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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 |
Hot Features
Premium
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· In 2009, six contracts with BuySell rescinded after breach of contractual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
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