assess whether an embedded
derivative must be separated from a host contract when the entity reclassifies a
hybrid financial asset out of the fair value through profit or loss category.
This assessment is to be made based on circumstances that existed on the later
of the date the entity first became a party to the contract and the date of any
contract amendments that significantly change the cash flows of the contract.
IAS 39 now states that if an embedded derivative cannot be reliably measured,
the entire hybrid instrument must remain classified as at fair value through
profit or loss.
IFRIC 16 - Hedges of a Net Investment in a Foreign Operation
The interpretation is to be applied prospectively. IFRIC 16 provides guidance on
the accounting for a hedge of a net investment. As such, it provides guidance on
identifying the foreign currency risks that qualify for hedge accounting in the
hedge of a net investment, where within the group the hedging instruments can be
held in the hedge of a net investment and how an entity should determine the
amount of foreign currency gain or loss, relating to both the net investment and
the hedging instrument, to be recycled on disposal of the net investment.
IFRS 2 - Share-based Payment
Pursuant to an amendment to IFRS 2, the definition of vesting terms only
includes service conditions and performance conditions and the cancellation of a
grant that includes non-vesting conditions by the Company or the counterparty,
is accounted for by way of acceleration of vesting and not by forfeiture.
Conditions that are other than service and performance conditions is viewed as
non-vesting conditions and must therefore be taken into account when estimating
the fair value of the instrument granted.
IAS 28 - Investment in Associates
Pursuant to an amendment to IAS 28, the test of impairment of an investment in
an associate is carried out with reference to the entire investment.
Accordingly, a recognized impairment loss is not allocated specifically but
rather attributed to the investment as a whole. Therefore, the entire impairment
loss previously recognized may be reversed to the extent that the relevant
conditions are satisfied.
IFRIC 15 - Agreements for the Construction of Real Estate
IFRIC 15 establishes rules for distinguishing between agreements for the
construction of real estate under the scope of IAS 11 and similar agreements
under the scope of IAS 18. When an agreement is specifically negotiated for the
construction of an asset or a combination of assets when the buyer is able to
specify the major structural elements and specify any changes therein, the
agreement is within the scope of IAS 11. Accordingly, revenue is recognized by
reference to the stage of completion. In contrast, when the buyer has only
limited ability to influence the design or to specify only minor variations, the
agreement is an agreement for the sale of real estate within the scope of IAS
18.
The adoption of these amendments did not have any impact on the financial
position or performance of the Group.
c. Improvements to IFRS:
In May 2008, the Board issued its first omnibus of amendments to its standards,
primarily with a view to removing inconsistencies and clarifying wording. There
are separate transitional provisions for each standard. The adoption of the
following amendments resulted in changes to accounting policies but did not have
any impact on the financial position or performance of the Group.
IAS 1 - Presentation of Financial Statements:
The amended IAS 1 ("the amendment") deals with current or non-current
classification of the liability component of a convertible instrument. Pursuant
to the amendment, terms of a liability that can, at the option of the
counterparty, be settled by the issue of the entity's equity instruments do not
affect its classification as current or non-current. The amendment will be
prospectively adopted starting from the financial statements for periods
beginning on January 1, 2010. Earlier application is permitted.
The Company believes that the effect of the amendment on its financial position,
operating results and cash flows is not expected be material.
IAS 23 Borrowing Costs
The definition of borrowing costs is revised to consolidate the two types of
items that are considered components of "borrowing costs" into one - the
interest expense calculated using the effective interest rate method calculated
in accordance with IAS 39.
IAS 38 Intangible Assets
Expenditure on advertising and promotional activities is recognized as an
expense when the Group either has the right to access the goods or has received
the service.
d. Standards issued but not yet effective:
IAS 17 - Leases:
The amended IAS 17 ("the amendment") deals with the classification of land and
buildings. Pursuant to the amendment, the specific criteria for land
classification were removed. Consequently, the requirement to classify a lease
of land as an operating lease when title does not pass at the end of the lease
no longer exists but the classification of the lease of land shall be examined
by reference to the general guidance in IAS 17 which addresses the
classification of a lease as finance or operating while taking into account that
land, normally, has an indefinite economic life.
The amendment will be retrospectively or prospectively adopted starting from the
financial statements for periods beginning on January 1, 2010. Earlier
application is permitted. For the retrospective adoption, at the date of
adoption of the amendment, the classification of the land shall be reassessed on
the basis of information existing at the inception of the lease and if there has
been a change in the lease classification, the guidance of IAS 17 shall be
applied retrospectively at the inception of the lease. However, if the entity
does not have the information necessary to apply the amendment retrospectively,
it shall apply the amendment prospectively on the basis of the information
existing at the date it adopts the amendment and recognize the asset and
liability relating to the land lease newly classified as a finance lease at the
fair value on that date. Any difference between the fair value of the asset and
the fair value of the liability will be recognized in retained earnings.
The Company believes that the effect of the amendment on its financial position,
operating results and cash flows is not expected be material.
IAS 36 - Impairment of Assets:
The amended IAS 36 ("the amendment") defines the required accounting unit to
which goodwill will be allocated for impairment testing of goodwill. Pursuant to
the amendment, the largest unit permitted for impairment testing of goodwill
acquired in a business combination is an operating segment as defined in IFRS 8,
"Operating Segments" before the aggregation for reporting purposes. The
amendment will be prospectively adopted starting from the financial statements
for periods beginning on January 1, 2010. Earlier application is permitted.
The Company believes that the effect of the amendment on its financial position,
operating results and cash flows is not expected be material.
IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations:
The amended IFRS 5 ("the amendment") specifies the disclosures required in
respect of non-current assets (or disposal groups) that are classified as held
for sale or discontinued operations. Pursuant to the amendment, only the
disclosures required in IFRS 5 will be provided. Disclosures in other IFRSs
apply to such assets only if they require specific disclosures in respect of
non-current assets or disposal groups. The amendment will be prospectively
adopted starting from the financial statements for periods beginning on January
1, 2010. Earlier application is permitted.
The Company believes that the effect of the amendment on its financial position,
operating results and cash flows is not expected be material.
NOTE 3:- ASSOCIATES
a. Composition:
+---------------------------------+-+----------+--+----------+--+--------------+
| | | June 30, | | Year ended |
| | | | | December 31, |
+---------------------------------+-+------------------------+--+--------------+
| | | 2009 | | 2008 | | 2008 |
+---------------------------------+-+----------+--+----------+--+--------------+
| | | Unaudited | | Audited |
+---------------------------------+-+------------------------+--+--------------+
| | | Euro in thousands |
+---------------------------------+-+------------------------------------------+
| | | | | | | |
+---------------------------------+-+----------+--+----------+--+--------------+
| Investment in associates | | 8,726 | | 13,676 | | 11,101 |
+---------------------------------+-+----------+--+----------+--+--------------+
| Loan to associates | | 48,246 | | 54,408 | | 41,013 |
+---------------------------------+-+----------+--+----------+--+--------------+
| | | | | | | |
+---------------------------------+-+----------+--+----------+--+--------------+
| | | 56,972 | | 68,084 | | 52,114 |
+---------------------------------+-+----------+--+----------+--+--------------+
b. Share of the associate's balance sheet:
+--------------------------------+-+----------+--+----------+--+--------------+
| | | June 30, | | Year ended |
| | | | | December 31, |
+--------------------------------+-+------------------------+--+--------------+
| | | 2009 | | 2008 | | 2008 |
+--------------------------------+-+----------+--+----------+--+--------------+
| | | Unaudited | | Audited |
+--------------------------------+-+------------------------+--+--------------+
| | | Euro in thousands |
+--------------------------------+-+------------------------------------------+
| | | | | | | |
+--------------------------------+-+----------+--+----------+--+--------------+
| Current assets | | 61,726 | | 90,286 | | 67,281 |
+--------------------------------+-+----------+--+----------+--+--------------+
| Non-current assets | | 37,377 | | 40,709 | | 38,568 |
+--------------------------------+-+----------+--+----------+--+--------------+
| Current liabilities | | (16,063) | | (35,554) | | (18,774) |
+--------------------------------+-+----------+--+----------+--+--------------+
| Non-current liabilities | | (74,314) | | (81,765) | | (75,974) |
+--------------------------------+-+----------+--+----------+--+--------------+
| | | | | | | |
+--------------------------------+-+----------+--+----------+--+--------------+
| Net assets | | 8,726 | | 13,676 | | 11,101 |
+--------------------------------+-+----------+--+----------+--+--------------+
c. Share of the associate's revenues and profit (loss):
+------------------------+-+------------+-+----------+-+------------+-+----------+-+------------+
| | | Six months ended | | Three months | | Year |
| | | June 30 | | ended | | ended |
| | | | | June 30 | | December |
| | | | | | | 31 |
+------------------------+-+-------------------------+-+-------------------------+-+------------+
| | | 2009 | | 2008 | | 2009 | | 2008 | | 2008 |
+------------------------+-+------------+-+----------+-+------------+-+----------+-+------------+
| | | Unaudited | | Audited |
+------------------------+-+-----------------------------------------------------+-+------------+
| | | | | | | | | | | |
+------------------------+-+------------+-+----------+-+------------+-+----------+-+------------+
| Revenues | | 6,654 | | 6,237 | | 3,154 | | 6,237 | | 20,512 |
+------------------------+-+------------+-+----------+-+------------+-+----------+-+------------+
| | | | | | | | | | | |
+------------------------+-+------------+-+----------+-+------------+-+----------+-+------------+
| Profit (loss) | | (1,607) | | 501 | | (1,947) | | 701 | | 1,180 |
+------------------------+-+------------+-+----------+-+------------+-+----------+-+------------+
d. In February 2009, the Company (through a wholly-owned subsidiary)
completed the purchase from a related party of an additional 15% of the issued
and outstanding share capital of Osnova-C, for a nominal consideration of
approximately $ 1 thousand (EUR 1 thousand). Osnova-C owns vacant land (investment
property in the Ukraine). The Company also paid $ 6,000 thousand (EUR 4,286
thousand) to acquire shareholders loans previously granted to Osnova-C, and
granted a new loan to Osnova-C in the amount of $ 350 thousand (EUR 250 thousand).
The loans bear interest at an annual rate of LIBOR+5%. Subsequent to this
purchase, the Company holds 30% of the share capital of Osnova-C.
NOTE 4:- SALE OF SHARES OF SUBSIDIARY
In April 2009, the Company sold 50% of its interest in a wholly-owned Hungarian
subsidiary (the subsidiary) in consideration of HUF 250 thousand (EUR 850) which
approximates the carrying value of the investment.
In addition, the purchaser agreed to provide the subsidiary with a shareholder
loan in an amount of EUR 893 thousand. Pursuant to the sale agreement, shares
representing 2% of the purchaser's interest in the subsidiary are to be held by
a trustee. All of the voting rights in these shares are held by the trustee for
the benefit of the Company, and all other rights relating to these shares are
held by the trustee for the benefit of the purchaser. Accordingly, the Company
will continue to consolidate the subsidiary.
NOTE 5:- INTEREST-BEARING LOANS AND BORROWINGS
a. During the first quarter of 2009, the Company purchased its own debentures
(series B and series C) on the Tel-Aviv Stock Exchange, at par value of NIS 2.4
million and NIS 10.1 million, respectively for a total consideration of NIS 0.8
million and NIS 5.5 million (together approximately EUR 1.2 million),
respectively. The excess of the carrying amount of the debentures acquired over
the consideration paid in the amount of EUR 1.2 million was recorded as a gain in
financial income.
b. On March 25, 2009, Midrug Ltd. downgraded the credit rating of the
debentures (series B and C) to the local rating of Baa1.
NOTE 6:- CHANGES IN VALUE OF INVESTMENT PROPERTIES
The Company adjusted the fair value of the properties in Hungary as of June 30,
2009, based on a valuation performed by King Sturge Ltd., an industry specialist
in valuing such type of properties. The fair value represents the amount at
which the asset could be exchanged between a knowledgeable, willing seller in an
arm's length transaction at the date of valuation, in accordance with
International Valuation Standards. In determining the fair value of the
investment property, the valuator relied on comparable arm's length market
transactions for similar properties. The Company's share of the loss from the
fair value adjustment for the period ended June 30, 2009, amounted to EUR 683
thousand.
NOTE 7:- CHANGES IN THE TAX RATES APPLICABLE TO THE GROUP
In furtherance to the matter discussed in Note 13a to the 2008 annual financial
statements, in June 2009, the Hugarian Parliament passed the tax law bill
relating to 2010 for an increase in general rate of corporate tax from the
current 16% to 19% and cancellation of 4% solidarity tax, starting January 1,
2010.
The effect of said change on the balance of deferred taxes was immaterial.
NOTE 8:- DIVIDENDS
+--------------------------------------+-+----------+--+----------+--+-------------+
| | | Six months ended | | Year |
| | | June 30, | | ended |
| | | | | December |
| | | | | 31, |
+--------------------------------------+-+------------------------+--+-------------+
| | | 2009 | | 2008 | | 2008 |
+--------------------------------------+-+----------+--+----------+--+-------------+
| | | Euro in thousands (except per share |
| | | data) |
+--------------------------------------+-+-----------------------------------------+
| | | | | | | |
+--------------------------------------+-+----------+--+----------+--+-------------+
| Dividends on Ordinary | | - | | - | | 10,995 |
| shares declared and paid | | | | | | |
+--------------------------------------+-+----------+--+----------+--+-------------+
| | | | | | | |
+--------------------------------------+-+----------+--+----------+--+-------------+
| Dividend per share | | - | | - | | 0.06 |
+--------------------------------------+-+----------+--+----------+--+-------------+
NOTE 9:- SEGMENT REPORTING
The Group operates internationally and its organizational structure matches its
geographical segments: Hungary and Poland. Accordingly, the division of
operations in this manner represents the basis according to which the Group
reports data for management purposes. The geographical segments are determined
according to the destination countries to which the Group's sales are made,
which are identical to the location of assets.
+--------------------------------+-+------------+-+-----------+-+------------+-+---------+-------+
| | | Hungary | | Poland | | Other | | Consolidated |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | Euro in thousands |
+--------------------------------+-+-----------------------------------------------------+
| Six months ended | | | | | | | | |
| June 30, 2009 | | | | | | | | |
| (unaudited): | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Segment revenues | | 2,038 | | - | | 53 | | 2,091 |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Segment results | | (1,398) | | 145 | | (1,866) | | (3,119) |
| (includes share in | | | | | | | | |
| profit (loss) of | | | | | | | | |
| associates) | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Unallocated | | | | | | | | 1,381 |
| expenses | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Financial costs | | | | | | | | (8,642) |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Financial income | | | | | | | | 7,519 |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Loss before taxes | | | | | | | | (5,623) |
| on income | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+---------+-------+
+--------------------------------+-+----------+-+----------+-+----------+-+-------+-------+
| | | Hungary | | Poland | | Other | | Consolidated |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| | | Euro in thousands |
+--------------------------------+-+----------------------------------------------+
| Six months ended June | | | | | | | | |
| 30, 2008 (unaudited): | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Segment revenues | | 2,425 | | 8,048 | | 89 | | 10,562 |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Segment results | | 1,930 | | 1,878 | | (188) | | 3,620 |
| (includes share in | | | | | | | | |
| profit of | | | | | | | | |
| associates) | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Unallocated | | | | | | | | 1,576 |
| expenses | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Financial costs | | | | | | | | (9,765) |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Financial income | | | | | | | | 12,474 |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Other income | | | | | | | | 450 |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Profit before taxes | | | | | | | | 5,203 |
| on income | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+-------+-------+
NOTE 9:- SEGMENT REPORTING (Cont.)
+--------------------------------+-+------------+-+-----------+-+------------+-+---------+-------+
| | | Hungary | | Poland | | Other | | Consolidated |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | Euro in thousands |
+--------------------------------+-+-----------------------------------------------------+
| Three months ended | | | | | | | | |
| June 30, 2009 | | | | | | | | |
| (unaudited): | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Segment revenues | | 1,108 | | - | | 27 | | 1,135 |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Segment results | | (1,171) | | (154) | | (1,846) | | (3,171) |
| (includes share in | | | | | | | | |
| profit (loss) of | | | | | | | | |
| associates) | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Unallocated | | | | | | | | 693 |
| expenses | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Financial costs | | | | | | | | (6,503) |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Financial income | | | | | | | | 12,276 |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+-----------------+
| Profit before taxes | | | | | | | | 1,909 |
| on income | | | | | | | | |
+--------------------------------+-+------------+-+-----------+-+------------+-+---------+-------+
+--------------------------------+-+----------+-+----------+-+----------+-+-------+-------+
| | | Hungary | | Poland | | Other | | Consolidated |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| | | Euro in thousands |
+--------------------------------+-+----------------------------------------------+
| Three months ended | | | | | | | | |
| June 30, 2008 | | | | | | | | |
| (unaudited): | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Segment revenues | | 1,148 | | - | | 45 | | 1,193 |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Segment results | | 1,939 | | 568 | | (205) | | 2,302 |
| (includes share in | | | | | | | | |
| profit of | | | | | | | | |
| associates) | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Unallocated | | | | | | | | 779 |
| expenses | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Financial costs | | | | | | | | (5,900) |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Financial income | | | | | | | | 8,433 |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Other expenses | | | | | | | | (138) |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+---------------+
| Profit before taxes | | | | | | | | 3,918 |
| on income | | | | | | | | |
+--------------------------------+-+----------+-+----------+-+----------+-+-------+-------+
Year ended December 31, 2008 (audited):
+--------------------------------+-+-----------+-+----------+-+----------+-+-------+-------+
| | | Hungary | | Poland | | Other | | Consolidated |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| | | Euro in thousands |
+--------------------------------+-+-----------------------------------------------+
| | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Revenues | | 18,322 | | 8,047 | | 160 | | 26,529 |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Segment results | | 3,806 | | 2,811 | | (355) | | 6,262 |
| (includes share in | | | | | | | | |
| profit (loss) of | | | | | | | | |
| associates) | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Unallocated general | | | | | | | | (3,856) |
| corporate expenses | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Financial costs | | | | | | | | (27,685) |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Financial income | | | | | | | | 25,272 |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Other income | | | | | | | | 6,330 |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+---------------+
| Profit before taxes | | | | | | | | 6,323 |
| on income | | | | | | | | |
+--------------------------------+-+-----------+-+----------+-+----------+-+-------+-------+
NOTE 10:- EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
a. During August 2009, the Group sold 50% of its interest in Nanette City
Home kft, a wholly-owned Hungarian subsidiary ("Nanette City Home") in
consideration of HUF 2.25 million (EUR 8 thousand) which approximates the carrying
value of the investment.
In addition, the purchaser agreed to provide Nanette City Home with a
shareholder loan in an amount of EUR 1.8 million thousand. Pursuant to the sale
agreement, shares representing 2% of the purchaser's interest in Nanette City
Home are to be held by a trustee. All of the voting rights in these shares are
held by the trustee for the benefit of the Group, and all other rights relating
to these shares are held by the trustee for the benefit of the purchaser.
Accordingly, the Group will continue to consolidate Nanette City Home.
b. On August 19, 2009 the Company's Board of Directors has resolved to
recommend to the Company's shareholder to delist the shares of the Company from
trading on AIM. In accordance with AIM rule 41, this decision has to be brought
to the approval of the general meeting of the Company's shareholders in an
extraordinary general meeting in which 75% of the shareholders present and
voting should vote in favour of such resolution. Accordingly, an extraordinary
meeting will be convened within about 7 days to decide on this subject.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KGGZRGFLGLZZ
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