TIDMEBP
RNS Number : 9294S
East Balkan Properties PLC
20 September 2010
EAST BALKAN PROPERTIES plc
INTERIM REPORT 2010
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2010
East Balkan Properties plc ("EBP" / "Company" / "Group"), formerly Equest Balkan
Properties plc, an Isle of Man registered company for commercial property
investments in the Balkan region, announces today its results for the period
ended 30 June 2010.
Highlights for the Interim period
· Net Asset Value per share of Euro 0.41 under IFRS, a decrease of 2% from
Euro 0.42 per share at 31 December 2009 (30 June 2009: Euro 0.39)
· Pre-tax loss of Euro 2.9 million (31 December 2009: Euro 64.7 million
loss; 30 June 2009: 71.2 million loss)
· Total assets, adjusted for minority and associate interests, of Euro
155.8 million (31 December 2009: Euro 187.1 million)
· Total net rental income of Euro 2.3 million (31 December 2009: Euro 6.2
million; 30 June 2009: Euro 4.4 million)
· Group cash balance of Euro 4.7 million (31 December 2009: Euro 6.5
million; June 2009: Euro 3.0 million)
· Total borrowings (secured) of Euro 90.7 million and other (unsecured)
loans of Euro 2.4 million, resulting in an overall gearing ratio of 61% (31
December 2009: Euro 114.9 million 65% gearing on value)
· Debt restructurings agreed or completed with all major creditors
involving Euro 90.8 million in mortgage debt
· Euro 1.4 million net cash received in June from sale of Elgin BV, owner
of land assemblage in Old Belgrade (Apollo Project) and transfer of Euro 20.8
million in related bank debt to new owner
Post Period Highlights
· Glorient BG restructuring finalised in August and the minority position
held by EBP has defined rights regarding future operations and major financing
and development decisions
· Cost reduction exercise across the Group platform, including a
consolidation of intermediate holding companies and a rationalisation of service
provider contracts
· Major indemnity claim related to dispute with former property manager of
City Center Sofia (sold in November 2009) settled for cash payment of Euro 0.1
million in September
Commenting on the interim results, James Ede-Golightly, Non-executive Chairman
of EBP, said:
"The debt restructuring measures taken by the Company have provided a period of
funding visibility for the relevant assets and for the Group as a whole. As a
result of continued weakness in the region during the period, the carrying value
of certain assets has continued to fall, however this is partially offset by a
revaluation of the associated debt.
A cost reduction exercise will be completed before the end of the financial year
and will help to maximise the financial flexibility. In the absence of an active
investor market for commercial property in the region, the Board continues to
evaluate the best strategy for each asset in order to realise shareholder
value."
For further information please contact:
IOMA Fund and Investment Management Ltd
Graham Smith
grahams@iomagroup.co.im
Tel: +44 1624 681 250
Michael Uhler
michael.uhler@ebp-plc.com
Tel: +49 172 183 3194
Arbuthnot Securities
Nomad and Broker
Tel: +44 20 7012 2000
Hugh Field
Chairman's Statement
Introduction
The Board continues its strategy of stabilising the Group and improving
profitability, with the ultimate objective of realising value and returning
capital to shareholders.
So far this year costs have been rationalised, debt restructurings agreed, and
the Apollo development site in Belgrade sold.
These measures have helped to stabilise the Group. However regional market
conditions have continued to be challenging. Occupancy levels have not recovered
while the rents and cash collection remain under pressure. We have seen no
improvement in the availability of financing or investor appetite for commercial
property in the region.
In the absence of an active investor market for commercial property that would
facilitate the sale of assets at acceptable values, the Board continues to
evaluate alternative strategies to realise value from each asset over the medium
term.
Results
IFRS NAV is Euro 0.41 per share, a decrease of 2% from Euro 0.42 per share
reported for 31 December 2009.
In the six months to 30 June 2010, the Company made a pre tax loss of Euro 2.9
million (31 December 2009: pre-tax loss of Euro 64.7 million), including a
revaluation loss of Euro 4.7 million (31 December 2009: revaluation loss Euro
47.8 million) equating to a basic loss of Euro 0.02 per share (31 December 2009:
loss Euro 0.45 per share).
The fall in revenue from 6.9m to 4.9m reflects continued pressure on occupancy,
rental levels and cash collection although the disposal of income generating
assets in the previous 12 months has also contributed to this fall.
Portfolio
In terms of Net Asset Value, as at 30 June 2010, the EBP portfolio totals Euro
57.5 million of which Euro 34.1 million and Euro 0.9 million is attributable to
associate minority stakes held in Glorient BG and IBN SRO respectively, and
Euro 9.1 million to property holdings in Serbia. The Romanian portfolio
represents Euro 11.4 million of the portfolio NAV.
We see no evidence that the commercial property markets in the Balkans are in
recovery. On the letting side, demand in Bucharest for office and logistics
premises appears to be stable though at low net absorption levels. We are
generally able to replace office and logistic tenants but have not been able to
bring up occupancy levels consistently, despite some rental concessions.
The retail market in Bucharest is very weak with demand for retail premises and
achievable rents at historic lows. We are struggling to maintain occupancy
levels in our shop spaces at Vitantis and Moldova Mall though our anchor tenants
continue to report solid sales. Overall, the visitor count to our retail centres
is off at least 20% from last year and turnover is down by more than 25%. We
have a strategy to invest capital in very select projects to defend the assets
and to show our retailers that we are committed to making improvements which
will attract more shoppers. Even so, it is hard to justify capital projects
given current rental levels. Competition among centres for the few viable
retailers is fierce.
We are considering strategic options for Vitantis and Moldova Mall as the annual
cost of ownership is higher than the cash which can be up streamed from the
assets. At this time, however, a sale would be unlikely to result in surplus
cash proceeds above the existing debt levels.
We are in discussions with our majority partner in Glorient BG regarding options
for this investment but those talks are still in early stages and may not result
in agreement. The corporate restructuring of Glorient has been finalised and the
company has continued to show sound performance.
Since year end 2009 we have completed one previously announced sale, the
disposal of the mixed use development site in Old Belgrade (Apollo Project). We
also have now consolidated the Archway joint venture to regain 100% control over
three land parcels and one shop space in Serbia.
EBP is interested in further asset disposals and has begun marketing the
Romanian and Serbian land plots for sale via third party agents. However, there
does not appear to be an active investor market for land.
Valuations
As agreed in the June 2009 Annual General Meeting, for the interim results the
properties are valued by the Directors using the same general appraisal
techniques employed by external valuers and taking into consideration the actual
and forecast financial performance of the assets as well as market activity in
the jurisdictions where the assets are owned. This saves approximately Euro
75,000 per annum in appraisal fees.
Overall, the Directors impaired directly held property values by approximately
10% as compared to the 31 December 2009 values reported by CBRE.
Given the current valuation and the repayment options available under the
restructured debt arrangements, Vitantis and Moldova Mall, when combined, show a
neutral NAV contribution. This will continue until such time as asset
performance improves.
Financing / Funding
All of the Group's Euro 90.7 million of bank debt is non-recourse to the fund
and secured only by collateral typical for commercial mortgage loans. We have no
loans in event of default status and are making all interest and amortization
payments current primarily from asset level cash flow.
Pursuant to the debt restructurings, the lenders have generally agreed to a
moratorium on financial covenant testing. As long as interest and amortization
payments are paid current from asset level cash flow, the debt facilities are
unlikely to be put into default by the lenders. The loan facility will begin to
mature at the end of 2012.
The financial covenants for our facility with Deutsche Pfandbriefbank are in
technical breach though terms for a restructuring have been signed so there will
be no event of default status. The Euro 14.9 million loan from Deutsche
Pfandbriefbank (formerly Hypo Real Estate AG) is still hedged for interest rate
risk to maturity. At the request of our lenders, we borrowed Euro 4.1 million to
cancel the swap contracts related to Vitantis and Moldova Mall. The RZB
facility secured by Equest Logistic Center has never been hedged.
At current levels of the 3-month Euribor reference rate, the annual interest
burden for our floating rate debt is Euro 2.15 million per annum. This would
increase by Euro 0.84 million per annum for each 100 basis point increase in the
reference rate.
Administrative Costs
Administrative expenses were Euro 1.63 million in the first half of 2010 (30
June 2009: Euro 3.07 million). This reflects a substantial reduction in fees
paid for asset management services, consultants, and legal advice.
Administrative costs are expected to fall further in 2011 as the full benefit of
the current cost reduction initiatives are reflected in the accounts. We have
examined all service contracts and renegotiated several to more favourable
terms. Many accounting and administrative support contracts were reduced or
cancelled. We are incrementally simplifying the corporate structure to further
reduce costs and complexity.
Cash Management
The investment assets do not generate surplus cash to cover fund level expenses.
This is due in part to declines in operational performance (lower rents, higher
vacancy) and to restrictions put in place by our lenders to limit cash
distributions.
The annual cash requirement for general fund level administrative expenses,
including asset management fees and consulting fees to the executive staff, can
be met from existing cash reserves and will be supplemented from asset sales.
Cash balances were boosted by 1.4 million following the sale of Apollo and as at
31 August 2010 stand at Euro 4.6 million. Of this amount, Euro 3.4 million is
available to the Group for general purposes with the balance held at operating
company levels for scheduled debt service or secured for our lenders in blocked
accounts.
The Group continues to adopt a going concern basis for the preparation of these
interim financial statements.
The Directors believe the Group will be able to successfully manage its business
risks for the foreseeable future despite continued challenging economic
conditions. After making enquiries and examining major areas which could give
rise to significant financial exposures, the Board has a reasonable expectation
that the Company and the Group have adequate resources to continue their
operations. The Group has primarily mortgage debt facilities secured at the
local company level and without any performance or payment guarantees from the
Group. In the event of a financing default, each lender only has recourse to
the local company borrower and cannot seek recourse from the Company. In a
distress situation, to limit the financial damage to the Group, underperforming
assets could be released back to the appropriate lender.
With respect to the Company's cash position, the Board has a reasonable
expectation that sufficient liquidity will be available to meet ongoing expenses
from a combination of existing cash reserves, net sales proceeds arising from
the disposal program and cash flow from normal operations.
Financial Statements
Copies of the interim statement are available on the Company's website:
www.ebp-plc.com and by writing to East Balkan Properties, IOMA House, Hope
Street, Douglas, Isle of Man IM1 1AP.
James Ede-Golightly
Non-executive Chairman
17 September 2010
Independent review report to East Balkan Properties PLC
Introduction
We have been engaged by the Company to review the financial information in the
half-yearly financial report for the six months ended 30 June 2010 which
comprises the Consolidated Statement of Comprehensive Income, the Consolidated
Statement of Financial Position, the Consolidated Statement of Changes in
Equity, the Consolidated Statement of Cashflows and notes 1 to 7. We have read
the other information contained in the half yearly financial report which
comprises only the Chairman's Statement and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report is made solely to the Company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the Company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the financial information in the
half-yearly financial report are consistent with those which will be adopted in
the annual accounts having regard to the accounting standards applicable for
such accounts.
As disclosed in Note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
financial information in the half-yearly financial report has been prepared in
accordance with the basis of preparation in Note 2.
Our responsibility
Our responsibility is to express to the company a conclusion on the financial
information in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the financial information in the half-yearly financial report for the six
months ended 30 June 2010 is not prepared, in all material respects, in
accordance with the basis of accounting described in Note 2.
GRANT THORNTON
AUDITOR
Isle of Man
16 September 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+------------------+---------------------------+----------------------------+--------------------------------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | | | |
+ +---------------------------+----------------------------+--------------------------------+
| | 1 | 1 | 1 |
| | January | January | January |
| | 2010 to | 2009 to | 2009 to |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | | | 2009 |
+------------------+---------------------------+----------------------------+--------------------------------+
| | EUR | EUR | EUR |
| | '000 | '000 | '000 |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Revenue | 4,927 | 6,935 | 12,953 |
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Property | (2,614) | (2,492) | (6,769) |
| operating | | | |
| expenses | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Net | 2,313 | 4,443 | 6,184 |
| rental | | | |
| and | | | |
| related | | | |
| income | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Net | (4,699) | (44,760) | (47,818) |
| gain/(loss) | | | |
| from fair | | | |
| value | | | |
| adjustment | | | |
| on property | | | |
| assets | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Share | 2,968 | (15,165) | (8,158) |
| of | | | |
| profit/(loss) | | | |
| from | | | |
| associate | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Profit | 2,177 | | 7,371 |
| on | | - | |
| sale | | | |
| of a | | | |
| subsidiary | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Impairment | | (1,159) | (1,148) |
| of | - | | |
| goodwill | | | |
| and | | | |
| acquired | | | |
| building | | | |
| rights | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Administrative | (1,629) | (3,073) | (9,129) |
| expenses | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Operating | 1,130 | (59,714) | (52,698) |
| profit/(loss) | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Finance | 20,726 | 157 | 589 |
| income | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Finance | (24,758) | (11,683) | (12,590) |
| costs | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | (4,032) | (11,526) | (12,001) |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Loss | (2,902) | (71,240) | (64,699) |
| for | | | |
| the | | | |
| period | | | |
| before | | | |
| tax | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Income | (436) | 1,527 | 1,884 |
| tax | | | |
| credit/(expense) | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Loss | (3,338) | (69,713) | (62,815) |
| for | | | |
| the | | | |
| period | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Other | | | |
| comprehensive | | | |
| income/(expense) | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Fair | 88 | (1,010) | (1,007) |
| value | | | |
| movement | | | |
| on | | | |
| development | | | |
| property | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Realisation | | | 3,936 |
| of reserves | - | - | |
| on sale of | | | |
| subsidiary | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Exchange | 2,359 | (3,843) | (8,694) |
| differences | | | |
| on | | | |
| translating | | | |
| foreign | | | |
| operations | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Share | 121 | (1,327) | (1,327) |
| of | | | |
| other | | | |
| comprehensive | | | |
| income of | | | |
| associates | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Reclassification | | (2,536) | (3,383) |
| of investment | - | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Other | 2,568 | (8,716) | (10,475) |
| comprehensive | | | |
| income/(expense) | | | |
| for the period | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Total | (770) | (78,429) | (73,290) |
| comprehensive | | | |
| income/(expense) | | | |
| for the period | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Loss | | | |
| attributable | | | |
| to | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Owners | (3,338) | (68,496) | (62,872) |
| of the | | | |
| parent | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Minority | | (1,217) | 57 |
| interest | - | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | (3,338) | (69,713) | (62,815) |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Total | | | |
| comprehensive | | | |
| income/(expense) | | | |
| attributable to | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Owners | (770) | (74,001) | (70,457) |
| of the | | | |
| parent | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Non-controlling | | (4,428) | (2,833) |
| interests | - | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| | (770) | (78,429) | (73,290) |
+------------------+---------------------------+----------------------------+--------------------------------+
| | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
| Loss | (0.02) | (0.49) | (0.45) |
| per | | | |
| share | | | |
| - | | | |
| basic | | | |
| and | | | |
| diluted | | | |
+------------------+---------------------------+----------------------------+--------------------------------+
The notes below are an integral part of these interim financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
+--------------+---------------------------+---------------------------+------------------------------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | 30 | 30 | 31 |
| | June | June | December |
| | 2010 | 2009 | 2009 |
+--------------+---------------------------+---------------------------+------------------------------+
| | EUR | EUR | EUR |
| | '000 | '000 | '000 |
+--------------+---------------------------+---------------------------+------------------------------+
| ASSETS | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Non-current | | | |
| assets | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Investment | 101,630 | 114,456 | 112,390 |
| property | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Acquired | - | 500 | - |
| building | | | |
| rights | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Development | 2,740 | 28,000 | 24,502 |
| property | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Other | 259 | 314 | 302 |
| property, | | | |
| plant and | | | |
| equipment | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Investment | 23,925 | 31,356 | 20,836 |
| in | | | |
| associates | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Loans | 11,639 | 1,000 | 11,519 |
| and | | | |
| receivables | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Deferred | 359 | 609 | 810 |
| income | | | |
| tax | | | |
| assets | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | 140,552 | 176,235 | 170,359 |
+--------------+---------------------------+---------------------------+------------------------------+
| Current | | | |
| assets | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Loan | 830 | 61 | 600 |
| receivables | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Trade | 5,478 | 10,293 | 5,444 |
| and | | | |
| other | | | |
| receivables | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Inventory | 4,200 | - | 4,194 |
| - Land | | | |
| held for | | | |
| sale | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Cash | 4,718 | 3,029 | 6,543 |
| and | | | |
| cash | | | |
| equivalents | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | 15,226 | 13,383 | 16,781 |
+--------------+---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Total | 155,778 | 189,618 | 187,140 |
| assets | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| EQUITY | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Share | 1,400 | 1,400 | 1,400 |
| capital | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Retained | 71,313 | 69,027 | 74,651 |
| earnings | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Translation | (15,230) | (15,902) | (17,589) |
| reserve | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Revaluation | (29) | 155 | (238) |
| reserve | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Total | 57,454 | 54,680 | 58,224 |
| equity | | | |
| attributable | | | |
| to equity | | | |
| holders of | | | |
| the parent | | | |
| company | | | |
+ +---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Minority | | (1,595) | |
| interest | - | | - |
+--------------+---------------------------+---------------------------+------------------------------+
| Total | 57,454 | 53,085 | 58,224 |
| equity | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| LIABILITIES | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Non-current | | | |
| liabilities | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Bank | 86,506 | 55,612 | 34,129 |
| borrowings | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Deferred | | 176 | |
| income | - | | - |
| tax | | | |
| liabilities | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Deposits | 313 | 270 | 250 |
+--------------+---------------------------+---------------------------+------------------------------+
| Other | 2,411 | 2,667 | 1,677 |
| long | | | |
| term | | | |
| loans | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Other | | 221 | 2,315 |
| non-current | - | | |
| liabilities | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | 89,230 | 58,946 | 38,371 |
+--------------+---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Current | | | |
| liabilities | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Trade | 3,758 | 9,017 | 8,491 |
| and | | | |
| other | | | |
| payables | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Interest | 1,118 | | 5,074 |
| rates | | - | |
| swaps | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Bank | 4,218 | 58,765 | 76,779 |
| borrowings | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Other | | 9,805 | 201 |
| short | - | | |
| term | | | |
| loans | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | 9,094 | 77,587 | 90,545 |
+--------------+---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Total | 98,324 | 136,533 | 128,916 |
| liabilities | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| | | | |
+--------------+---------------------------+---------------------------+------------------------------+
| Net | 155,778 | 189,618 | 187,140 |
| equity | | | |
| and | | | |
| liabilities | | | |
+--------------+---------------------------+---------------------------+------------------------------+
The financial statements below were approved and authorised for issue by the
Board of Directors on 17
September 2010 and were signed on their behalf by:
Graham Smith
Director
The notes below are an integral part of these interim financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | Share | Retained | Translation | Revaluation | Total | Minority | Total |
| | Capital | Earnings | Reserve | Reserve | | Interest | Equity |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 | EUR '000 |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Balance | 1,400 | 137,523 | (12,395) | 2,153 | 128,681 | 2,833 | 131,514 |
| at 1 | | | | | | | |
| January | | | | | | | |
| 2009 | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Loss | | (68,496) | | | (68,496) | (1,217) | (69,713) |
| for | - | | - | - | | | |
| the | | | | | | | |
| period | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Fair | | | | (699) | (699) | (311) | (1,010) |
| value | - | - | - | | | | |
| movement | | | | | | | |
| on | | | | | | | |
| development | | | | | | | |
| property | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Exchange | | | (3,507) | 28 | (3,479) | (364) | (3,843) |
| differences | - | - | | | | | |
| on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Deferred | | | | (1,327) | (1,327) | | (1,327) |
| tax | - | - | - | | | - | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Reclassification | | | | | | (2,536) | (2,536) |
| of investment | - | - | - | - | - | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Total | | (68,496) | (3,507) | (1,998) | (74,001) | (4,428) | (78,429) |
| comprehensive | - | | | | | | |
| income/(expenses) | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Balance | 1,400 | 69,027 | (15,902) | 155 | 54,680 | (1,595) | 53,085 |
| at 30 | | | | | | | |
| June | | | | | | | |
| 2009 | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Balance | 1,400 | 137,523 | (12,395) | 2,153 | 128,681 | 2,833 | 131,514 |
| at 1 | | | | | | | |
| January | | | | | | | |
| 2009 | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Loss | | (62,872) | | | (62,872) | 57 | (62,815) |
| for | - | | - | - | | | |
| the | | | | | | | |
| year | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income: | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Fair | | | | (1,007) | (1,007) | | (1,007) |
| value | - | - | - | | | - | |
| movement | | | | | | | |
| on | | | | | | | |
| development | | | | | | | |
| property | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Realisation | | | 3,936 | | 3,936 | | 3,936 |
| of reserves | - | - | | - | | - | |
| on sale of | | | | | | | |
| subsidiary | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Exchange | | | (9,130) | (57) | (9,187) | 493 | (8,694) |
| differences | - | - | | | | | |
| on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Share | | | | (1,327) | (1,327) | | (1,327) |
| of | - | - | - | | | - | |
| other | | | | | | | |
| comprehensive | | | | | | | |
| income of | | | | | | | |
| associates | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Reclassification | | | | | | (3,383) | (3,383) |
| of investment | - | - | - | - | - | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Total | | (62,872) | (5,194) | (2,391) | (70,457) | (2,833) | (73,290) |
| comprehensive | - | | | | | | |
| income/(expenses) | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Balance | 1,400 | 74,651 | (17,589) | (238) | 58,224 | | 58,224 |
| at 31 | | | | | | - | |
| December | | | | | | | |
| 2009 | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Loss | | (3,338) | | | (3,338) | | (3,338) |
| for | - | | - | - | | - | |
| the | | | | | | | |
| period | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Other | | | | | | | |
| comprehensive | | | | | - | - | |
| income: | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Fair | | | | 88 | 88 | | 88 |
| value | - | - | - | | | - | |
| movement | | | | | | | |
| on | | | | | | | |
| development | | | | | | | |
| property | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Exchange | | | 2,359 | | 2,359 | | 2,359 |
| differences | - | - | | - | | - | |
| on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Share | | | | 121 | 121 | | 121 |
| of | - | - | - | | | - | |
| other | | | | | | | |
| comprehensive | | | | | | | |
| income of | | | | | | | |
| associates | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Total | | (3,338) | 2,359 | 209 | (770) | | (770) |
| comprehensive | - | | | | | - | |
| income/(expenses) | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
| Balance | 1,400 | 71,313 | (15,230) | (29) | 57,454 | | 57,454 |
| at 30 | | | | | | - | |
| June | | | | | | | |
| 2010 | | | | | | | |
+-------------------+------------------+---------------------+------------------------+--------------------+-------------------------+-------------------+-------------------------+
The notes below are an integral part of these interim financial statements
CONSOLIDATED STATEMENT OF CASH FLOW
+---------------------+--------------------+-----------------+--------------------+
| | (Unaudited) | (Unaudited) | (Audited) |
| | | | |
+---------------------+--------------------+-----------------+--------------------+
| | 1 | 1 | 1 |
| | January | January | January |
| | 2010 to | 2009 to | 2009 to |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | | | 2009 |
+---------------------+--------------------+-----------------+--------------------+
| | EUR'000 | EUR'000 | EUR'000 |
+---------------------+--------------------+-----------------+--------------------+
| | | | |
+---------------------+--------------------+-----------------+--------------------+
| Loss | (2,902) | (71,240) | (64,699) |
| before | | | |
| tax | | | |
| for | | | |
| the | | | |
| period | | | |
+---------------------+--------------------+-----------------+--------------------+
| Adjustments | | | |
| for: | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | (2,968) | 15,165 | 8,158 |
| share | | | |
| of | | | |
| (profit)/loss | | | |
| in associate | | | |
+---------------------+--------------------+-----------------+--------------------+
| - net | 4,699 | 44,760 | 47,571 |
| loss | | | |
| from | | | |
| fair | | | |
| value | | | |
| adjustment | | | |
| on | | | |
| property | | | |
| assets | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | (20,726) | (40) | (588) |
| finance | | | |
| income | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | 16,397 | 3,869 | 7,695 |
| finance | | | |
| costs | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | 8,713 | 6,532 | 2,019 |
| foreign | | | |
| exchange | | | |
| loss | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | (2,177) | | (7,371) |
| (profit)/loss | | - | |
| on sale of | | | |
| subsidiaries | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | 37 | 30 | 64 |
| depreciation | | | |
| of property, | | | |
| plant and | | | |
| equipment | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | | | 1,151 |
| goodwill | - | - | |
| impairment | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | | 1,159 | - |
| impairment | - | | |
| of | | | |
| acquired | | | |
| building | | | |
| rights | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | | | 2,313 |
| impairment | - | - | |
| of loans | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | (353) | 1,056 | 3,075 |
| fair | | | |
| value | | | |
| movement | | | |
| on | | | |
| interest | | | |
| rate | | | |
| swaps | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | | 38 | |
| other | - | | - |
| provisions | | | |
+---------------------+--------------------+-----------------+--------------------+
| | | | |
+---------------------+--------------------+-----------------+--------------------+
| Changes | | | |
| in | | | |
| working | | | |
| capital: | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | (499) | (358) | 576 |
| decrease | | | |
| in | | | |
| receivables | | | |
+---------------------+--------------------+-----------------+--------------------+
| - | (443) | (1,873) | (697) |
| increase | | | |
| in | | | |
| payables | | | |
+---------------------+--------------------+-----------------+--------------------+
| | | | |
+---------------------+--------------------+-----------------+--------------------+
| | (222) | (902) | (733) |
+---------------------+--------------------+-----------------+--------------------+
| | | | |
+---------------------+--------------------+-----------------+--------------------+
| Finance | (3,506) | (3,481) | (6,218) |
| costs | | | |
| paid | | | |
+---------------------+--------------------+-----------------+--------------------+
| Tax | (128) | | 9 |
| paid | | - | |
+---------------------+--------------------+-----------------+--------------------+
| | | | |
+---------------------+--------------------+-----------------+--------------------+
| Net | (3,856) | (4,383) | (6,942) |
| cash | | | |
| outflow | | | |
| from | | | |
| operating | | | |
| activities | | | |
+---------------------+--------------------+-----------------+--------------------+
| Cash | | | |
| flow | | | |
| from | | | |
| investing | | | |
| activities | | | |
+---------------------+--------------------+-----------------+--------------------+
| Proceeds | 1,400 | | 5,972 |
| on sale | | - | |
| of | | | |
| subsidiaries | | | |
+---------------------+--------------------+-----------------+--------------------+
| Capital | | | 6,555 |
| contribution | - | - | |
| from | | | |
| associate | | | |
+---------------------+--------------------+-----------------+--------------------+
| Additions | (100) | (1,935) | (2,414) |
| to | | | |
| investment | | | |
| property | | | |
+---------------------+--------------------+-----------------+--------------------+
| Proceeds | - | | - |
| on sale | | - | |
| of | | | |
| investment | | | |
| property | | | |
+---------------------+--------------------+-----------------+--------------------+
| Additions | | (3,029) | (1,600) |
| to | - | | |
| development | | | |
| property | | | |
+---------------------+--------------------+-----------------+--------------------+
| Purchase | | (156) | (178) |
| of other | - | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+---------------------+--------------------+-----------------+--------------------+
| Acquisition | (12) | | |
| of | | - | - |
| subsidiaries, | | | |
| net of cash | | | |
| acquired | | | |
+---------------------+--------------------+-----------------+--------------------+
| Interest | 28 | 115 | 547 |
| received | | | |
+---------------------+--------------------+-----------------+--------------------+
| Net | 1,316 | (5,005) | 8,882 |
| cash | | | |
| inflow | | | |
| /(outflow) | | | |
| from | | | |
| investing | | | |
| activities | | | |
+---------------------+--------------------+-----------------+--------------------+
| Cash | | | |
| flows | | | |
| from | | | |
| financing | | | |
| activities | | | |
+---------------------+--------------------+-----------------+--------------------+
| Repayment | (822) | 1,214 | (14,404) |
| of | | | |
| borrowings | | | |
+---------------------+--------------------+-----------------+--------------------+
| Loans | | (177) | - |
| advanced | - | | |
+---------------------+--------------------+-----------------+--------------------+
| Swap | (3,628) | | |
| settlements | | - | - |
+---------------------+--------------------+-----------------+--------------------+
| Proceeds | 5,118 | (3,631) | 3,500 |
| from | | | |
| borrowing | | | |
| and other | | | |
| loans | | | |
+---------------------+--------------------+-----------------+--------------------+
| Net | 668 | (2,594) | (10,904) |
| cash | | | |
| inflow/(outflow) | | | |
| from financing | | | |
| activities | | | |
+---------------------+--------------------+-----------------+--------------------+
| Net | (1,872) | (11,982) | (8,964) |
| (decrease)/increase | | | |
| in cash & cash | | | |
| equivalents | | | |
+---------------------+--------------------+-----------------+--------------------+
| | 6,543 | 15,530 | 15,530 |
+---------------------+ + + +
| Cash & | | | |
| cash | | | |
| equivalents | | | |
| at | | | |
| beginning | | | |
| of year | | | |
+---------------------+--------------------+-----------------+--------------------+
| Foreign | 47 | (519) | (23) |
| exchange | | | |
| gains/(losses) | | | |
| on cash and | | | |
| cash | | | |
| equivalents | | | |
+---------------------+--------------------+-----------------+--------------------+
| Cash & | 4,718 | 3,029 | 6,543 |
| cash | | | |
| equivalents | | | |
| at end of | | | |
| year | | | |
+---------------------+--------------------+-----------------+--------------------+
The notes below are an integral part of these interim financial statements
NOTES TO THE INTERIM REPORT
1. General information
East Balkan Properties plc ("the Company") and its subsidiaries (together "the
Group"), formerly Equest Balkan Properties plc, are a property group with a
portfolio of development property and investment property assets in South East
Europe.
2. Basis of preparation
This financial information has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting Standards (IFRS)
as adopted by the European Union and IFRIC Interpretations. The financial
information has been prepared under the historical cost convention. The annual
financial statements are prepared in accordance with IFRS as adopted by the
European Union.
Except as described below, the accounting policies applied by the Group in these
interim consolidated financial statements are the same as those applied by the
Group in its consolidated financial statements as at and for the period ended 31
December 2009.
Change in accounting policy
IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and Separate
Financial Statements (Amended)
The Group adopted the revised standards from 1 January 2010. IFRS 3 (Revised)
introduces significant changes in the accounting for business combinations
occurring after this date. Changes affect the valuation of non-controlling
interest, the accounting for transaction costs, the initial recognition and
subsequent measurement of a contingent consideration and business combinations
achieved in stages. These changes impact the amount of goodwill recognised the
reported results in the period that an acquisition occurs and future reported
results. IAS 27 (Amended) requires that a change in the ownership interest of a
subsidiary (without loss of control) is accounted for as a transaction with
owners in their capacity as owners. Therefore, such transactions no longer give
rise to goodwill, nor give rise to a gain or loss.
Furthermore, the amended standard changes the accounting for losses incurred by
the subsidiary as well as the loss of control of a subsidiary. The changes
required by IFRS 3 (Revised) and IAS 27 (Amended) will affect future
acquisitions or loss of control of subsidiaries and transactions with
non-controlling interests. The change in accounting policy was applied
prospectively and had no material impact on earnings per share or the results
for the period ended 30 June 2010.
Critical accounting estimates and assumptions
The preparation of condensed consolidated interim financial statements in
conformity with IFRSs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and reported
amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results
for which form the basis of making the judgements about carrying values of
assets and liabilities that are not readily available from other sources. Actual
results may differ from these estimates.
The principal risks and uncertainties are consistent with those disclosed in
preparation of the Group's annual financial statements for the year ended 31
December 2009.
3. Loss per share
The basic loss per ordinary share is calculated by dividing the net loss
attributable to the ordinary shareholders of the Company by the weighted average
number of ordinary shares in issue during the year.
+--------------+--------+-----------------------+--------------------+---------------------+
| | | 1 | 1 | 1 |
| | | January | January | January |
| | | 2010 to | 2009 to | 2009 to |
| | | 30 June | 30 June | 31 |
| | | 2010 | 2009 | December |
| | | | | 2009 |
+--------------+--------+-----------------------+--------------------+---------------------+
| | | EUR'000 | EUR'000 | EUR'000 |
+--------------+--------+-----------------------+--------------------+---------------------+
| Loss | | (3,338) | (68,496) | (62,872) |
| attributable | | | | |
| to owners of | | | | |
| parent | | | | |
+--------------+--------+-----------------------+--------------------+---------------------+
| Weighted | | 140,000 | 140,000 | 140,000 |
| average | | | | |
| number | | | | |
| of | | | | |
| ordinary | | | | |
| shares | | | | |
| in issue | | | | |
+--------------+--------+-----------------------+--------------------+---------------------+
| | | | | |
+--------------+--------+-----------------------+--------------------+---------------------+
| Basic | | (0.02) | (0.49) | (0.45) |
| loss | | | | |
| per | | | | |
| share | | | | |
+--------------+--------+-----------------------+--------------------+---------------------+
The Company has no dilutive potential ordinary shares; the diluted loss per
share is the same as the basic loss per share.
4. Profit or loss on sale of investments
As announced on 16 June 2010, the Company completed the agreement for the sale
of its wholly owned subsidiary, Elgin BV, the owner of Apollo, the Company's
mixed use development site in Belgrade, to Sunville Corporation NV.
Under the terms of the agreement, the buyer assumed approximately Euro 20.8
million in existing financing held by Hypo Alpe-Adria Bank and paid cash of Euro
1.4 million.
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| 1 January 2010 to 30 June 2010 | Apollo Group | Aurora BV / Archway BV | Other | Total |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Proceeds | 1,400 | - | 15 | 1,415 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Net assets | (1,635) | - | (56) | (1,691) |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Realisation of translation reserve | 582 | - | - | 582 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Costs of sale | (299) | - | - | (299) |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Adjustment to profit in respect of prior period disposal | - | 2,170 | - | 2,170 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| | | | | |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Profit/(loss) on sale of subsidiaries | 48 | 2,170 | (41) | 2,177 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| | | | | |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| 1 January 2009 to 31 December 2009 | Elan BCS Dooel | Aurora BV / Archway BV | Other | Total |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Proceeds | 5,649 | - | 323 | 5,972 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Net assets | (5,824) | - | (375) | (6,199) |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Realisation of translation reserve | 51 | - | (3,051) | (3,000) |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Costs of sale | - | - | (328) | (328) |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Net credit in the period in respect of completion of Archway/Aurora transaction | - | 10,926 | - | 10,926 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| | | | | |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
| Profit/(loss) on sale of subsidiaries | (124) | 10,926 | (3,431) | 7,371 |
+---------------------------------------------------------------------------------+------------------------+------------------------+-----------------------+-----------------------+
5. Administration expenses
+----------------+--------+----------------------+---------+----------+
| | | 1 | 1 | 1 |
| | | January | January | January |
| | | 2010 to | 2009 to | 2009 to |
| | | 30 June | 30 June | 31 |
| | | 2010 | 2009 | December |
| | | | | 2009 |
+----------------+--------+----------------------+---------+----------+
| | | EUR'000 | EUR'000 | EUR'000 |
+----------------+--------+----------------------+---------+----------+
| | | | | |
+----------------+--------+----------------------+---------+----------+
| Audit | | 102 | 102 | 205 |
| fees | | | | |
| and | | | | |
| other | | | | |
+----------------+--------+----------------------+---------+----------+
| Management | | 378 | 1,641 | 3,283 |
| fees | | | | |
+----------------+--------+----------------------+---------+----------+
| Other | | 572 | 699 | 1,423 |
| professional | | | | |
| expenses | | | | |
+----------------+--------+----------------------+---------+----------+
| Directors' | | 118 | 89 | 179 |
| fees | | | | |
+----------------+--------+----------------------+---------+----------+
| Bad | | 369 | 46 | 3,075 |
| debts | | | | |
+----------------+--------+----------------------+---------+----------+
| Other | | 90 | 495 | 964 |
| administration | | | | |
| expenses | | | | |
+----------------+--------+----------------------+---------+----------+
| | | | | |
+----------------+--------+----------------------+---------+----------+
| Total | | 1,629 | 3,073 | 9,129 |
+----------------+--------+----------------------+---------+----------+
6. Property assets
Fair values of the Group's property assets are determined by the Directors. At
30 June 2010 and 30 June 2009 Directors' valuations were based on their best
estimate of market value. At 31 December 2009 Directors' valuations were based
on valuations prepared for each individual property asset by independent
professionally qualified valuers CB Richard Ellis.
The carrying value and fair value of the Group's property assets in the balance
sheet are summarised as follows:
+-------------+--------+----------+----------+----------+
| | | 30 | 30 | 31 |
| | | June | June | December |
| | | 2010 | 2009 | 2009 |
+-------------+--------+----------+----------+----------+
| | | EUR'000 | EUR'000 | EUR'000 |
+-------------+--------+----------+----------+----------+
| | | | | |
+-------------+--------+----------+----------+----------+
| Investment | | 101,630 | 114,456 | 112,390 |
| property | | | | |
+-------------+--------+----------+----------+----------+
| Acquired | | - | 500 | - |
| building | | | | |
| rights | | | | |
+-------------+--------+----------+----------+----------+
| Development | | 2,740 | - | 24,502 |
| property | | | | |
+-------------+--------+----------+----------+----------+
| Inventory | | 4,200 | 28,000 | 4,194 |
| - Land | | | | |
| held for | | | | |
| sale | | | | |
+-------------+--------+----------+----------+----------+
| | | | | |
+-------------+--------+----------+----------+----------+
| | | 108,570 | 142,956 | 141,086 |
+-------------+--------+----------+----------+----------+
At 30 June 2010 the Group holds two investments that are accounted for as
associates: Glorient BG and IBN SRO. The investment in IBN SRO was provided
against in full. The Group's share of net assets of Glorient at 30 June 2010 is
Euro 23.4 million (31 December 2009: Euro 20.3 million) which represents 40% of
Glorient. In addition, the investments in associates include a Euro 0.5 million
interest in the residual balances of Forum Serdika Coop, the holding company of
Forum Serdika which was sold in 2009.
At 30 June 2010, the Group also held Euro 11.6 million as loan receivables from
associates. These loans are unsecured.
7. Net assets value per share
+----------------------+----------+----------+----------+----------+
| | | 30 | 30 | 31 |
| | | June | June | December |
| | | 2010 | 2009 | 2009 |
+----------------------+----------+----------+----------+----------+
| | | EUR'000 | EUR'000 | EUR'000 |
+----------------------+----------+----------+----------+----------+
| | | | | |
+----------------------+----------+----------+----------+----------+
| Net assets | | 57,454 | 54,680 | 58,224 |
| attributable to | | | | |
| owners of the parent | | | | |
+----------------------+----------+----------+----------+----------+
| Number of ordinary | | 140,000 | 140,000 | 140,000 |
| shares outstanding | | | | |
| at 30 June 2010 | | | | |
+----------------------+----------+----------+----------+----------+
| | | | | |
+----------------------+----------+----------+----------+----------+
| Net Asset Value | | EUR0.41 | EUR0.39 | EUR0.42 |
+----------------------+----------+----------+----------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGURWBUPUGGR
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