4th Sep 2012 07:00
EASTERN EUROPEAN PROPERTY FUND LIMITED UNAUDITED HALF-YEARLY RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2012
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HIGHLIGHTS | ||
·; Property valued at £30.0 million (30 June 2011: £32.2 million; 31 December 2011: £33.7 million). ·; Net asset value at 30 June 2012 of £21.2 million, 113.80p per Ordinary Share (30 June 2011: £22.3 million, 118.43p per Ordinary Share; 31 December 2011 of £22.0 million, 118.23p per Ordinary Share). ·; Loss for the six months ended 30 June 2012 of £1.0 million (30 June 2011: profit of £1.3 million; year ended 31 December 2011, profit of £1.2 million), equal to loss per share of 5.41p (30 June 2011: earnings of 6.68p; 31 December 2011: earnings of 6.36p) per Ordinary Share. ·; Unrealised loss on revaluation of investment properties (after accounting for the foreign exchange loss) of £0.8 million (30 June 2011: gain of £0.3 million; 31 December 2011: gain of £1.2 million). ·; Two properties sold in the period at approximately their 31 December 2011 carrying values (before transaction costs). ·; US$4.5 million of the bank loan repaid, leaving a balance outstanding of US$13 million at 30 June 2012.
EVENTS AFTER PERIOD END ·; Property sale achieved after the period end at a price of US$8.5 million (approximately £5.4 million), crystallising a gain, based on historic cost, of approximately US$5.0 million (approximately £3.2 million). ·; US$9 million of the bank loan repaid following the sale of the property, resulting in a balance outstanding of US$4 million. ·; Discussions with the bank regarding an extension of the loan are ongoing and the Directors expect agreement to be reached shortly.
SHAREHOLDER MEETINGS ·; Annual General Meeting ("AGM") taking place on 14 September 2012 to vote upon, inter alia, discontinuation resolution. ·; Shareholder meeting to be held on 25 September 2012 to approve new Investing Policy, which will be:
"The investment objective of the Company is to carry out an orderly realisation of the Company's portfolio of assets, distribute the net proceeds to shareholders and then undertake a voluntary winding-up of the Company. Disposals may be by individual sales or as transactions incorporating a group of properties."
·; Irrevocable undertakings received from shareholders controlling 52.4% of the Company's issued share capital to approve both the discontinuation resolution and to approve the new Investing Policy. Both resolutions require a simple majority of those shareholders voting to vote in favour in order for them to be passed, therefore the Directors expect both resolutions to be passed as a result of the level of irrevocable undertakings to vote that have been received.
For further information please visit www.eepfl.com or contact:
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Tom Fyson Liberum Capital Limited Tel: +44 203 100 2000 |
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Bob Locker CNC Property Fund Management Limited Tel: +44 1784 424 740 | Keiran Gallagher / Oliver Cadogan Pera Pera Tel: +90 (212) 252 6048 |
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CHAIRMAN'S STATEMENT |
I am pleased to present the half-yearly results of the Group for the six months ended 30 June 2012.
The difficult economic climate seen across Europe continued in 2012 and the property markets have not been immune to these conditions.
Results The Group reported a net loss for the period ended 30 June 2012 of £1.0 million (30 June 2011: net profit of £1.3 million), representing a loss per Ordinary Share of 5.41p (30 June 2011: profit of 6.68p). The loss for the period was mainly attributable to a 0.9% decrease in value of the Group's investment properties and the strengthening of Sterling against US Dollars and Euros.
The consolidated net asset value ("NAV") at 30 June 2012 was £21.2 million, 113.80p per Ordinary Share (30 June 2011: £22.3 million, 118.43p per Ordinary Share; 31 December 2011: £22.0 million, 118.23p per Ordinary Share).
During the period ended 30 June 2012, operating expenses decreased compared to the same period in 2011, largely due to the decrease in the performance fee provision of £91,000, from £210,000 at 31 December 2011 to £119,000 at 30 June 2012. The performance fee will not crystallise until a realisation event occurs.
The share price of the Company rose by 2.25p in the period to 73p at 30 June 2012 (30 June 2011: 73.50p, 31 December 2011: 70.75p). The Board continues to monitor the discount of the share price to NAV, which remains wider than it would wish, and the Board will consider exercising its powers under the share buyback scheme when: (i) solvency requirements are met after a new bank loan agreement is in place; and (ii) the Company is not constrained by closed period rules.
Discontinuation Vote and Strategy The Company has received irrevocable undertakings from shareholders controlling 52.4% of the issued Share capital of the Company in respect of the discontinuation vote, to be held at the AGM on 14 September 2012, which is sufficient to secure approval for the resolution that the Company ceases to continue as constituted (the "Discontinuation Resolution").
In light of the anticipated passing of the Discontinuation Resolution, and in accordance with Article 36 of the Company's Articles of Incorporation, the Directors are required to formulate proposals to be put to shareholders to reorganise, unitise, reconstruct, or wind up the Company.
Accordingly, the Directors issued a circular dated 29 August 2012 with details of these proposals, being the amendment to the investment objective and policy of the Company to enable the Company to implement a realisation strategy and to seek your approval for these proposals in accordance with the AIM Rules. A resolution to approve the amendment to the Company's investment objective and policy (the "Realisation Strategy Resolution") will be proposed at the Extraordinary General Meeting ("EGM") to be held on 25 September 2012. The Realisation Strategy Resolution will amend the investment objective and policy such that the Company is to carry out an orderly realisation of the Company's portfolio of assets, distribute the net proceeds to shareholders and then undertake a voluntary winding-up of the Company. Disposals may be by individual sales or as transactions incorporating a group of properties.
Those same shareholders referred to above, controlling 52.4% of the issued Share capital of the Company, have also given irrevocable undertakings to vote in favour of the Realisation Strategy Resolution and, as this will also be considered as an ordinary resolution requiring a simple majority of those shareholders voting to vote in favour in order for it to be passed, this resolution will also be passed at the EGM.
The proposed Realisation Strategy is, in summary, for the Company to pursue a programme of orderly disposal of its portfolio of assets, distribute the net proceeds to Shareholders and then undertake a voluntary winding-up of the Company.
The Board and the Manager do not believe it to be in shareholders' interests to set a fixed timeframe in which to complete the disposal process given market conditions, but are hopeful that the process will be completed by early 2014. Further to the proposed Realisation Strategy described above, proceeds received from the realisation of asset disposals will be distributed to shareholders at such times, and in such amounts, as the Board believes is appropriate as and when sufficient cash is available for distribution and it is cost effective to do so. The mechanism(s) to be adopted by the Company for distributing the cash will be announced in due course. |
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Property Despite 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 period, 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. Work continues to increase the rental yield and to effect the disposal of these properties.
In light of the forthcoming vote on the Discontinuation Resolution and the maturity of the bank loan on 18 December 2012, the Company has started to dispose of properties in Turkey. At 30 June 2012, the Turkish properties accounted for 88% (30 June 2012: 85%; 31 December 2011: 87%) by value of the total properties held.
On 13 April 2012, the Group completed its first disposal, with the sale of Kadife Palas, which was sold for US$4.3 million (approximately £2.7 million) (compared to the 31 December 2011 DTZ valuation of US$4.4 million) and crystallised a gain, based on historical cost, of approximately US$2.7 million (approximately £1.7 million).
On 19 June 2012, the Gonul Sokak apartment, forming part of the Gonul Sokak property, was sold for TRY0.5 million (approximately £159,000), approximately equal to its 31 December 2011 DTZ valuation.
Subsequent to the period end, on 13 July 2012, the Group sold the Ravuna Apartments at 401 Istiklal Street, for US$8.5 million (approximately £5.4 million) (US$10.0 million including VAT (approximately £6.4 million)), crystallising a gain, based on historical cost, of approximately US$5.0 million (approximately £3.2 million). The 31 December 2011 DTZ valuation was US$8.0 million.
Property values in Bulgaria and Romania declined (in Euro terms) by 17% and 8% respectively during the period, which was partially offset by an increase in Turkey (in US Dollar terms) after adding back the two sales undertaken during the period. The Group suffered a net unrealised loss on revaluation of investment properties of £0.8 million during the period (June 2011: gain of £0.5 million), comprising a £79,000 loss in Turkey, a £438,000 loss in Bulgaria and a £237,000 loss in Romania.
Further details of the properties are provided in the Property Manager and Adviser's Report.
Loan Facility At 31 December 2011, the Group's Turkish subsidiary had a US$17.5 million loan facility (30 June 2011: US$17.5 million) with HSBC Bank plc (the "Bank"). Following the sale of Kadife Palas, the Group repaid US$4.5 million of the loan facility, resulting in a balance outstanding of US$13 million at 30 June 2012. Following the sale of Ravuna apartments, the Group repaid a further US$9 million of the loan facility subsequent to the period end, resulting in a balance currently outstanding of US$4 million.
The loan facility 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 30 June 2012, the LTV ratio was 33% (30 June 2011: 42%; 31 December 2011: 40%). |
Discussions with the Bank regarding an extension of the loan, which is otherwise due for repayment on 18 December 2012, are ongoing and the Directors expect agreement to be reached on normal commercial terms. This would extend the repayment date of the remaining balance of the loan.
Dividend In order to satisfy solvency, financial and contractual requirements, the Board considers it prudent to conserve funds and, therefore, the Board does not propose an interim dividend for 2012 (2011: nil). |
Board Changes As announced on 8 May 2012, Charles Parkinson resigned as a Director to pursue other business interests. The Board expresses its gratitude to Mr Parkinson for his contribution as Chairman of the Board of Directors over the six year period since the Company was formed in 2006.
Outlook Following the anticipated passing of the Discontinuation Resolution and the Realisation Strategy Resolution, the Company will dispose of assets in an orderly manner and will return those sales proceeds to shareholders at such times, and in such amounts, as the Board believes is appropriate as and when sufficient cash is available for distribution and it is cost effective to do so.
Martin M. Adams Chairman
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3 September 2012 |
PROPERTY MANAGER AND ADVISER'S REPORT | ||||
During the first half of 2012, the Group's properties continued to perform in a similar manner to that established in the second half of 2011. The properties in Turkey once again outperformed those in Bulgaria and Romania. However, progress has been made with respect to increasing the underlying rental income in respect of the Bulgarian and Romanian properties.
The general economic uncertainty has affected all locations, but Turkey, in relative terms has remained more resilient. Bank funding has become increasingly restrictive and the ability to sell properties has become an increasing concern. However, the Group took the decision to sell certain non-core properties in Istanbul and, despite the concerns over property market liquidity and a lack of bank lending, the Group has sold two of its properties during the first half of 2012 and one shortly thereafter, realising total asset sales of approximately US$13 million (approximately £8.3 million).
In Bulgaria and Romania it has remained difficult even to generate interest in sales. However, the Group has been able to make improvements in its gross rental income, particularly in Bucharest, Romania where the economy appears to be more positive than it has been for some time.
Property Portfolio During the six months ended 30 June 2012 the major refurbishment and upgrade of 401 Istiklal Street, Beyoglu, Istanbul was completed and the property was sold shortly after the reporting period for US$8.5 million (approximately £5.4 million).
The first property the Group bought, upgraded and fully refurbished before being let, Kadife Palas, Susam Street, Cihangir, Istanbul was sold for US$4.3 million (approximately £2.7 million) on 13 April 2012.
On 19 June 2012 a small residential/office unit in Gonul Sokak was sold for TRY0.5 million (approximately £159,000).
These realisations were part of a strategy adopted by the Manager to pay down the Bank loan with HSBC Bank plc (the "Bank") and provide evidence of the value and liquidity of the properties in Istanbul, Turkey.
Following the sale of 401 Istiklal Street on 13 July 2012, the Group has reduced its outstanding loan with the Bank to US$4 million and at the time of writing, the Group is in discussions with the Bank about the various options to extend the facility, which falls due for repayment in December 2012.
As indicated previously, the sale of the Bulgarian and Romanian properties is proving much more problematic due to the complete lack of bank funding in those countries and potential purchasers with sufficient cash availability. These property values have been substantially written down and both are now less than 50% of their peak value as reported in 2008. | ||||
As at 30 June 2012, the Group's external valuer, DTZ Debenham Tie Leung, valued the properties (with the exception of Ravuna Apartments, which was valued at its July 2012 sales price) as follows: | ||||
Current Holdings | Market Value | |||
30 June 2012 | 30 June 2011 | 31 December 2011 | ||
£'000 | £'000 | £'000 | ||
Turkey | ||||
6th Floor, The Misir Building, Istiklal Street, Beyoglu, Istanbul | Office | 2,451 | 2,461 | 2,541 |
Ravuna Apartments, 401 Istiklal Street, Beyoglu, Istanbul | Office/Retail | 5,396 | 4,298 | 5,147 |
Markiz (Oriental) Passage, Istiklal Street, Beyoglu, Istanbul | Leisure/Office/Retail | 13,370 | 12,459 | 13,511 |
Nil Passage, Istiklal Street, Beyoglu, Istanbul | Leisure/Office/Retail | 1,719 | 1,682 | 1,737 |
Pera Residence, Asmalimescit Street, Beyoglu, Istanbul | Retail | 1,152 | 1,277 | 1,222 |
"Yellow" Building, Asmalimescit Street, Beyoglu, Istanbul | Retail | 509 | 498 | 515 |
Asmali Cumba, Asmalimescit Street, Beyoglu, Istanbul | Retail | 509 | 498 | 515 |
Gonul Sokak, Asmalimescit Street, Beyoglu, Istanbul | Retail | 369 | 361 | 373 |
Taka Building, Asmalimescit Street, Beyoglu, Istanbul | Retail | 828 | 934 | 836 |
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26,303 | 24,468 | 26,397 | ||
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Bulgaria | ||||
The Atrium, 24 George Washington Street, Sofia | Leisure/Office | 1,814 | 2,529 | 2,252 |
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Romania | ||||
Gara Progresului Business & Logistics Centre, Gara Progresului Street, Bucharest | Industrial | 1,855 | 2,349 | 2,086 |
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Total Current Holdings | 29,972 | 29,346 | 30,735 | |
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Properties sold during the period | ||||
Gonul Sokak 1st floor apartment, Asmalimescit Street, Beyoglu, Istanbul | Office/ Residential | - | 150 | 155 |
Kadife Palas Building, 134-139 Susam Street, Cihangir, Istanbul | Leisure/Office/Residential | - | 2,738 | 2,828 |
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Total Investment Properties as per Statement of Financial Position | 29,972 | 32,234 | 33,718 | |
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The properties held at 30 June 2012 were as follows: | ||||
6th Floor, The Misir Building, Istiklal Street, Beyoglu, Istanbul This property is being marketed for sale. One of the two tenants has vacated, which has improved the number of viewings of the property.
Ravuna Apartments, 401 Istiklal Street, Beyoglu, Istanbul This property was sold for US$8.5 million (approximately £5.4 million) on 16 July 2012 and crystallised a gain, based on its historical cost, of approximately US$5.0 million (approximately £3.2 million).
Markiz (Oriental) Passage, Istiklal Street, Beyoglu, Istanbul The Manager is continuing to pursue a redevelopment/renovation project. Discussions have been held with both potential occupiers and partners in order to establish the best options for bringing forward a scheme at this prestigious location.
Nil Passage, Istiklal Street, Beyoglu, Istanbul This property is being held pending the formal resolution for taking forward the Markiz Passage project, which it adjoins.
Pera Residence, Asmalimescit Street, Beyoglu, Istanbul Shortly before the half-year end, the original tenant vacated the property at the end of his lease. The property is currently being remarketed.
"Yellow" Building and Asmali Cumba, Asmalimescit Street, Beyoglu, Istanbul These properties are being held pending the formal resolution for taking forward the Markiz Passage project, which they adjoin.
Gonul Sokak, Asmalimescit Street, Beyoglu, Istanbul This property is fully let. The upper part was sold during the first half of the year for 0.5 million Turkish Lira (approximately £159,000).
Taka Building, Asmalimescit Street, Beyoglu, Istanbul This property has recently been re-let.
The Atrium, 24 George Washington Street, Sofia, Bulgaria The Property Manager continues to try and establish the intentions of its largest tenant as to whether it is staying at the end of its lease, which expires during March 2013. The tenant still remains uncertain as to whether it will remain and this adds to the difficulty of selling the property in an illiquid market. Small incremental improvements in the space let and overall income generated have been achieved in the remainder of the building.
Gara Progresului Business & Logistics Centre, Gara Progresului Street, Bucharest, Romania Whilst there has been very little interest in respect of sales, the ability to let and re-let the property continues to improve on a quarterly basis. Although some tenants have moved after their initial lease period, others have replaced them and the property is firmly establishing itself as a multi-occupied business centre in southern Bucharest.
Financing As mentioned previously, the Bank loan has been reduced to US$4 million. Negotiations have commenced regarding the various options to extend the facility beyond the repayment date of 18 December 2012. At the time of writing, a constructive and very helpful dialogue has taken place with the Bank. | ||||
Regional Overview
Turkey The Turkish economy is expected to slow down and growth is predicted at 2-4% after the 8.5% experienced last year. There is some recent reduction in the high level of current account deficit and there is expected to be a decrease in the rate of inflation.
The main negative for the property market has been the drop in lending for commercial properties and the increase in interest rates. This is partly because Turkish banks finance much of their lending from the European interbank market and the European banks are withdrawing lending.
Similarly, we are seeing certain foreign investors are withdrawing from the property market in central Istanbul and focusing on their home markets.
The office market has performed well in recent years, absorbing significant new supply, although there is expected to be some rental weakness in the second half as the economy weakens and new supply comes on stream; this is not significant and the outlook is for stable rent levels.
In contrast to the overall property market in Turkey, the hotel sector has been a big winner from political and economic problems around the region. It has also benefited from the weakness in the Turkish Lira. Major international chains are expanding into Turkey.
Strong retail demand has, in recent years, driven growth in retail shopping centres. As this has slowed down during the year, the shopping centre market has been affected and older centres are suffering and are in need of urgent new investment. However, high street locations are performing well, including Istiklal Street, where the Group has investment exposure, and do not seem to be similarly affected.
There has been a significant overbuild of luxury apartments (US$700,000+), particularly in high rise blocks and this market has weakened significantly. There is significant unsold stock while new product is still coming on stream and this is unsettling the market overall in this sector.
Bulgaria The charismatic and populist Prime Minister, Boyko Borisov's ruling party, Citizens for European Development of Bulgaria (GERB), is expected to take the largest share of 2013's parliamentary elections and with local and presidential elections having already taken place in 2011, the political situation is quite stable. On the other hand, Bulgaria's strong ties with Greece and the Greek banks as well as its heavy reliance on exports to the EU have led to several forecasts taking a more negative view of the country's outlook for 2012.
GDP forecasts of 2-3% for 2012 have fallen to 1.5% or less and the national bank expects only 0.7% GDP growth in 2012.
Romania The centre-right Democratic Liberal Party (PDL)-led government failed a confidence vote at the end of April 2012 and a centrist Social Liberal Union (USL) coalition of the centre-left Social Democratic Party (PSD) and centre-right National Liberal Party (PNL) took over responsibility in early May. The new coalition has promised to restore public service salaries to their pre-crisis levels and this together with uncertainty regarding the Greek and Euro situations has led to a weakening of the local currency. The new USL coalition impeached and suspended the PDL-leaning president in early June, pending a referendum in late July. This referendum was declared invalid in mid-August by the constitutional court after much controversy and the president returned to his post in late August.
The European Union expects real GDP in 2012 in Romania to grow by 1.4%, with domestic demand expected to be the main growth factor while for 2013, the growth is projected to accelerate to 2.9%. Romania's inflation rate was just 0.07% in April, compared to the annual rate of 1.8%, a new historic low for the country.
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Prospects The Group has continued its activity in relation to the gradual realisation of its properties and has made progress in selling its first three properties this year. These sales have all been in Istanbul, Turkey and challenges remain ahead in realising full value for the properties in Bulgaria and Romania.
The sales that have occurred have supported the carrying values of the properties in Turkey and, while there is perhaps less liquidity than a year ago, there still appears to be sufficient appetite from domestic investors for further sales to proceed. The Group will look to build on the momentum generated by the sales and market contacts built up and we will press forward with hopefully further realisation over the coming months.
In respect of the properties in Bulgaria and Romania, the Group will maintain the marketing programme for these properties and will consider all options in terms of realising the best value for the properties. We will also continue in our efforts to improve the assets where possible through active management where the relevant opportunities arise.
The sales have allowed the Group to pay down its borrowings in difficult times. However, the wider economic conditions in Europe and beyond still cast a shadow of uncertainty and volatility and it would be imprudent to assume that further sales success will be guaranteed. | ||||
Bob Locker CNC Property Fund Management Limited
Keiran Gallagher Oliver Cadogan Pera Pera
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3 September 2012 | ||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
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for the six month period ended 30 June 2012 (unaudited) |
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1 January 2012 to 30 June 2012 | 1 January 2011 to 30 June 2011 | 1 January 2011 to 31 December 2011 |
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(unaudited) | (unaudited) | (audited) |
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£'000 | £'000 | £'000 |
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Income |
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Rent receivable | 736 | 732 | 1,432 |
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Other income | 31 | 16 | 38 |
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Bank interest receivable | 9 | 7 | 13 |
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Total income | 776 | 755 | 1,483 |
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Expenses |
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Management fee | (206) | (208) | (416) |
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Performance fee | 91 | (176) | (210) |
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Administration fee | (75) | (50) | (100) |
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Interest payable and similar charges | (129) | (172) | (323) |
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Other operating expenses | (441) | (381) | (844) |
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Total expenses | (760) | (987) | (1,893) |
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Investment gains and losses |
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(Loss)/gain on revaluation of investment properties | (758) | 498 | 1,570 |
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Loss on disposal of investment properties | (242) | - | - |
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Total investment (losses)/gains | (1,000) | 498 | 1,570 |
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Net (loss)/profit from operating activities before gains and losses on foreign currency exchange | (984) | 266 | 1,160 |
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(Loss)/gain on foreign currency exchange | (131) | 1,456 | 1,253 |
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Net (loss)/profit from operating activities | (1,115) | 1,722 | 2,413 |
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Taxation | 106 | (458) | (1,210) |
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(Loss)/profit for the period/year | (1,009) | 1,264 | 1,203 |
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Other comprehensive income/(loss) |
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Exchange differences arising from translation of foreign operations | 184 | (1,185) | (1,257) |
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Total other comprehensive income/(loss) | 184 | (1,185) | (1,257) |
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Total comprehensive (loss)/income for the period/year attributable to the Owners of the Group | (825) | 79 | (54) |
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(Loss)/earnings per share - basic and diluted | (5.41)p | 6.68p | 6.36p |
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These results are unaudited and are not the Group's statutory results. |
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||
Attributable to the Owners of the Company for the six month period ended 30 June 2012 (unaudited) | ||||||||||
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Share capital | Reserve for own shares | Distributable reserves | Foreign exchange translation reserve |
Total | |||||
£'000 | £'000 | £'000 | £'000 | £'000 | ||||||
Net assets at 1 January 2012 | 186 | - | 22,669 | (822) | 22,033 | |||||
Total comprehensive (loss)/income for the period | ||||||||||
Loss for the six month period | - | - | (1,009) | - | (1,009) | |||||
Other comprehensive income | - | - | - | 184 | 184 | |||||
---------- | ---------- | ---------- | ---------- | ---------- | ||||||
Net assets at 30 June 2012 | 186 | - | 21,660 | (638) | 21,208 | |||||
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||
Attributable to the Owners of the Company for the six month period ended 30 June 2011 (unaudited) | |||||
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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 period | |||||
Profit for the six month period | - | - | 1,264 | - | 1,264 |
Other comprehensive loss | - | - | - | (1,185) | (1,185) |
Contributions by and distributions to owners | |||||
Buyback and cancellation of own shares | (4) | - | (216) | - | (220) |
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Net assets at 30 June 2011 | 194 | (497) | 23,360 | (750) | 22,307 |
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||
Attributable to the Owners of the Company for the year ended 31 December 2011 (audited) | |||||
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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 | |||||
Buyback and cancellation of own shares | (12) | 497 | (846) | - | (361) |
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Net assets at 31 December 2011 | 186 | - | 22,669 | (822) | 22,033 |
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These results are unaudited and are not the Group's statutory results. | |||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||
as at 30 June 2012 (unaudited) | ||||
30 June 2012 | 30 June 2011 | 31 December 2011 | ||
(unaudited) | (unaudited) | (audited) | ||
£'000 | £'000 | £'000 | ||
Non-current assets | ||||
Freehold investment property | - | 32,234 | 33,718 | |
Intangible assets | - | 11 | 9 | |
Property, plant and equipment | - | 27 | 21 | |
Deferred tax assets | - | 128 | 118 | |
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- | 32,400 | 33,866 | ||
Current assets | ||||
Freehold investment property | 29,972 | - | - | |
Intangible assets | 9 | - | - | |
Property, plant and equipment | 15 | - | - | |
Deferred tax assets | 141 | - | - | |
Trade and other receivables | 210 | 555 | 435 | |
Tax assets | 1 | 3 | 2 | |
Cash and cash equivalents | 1,943 | 2,745 | 1,995 | |
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32,291 | 3,303 | 2,432 | ||
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Total assets | 32,291 | 35,703 | 36,298 | |
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Current liabilities | ||||
Trade and other payables | (336) | (206) | (223) | |
Rents received in advance | (189) | - | - | |
Overseas corporate tax | (19) | (17) | (3) | |
Deferred tax liabilities | (2,271) | - | - | |
Bank loan | (8,268) | - | (11,256) | |
---------- | ---------- | ---------- | ||
(11,083) | (223) | (11,482) | ||
Non-current liabilities | ||||
Rents received in advance | - | (233) | (224) | |
Deferred tax liabilities | - | (1,830) | (2,308) | |
Other provisions and payables | - | (222) | (251) | |
Bank loan | - | (10,888) | - | |
---------- | ---------- | ---------- | ||
- | (13,173) | (2,783) | ||
---------- | ---------- | ---------- | ||
Total liabilities | (11,083) | (13,396) | (14,265) | |
---------- | ---------- | ---------- | ||
Net assets | 21,208 | 22,307 | 22,033 | |
---------- | ---------- | ---------- | ||
Capital and reserves | ||||
Called-up share capital | 186 | 194 | 186 | |
Reserve for own shares | - | (497) | - | |
Distributable reserves | 21,660 | 23,360 | 22,669 | |
Foreign exchange translation reserve | (638) | (750) | (822) | |
---------- | ---------- | ---------- | ||
Total equity attributable to owners of the Group | 21,208 | 22,307 | 22,033 | |
---------- | ---------- | ---------- | ||
Net Asset Value per Ordinary Share - basic and diluted | 113.80p | 118.43p | 118.23p | |
---------- | ---------- | ---------- | ||
These results are unaudited and are not the Group's statutory results. | ||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS for the six month period ended 30 June 2012 (unaudited) | ||||
1 January 2012 to 30 June 2012 | 1 January 2011 to 30 June 2011 | 1 January 2011 to 31 December 2011 | ||
(unaudited) | (unaudited) | (audited) | ||
£'000 | £'000 | £'000 | ||
Net (loss)/profit from operating activities | (1,115) | 1,722 | 2,413 | |
Adjustments for: | ||||
Bank interest receivable | (9) | (7) | (13) | |
Loss/(gain) on revaluation of investment properties | 758 | (498) | (1,570) | |
Loss on disposal of investment properties | 242 | - | - | |
Loss/(gain) on foreign currency exchange | 131 | (1,456) | (1,253) | |
Amortisation and depreciation | 2 | 3 | 6 | |
Amortisation of bank loan arrangement fees | (6) | 9 | 19 | |
Bank loan interest payable | 132 | 145 | 296 | |
---------- | ---------- | ---------- | ||
Net cash inflow/(outflow) from operating activities before working capital changes | 135 | (82) | (102) | |
Decrease/(increase) in trade and other receivables | 232 | (117) | (48) | |
(Decrease)/increase in trade and other payables and other current and non-current liabilities | (254) | 289 | 706 | |
---------- | ---------- | ---------- | ||
Net cash inflow from operating activities after working capital changes | 113 | 90 | 556 | |
Interest received in the period/year | 9 | 7 | 13 | |
Interest paid in the period/year | (135) | (146) | (295) | |
Tax paid in the period/year | (28) | (65) | (94) | |
---------- | ---------- | ---------- | ||
Net cash (outflow)/inflow from operating activities | (41) | (114) | 180 | |
Investing activities | ||||
Sale of investment property | 2,842 | - | - | |
Acquisition and development of investment property | (96) | (303) | (805) | |
---------- | ---------- | ---------- | ||
Net cash inflow/(outflow) from investing activities | 2,746 | (303) | (805) | |
Financing activities | ||||
Partial bank loan repayment | (2,853) | - | - | |
Release of cash pledged to bank | - | 1,630 | 1,630 | |
Purchase of own shares | - | (220) | (361) | |
---------- | ---------- | ---------- | ||
Net cash (outflow)/inflow from financing activities | (2,853) | 1,410 | 1,269 | |
---------- | ---------- | ---------- | ||
(Decrease)/increase in cash and cash equivalents | (148) | 993 | 644 | |
---------- | ---------- | ---------- | ||
Cash and cash equivalents at the beginning of the period/year | 1,995 | 2,038 | 2,038 | |
(Decrease)/increase in cash and cash equivalents | (148) | 993 | 644 | |
Foreign exchange movement | 96 | (286) | (687) | |
---------- | ---------- | ---------- | ||
Cash and cash equivalents at the end of the period/year | 1,943 | 2,745 | 1,995 | |
---------- | ---------- | ---------- | ||
These results are unaudited and are not the Group's statutory results. | ||||
Related Shares:
Eastern European Property