Final Results

EASTERN EUROPEAN PROPERTY FUND LIMITED

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011

HIGHLIGHTS

·; Property valued by DTZ Debenham Tie Leung at £33.7 million (2010: £31.4 million).

·; Net asset value at 31 December 2011 of £22.0 million, 118.23p per Ordinary Share (2010: £22.4 million, 116.97p per Ordinary Share).

·; Profit for the year ended 31 December 2011 of £1.2 million, equal to a profit of 6.36p per Ordinary Share (2010: profit of £1.2 million, equal to a profit of 6.11p per Ordinary Share).

·; Gain on revaluation of investment properties of £1.6 million (2010: gain of £2.9 million).

Events after the year end:

·; Property sale achieved after the year end at a price of US$4.3 million (£2.7 million), approximately equal to the 31 December 2011 carrying value, crystallising a gain of US$2.7 million (£1.7 million).

·; US$4.5 million (£2.8 million) of the bank loan repaid following the sale of the property resulting in a balance outstanding of US$13 million.

For further information please visit www.eepfl.com or contact:

Tom Fyson

Liberum Capital Limited

Tel: +44 203 100 2000

Bob Locker

CNC Property Fund Management Ltd

Tel: +44 1784 424 740

Keiran Gallagher / Oliver Cadogan

Pera Pera

Tel: +90 (212) 252 6048

DIRECTORS' STATEMENT

We are pleased to present the results of the Group for the year ended 31 December 2011.

The difficult economic climate seen across Europe continued in 2011 and the property markets have not been immune to these conditions. Despite the challenging backdrop, the Group's Turkish property portfolio generated an unrealised gain on revaluation in 2011 and continued to outperform the Group's properties held in Bulgaria and Romania. At 31 December 2011, the Turkish properties accounted for 87% (2010: 84%) by value of the total properties held.

As announced on 8 May 2012, Mr Parkinson decided to resign as a Director to pursue other business interests and the Board wishes to thank Mr Parkinson for his contribution as Chairman of the Board of Directors over the six year period since the Company was formed in 2006.

Results

The Group reported a net profit for the year ended 31 December 2011 of £1.2 million (2010: profit of £1.2 million), representing a profit per Ordinary Share of 6.36p (2010: profit of 6.11p). The profit for the year was mainly attributable to the £1.6 million gain (2010: gain of £2.9 million) arising from the revaluation of investment property. A gain of £1.3 million arose as a result of foreign exchange differences, although this was offset by the loss on exchange differences arising from the translation of foreign operations included in other comprehensive loss. This resulted in a total comprehensive loss of £54,000 for the year (2010: total comprehensive income of £1.1 million).

The consolidated net asset value ("NAV") at 31 December 2011 was £22.0 million, 118.23p per Ordinary Share (2010: £22.4 million, 116.97p per Ordinary Share). The rise in NAV per Ordinary Share in the year was largely attributable to the gain arising from the £0.4 million buy back and cancellation of Ordinary Shares.

During the year ended 31 December 2011, operating expenses increased slightly from 2010, largely due to the performance fee accrual of £210,000, although this will not crystallise until a realisation event occurs. Management and administration fees were £198,000 lower in 2011 than 2010, which is a result of the restructuring of the management, performance and administration fees, which took effect from 1 January 2011. The Board expects operating expenses to decrease further as the Group is streamlined and divests its interests in property assets in Bulgaria and Romania.

The share price of the Group rose by 12.25p in the year to 70.75p at 31 December 2011 (2010: rise of 5.75p during the year to 58.50p). Cognisant of the continuing significant difference between the share price and the NAV, the Board has continued to implement measures aimed at reducing the discount by buying back shares. During the year, the Company purchased and cancelled 555,000 Ordinary Shares at a total cost to the Company of £361,000, an average price of approximately 65p per Ordinary Share. The discount of the share price to NAV narrowed during the year from 50% at 31 December 2010 to 40% at 31 December 2011. Whilst this is a move in the right direction, the discount remains much wider than the Board would wish and thus, the Board intends to continue to exercise its powers under the share buyback scheme, if appropriate.

The Group has maintained a healthy cash balance, which amounted to £2.0 million at 31 December 2011 (2010: £3.7 million, including £1.6 million pledged to the Bank). The Board believes it is prudent to retain a sufficient balance to satisfy any bank fees resulting from an extension to the loan either for continuation of the Company or to facilitate an orderly wind down, which is dependent on the outcome of the continuation vote at the Annual General Meeting ("AGM") to be held on 14 September 2012. In addition, the Board will, at its discretion, utilise funds for suitable projects in Turkey or to undertake further share buybacks, if deemed appropriate.

Strategy

It remains the Group's intention to focus its resources entirely in Turkey as the Turkish property market continues to fare significantly better than in Bulgaria and Romania. Despite very difficult market conditions, progress has been made with regard to lettings in Bulgaria and Romania (please see the Property Manager and Adviser's report for further details). Although both properties have been marketed for sale during the year, the property markets in Bulgaria and Romania continue to be weak, with the result being that, despite the best efforts of the Property Manager and Investment Adviser, the Group has not yet been able to sell its properties in these countries. The Property Manager will continue to pursue the sale of these properties.

A notice of AGM, to be held on 14 September 2012, will be distributed with the financial statements for the year ended 31 December 2011. In accordance with the Articles of Incorporation, a resolution for Shareholders to vote on the continuation of the Company will be put to Shareholders.

Property

Progress on the redevelopment and refurbishment of two of the Group's largest Turkish properties has yielded satisfying results to date. Construction work had been delayed, due to issues relating to building consents but these are being resolved and it is expected that the improvements will significantly increase the rental and earnings potential of the properties.

As announced on 13 April 2012, the Group successfully completed its first disposal subsequent to the year end, having sold Kadife Palas for US$4.3 million, which crystallised a gain of approximately US$2.7 million and supported the carrying value of this property. Further details are included in the Property Manager and Adviser's report.

Property values in Bulgaria and Romania declined during the year but increased in Turkey and the Group achieved a net unrealised gain on revaluation of investment properties of £1.6 million (2010: gain of £2.9 million), comprising a £2.1 million gain in Turkey, a £0.3 million loss in Bulgaria and a £0.2 million loss in Romania. Further details on individual properties are disclosed in the Property Manager and Adviser's Report.

Loan Facility

The US$17.5 million loan facility that the Group's Turkish subsidiary has with HSBC Bank plc (the "Bank") contains financial and other covenants, including the requirement that the loan to value ("LTV") of the Turkish properties charged to the Bank, comprising most of the Turkish properties, would not exceed 50%. At 31 December 2011, the LTV ratio was 40%. Following a review by the Bank, on 9 May 2011, due to the increase in the market values of the Turkish properties and two additional Turkish properties added as security to the Bank, the Bank agreed to release all of the restrictions on the pledged cash deposit.

The Group is in ongoing discussions with the Bank regarding the loan repayment, which is due on 18 December 2012. Further to the sale of Kadife Palas, together with the utilisation of brought forward tax losses and recoverable VAT, the Group was able to repay US$4.5 million of the US$17.5 million loan facility subsequent to the year end. The Group has outlined its plans to the Bank regarding the repayment of the remaining US$13 million balance, which it hopes to have substantially repaid by 18 December 2012 through further property sales.

Dividend

As indicated above, the Board considers it prudent to conserve funds to facilitate loan repayments or satisfy bank fees associated with a possible loan extension and therefore, the Board does not propose an interim or final dividend for the year ended 31 December 2011 (31 December 2010: £nil).

Outlook

The Group's Turkish property portfolio has continued to perform well thanks to the selection of properties in prime locations in Turkey and the resilient property market. The sale of Kadife Palas, which crystallised a significant gain on disposal in April 2012, is testament to this. The Board's decision to exit Bulgaria and Romania remains a priority and the decision has been justified given the continued outperformance of Turkey and lack of liquidity in Bulgaria and Romania driving prices lower.

While the future direction that the Group takes is very dependent on the outcome of the continuation vote, to be held at the AGM in September 2012, the Board will consider any opportunistic sales that add value for Shareholders. If Shareholders vote for the Company to cease to continue as an investment company, procedures will be put in place for an orderly wind up. However, if Shareholders vote for the Company to continue, the Board will formulate plans to enable the Group to operate at a scale that would allow it to focus its efforts entirely on Turkey going forward.

Carol Goodwin

Director

25 May 2012

Hugh Ward

Director

25 May 2012

PROPERTY MANAGER AND ADVISER'S REPORT

For the year ended 31 December 2011, the Group's properties continued to perform in a similar fashion to that established in 2010. The properties in Turkey once again out-performed those in Bulgaria and Romania.

In the early part of 2011, there was a notable change in optimism in relation to the two European Union countries. Unfortunately this positive outlook turned out to be a brief interlude before the turmoil in Greece escalated into the larger financial crisis for the Euro and the European Union generally, which sapped the limited confidence levels that had built up. The impact of the financial crisis has had an increasingly detrimental effect on investment activity in Europe as bank lending for potential purchases is virtually non-existent.

In contrast, the Turkish economy has performed very well relative to much of the rest of the world, particularly in the first half of 2011. In the second half of 2011, the rate of growth slowed but overall the economic conditions at the year end remained favourable, despite concerns about the current account deficit.

Progress in relation to the Group's key projects in Istanbul has continued and various consent issues that had been problematic are gradually being resolved.

Property portfolio

During the year, progress continued to be made in letting the Group's properties in Bulgaria and Romania, despite very difficult markets. Both properties in these countries have been marketed for sale, but interest has been very limited, particularly during the second half of the year, due to the lack of availability of financing.

The return of liquidity in respect of investment sales is likely to take some time due to the impact of the European financial crisis, which has resulted in the Group's properties in Bulgaria and Romania falling in value. In respect of the proposed sale of these properties, the Group will need to be pragmatic and analyse its overall returns and estimates of their true worth at the potential time of sale.

The properties in Istanbul, Turkey, have increased in value overall according to the valuation performed by DTZ Debenham Tie Leung ("DTZ"), the Group's independent valuer, as at 31 December 2011. The Group has made certain properties available for sale during the year ended 31 December 2011 and Kadife Palas was successfully sold subsequent to the year end for US$4.3 million in April 2012. Tax losses and recoverable VAT were utilised as a result of this transaction. This enabled the Group to repay US$4.5 million of the outstanding HSBC Bank plc (the "Bank") loan, reducing it from US$17.5 million to US$13 million.

Current holdings

Market Value

31 December 2011

31 December 2010

£'000

£'000

Turkey

Kadife Palas Building, 134-139 Susam Street, Cihangir, Istanbul

Leisure/Office/Residential

2,828

2,754

6th Floor, The Misir Building, Istiklal Street, Beyoglu, Istanbul

Office

2,541

2,402

Ravuna Apartments, 401 Istiklal Street, Beyoglu, Istanbul

Office/Retail

5,147

3,683

Markiz (Oriental) Passage, Istiklal Street, Beyoglu, Istanbul

Leisure/Office/Retail

13,511

12,171

Nil Passage, Istiklal Street, Beyoglu, Istanbul

Leisure/Office/Retail

1,737

1,720

Pera Residence, Asmalimescit Street, Beyoglu, Istanbul

Retail

1,222

1,313

"Yellow" Building, Asmalimescit Street, Beyoglu, Istanbul

Retail

515

512

Asmali Cumba, Asmalimescit Street, Beyoglu,

Istanbul

Retail

515

512

Gonul Sokak, Asmalimescit Street, Beyoglu, Istanbul

Office/Retail

528

525

Taka Building, Asmalimescit Street, Beyoglu, Istanbul

Retail

836

961

------------

------------

29,380

26,553

------------

------------

Bulgaria

The Atrium, 24 George Washington Street, Sofia

Leisure/Office

2,252

2,572

------------

------------

Romania

Gara Progresului Business & Logistics Centre, Gara Progresului Street, Bucharest

Industrial

2,086

2,315

------------

------------

------------

------------

Total Investment Properties

33,718

31,440

------------

------------

Kadife Palas, 134-139 Susam Street, Cihangir, Istanbul

As indicated above, this property was sold on 12 April 2012 for a cash consideration of US$4.3 million (US$5.1 million including VAT).

Kadife Palas is a 1,027m2 leisure/office/residential building, 91% of which (by rental value) was let at completion. The sale of the property for US$4.3 million (approximately £2.7 million) crystallised a gain (before transaction costs) of approximately US$2.7 million (£1.7 million).

The Group plans to utilise tax losses in Turkey to reduce the taxable gain that will arise on the disposal to nil, and expects to be able to recover approximately US$0.4 million of the US$0.8 million VAT arising on the transaction, resulting in a net cash inflow from the deal of US$4.7 million (before transaction costs).

US$4.5 million of the proceeds has been used to reduce the Company's bank loan from US$17.5 million to US$13 million.

The sale price is approximately equal to the carrying value of the property in the 31 December 2011 results of £2.8 million, thereby substantially supporting the value at which the property was valued in the Company's results.

6th Floor, The Misir Building, Istiklal Street, Beyoglu, Istanbul

This is one of the properties available for sale at the time of writing. Both tenants remain in occupation and continue to pay their rent.

Ravuna Apartments, 401 Istiklal Street, Beyoglu, Istanbul

The renovation of this property was completed in the first quarter of 2012. The overall refurbishment undertaken was completed to a very high standard to reflect its history, presence and location on the main Istiklal thoroughfare. The architect has optimised the retail area (which is the area of greatest value).

This is one of the properties available for sale at the time of writing.

Markiz (Oriental) Passage, Istiklal Street, Beyoglu, Istanbul

Whilst the current tenants remain in occupation, the Property Manager believes that in order to maximise its value and status as a prominent building in this key and continuously improving area of Pera, it is necessary to pursue a redevelopment/renovation project. Proposals have been submitted and discussed with the local municipality and conservation committee and they have been extremely supportive as it is their desire to see the overall quality of the physical environment and tenant base improved in this specific area.

Nil Passage, Istiklal Street, Beyoglu, Istanbul

This property is being retained as a core property in conjunction with Markiz Passage.

Pera Residence, Asmalimescit Street, Beyoglu, Istanbul

This property remains fully let to the original tenant.

"Yellow" Building and Asmali Cumba, Asmalimescit Street, Beyoglu, Istanbul

These properties are identified as core and the intention is to retain them as part of the Markiz Passage holding. It has been identified that these properties may be combined into more units to increase their desirability.

Gonul Sokak, Asmalimescit Street, Beyoglu, Istanbul

This is identified as a core property and is currently fully occupied.

Taka Building, Asmalimescit Street, Beyoglu, Istanbul

This is a core property and is being retained. The property is being marketed for re-letting at the time of writing.

The Atrium, 24 George Washington Street, Sofia, Bulgaria

The marketing of the building and void elements continues, although the severe lack of financing has further impacted a very weak market and this has been compounded by very poor weather conditions at the beginning of 2012.

The Property Manager has attempted to establish a longer commitment to the building from its main tenant as this has proved to be the major impediment to potential purchasers proceeding further. It is understood the reasons the main tenant has not been able to clarify its intentions thus far are its own internal complications and commitments.

The Property Manager continues to investigate lettings and sales and reviews the marketing with agents on a regular basis.

Some lettings were achieved during the year but office rents are under pressure generally in Sofia.

Gara Progresului Business & Logistics Centre, Gara Progresului Street, Bucharest, Romania

The Business & Logistics Centre has continued to generate income on a short-term basis. The centre was 64% occupied at the year end and is being intensively managed in order to maximise income.

There has been very limited interest in the property from potential purchasers and the larger agents reported very little appetite from investors and owner-occupiers in the market in general. As with Bulgaria, the very poor weather conditions during the first quarter of 2012 (which were even worse in Bucharest) had a negative impact on the ability to market the property for sale and letting but, since the onset of Spring, enquiries have picked up and it is hoped further lettings will be achieved during 2012.

Financing

Constructive meetings have been held with the Bank in view of the loan repayment date of 18 December 2012. The Group has indicated that it is addressing the repayment issue by selling certain properties, of which the Kadife Palas sale was the first and resulted in the US$4.5 million repayment to the Bank. It is hoped that the Group will have substantially repaid the loan by the repayment date. The Bank has however indicated that it would be willing to extend the loan, subject to terms and conditions to be agreed by both parties.

Regional Overview

Romania

It has been reported that GDP contracted by 0.2% in the fourth quarter of 2011, although growth was 2.8% for the whole year. Growth projections from various forecasting bodies have generally been cut due to the adverse developments in the banking system stemming from the Eurozone crisis. Current GDP forecasts are 1% for 2012 and 2% in 2013. However, fiscal progress seems encouraging as the EU and IMF have made available a further tranche of precautionary funds to the Romanian government.

On the structural side, there are plans to continue the process of privatisation of state owned businesses. However, fiscal and structural reforms led to violent street protests, which caused the prime minister to step down. The Romanian president nominated a caretaker premier until the general election in November 2012 who has agreed to adhere to EU and IMF targets, but the future of economic policy is uncertain until the new government is elected in November.

Bulgaria

GDP growth is expected to slow to 1.2% in 2012 (compared to previous predictions of 2.1%) from 2% in 2011. This is based on concern over the Eurozone conditions, which is expected to dampen demand in Bulgaria. In addition, the performance of the Eurozone provides a large downside risk for forecast growth.

However, Bulgaria's banking system is more robust than that of some of the EU countries. At 17%, the capital adequacy ratio is about double the required EU minimum. Consumer spending is predicted to grow in 2012 by 2.4%. Bulgaria also reduced its deficit by more than was expected in 2011 and by having one of the lowest public debt ratios in the EU, it has a higher resilience to the turmoil on the European debt markets.

Turkey

Despite the prevailing global financial turmoil in the second half of 2011, Turkey's economy still grew at 8.5% during the year.

Although there has been a clear slowdown, industrial output went up towards the end of 2011, helped by a more competitive exchange rate. However, generally the remainder of the economy has probably slowed more significantly and this could be helpful if inflation is to be contained and the current 5% government inflation target is to be achieved on a sustainable basis.

The Turkish Central Bank is trying to promote lending to prevent a hard landing, but lending interest rates remain high as Turkish banks have domestic funding constraints as loan/deposit rates are close to 100%.

Market forecasters have moved towards a more positive outlook for GDP growth during the first quarter of 2012 with predictions of growth moving back towards 3% for 2012. However, there is considerable uncertainty relating to the Eurozone crisis and how the Turkish Central Bank reacts to maintain growth without fuelling inflation.

Prospects

The Group has embarked on a gradual realisation of the properties, either individually or as collections to related properties, in order to confirm the carrying values of the portfolio and to reduce risk in the Group. This is, however, taking place at a time when the banking system is very restrictive across Europe and economic conditions worldwide are challenging. The limitations on bank lending are affecting the liquidity in the property markets and the Group's properties are not immune in this respect. However, while the properties held in Bulgaria and Romania are clearly badly affected in this regard, the extent of this problem and the impact on the Turkish properties is less apparent at this time.

The recent sale of Kadife Palas and the number of viewings for the Group's properties made available in central Beyoglu provide comfort that there is sufficient interest for sales to occur in the near future. The general outlook remains volatile, however, and both the ongoing management of the Group's assets and the realisation programme requires patience and sensitivity in respect of dealing with the local market conditions in order to achieve the best returns for Shareholders.

All of the Group's properties are very well located relative to their use class and those in Beyoglu, Istanbul have the benefit of being in the central area of the most prominent city in its region relative to Europe, the Mediterranean and the Middle East. Recent changes to legislation in Turkey to allow individual investors in the Gulf states to buy property in their own right is an example of the general trend of a pro-business legal framework that is gradually being introduced.

Whilst the ability to sell the properties in Bulgaria and Romania has been compromised due to the complete lack of bank funding, underlying progress has been made in rebuilding their rental income bases in very difficult markets. This reflects the quality of the locations of these properties and, when the opportunity arises for sales to be achieved, it is hoped that the Group's properties will be amongst the first to be sold in their respective regions.

Bob Locker

CNC Property Fund Management Limited

Keiran Gallagher

Oliver Cadogan

Pera Pera

25 May 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2011

Year ended31 December 2011

Year ended31 December 2010

£'000

£'000

Income

Rent receivable

1,432

1,347

Other income

38

21

Bank interest receivable

13

21

------------

------------

Total income

1,483

1,389

------------

------------

Expenses

Management fees

(416)

(576)

Performance fees

(210)

-

Administration fees

(100)

(138)

Interest payable and similar charges

(323)

(348)

Other operating expenses

(844)

(744)

------------

------------

Total expenses

(1,893)

(1,806)

------------

------------

Investment gains and losses

Gain on revaluation of investment properties

1,570

2,887

------------

------------

Total investment gains

1,570

2,887

------------

------------

Net profit from operating activities before gains and losses on foreign currency exchange

1,160

2,470

Gain/(loss) on foreign currency exchange

1,253

(249)

------------

------------

Net profit from operating activities

2,413

2,221

Taxation

(1,210)

(1,042)

------------

------------

Profit for the year

1,203

1,179

Other comprehensive loss

Exchange differences arising from translation of foreign operations

(1,257)

(40)

------------

------------

Total other comprehensive loss

(1,257)

(40)

------------

------------

Total comprehensive (loss)/income for the year attributable to the Owners of the Group

(54)

1,139

------------

------------

Earnings per share - basic and diluted

6.36p

6.11p

------------

------------

All the items in the above statement are derived from continuing operations.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to Owners of the Company

for the year ended 31 December 2011

Share capital

Reserve for own shares

Distributable reserves

Foreign exchange translation reserve

Total

£'000

£'000

£'000

£'000

£'000

Net assets at 1 January 2011

198

(497)

22,312

435

22,448

Total comprehensive income/(loss) for the year

Profit for the year

-

-

1,203

-

1,203

Other comprehensive loss

-

-

-

(1,257)

(1,257)

Contributions by and distributions to owners

Buy back and cancellation of own shares

(12)

497

(846)

-

(361)

----------

----------

----------

----------

----------

Net assets at 31 December 2011

186

-

22,669

(822)

22,033

----------

----------

----------

----------

----------

for the year ended 31 December 2010

Share capital

Reserve for own shares

Distributable reserves

Foreign exchange translation reserve

Total

£'000

£'000

£'000

£'000

£'000

Net assets at 1 January 2010

200

(497)

21,237

475

21,415

Total comprehensive income/(loss) for the year

Profit for the year

-

-

1,179

-

1,179

Other comprehensive loss

-

-

-

(40)

(40)

Contributions by and distributions to owners

Buy back and cancellation of own shares

(2)

-

(104)

-

(106)

----------

----------

----------

----------

----------

Net assets at 31 December 2010

198

(497)

22,312

435

22,448

----------

----------

----------

----------

----------

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2011

31 December 2011

31 December 2010

£'000

£'000

Non-current assets

Freehold investment property

33,718

31,440

Intangible assets

9

12

Property, plant and equipment

21

31

Deferred tax assets

118

111

Cash pledged to bank

-

1,630

----------

----------

33,866

33,224

Current assets

Trade and other receivables

435

456

Tax assets

2

3

Cash and cash equivalents

1,995

2,038

----------

----------

2,432

2,497

----------

----------

Total assets

36,298

35,721

----------

----------

Current liabilities

Trade and other payables

(223)

(262)

Overseas corporate tax

(3)

(24)

Bank loan

(11,256)

-

----------

----------

(11,482)

(286)

Non-current liabilities

Rents received in advance

(224)

(226)

Deferred tax liabilities

(2,308)

(1,531)

Other provisions and payables

(251)

(43)

Bank loan

-

(11,187)

----------

----------

(2,783)

(12,987)

----------

----------

Total liabilities

(14,265)

(13,273)

----------

----------

Net assets

22,033

22,448

----------

----------

Capital and reserves

Called-up share capital

186

198

Reserve for own shares

-

(497)

Distributable reserves

22,669

22,312

Foreign exchange translation reserve

(822)

435

----------

----------

Total equity attributable to owners of the Group

22,033

22,448

----------

----------

Net asset value per Ordinary Share - basic and diluted

118.23p

116.97p

----------

----------

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 December 2011

Year Ended31 December 2011

Year Ended31 December 2010

£'000

£'000

Net profit from operating activities

2,413

2,221

Adjustments for:

Bank interest receivable

(13)

(21)

Gain on revaluation of investment properties

(1,570)

(2,887)

(Gain)/loss on foreign currency exchange

(1,253)

249

Amortisation and depreciation

6

7

Amortisation of bank loan arrangement fees

19

19

Bank loan interest payable

296

320

----------

----------

Net cash outflow from operating activities before working capital changes

(102)

(92)

(Increase)/decrease in trade and other receivables

(48)

96

Increase in trade and other payables

454

112

Increase in other non-current liabilities

252

3

----------

----------

Net cash inflow from operating activities after working capital changes

556

119

Interest received in the year

13

21

Interest paid in the year

(295)

(320)

Tax paid in the year

(94)

(96)

----------

----------

Net cash inflow/(outflow) from operating activities

180

(276)

Investing activities

Acquisition and development of investment property

(805)

(838)

----------

----------

Net cash outflow from investing activities

(805)

(838)

Financing activities

Release of cash pledged to bank

1,630

844

Purchase of own shares

(361)

(106)

----------

----------

Net cash inflow from financing activities

1,269

738

----------

----------

Increase/(decrease) in cash and cash equivalents

644

(376)

----------

----------

Cash and cash equivalents at beginning of year

2,038

2,389

Increase/(decrease) in cash and cash equivalents

644

(376)

Foreign exchange movement

(687)

25

----------

----------

Cash and cash equivalents at end of year

1,995

2,038

----------

----------