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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Sofia Prop | LSE:SPFL | London | Ordinary Share | GB00B0BV8078 | ORD NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.85 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMSPFL RNS Number : 5545T Sofia Property Fund Limited 30 September 2010 30 September 2010 AIM: SPFL Sofia Property Fund Limited ('the Fund', 'the Company' or 'the Group') Interim results for the six months ended 30 June 2010 Overview · Valuation of the Sofia Property Fund portfolio at 30 June 2010 is EUR21.67 million · Current published NAV per share of 22 pence · Since June 2010, eight apartments at Sofia Project 55 were sold to domestic purchasers that had secured mortgages - two apartments remain to be sold · In 2009, six contracts with BuySell rescinded after breach of contractual duty by BuySell - discussions continue with assorted groups including BuySell to resolve repayment of its EUR9.5 million deposit together with penalties of a further EUR9.5 million · Construction suspended or deferred on majority of projects pending a revival in the market · Since Q2 2010, recent data suggests an uplift in demand for Bulgarian property, the availability of mortgages and an increase in property prices For further enquires - Sofia Property Fund Limited Charles Burton Dominic Morley, Stuart Gledhill - Panmure Gordon +44 (0) 20 7459 3600 Ed Portman, Leesa Peters - Conduit PR +44 (0) 207 429 6607/+44 (0) 7733 363 501 +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Chairman's Report | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The interim results to 30 June 2010 show a further decline in the Fund's NAV. The published | | | NAV was 22p (Eur 27 cents) at end June 2010, having declined from 28p (Eur 31 cents) in | | | December 2009. The accounting NAV of 22p (Eur 27 cents) compares with NAV of 27p (Eur 30 | | | cents) in December. | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | There are signs that the economy and property market in Bulgaria are bottoming out, | | | following the sharp falls of the previous two years or so. | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Although the Fund has had to dispose of assets to remain liquid, we are now well positioned | | | to take advantage of any future improvements in property prices. We have no debt and retain | | | a good portfolio of land, either for disposals when prices firm or to realise their | | | development potential. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Further fund raising will be needed to provide working capital for the future. This is | | | being actively sought. | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Charles Burton | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 29 September 2010 | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Investment Managers' Report | | | | | | | | | | | +---------------------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | BULGARIA | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Management Update | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Disposals | | +-------------------------------------------------------------------------------------------------------------+----------+ | In January 2010 the Fund sold a plot of land in Veliko Tarnovo for EUR450,000 to provide | | | additional working capital. While in March 2010, the Directors investigated several | | | financing avenues to exercise an option agreement in respect to the Sofia Kambanite | | | Bistrista asset. The asset encompassed 100,713 square metres of land near the Sofia | | | Business Park. Despite the Directors exploring various means to secure the asset, it was | | | decided to let the option agreement lapse. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Sofia Project 55 (apartment sales) | | +-------------------------------------------------------------------------------------------------------------+----------+ | During Q1 2010 the Fund saw very little activity in the Bulgarian property market. From | | | the middle of Q2 it became increasingly clear that the Bulgarian market was starting to | | | pick up due to several factors. An improvement in the global macro environment and global | | | property prices leading to a pick-up in demand and an improvement in availability of | | | mortgages. Since the end of June 2010, the Fund has sold all except two of the remaining | | | apartments; all of these were sold to locals with mortgages. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | BuySell | | +-------------------------------------------------------------------------------------------------------------+----------+ | The Company rescinded six contracts with BuySell, a Bulgarian property development company, | | | on 17 April 2009 due to BuySell's non performance of their contractual duty to deliver | | | completed properties in Sofia to the Company by the due date. As a result of BuySell's | | | non-performance the Company is entitled to claim the repayment of its EUR9.5 million deposit | | | plus penalties of an additional EUR9.5 million. The Company is currently in talks with | | | various parties, including BuySell with a view to resolving its outstanding claims. As | | | stated before, the Company continues to believe that there is a realistic possibility that | | | the talks can be concluded successfully. This would clearly be a positive development for | | | the Company and its shareholders. However at this stage the Group still values the BuySell | | | inventory as nil. We hope to be able to make further announcements of progress. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Westhill | | | | | | | | | | | | | | +---------------------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | One of the Company's Bulgarian subsidiaries is in dispute with Westhill BG 8 AD, a | | | Bulgarian property development company. The latter submitted an insolvency claim against | | | the Company's subsidiary which, in the Company's opinion, is groundless. The Fund's | | | Bulgarian legal advisers have submitted a written response to the relevant Bulgarian court | | | stating the lack of legal grounds to Westhill's claim and requesting its dismissal. The | | | Company is confident that this matter will eventually be concluded successfully. Further | | | announcements will be made as appropriate. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | BULGARIAN PROPERTY MARKET UPDATE | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | ? | Foreign and domestic housing demand subdued but showing | | | | | | | | signs of revival | | | | | | +----------+-----------------------------------------------------------------+-+-------------+--+-------------+----------+ | ? | Mortgage rates have come | | | | | | | | | | | | | down | | | | | | | | | | | +----------+----------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | ? | Some areas are beginning to | | | | | | | | | | | | see price increases | | | | | | | | | | +----------+------------------------------+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | After two very weak years, the investment managers believe that the Bulgarian property | | | sector is close to the bottom of the market. At the end of Q1 2010, dwellings across the | | | country sold for an average of BGN978.7 (EUR500) per square metre, down by 17.81% (-18.55% | | | inflation-adjusted) from a year earlier, and down by 2.30% during the quarter, according to | | | the National Statistical Institute. This is 31% lower than the peak price of BGN1,418 | | | (EUR725) per sq. m. in Q3 2008. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Since the end of Q1 2010, the investment managers, as stated earlier have seen a definite | | | uplift in prices, demand and availability of mortgages. In particular it is interesting to | | | note that Sofia is showing an increase of well over 5% in house prices since Q1 2009. This | | | should lead to an improvement in land prices in Sofia and gradually spread out to the rest | | | of the country. Valuations of the Fund's property portfolio at the end of June 2010 show a | | | small fall of 5% compared to valuations at the end of December 2009. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Despite the still weak prices, some agents say sales surged by 40% in Q1 2010 compared to | | | the same quarter last year. According to Colliers Bulgaria, sales began to pick up as | | | early as August 2009, after months of stagnation. Houses priced below EUR1,000 per square | | | metre were the most marketable. | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | British and Russians are the top foreign buyers of Bulgarian real estate, buying holiday | | | houses near the Black Sea and the Danube River. Russians remain net buyers. There was an | | | investment inflow from Russia of EUR43.6 million in Q1 2010, down from EUR73.7 million the year | | | earlier, in Q1 2009. | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Many housing construction projects were halted during the global economic crisis. Dwellings | | | completed in Q1 2010 were 26.9% down from Q1 2009, and building permits were 32.8% lower. | | | Weak credit demand and stringent loan policies have meant a decrease in the amount of | | | housing loans over the past couple of years. Having been down approximately 65% from the | | | beginning of the crisis in 2008, housing loans have now started to pick up with 2010 | | | showing an increase of loans of nearly 5% (January to May 2010). The average mortgage | | | interest rate in May was down to 8.55%, from 10.09% in 2009, for BGN-denominated loans. | | | Euro-denominated loan rates were down to 8.29%, from 8.59% in 2009. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | THE BULGARIAN ECONOMY | | | | | | | | | | | | +-----------------------------------+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | GDP declined by a further 1.4% year-on-year in Q2 so Bulgaria remains on track to see a | | | full year contraction of 0.8% for 2010. The Bulgarian economy is however expected to pick | | | up strongly from 2011, growing by about 3.5% in 2011 and 6% in 2012 and 2013 led initially | | | by exports with fixed investment and consumer growth picking up gradually. Domestic demand | | | (a key weakness) continued to contract sharply during Q2 2010 with consumer spending down a | | | further 4% year on year to the end of Q2 2010. Consumer confidence has improved throughout | | | the year but is not expected to add much to growth in 2011 due to expected job losses and | | | pay cuts. On the positive side exports of goods and services were up by over 12% but this | | | may come down if growth elsewhere in Europe were to slow from here. Inflation has also | | | been lower than expected at just below the 3% level. The budget deficit is also expected | | | to be lower in 2010 at 2.8% of GDP falling to around -1.3% (deficit) in 2012. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | According to Finance minister Simeon Djankov, Bulgaria does not need IMF support although a | | | EUR1bn international bond issue is being planned for next year in order to provide a fillip | | | for reserves. Thus, the currency board system seems to have survived the tensions caused by | | | the recession and Greece's predicament, with the overnight BNB rate remaining under 20bp in | | | recent months. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | GROUP PROPERTIES | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | Land | | Build | | Cost EUR | | Valuation | | | | | | | | | | | | | | | | EUR | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | Area | | Area | | 30/06/2010 | | 30/06/2010 | | | | | | | | | | M2 | | M2 | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | (Note | | | | | | | | | | | | | | | | 1) | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 1 | Goverdartsi (Crystal Vale/ | | | 36,562 | | 41,332 | | 5,758,901 | | 5,340,000 | | | | Crystal Glade) | | | | | | | | | | | +----------+----------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 2 | Beli Iskar (Crystal | | | 19,432 | | 22,464 | | 1,322,309 | | 1,130,000 | | | | Heights) | | | | | | | | | | | +----------+----------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 3 | Razlog/Bansko | | | | | 18,353 | | 24,301 | | 9,209,373 | | 5,890,000 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 4 | Dolna Banya | | | | | 48,548 | | 48,713 | | 1,661,695 | | 1,380,000 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 5 | Plovdiv | | | | | 12,141 | | 12,712 | | 3,890,195 | | 2,730,000 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 6 | Banya | | | | | 117,774 | | 141,329 | | 3,608,064 | | 4,220,000 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 7 | Sofia Project 55 | | | | | 1,298 | | 2,685 | | 1,738,358 | | 979,021 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | Sub Total | | | | | 254,108 | | 293,536 | | 27,188,895 | | 21,669,021 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 8 | Buy Sell Rescinded | | | 48,218 | | 89,967 | | 9,529,830 | | | | | | Contracts (Note 2) | | | | | | | | | - | | +----------+----------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | Total | | | | | 302,326 | | 383,503 | | 36,718,725 | | 21,669,021 | | +----------+---------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | Note 1: Some build areas are estimated subject to planning approval. | | +----------+--------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | Note 2: The Group has terminated these contracts with BuySell and accordingly | | | | they have been valued at Nil on the balance sheet. | | +----------+ +----------+ | | | | +----------+--------------------------------------------------------------------------------------------------+----------+ | 1. GOVEDARCI | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | CRYSTAL VALE | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Crystal Vale has full residential planning approval and is situated inside the Super | | | Borovets project boundary. Super Borovets is a joint venture between the Omani State | | | General Reserve Fund, Equest and the Municipality of Samokov for the development of an | | | enhanced ski resort in the area surrounding Borovets; the project plans call for the | | | investment of up to EUR500 million in the construction of new hotels, apartments, ski lifts | | | and supporting infrastructure. The Crystal Vale site has a footprint of 16,776 sq m and a | | | build area of 17,589 sq m. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The project has been designed as an exclusive retreat destination and is aimed at the | | | international and domestic leisure market. The 'Clubhouse' building, which will contain 22 | | | apartments and all central facilities for the project (including swimming pool, spa and | | | restaurant), has been partly completed - to the extent that the roof is in place. | | | Construction was halted in September 2009 awaiting a recovery in market conditions. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | CRYSTAL GLADE | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The Crystal Glade project is located approximately one kilometre away from Crystal Vale and | | | has a site footprint and build area of 19,786 sq m. The site has residential planning | | | permission and is intended to be a complementary leisure development to Crystal Vale. It | | | will remain in the land bank until Crystal Vale has been substantially completed. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 2. BELI ISKAR | | | | | | | | | | | +---------------------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | CRYSTAL HEIGHTS | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The Fund has purchased 19,432 sq m, currently designated as agricultural land, inside the | | | Super Borovets project area beside the village of Beli Iskar. Residential planning | | | permission for the land will be sought in due course. | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 3. RAZLOG / BANSKO | | | | | | | | | | | +---------------------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | PANORAMA VILLAS | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | This project is located close to the ski resort of Bansko and Phase 1 has reached the stage | | | of rough construction; further work has been suspended pending improved market conditions. | | | Until Phase 1 has been completed the remaining 3 phases will remain in the land bank. | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | NIRVANA | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | This undeveloped plot close to the centre of Bansko has residential planning permission and | | | will remain in the land bank. | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 4. DOLNA BANYA | | | | | | | | | | | +---------------------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The Fund owns four plots in and around the town of Dolna Banya; the plots have a total | | | surface area of 48,548 sq m and a build area of 57,621 sq m. One of the plots has a | | | construction permit for residential buildings and a restaurant, while the other three are | | | zoned for residential development. Dolna Banya is famed for its geothermal hot springs and | | | is 16 km from the Boroverts ski resort. The four plots will continue to be held in the land | | | bank. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 5. PLOVDIV | | | | | | | | | | | +---------------------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The Fund owns 12,151 sq m of land in Plovdiv, split between two separate locations. Both | | | projects have residential planning permission. The first plot ('Plovdiv Reach') is situated | | | two kilometres from the city centre, beside the national rowing centre. The second site | | | ('Roman View') is a disused tobacco factory located in the heart of the city centre. Both | | | plots will be held in the land bank until economic recovery warrants their development or | | | sale. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | 6. BANYA | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | The Fund owns 117,774 sq m of land close to the village of Banya which is five kilometres | | | from Bulgaria's main ski resort (Bansko). The site was bought from numerous landowners as | | | agricultural and has since been consolidated into three plots of similar size. Change of | | | use from agricultural to residential has already been obtained on one of the plots whilst | | | the other two have been removed from agricultural. The site will remain in the land bank | | | while neighbouring leisure developments, not owned by the Fund, are completed. The reason | | | this is important is that as neighbouring developments reach completion their ultimate sale | | | of apartments will crystallise value for our plots whilst the importation of utilities | | | close to the site will also improve its attractiveness to potential purchasers. | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | + +----------+ | | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | INVESTING POLICY | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | - The Fund is restricted to investments in Bulgaria and these investments must be largely | | | (but not exclusively) residential in nature. | | +-------------------------------------------------------------------------------------------------------------+----------+ | - The Fund may invest in early stage residential developments mainly, but not exclusively, | | | in and around Sofia and its adjacent ski resorts. | | +-------------------------------------------------------------------------------------------------------------+----------+ | - The Fund may buy land and seek to develop its land through partnerships with Developers. | | +-------------------------------------------------------------------------------------------------------------+----------+ | - The Fund may borrow in order to develop its assets. | | +-------------------------------------------------------------------------------------------------------------+----------+ | - The Fund should be liquidated and proceeds distributed to shareholders by 27 September | | | 2012 (7 years from launch) unless shareholders vote to extend the life of the Fund. | | +-------------------------------------------------------------------------------------------------------------+----------+ | - The Fund does not intend to pay a dividend (although the Fund is not restricted from | | | doing so). | | +-------------------------------------------------------------------------------------------------------------+----------+ | | | | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Mark Anderson and Loraine Pinel | | | | | | | | | | | +---------------------------------------+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | Investment Managers | | | | | | | | | | | | | +--------------------------------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ | September 2010 | | | | | | | | | | | | | +----------+----------+----------+--+---+-+-+----------+----------+----------+-+-------------+--+-------------+----------+ +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Unaudited condensed consolidated statement of comprehensive income | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | 1 Jan | | | | | | | | | | | | | | 2009 to | | | | | | | | | | | | | | 30 Jun | | | | | | | | | | | | | | 2009 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | Notes | | Revenue | | Capital | | Total | | Total | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | EUR | | EUR | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Revenue | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Property sales | | | | - | | - | | - | | 88,207 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Cost of sales | | | | - | | - | | - | | (127,020) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Other income | | | | 28,731 | | - | | 28,731 | | - | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Gross profit | | | | 28,731 | | - | | 28,731 | | (38,813) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Expenses | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Administration fees | | | | 71,340 | | - | | 71,340 | | 87,784 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Management fees | | | | - | | - | | - | | 377,406 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Performance fees | | | | - | | - | | - | | (2,092,068) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Directors' fees and | | | | 31,497 | | - | | 31,497 | | 31,786 | | | expenses | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Salaries and other disbursements | | | 171,188 | | - | | 171,188 | | - | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Foreign exchange gain | | | | (15,396) | | - | | (15,396) | | (20,194) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loss on disposal of subsidiaries | 2 | | - | | 116,860 | | 116,860 | | - | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net change in (gain)/loss on revaluation | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | of investment properties | | 4 | | - | | (49,848) | | (49,848) | | 11,810,816 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Impairment/(reversal of | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | impairment) of inventory | | 5 | | - | | 807,268 | | 807,268 | | (831,601) | | | net | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Legal and professional expenses | | | 311,525 | | - | | 311,525 | | 297,546 | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Other expenses | | | | 152,910 | | - | | 152,910 | | 186,551 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | 723,064 | | 874,280 | | 1,597,344 | | 9,848,026 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Operating loss | | | | (694,333) | | (874,280) | | (1,568,613) | | (9,886,839) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Finance income | | | | 530 | | - | | 530 | | 2,698 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Finance cost | | 6 | | (636,313) | | - | | (636,313) | | (782,011) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loss before taxation | | | | (1,330,116) | | (874,280) | | (2,204,396) | | (10,666,152) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Taxation | | | | - | | - | | - | | 793,715 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loss for the period | | | | (1,330,116) | | (874,280) | | (2,204,396) | | (9,872,437) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Other comprehensive income | | | | | | | | | | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Exchange differences arising on | | | | | | | | | | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | translation of foreign | | | - | | - | | - | | - | | | operations | | | | | | | | | | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Total comprehensive loss | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | for the period | | | | (1,330,116) | | (874,280) | | (2,204,396) | | (9,872,437) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loss per share - basic and | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | diluted (cents per share) | | 3 | | | | | | (3.29) | | (20.42) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | All items in the above statement derived from continuing operations | | | | | | | +-------------------------------------------------------------------------------------------+----------------------+----------+--------------+----------+--------------------------+--------------+ | The accompanying notes 1 to 8 form an integral part of these financial statements | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | Unaudited condensed consolidated statement of financial position | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | as at 30 June 2010 | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-----------------------------------------------+----------+----------------------------------------------------+--------------+ | | | | Notes | | 30 June 2010 | | 31 December 2009 | | +--------------+--------------+--------------+----------+----------+-----------------------------------------------+----------+----------------------------------------------------+--------------+ | | | | | | EUR | | EUR | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Non-current assets | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Investment properties | | 4 | | | | 15,000,000 | | | | 19,545,693 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Investment properties - | | 4 | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | held for sale | | | | | | - | | | | 488,279 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Current assets | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Inventory | | 5 | | 6,669,021 | | | | 7,440,000 | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Property options | | | | 5 | | | | 5 | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Trade and other receivables | | | | 55,861 | | | | 196,308 | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Cash and cash equivalents | | | | 355,543 | | | | 1,053,703 | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | 7,080,430 | | | | 8,690,016 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Total assets | | | | | | 22,080,430 | | | | 28,723,988 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Current liabilities | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loan payable | | 6 | | - | | | | (4,063,687) | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Trade and other payables | | | | (1,011,937) | | | | (1,387,412) | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | (1,011,937) | | | | (5,451,099) | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Non-current liabilities | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Trade and other payables | | | | (3,075,519) | | | | (3,075,519) | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | (3,075,519) | | | | (3,075,519) | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Total liabilities | | | | | | (4,087,456) | | | | (8,526,618) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net assets | | | | | | 17,992,974 | | | | 20,197,370 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Equity | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Share capital | | | | | | - | | | | - | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Special reserve | | | | | | 57,913,640 | | | | 57,913,640 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Capital reserve | | | | | | (24,784,991) | | | | (23,910,711) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Revenue reserve | | | | | | (15,135,675) | | | | (13,805,559) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Total Equity | | | | | | 17,992,974 | | | | 20,197,370 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | NAV per share (Euro per share) | 7 | | | | 0.268 | | | | 0.301 | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | NAV per share at launch (Euro | | | | | | | | | | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | per share) | | | | | | 1.178 | | | | 1.178 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | These condensed financial statements were approved by the Board of Directors and authorised for issue on 29 September 2010. They | | | were signed on its behalf by Charles Burton and Clive Simon. | | + +--------------+ | | | +----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Charles Burton | | | | | Clive Simon | | | | | | +-----------------------------+--------------+----------+----------+-------------+---------------------------------+----------+--------------+----------+--------------------------+--------------+ | Chairman | | | | | Director | | | | | | +-----------------------------+--------------+----------+----------+-------------+---------------------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | The accompanying notes 1 to 8 form an integral part of these financial statements | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | Unaudited condensed consolidated statement of changes in equity | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | Share | | Special | | Capital | | Revenue | | Total | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | Capital | | Reserve | | Reserve | | Reserve | | Equity | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | EUR | | EUR | | EUR | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | As at 31 December 2008 | | - | | 56,956,985 | | (2,522,902) | | (10,342,057) | | 44,092,026 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Total comprehensive loss | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | for the period | | - | | - | | (8,093,432) | | (1,779,005) | | (9,872,437) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | As at 30 June 2009 | | - | | 56,956,985 | | (10,616,334) | | (12,121,062) | | 34,219,589 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | Share | | Special | | Capital | | Revenue | | Total | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | Capital | | Reserve | | Reserve | | Reserve | | Equity | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | EUR | | EUR | | EUR | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | As at 31 December 2009 | | - | | 57,913,640 | | (23,910,711) | | (13,805,559) | | 20,197,370 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Total comprehensive loss | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | for the period | | - | | - | | (874,280) | | (1,330,116) | | (2,204,396) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | As at 30 June 2010 | | - | | 57,913,640 | | (24,784,991) | | (15,135,675) | | 17,992,974 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | The accompanying notes 1 to 8 form an integral part of these financial statements | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Unaudited condensed consolidated statement of cash flows | | | | | | | +-------------------------------------------------------------------------------------------+----------------------+----------+--------------+----------+--------------------------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | 1 Jan | | 1 Jan | | | | | | | | | 2009 to | | 2009 to | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 30 Jun | | 30 Jun | | | | | | | | | | | | 2010 | | 2009 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loss for the period | | | | | | | | (2,204,396) | | (9,872,437) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Adjustment for: | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net finance income and expenses | | | | | | | 635,783 | | 779,313 | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Revaluation (gain) / loss on investment properties | | | | | (49,848) | | 11,810,816 | | +------------------------------------------------------------------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Impairment / (reversal of impairment) of inventory | | | | | 807,268 | | (831,601) | | +------------------------------------------------------------------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Taxation | | | | | | | | - | | (793,715) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Loss on disposal of subsidiaries | | | | | | | 116,860 | | - | | +--------------------------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Operating cash flows before movements | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | in working capital | | | | | | | | (694,333) | | 1,092,376 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Decrease in trade and other receivables | | | | | | 140,447 | | 344,722 | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Decrease in trade and other payables | | | | | | (375,475) | | (2,842,647) | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Decrease in inventory | | | | | | | | (36,289) | | (179,908) | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | (965,650) | | (1,585,457) | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Interest received | | | | | | | | 530 | | 2,698 | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Interest paid | | | | | | | | (636,313) | | - | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net cash outflow from operating activities | | | | | | (1,601,433) | | (1,582,759) | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Investing activities | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Disposal / (additions) to investment | | | | | | 4,966,960 | | (41,816) | | | properties | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net cash inflow /(outflow) from investing activities | | | | 4,966,960 | | (41,816) | | +--------------------------------------------------------------------------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Financing activities | | | | | | | | | | | | +-----------------------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | (Repayment) / proceeds from loan | | | | | | (4,063,687) | | 1,825,652 | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net cash (outflow) / inflow from financing activities | | | | (4,063,687) | | 1,825,652 | | +--------------------------------------------------------------------------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Net (decrease) / increase in cash and cash equivalents | | | | (698,160) | | 201,077 | | +--------------------------------------------------------------------------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Cash and cash equivalents at start of | | | | | | 1,053,703 | | 767,920 | | | period | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Cash and cash equivalents at end of period | | | | | | 355,543 | | 968,997 | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | The accompanying notes 1 to 8 form an integral part of these financial statements | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | Notes to the unaudited condensed consolidated financial statements | | | | | | +------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | | | | | +-------------------------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 1 | SIGNIFICANT ACCOUNTING | | | | | | | | | | | | POLICIES | | | | | | | | | | +--------------+----------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Sofia Property Fund Limited (the 'Company') is a closed-ended investment company incorporated in Guernsey. The | | | | unaudited condensed financial statements of the Company for the period ended 30 June 2010 comprise the Company and | | | | its subsidiaries (together referred to as the 'Group'). | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The unaudited condensed interim financial statements have been prepared in accordance with International Financial | | | | Reporting Standards ('IFRS') IAS 34 Interim Financial Reporting. They do not include all of the information required | | | | for the full annual financial statements, and should be read in conjunction with the consolidated financial | | | | statements of the Group as at and for the year ended 31 December 2009. The unaudited condensed interim financial | | | | statements were approved by the board of directors on 29 September 2010. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | In preparation of these financial statements the Directors have reviewed the current budgets and cashflow | | | | projections for a period no less than 12 months from the date of these financial statements. These forecasts | | | | highlight the need for additional funding for working capital after the next three months. Various sources of | | | | financing have been considered by the directors including the raising of fresh equity and potential disposal of | | | | properties. | | + + +--------------+ | | | | + + +--------------+ | | | | + + +--------------+ | | | | + +-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | + +--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Although no formal agreement has been reached, the Director are confident that disposal of properties would raise the | | | | required cash identified within the cashflow forecast. Accordingly the Directors have prepared the financial statements | | | | on the going concern basis. | | + + +--------------+ | | | | + + +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The financial statements have been prepared on the basis of the accounting policies set out in the Group's annual | | | | financial statements for the year ended 31 December 2009 except for the adoption of standards described below. The | | | | Group's annual financial statements refer to new Standards and Interpretations none of which had a material impact | | | | on the financial statements. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | IFRS 3 (revised) - "Business Combinations" is applicable prospectively to all business combinations for which the | | | | designated acquisition date is on or after 1 January 2010. IAS 27 (revised) - "Consolidated and Separate Financial | | | | Statements" is effective as from 1 January 2010. The application of these two revised standards does not have a | | | | material impact on the Group's financial statements at 30 June 2010. Other amendments obligatorily applicable as of | | | | 1 January 2010 do not have a material impact on the consolidated financial statements. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 2 | Disposal of subsidiary | | | | | | | | | | | | companies | | | | | | | | | | +--------------+----------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | 30 June | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | 2010 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Net proceeds | | | | | | | | | | 5,150,000 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Net assets | | | | | | | | | | (5,266,860) | | | | disposed of | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Loss on | | | | | | | | | | 116,860 | | | | disposal | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | VT | | | | | | | | | | | | | | Development | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | On 26 January 2010, the Group disposed of its Bulgarian subsidiary VT, to International Residential Holdings SA for | | | | a cash consideration of EUR450,000. The sole asset of VT was 13,443 square meters of land in Bulgarian city of Veliko | | | | Tarnavo. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Blacksea | | | | | | | | | | | | | | Properties | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | On 20 January 2009 the Group entered into an arrangement with Enderton Company Assets Inc., and the shares of | | | | Blacksea Properties EOOD were sold for EUR1.826 million with an option to buy back. This transaction was treated as a | | | | financing transaction with an intention to exercise the buy back option. Option exercise date was 28 February 2010 | | | | and the directors, having explored a number of possibilities, decided to let the Option Agreement lapse and dispose | | | | of the company. The carrying value of loan payable to exercise the option as at date of disposal was EUR4,700,000 and | | | | it has been recorded as deemed disposal proceeds for the Blacksea Properties EOOD. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 3 | EARNINGS PER SHARE - BASIC AND DILUTED | | | | | | | | +--------------+-----------------------------------------------------------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The consolidated deficit per Ordinary Share of 3.29 cents (2009: 20.42 cents) is based on the net revenue loss of | | | | EUR1,330,116 (June 2009: EUR1,779,005) and the net capital loss for the period of EUR874,280 (June 2009: EUR8,093,432). | | | | Calculations are based on 67,074,515 (2009: 48,345,000) Ordinary Shares, being the weighted average number of | | | | shares in issue during the periods. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 4 | INVESTMENT | | | | | | | 30 June | | 31 | | | | PROPERTIES | | | | | | | | | December | | +--------------+-----------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 2010 | | 2009 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Market value of investment properties at start of period / year | | 20,033,972 | | 44,848,000 | | +--------------+---------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | | Subsequent | | | | | | | | - | | 108,693 | | | | expenditure | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Disposals | | | | | | | | (5,083,820) | | - | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Fair value adjustment in the | | | | | | 49,848 | | (24,922,721) | | | | period | | | | | | | | | | +--------------+----------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Market value of investment properties at period / year end | | 15,000,000 | | 20,033,972 | | +--------------+---------------------------------------------------------------------------------------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The fair value of the Group's investment properties at 30 June 2010 and 31 December 2009 has been arrived at on the | | | | basis of valuations carried out at that date by King Sturge Kft, independent valuers not connected to the Group. | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The valuation basis has been market value as defined by the Royal Institute of Chartered Surveyors (RICS). The | | | | approved RICS definition of market value is the "estimated amount for which a property should exchange on the date | | | | of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing | | | | wherein the parties had each acted knowledgeably, prudently and without compulsion." | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 5 | INVENTORY | | | | | | | | 30 June | | 31 | | | | | | | | | | | | | | December | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 2010 | | 2009 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Opening cost | | | | | | | | 7,440,000 | | 6,801,000 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Additions | | | | | | | | 36,289 | | 543,105 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Disposals | | | | | | | | - | | (597,394) | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Impairment | | | | | | | | (807,268) | | (630,054) | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Reversal of | | | | | | | | - | | 1,323,343 | | | | impairment | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Closing cost | | | | | | | | 6,669,021 | | 7,440,000 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | At valuation | | | | | | | | 7,220,000 | | 7,440,000 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | All the properties, except Sofia Project 55, were valued on an open market basis as at 30 June 2010 by King Sturge | | | | Kft, independent valuers not connected to the Group. As a result of decrease in the market value of the properties, | | | | as determined by the valuers, an impairment charge has been recognised on these properties. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Sofia Project 55 was valued at EUR1,530,000 by King Sturge Kft, however as a result of flats and parking spaces being | | | | sold at a substantially lower value post valuation date, the Directors have decide to reduce the carrying value | | | | equal to net realisable value of the property. Accordingly an impairment charge of EUR550,979 has been recorded for | | | | the period on Sofia Project 55. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The carrying value has been set as the lower of cost and net realisable value as set out under the requirements of | | | | IAS 2, Inventories. The total carrying value of all the properties impaired is EUR6,669,021. | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 6 | LOAN PAYABLE | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 30 June | | 31 | | | | | | | | | | | | | | December | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 2010 | | 2009 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | EUR | | EUR | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Balance at 1 | | | | | | | | 4,063,687 | | - | | | | January | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Proceeds | | | | | | | | - | | 1,825,758 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Interest | | | | | | | | 636,313 | | 2,237,929 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Repayment | | | | | | | | (4,700,000) | | - | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Balance at 30 June / 31 | | | | | | - | | 4,063,687 | | | | December | | | | | | | | | | +--------------+----------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | During the year ended 31 December 2009 Splendid Investments S.A. a wholly owned subsidiary of the Group entered into | | | | a sale and buyback financing transactions in which shares of Blacksea Properties were sold at EUR1.825m with an option | | | | to buyback at an agreed price of EUR4.7m. This option was required to be exercised before 28 February 2010. The | | | | directors decided not to exercise the option and accordingly loan payable has been written off as disposal proceeds | | | | for the Subsidiary. Refer note 2 for details. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+-------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 7 | NAV PER | | | | | | | | | | | | | | SHARE | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 30 June | | 31 | | | | | | | | | | | | | | December | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | 2010 | | 2009 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Net Asset | | | | | | | | EUR | | EUR | | | | Value | | | | | | | | 17,992,974 | | 20,197,370 | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Number of shares | | | | | | | 67,074,515 | | 67,074,515 | | | | in issue | | | | | | | | | | | +--------------+-----------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Net asset value | | | | | | | EUR 0.268 | | EUR 0.301 | | | | per share | | | | | | | | | | | +--------------+-----------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | 8 | RECONCILIATION OF NAV PER THE FINANCIAL STATEMENTS TO PUBLISHED NAV | | | | +--------------+-----------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | 30 June 2010 | | 31 December 2009 | | +--------------+--------------+--------------+----------+----------+-----------------------------------------------+----------+----------------------------------------------------+--------------+ | | | | | | EUR | | Per | | EUR | | Per | | | | | | | | | | share | | | | share | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Net Asset Value per | | 17,992,974 | | 0.268 | | 20,197,370 | | 0.301 | | | | financial statements | | | | | | | | | | +--------------+----------------------------------------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Add back: | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Preliminary | | | | 390,782 | | 0.006 | | 501,822 | | 0.010 | | | | expenses | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | Published net | | | 18,383,756 | | EUR 0.274 | | 20,699,192 | | EUR 0.311 | | | | asset value | | | | | | | | | | | +--------------+-----------------------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | | | | | | | | | | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ | | The Company's principal documents require the dealing valuation of the Company's net assets to include preliminary | | | | expenses incurred in the establishment of the Company, such expenses to be amortised over the expected life of the | | | | Company. However, this accounting treatment is not permitted for financial reporting purposes and has been adjusted | | | | accordingly within these financial statements. | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+ +--------------+ | | | | +--------------+--------------+--------------+----------+----------+-------------+----------+----------------------+----------+--------------+----------+--------------------------+--------------+ +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | THE FOLLOWING PAGES DO NOT FORM PART OF THE | +--------------------------------------------------------------------------------------------------------------------------------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | INTERIM FINANCIAL STATEMENTS OF THE COMPANY | +--------------------------------------------------------------------------------------------------------------------------------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | AND ARE PRESENTED FOR INFORMATION PURPOSES ONLY | +--------------------------------------------------------------------------------------------------------------------------------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Unaudited condensed consolidated statement of comprehensive income | | | | +----------------------------------------------------------------------------------------------+-------------+----------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | Restated into Pounds Sterling for information purposes only | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | 1 Jan | | | | | | | | | | | | | 2009 to | | | | | | | | | | | | | 30 Jun | | | | | | | | | | | | | 2009 | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | Revenue | | Capital | | Total | | Total | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | GBP | | GBP | | GBP | | GBP | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Revenue | | | | | | | | | | | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Property sales | | | - | | - | | - | | 78,094 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Cost of sales | | | - | | - | | - | | (112,457) | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Other income | | | 24,823 | | - | | 24,823 | | - | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | - | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Gross profit | | | 24,823 | | - | | 24,823 | | (34,363) | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Expenses | | | | | | | | | | | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Administration | | | 61,636 | | - | | 61,636 | | 77,719 | | fees | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Management fees | | | - | | - | | - | | 334,135 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Performance | | | - | | - | | - | | (1,852,207) | | fees | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Directors' fees | | | 27,213 | | - | | 27,213 | | 28,142 | | and expenses | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Salaries and | | | 147,903 | | - | | 147,903 | | - | | other | | | | | | | | | | | disbursements | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Foreign | | | (13,302) | | - | | (13,302) | | (17,879) | | exchange gain | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loss on | | | - | | 100,965 | | 100,965 | | - | | disposal of | | | | | | | | | | | subsidiaries | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net change in | | | | | | | | | | (gain)/loss on | | | | | | | | | | revaluation | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | of investment | | | - | | (43,068) | | (43,068) | | 10,456,676 | | properties | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Impairment/(reversal | | | | | | | | | | | of | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | impairment) of | | | - | | 697,464 | | 697,464 | | (736,256) | | inventory net | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Legal and | | | 269,152 | | - | | 269,152 | | 263,440 | | professional | | | | | | | | | | | expenses | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Other expenses | | | 132,111 | | - | | 132,111 | | 165,154 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | 624,713 | | 755,361 | | 1,380,074 | | 8,718,924 | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Operating loss | | (599,890) | | (755,361) | | (1,355,251) | | (8,753,287) | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Finance income | | 458 | | - | | 458 | | 2,389 | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Finance cost | | (549,762) | | - | | (549,762) | | (692,351) | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loss before taxation | | (1,149,194) | | (755,361) | | (1,904,555) | | (9,443,249) | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Taxation | | - | | - | | - | | 702,714 | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loss for the period | | (1,149,194) | | (755,361) | | (1,904,555) | | (8,740,535) | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Other comprehensive | | | | | | | | | | income | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Exchange differences | | (1,282,898) | | - | | (1,282,898) | | (4,279,613) | | arising on | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | translation of foreign | | | | | | | | | | operations | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Total comprehensive loss | | (2,432,092) | | (755,361) | | (3,187,453) | | (13,020,148) | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Unaudited condensed consolidated statement of financial position | | | | | | | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | as at 30 June | | | | | | | | | | | 2010 | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Restated into Pounds Sterling for information purposes only | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | 30 June 2010 | | 31 December 2009 | +-----------------+--+-+---------+----------+---------------------------------------+----------+---------------------------------------+ | | | | | | GBP | | GBP | | GBP | | GBP | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Non-current | | | | | | | | | | | assets | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Investment | | | | | 12,287,025 | | | | 17,347,735 | | properties | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Investment properties - | | | | - | | | | 433,370 | | held for sale | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Current assets | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Inventory | | | | 5,462,828 | | | | 6,603,355 | | | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Property | | | 4 | | | | 4 | | | | options | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Trade and other | | 45,759 | | | | 174,233 | | | | receivables | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Cash and cash | | | 291,238 | | | | 935,212 | | | | equivalents | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | 5,799,829 | | | | 7,712,804 | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Total assets | | | | | 18,086,854 | | | | 25,493,909 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Current | | | | | | | | | | | liabilities | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Trade and other | | | (828,913) | | | | (1,231,394) | | | | payables | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | (828,913) | | | | (1,231,394) | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Non-current | | | | | | | | | | | liabilities | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Trade and other payables | | (2,519,265) | | | | (2,729,670) | | | | | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loan payable | | | - | | | | (3,606,716) | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | (2,519,265) | | | | (6,336,386) | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Total | | | | | (3,348,178) | | | | (7,567,780) | | liabilities | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net assets | | | | | | 14,738,676 | | | | 17,926,129 | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Equity | | | | | | | | | | | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Share capital | | | | | - | | | | - | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Special reserve | | | | | 39,525,002 | | | | 39,525,002 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Capital reserve | | | | | (23,801,718) | | | | (23,046,357) | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Revenue reserve | | | | | (984,608) | | | | 1,447,484 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Total Equity | | | | | 14,738,676 | | | | 17,926,129 | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | NAV per share (Pence per | | | | 21.974 | | | | 26.726 | | share) | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | NAV per share | | | | | | | | | | | at launch | | | | | | | | | | | (Pence per | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | share) | | | | | | 72.800 | | | | 72.800 | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Unaudited condensed consolidated statement of changes in equity | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | Restated into Pounds Sterling for information purposes only | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | Share | | Special | | Capital | | Revenue | | | | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | |Capital | | Reserve | | Reserve | | Reserve | | Total | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | GBP | | GBP | | GBP | | GBP | | GBP | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | As at 31 | - | | 38,676,000 | | (4,065,340) | | 7,587,172 | | 42,197,832 | | December 2008 | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loss for the | - | | - | | (7,165,499) | | (1,575,036) | | (8,740,535) | | period | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Foreign exchange | | | | | | | | | | adjustment arising | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | on translation | - | | - | | - | | (4,279,613) | | (4,279,613) | | to Sterling | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | As at 30 June | - | | 38,676,000 | | (11,230,839) | | 1,732,523 | | 29,177,684 | | 2009 | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | Share | | Special | | Capital | | Revenue | | | | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | |Capital | | Reserve | | Reserve | | Reserve | | Total | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | GBP | | GBP | | GBP | | GBP | | GBP | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | As at 31 | - | | 39,525,002 | | (23,046,357) | | 1,447,484 | | 17,926,129 | | December 2009 | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Profit/(loss) | - | | - | | (755,361) | | (1,149,194) | | (1,904,555) | | for the period | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Foreign exchange | | | | | | | | | | adjustment arising | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | on translation | - | | - | | - | | (1,282,898) | | (1,282,898) | | to Sterling | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | As at 30 June | - | | 39,525,002 | | (23,801,718) | | (984,608) | | 14,738,676 | | 2010 | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Unaudited condensed consolidated statement of cash flows | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | for the 6 month period ended 30 June 2010 | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | Restated into Pounds Sterling for information purposes only | | | | | +-----------------------------------------------------------------------------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | 30 Jun | | 30 Jun | | | | | | | | | | | 2010 | | 2009 | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | GBP | | GBP | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loss for the | | | | | | | (1,904,555) | | (8,740,535) | | period | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Adjustment for: | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net finance | | | | | | | 549,304 | | 689,962 | | income and | | | | | | | | | | | expenses | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Revaluation (gain) / loss on investment | | | | (43,068) | | 10,456,676 | | properties | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | Impairment / (reversal of impairment) of | | | | 697,464 | | (736,256) | | inventory | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | Taxation | | | | | | | | - | | (824,411) | +--------------------+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Loss on | | | | | | | 100,965 | | - | | disposal of | | | | | | | | | | | subsidiaries | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Operating cash flows before | | | | | | | | | movements | | | | | | | | +-------------------------------------------+-------------+----------+--------------+----------+-------------+----------+--------------+ | in working | | | | | | | (599,890) | | 845,436 | | capital | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Decrease in trade and other receivables | | | | 128,474 | | 305,199 | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | Decrease in trade and | | | | | | (612,886) | | (2,516,730) | | other payables | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Decrease in | | | | | | | 443,063 | | (159,281) | | inventory | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | (641,239) | | (1,525,376) | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Interest | | | | | | | 458 | | 2,389 | | received | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Interest paid | | | | | | | (549,762) | | - | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net cash outflow from operating activities | | | | (1,190,543) | | (1,522,987) | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Investing | | | | | | | | | | | activities | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Disposal / (additions) to | | | | | 4,291,357 | | (37,022) | | investment properties | | | | | | | | +-------------------------------------------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net cash inflow /(outflow) from investing | | | | 4,291,357 | | (37,022) | | activities | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Financing | | | | | | | | | | | activities | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | (Repayment) / | | | | | | | (3,510,947) | | 1,616,336 | | proceeds from | | | | | | | | | | | loan | | | | | | | | | | +----------------------+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net cash (outflow) / inflow from financing | | | | (3,510,947) | | 1,616,336 | | activities | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Net (decrease) / increase in cash and cash | | | | (410,133) | | 56,327 | | equivalents | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Cash and cash | | | | | | 935,212 | | 2,082,699 | | equivalents at start of | | | | | | | | | | period | | | | | | | | | +--------------------------------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Exchange difference arising on translation | | | | (233,841) | | (1,312,801) | | to Sterling | | | | | | | +---------------------------------------------------------+----------+--------------+----------+-------------+----------+--------------+ | | | | | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ | Cash and cash | | | | | | 291,238 | | 826,225 | | equivalents at end of | | | | | | | | | | period | | | | | | | | | +-----------------+--+-+---------+----------+-------------+----------+--------------+----------+-------------+----------+--------------+ This information is provided by RNS The company news service from the London Stock Exchange END IR DMGZLVLGGGZM
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