27th Sep 2007 07:04
Metro Baltic Horizons PLC27 September 2007 27 September 2007 Metro Baltic Horizons Audited Interim results for the period ended 30 June 2007 METRO BALTIC HORIZONS REPORTS A 42% RISE IN NAV WITH IPO PROCEEDS NOW FULLY INVESTED Metro Baltic Horizons ("MBH" or the "Company"), the property investment companyfocused on prime office and residential development opportunities in the BalticState capitals and St Petersburg, Russia, announces strong progress in itsresults for the period ended 30 June 2007. Highlights • Net asset value per share before deferred tax liabilities up 42.5% to133p or €1.98 since Admission on 11 December 2006. NAV after deferred taxliabilities up 20.0% to 112p or €1.67 • Total property portfolio now valued at €52.6 million • More than 90% of IPO proceeds committed during reporting period; withacquisition announced today, the IPO proceeds are now fully committed - Acquisitions completed in each target city, with a further transactioncompleted in Tallinn as announced today. The centrally located properties offershareholders an attractive spread of assets across the target region and meetthe Company's investment criteria stated at Admission - The three acquisitions completed during the period were initiallyfully equity financed • Other than €5.7 million of debt assumed as part of the acquisitiontransactions, there is no debt on the Company's balance sheet • Planning permission has been secured for two of the three propertiesacquired in the reporting period - in Riga and Tallinn, with the majority of theCompany's developments scheduled for completion from late 2009 onwards • Company is particularly excited by the prospects for the St Petersburgmarket where demand for high-quality space is forecast to outweigh supply. Robin James, Chairman of MBH, commented: "I am delighted to report that, following an active six months, by 30 June 2007we had already acquired properties in each of our target cities and committedmore than 90% of the IPO proceeds, in line with our original investment plans.Furthermore, we have announced today a further acquisition in Tallinn as aresult of which all IPO funds have now been fully invested. "We continue to see extensive deal flow and attractive investment opportunitiesin our target cities and, subject to the availability of finance, there isconsiderable potential to increase the scale of the Company's investment anddevelopment activities. Aided by the local resources, experience and network ofcontacts of the Investment Adviser, we have made an excellent start and believethat we are very well placed to build upon the investment momentum andshareholder value we have created. We look to the future with considerableconfidence." James Kenny of Metro Frontier, added: "At the time of the AIM admission, the Company anticipated that its focus duringthe first 18-24 months post-Admission would be on acquiring land, securingplanning consents and all attendant construction and other permissions. We aresuccessfully progressing all of these, with three sites acquired during theperiod, as well as a further acquisition post period end and three planningpermissions secured. Through our network of offices and extensive contacts, wecontinue to identify and monitor a number of appropriate opportunities forfuture investment. "As a result, MBH is now strongly positioned to establish itself as one of theleading western investors in this dynamic and developing region for the benefitof the Company's shareholders." For further information, please contact: Metro Frontier Financial DynamicsJames Kenny Stephanie Highett/Nicole MarinoTel: +353 86 3977 850 Tel: +44 (0) 20 7831 3113 Oriel Securities Fairfax ISTom Durie Paul Richards/Ivan MurphyTel: +44 (0)20 7710 7600 Tel: +44 (0) 20 7598 4078 Notes to Editors Metro Baltic Horizons (ticker code: MET.L) is a property investment companytargeting the capital cities of the three Baltic States - Latvia, Estonia andLithuania - and St Petersburg, Russia. The Baltic States are amongst the fastest growing economies in Europe and StPetersburg is regarded as one of the top investment locations in Russia.Combined, this represents a strategically located region with developed andimproving business, trading and political links. The Investment Manager will source and recommend suitable property developmentopportunities to the Company principally in the office and residential sectorsand expects to target development projects which can demonstrate an ability togenerate a minimum internal rate of return to the Company of 25%. The Investment Adviser is an experienced and fast growing property asset managerand developer with offices in Riga, Tallinn and St Petersburg. It has a team of30 experienced professionals managing a portfolio of 21 projects across theregion. Riga is the capital of Latvia and has a population of circa 800,000. Latvia wasthe fastest growing economy in EU in 2006 recording a GDP growth rate of 11.9%compared to an EU (27) average of 2.9%. Growth rates are forecast to stay athigh levels with an average annual GDP growth rate of 7.7% forecast through2010. Riga's property market has been one of the best performing in Europe inrecent years and in 2006 saw demand exceeding supply in most classes of realestate. Tallinn, the capital of Estonia, has a population of circa 400,000. Estonia isthe most economically advanced of the Baltic States and has amongst the highestlevels of GDP per head of any of the recent EU entrants. In 2006, Estonianeconomic growth reached 11.4%, a record level since Estonia's independence in1991, driven principally by domestic demand. GDP growth of 8.6% is forecast for2007. St Petersburg is the fourth largest city in Europe with a population of 4.6m.Theformer capital of Russia, it is located 140kms from the Estonian border and isthe administrative capital of North West region. Chairman's Statement Introduction I am very pleased to report excellent progress in the Company's investmentactivities and financial performance during its first reporting period since theCompany's listing on the Alternative Investment Market of the London StockExchange (AIM) on 11 December 2006. At the time of listing the Company raised £26.2m (€38.8m) following a placing of26.2m shares at 100p per share (€1.48 per share). After deducting the costs ofthe listing and placing, the Company received net proceeds of approximately£24.6m (€36.5m), representing an opening net asset value of 94p or €1.39 pershare. I am delighted to report that, following an active six months, by 30 June 2007we had already acquired properties in each of our target cities and committedmore than 90% of the IPO proceeds, in line with our original investment plans.Furthermore, we have today announced an additional acquisition in Tallinn as aresult of which all IPO funds have now been fully invested. Financial Performance The Company's audited net asset value per share (NAV) before deferred taxliabilities at 30 June 2007 was 133p or €1.98 and after deferred tax liabilitieswas 112p or €1.67. This represents an increase in NAV over the six month periodsince Admission of 42.5% before deferred tax liabilities and 20% after deferredtax liabilities. As each of the Company's assets are structured and held throughindividual Special Purpose Vehicles (SPVs) and the sale of any Company assetswill most likely be structured as a sale of shares of the SPVs, it is notexpected that under the current tax legislation the deferred income taxliability will arise. As such, we believe the audited NAV before deferred incometax liabilities of 133p or €1.98 per share to be the most representative figure. Given that the reporting period covers only approximately six months since theCompany's AIM admission, this positive audited NAV uplift (both pre and postdeferred tax) represents a very satisfactory performance, This NAV uplift alsoclearly illustrates the quality of the Company's investments to date and theability of the Investment Manager to identify and acquire prime assets for theCompany at attractive prices. We expect this NAV growth to continue in line with original investmentexpectations. During the period, the Company recorded a profit before tax of €7.3m. The Company at the period end was very conservatively leveraged and had a totalof €5.7m in bank debt, all of which was assumed as part of acquisitionscompleted. Investment Objective and Strategy Metro Baltic Horizons ("MBH") is the first and only London listed investmentCompany specifically targeting direct property investment and developmentopportunities in the dynamic markets of St Petersburg, Russia and the BalticState capitals of Tallinn (Estonia) and Riga (Latvia). In addition to their close geographic proximity, these cities share many commoncharacteristics including a trend of above EU average GDP growth, increasingforeign direct investment, significant infrastructure investment, rising levelsof disposable income, expanding availability of commercial and personal financeand limited quality property stock. The investment objective of the Company is to provide shareholders, by investingin real estate assets in the Target Region, with a high level of total financialreturns, principally comprising capital growth but with the potential for thepayment of dividends over the medium to long term. The Company expects to achieve this objective by pursuing a very specificinvestment strategy • MBH will only invest in the cities of St Petersburg (Russia), Riga(Latvia) and Tallinn (Estonia) • MBH will only invest in prime central city locations and where thesupply/demand dynamics for the specific asset in the specific location arefavourable • MBH is focused on development opportunities rather than investing inthe very limited pool of quality developed assets in the region • MBH will only consider investments which can generate a minimuminternal rate of return in excess of 25% • MBH will concentrate its investments in the office, residential andretail sectors • MBH will favour projects where there is an opportunity to enhanceinvestment returns and shareholder value through the planning process. Investment Overview In the period from Admission to the end of June 2007, the Company acquired threehigh-quality, centrally located properties, one in each of St Petersburg,Tallinn and Riga, which together offer shareholders an attractive spread ofassets across the Target Region and all of which meet the Company's statedinvestment criteria. These assets are also complementary in terms of theirdevelopment timelines which will allow the efficient utilisation and phasedreinvestment of shareholders' equity to part fund construction/development. Intotal, on a pre-gearing basis, these acquisitions involved the investment ofmore than 90% of the funds raised by the Company in its AIM admission. In addition, since the end of the reporting period, we have today announced afurther acquisition in Tallinn following which all IPO funds have been fullyinvested. In the context of reporting the Company's financial commitments, wehave only included the acquisition cost and the 12 month working capitalrequirement for each development rather than the gross equity requirement overthe life of the respective projects. Table of Company's Investment Portfolio City Location Development MBH Gross area Scheduled completion Estimate of MBH's Shareholding Gross Development sq m CostTallinn Viru Office/retail 100% 8,900 Q1 2009 €25,000,000Tallinn* Pirita Residential 80% 12,000 Phased 2010-2011 €20,800,000Riga Krasta Office 80% 49,900 Block 1 2010-2011 €32,000,000 Blocks 2&3 2011-2013 €48,000,000**St Bolshoi Office/retail 100% 26,000 Phased Q3 2009-Q3 • 58,000,000Petersburg Prospect 2010 * Post balance sheet acquisition** Company may also Joint Venture or sell off construction rights and cost wouldreduce accordingly Although our initial portfolio of investments is balanced across the threetarget cities, we anticipate that, ultimately, the Company's investmentcommitments in St Petersburg could represent a significantly greater percentageof the Company's assets over time. This expectation is based on both theincreasing attractions of the St Petersburg property market, both in a regionaland international context, and the number and scale of the opportunities nowbeing identified by the Investment Manager in the City. Further details on our property investments are contained in the InvestmentManager's report. Financing Including the Pirita acquisition in Tallinn, which was completed after the endof the period, the Company has invested €37.5m (acquisition cost plus 12 monthsworking capital) which represents in excess of 100% of net IPO proceeds. Of thisamount, approximately 36% has been invested in St Petersburg, 35% in Tallinn and29% in Riga. The three acquisitions completed during the period were initially fully equityfinanced and consequently, other than €5.7m of debt assumed as part ofacquisitions, there is no debt on the Company's balance sheet as at 30 June2007. It is the Company's intention to refinance and leverage certain of theCompany's assets through local banks in the coming months and advanceddiscussions are ongoing with several prospective lenders, many of whom have along track record of successful debt provision to the Company's InvestmentManager. The Company, as advised by the Investment Manager, estimates that itcan raise in excess of an additional €12m in new debt facilities secured on theCompany's existing assets which would represent a conservative level of gearingand could be utilised for further investment or general working capitalrequirements as necessary. Market The market in the target cities for existing, quality, developed assets remainshighly competitive as an increasing number of investors seek exposure to thesefast growing and dynamic areas. As a result, yields have generally compresseddown to levels where they approach core European market levels. Residentialprices have also grown dramatically, albeit from a low base, and after someslowdown in 2006 have resumed an upward trend in prime areas. However, thesemarkets continue to offer significant value for well-positioned buyers withappropriate finance, experience and meaningful local development capabilities. As a developer, we believe that the Company is well positioned to expand andcreate a market- leading position in these cities. The St Petersburg propertymarket is considerably less developed than those of the Baltic capitals, butoffers significant scale and vast investment potential arguably unmatched inEurope at this time. Accounts The Company's functional and reporting currency is the Euro, being the currencyin which the majority of the Company's expenditures and forecast revenues aredenominated. The Company has adopted IFRS reporting standards and has preparedfull audited consolidated financial statements for the period ended 30 June2007. In the future the Company's interim financial statements may be subject toreview by the Company's auditors. Board I would like to pay tribute to Stuart McDonald, the former Chairman of theCompany, who tragically died after a short illness during the year. Stuart'simmense skills and experience played a key role during the formation and listingof the Company and his patient and wise counsel is greatly missed. Outlook We continue to see extensive deal flow and attractive investment opportunitiesin our target cities and, subject to the availability of finance, there isconsiderable potential to increase the scale of the Company's investment anddevelopment activities. Aided by the local resources, experience and network ofcontacts of the Investment Adviser, we have made an excellent start and believethat we are very well placed to build upon the investment momentum andshareholder value we have created. We look to the future with considerableconfidence. Robin JamesChairman27 September 2007 Investment Managers Report Introduction Metro Capital Management AS and Metro Frontier Limited (together 'Metro Group ')were appointed by the Company as Investment Adviser and Investment Managerrespectively in December 2006. Metro Group is an experienced and fast growingproperty asset manager and developer with 30 professionals operating in officesin St Petersburg, Tallinn and Riga. Metro have been active in propertydevelopment and asset management in the region since 2001 and manage a portfolioof 21 projects which have historically generated an average return on equity fortheir investors of over 90% per annum. Since listing on AIM in December 2006, we have sought to implement the Company'sinvestment strategy by identifying and recommending to the Board a number oftransactions which met the Company's stated investment criteria. A total ofthree transactions were completed in the period and one transaction has beencompleted after the end of the period, all of which were sourced directly byMetro Group without external agent involvement or cost. Current Investment Portfolio Bolshaya Pushkarskaya, St Petersburg, Russia Bolshaya Pushkarskaya, the first asset acquired by the Company is an officecomplex on a privatized site of 0.72 hectares located on a prominent street inthe centre of St Petersburg in the Petrogradski District. The site is adjacentto Bolshoi Prospekt, one of St Petersburg's main shopping and business streets,and only 3 kms from the Winter Palace. Currently, there are six buildings on thesite of which it is intended that one of relative architectural merit will bemaintained and refurbished and the others demolished for full redevelopment.Although planning for the redevelopment has yet to be received, currentestimates indicate that the redeveloped complex could comprise 26,000 sq m grossarea of office and retail space and on-site parking for circa 300 cars. The estimated total investment by the Company in the redevelopment of the officecomplex (including its acquisition, construction and finance) is now estimatedto be circa €58m. It is anticipated that the complex would generate a rentalyield of approximately 17% on total cost when fully let on completion. Theacquisition cost was fully equity financed and is expected to be part refinancedwith local bank debt. Post-refinance, it is expected that the Company's equityinvestment in the development will utilise circa 20% of current shareholders'funds. Development costs are expected to be substantially bank financed fromlocal sources on a non-recourse basis to the Company. At present it is intendedthat the project will be constructed in one or two phases with completionsscheduled to occur between Q3 in 2009 and Q3 2010. The demand for Class A offices in St Petersburg is very strong particularly inprime locations and is forecast to remain so over the medium term. Class Avacancy rates are currently close to 0% which is not surprising given the lackof investment in the office market in recent years and also when it isconsidered that, as at the end of 2006, there was only 64,000 sq m of Class Aoffices in the City which is amongst the lowest of any major city in Europe andonly at circa 10% of comparable Moscow levels. Krasta, Riga, Latvia This asset is a prominently located land plot of 1.7 hectares situatedapproximately 5 kms from Riga Old Town at the intersection of a major highwayand the new South Bridge (due to open in 2008/09). The site is ideally suitedfor a modern office development, with high visibility and easy access to theCity. Planning permission has been granted for the construction of approximately50,000 sq m of gross office space together with approximately 1000 on-siteparking spaces. As current and forecast supply for Class A offices is quitelimited, demand for offices with good access and parking is expected to remainvery strong. A number of parties have already indicated interest in acquiring orleasing space in the development and these discussions are being progressed.There has been no increase in Class A stock in Riga in the first half of 2007and vacancy rates are currently 0%. The proposal for the project involves the development of three 17-floor towerson a phased basis. Construction is expected to start in summer 2008. Theestimated gross development cost (acquisition, construction and finance) for thethree towers is €105 million. However, the Company intends to build the towersseparately and at or close to completion of the first tower (H1 2010), a finaldecision will be made on the timing and development strategy for the second andthird towers. It is expected that alternatives open to the Company would includesole development, joint venture or the sale of construction rights for the othertowers and that, under any strategy pursued, the Company will be able to exceedits target minimum return. When originally announced in June 2007, it was stated that 100% of the propertywas being acquired at a price negotiated between the parties on the basis of onan independent valuation prepared for the Company by Colliers. Prior to thecompletion of this acquisition, the Company, as advised by Investment Manager,successfully negotiated a 10% price reduction. As a result, certain of thevendors holding 20% of the development have chosen effectively to retain theirshareholdings and will contribute pro rata to the development and other costs ofthe project. However, the shareholder's agreement provides that the Company hasfull control of all aspects of the development including its disposal and is notin any way disadvantaged. Viru Valjak, Tallinn, Estonia This asset is a 2,200 sq m land plot located on a high profile square in thecentre of Tallinn, an area that currently commands some of the highest rents inthe city. Planning permission has been secured for the construction of a newseven-storey building, with retail space on the first and second floors andoffices on the third to seventh floors. All requisite construction permits arein place, finance has been put in place to fund the development and theconstruction tender has now been finalised. Once completed, the building will comprise 8,900 sq m of gross floor space, aswell as underground parking for 78 cars. It is estimated that the project willhave a gross development cost (acquisition, construction and finance) of €25million, of which circa €9 million will be equity funded. It is expected thatconstruction and full leasing of the premises will be completed by early 2009.We believe that the high specification and prominent location of this buildingwill position it as one of the most recognised and prestigious office/retaildevelopments in Tallinn. A number of proposals have already been received fromhigh quality prospective tenants. Pirita, Tallinn, Estonia We have announced today that the Company has acquired an 80% interest in SpecialPurpose Vehicle which owns a 1.3 hectare prime residential development site inTallinn. The site is in an area of the city overlooking the Bay of Tallinnapproximately 3kms from the centre of Tallinn in an area rapidly becoming one ofthe city's premier residential locations. The area is currently zoned forresidential development and a detailed plan has been approved for the site. TheCompany, as advised by the Investment Adviser, proposes to sub-divide the siteand reconfigure the building plans to accommodate circa 9,000 sq m of primeresidential apartment space, as well as a separate development comprising acirca 3,000 sq m boutique hotel. The project is expected to be developed andreleased on a phased basis, with initial completion expected in 2010. Theestimated total gross development cost of the project, including acquisition,construction and finance is approximately €26m. This acquisition meets all of the stated investment criteria of the Companyincluding exceeding the minimum internal rate of return threshold of 25%. Following completion of this acquisition, the Company has fully committed theproceeds of its IPO. Valuation A valuation of all of the Company's property assets held as at 30 June 2007 wasundertaken by Colliers International through their offices in St Petersburg,Tallinn and Riga to determine the fair market value and, in turn, the NAV of theCompany. The valuation was carried out in accordance with relevant internationalstandards. The Company's policy is to independently revalue its assets twice ayear, on 30 June and 31 December. Outlook for the Region The economic transformation of the Baltic States of Estonia, Latvia andLithuania since their independence in 1991 has been dramatic. Each of the BalticStates has rapidly modernised, developed fully functioning market economies andhas achieved macro-economic stability in a relatively short period of time. TheBaltic States have been amongst the best performing of all European economies inrecent years experiencing average GDP growth of 9% over the past four years andcontinued high levels of growth are forecast. This sustained period of high GDPgrowth, coupled with a stable political and pro-business environment includinglow flat tax rates, has helped increase disposable income and consumption. Thishas, in turn, had a positive impact on property prices. With developed bankingsystems, a strong legal framework, clear title registration systems, good marketdemand and limited barriers to foreign property ownership, Baltic property is anaccessible and attractive asset class with good long-term prospects forcontinued capital appreciation. The general improvement in the Russian economy in recent years and the increasedstability in Russian government finances, have been evident across all majorindicators. St Petersburg, Russia's former capital and second largest city, hasin the past five years also experienced significant and consistent economicgrowth, considerably above Russian regional averages. In 2006, there was adramatic increase in foreign direct investment into St Petersburg and continuedinvestment growth is anticipated in 2007 and beyond. These factors have helpedboost demand across all sectors of real estate. However, there has beensignificant under-investment in the St Petersburg property market for a numberof years and this, coupled with increased market demand, has resulted in therebeing considerable shortages of stock in several market sectors particularlyoffices, residential and retail. With a population of 4.6m, St Petersburg isEurope's fourth largest city and represents a significant investment opportunityboth in terms of potential returns and scale for the Company. St Petersburg islocated approximately 140km from the Estonian border. The inevitable repercussion of the sub-prime lending crisis on the business andeconomic climate of the Baltics has been a recent tightening in credit policiesof local lenders. This has most heavily impacted on developers now seeking tosell speculative one-off developments, developers in inferior suburban or secondcity locations and over leveraged developers with limited equity capital. Therehas been as a consequence, some softening in market prices for these types ofassets particularly in poorer locations. However, well located primedevelopments such as the Company's holdings continue to experience good marketdemand and our strategy of developing prime assets in specific central citylocations is well founded. In practice, the impact of these changing market conditions on the Company hasbeen minimal. Indeed, by contrast, we are pleased to report that, partly as aconsequence of these changing market conditions, we are now seeing an increasednumber of quality investment opportunities become available and significantlyless competition for such assets. Investment Prospects At the time of the AIM admission in December 2006, the Company anticipated thatits focus during the first 18-24 months post-Admission would be on acquiringland, securing planning consents and all attendant construction and otherpermissions. With the exception of the Viru Square office/retail development inTallinn, which is expected to be completed and come to the market in early 2009,the majority of the Company's developments are scheduled for completion fromlate 2009 onwards, at which time we are confident that the property markets inthe target cities will remain receptive and the supply of new prime stock to bepotentially quite constrained. Through our network of offices and extensive contacts, we continue to identifyand monitor a number of appropriate opportunities for future investment. Asoutlined in the Chairman's statement, we are particularly excited by theprospects for the St Petersburg market, where, in our view, current supply ofhigh-quality space falls dramatically short of current and forecast demand.Certain of the opportunities being considered are of a potentially larger scalethan those already acquired by the Company and subject to the availability offinance, may be pursued in joint venture with other parties. The Baltic marketsalso continue to present attractive investment opportunities which meet theCompany's stated investment criteria. As a result, the Company is now strongly positioned to establish itself as oneof the leading western investors in this dynamic and developing region for thebenefit of the Company's shareholders. Consolidated Income StatementFor the period from 18 September 2006 to 30 June 2007 30 June 2007 Group Note •'000 Gross rental income 42Service charge expense (28) Net Rental and related income 14 Administrative expenses 3 (1,573)Excess of fair value of acquisitions over purchase price 7,681Foreign Currency gains/ (loss) 440 Net operating profit before tax and finance income 6,562 Finance Income 4 725 Profit before tax 7,287 Tax charge 5 (1) Profit for the period 7,286 Basic earnings per share (cents) 6 27.8 Diluted earnings per share (cents) 6 27.3 Consolidated Statement of Changes in EquityFor the period from 18 September 2006 to 30 June 2007 Share Capital Share Premium Retained Minority •'000 •'000 Earnings •'000 Interest •'000 Total •'000At 18 September 2006 - - - - - Issue of share capital 262 38,513 - - 38,775 Cost of issue of shares - (2,327) - - (2,327) Acquisition of subsidiaries - - - 160 160 Profit for the period - - 7,286 - 7,286 Total 262 36,186 7,286 160 43,894 Company Statement of Changes in EquityFor the period from 18 September 2006 to 30 June 2007 Share Capital Share Premium Retained Minority •'000 •'000 Earnings •'000 Interest •'000 Total •'000At 18 September 2006 - - - - - Issue of share capital 262 38,513 - - 38,775 Cost of issue of shares - (2,327) - - (2,327) Acquisition of subsidiaries - - - - - Profit for the period - - 1,004 - 1,004 Total 262 36,186 1,004 - 37,452 Consolidated Balance SheetAs at 30 June 2007 30 June 2007 Group Note •'000ASSETSNon-current assetsDevelopment property 7 52,608Goodwill 835Other Assets 2 53,445 Current AssetsTrade and other receivables 8 150Cash and cash equivalents 9 25,639 25,789 TOTAL ASSETS 79,234 Consolidated Balance SheetAs at 30 June 2007 30 June 2007 Group Note •'000EQUITYIssued capital 14 262Share Premium 15 36,186Retained earnings 7,286 Total equity attributable to equity holders of the parent 43,734Minority Interest 160 TOTAL EQUITY 43,894 LIABILITIESNon-current liabilitiesBank Loans 10 3,459Loan certificates 11 10,772Deferred tax liabilities 12 8,205 Total non-current liabilities 22,436 Current LiabilitiesBank Loans 10 2,200Trade and other payables 13 10,704 Total current liabilities 12,904 TOTAL LIABILITIES 35,340 TOTAL EQUITY AND LIABILITIES 79,234 Net Asset Value per ordinary share - basic (cents) 16 166.9Net Asset Value per ordinary share - diluted (cents) 16 163.7 Company Balance SheetAs at 30 June 2007 30 June 2007 Company Note •'000ASSETNon-current assetsInvestments in subsidiaries 7 12,623 Current AssetsTrade and other receivables 8 113Cash and cash equivalents 9 24,748 24,861 TOTAL ASSETS 37,484 EQUITYIssued capital 14 262Share Premium 15 36,186Retained Earnings 1,004 TOTAL EQUITY 37,452 LIABILITIESCurrent LiabilitiesTrade and other payables 13 32 TOTAL LIABILITIES 32 TOTAL EQUITY AND LIABILITIES 37,484 Consolidated Cash Flow StatementFor the period from 18 September 2006 to 30 June 2007 30 June 2007 Group Note •'000 Cash flows from operating activities 17 134 Net cash flows from operating activities 134 Cash flows from investing activities Interest received 710Acquisition/ Investment in subsidiaries (10,372) Net cash used in investing activities (9,662) Cash flows from financing activitiesProceeds from issue of shares, net of issuance costs 36,448 Repayments from borrowings (1,281) Net cash flows from financing activities' 35,167 Net increase in cash and cash equivalents 25,639 Cash and cash equivalents at the beginning of the period -Exchange gains/ (losses) on cash and cash equivalents - Cash and cash equivalents at the end of the period 9 25,639 Company Cash Flow StatementFor the period from 18 September 2006 to 30 June 2007 30 June 2007 Group Note •'000 Cash flows from operating activities 17 220 Net cash flows from operating activities 220 Cash flows from investing activities Interest received 704Loans to subsidiaries (12,624) Net cash used in investing activities (11,920) Cash flows from financing activitiesProceeds from issue of shares, net of issuance costs 36,448 Net cash flows from financing activities' 36,448 Net increase in cash and cash equivalents 24,748 Cash and cash equivalents at the beginning of the period -Exchange gains/ (losses) on cash and cash equivalents - Cash and cash equivalents at the end of the period 9 24,748 Notes to the consolidated financial statementsFor the period ended 30 June 2007 1. General Information The Company was incorporated in the Isle of Man on 18 September 2006 as MetroBaltic Hermitage plc. On 13 November 2006 the Company passed a specialresolution to change its name to Metro Baltic Horizons plc. The Company investsin and develops property in the Baltic states and in the St. Petersburg area ofRussia. The interim report of the Company for the period from incorporation to 30 June2007 comprises the Company and its subsidiaries (together referred to as the "Group"). This report does not constitute the Company's statutory accounts. The Company's registered address is IOMA House, Hope Street, Douglas, Isle ofMan. The Company was admitted to the AIM of the London Stock Exchange and commencedoperations on 11 December 2006. The Company raised approximately €38.7 million(before costs) 2. Principal Accounting Policies A summary of the principal accounting policies, all of which have been appliedconsistently throughout the period, is set out below: 2.1 Basis of Preparation and Accounting The consolidated financial statements have been prepared in accordance withInternational Financial Reporting Standards adopted for use in the EuropeanUnion ("IFRS"), which comprise standards and interpretations approved by theInternational Accounting Standards Board (IASB), and International AccountingStandards and Standing Interpretations Committee interpretations approved by theInternational Accounting Standards Committee ("IASC") that remain in effect. 2.2 Basis of consolidation The consolidated financial statements incorporate the financial statements ofthe Company and the special purpose vehicles controlled by the Company. Controlis achieved where the Company has the power to govern the financial andoperating policies of an investee entity so as to obtain benefit from itsactivities. Where necessary, adjustments are made to the financial results of SPVs to bringthe accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated onconsolidation. Statement of Compliance The consolidated financial statements of the Group have been prepared inaccordance with IFRS as adopted for use in the EU as it applies to the financialstatements of the Group for the period ended 30 June 2007. In preparing thefinancial statements, the accounting policies applied reflect the amendments toIFRS and the adoption of those new IFRS which were in effect at 1 January 2006. IFRS issued but not yet effective The Group has not adopted the following standards, interpretations andamendments in the preparation of financial statements as they were either noteffective at 31 March 2007 or not applicable to the Group's business: • IAS 1 (para 124A-124C) - Presentation of Financial Statements Periodscommencing on or after 1 January 2007• IFRS 7 - Financial Instruments Disclosures Periods commencing on orafter 1 January 2007• IFRS 8 - Operating Segments Periods commencing on or after 1 January2009• IFRIC 9 - Reassessment of embedded derivatives Periods commencing onor after 1 June 2006• IFRIC 10 - Interim Financial Reporting and Impairment Periodscommencing on or after 1 November 2006• IFRIC 11 IFRS 2 - Group and Treasury Shares Periods commencing on orafter 1 March 2007• IFRIC 12 - Service Concession Arrangements Periods commencing on orafter 1 January 2008 The Group is still evaluating the impact that these standards will have on theGroup's financial statements, if any, but expect that there will be no materialimpact when implemented. 2.3 Revenue recognition Rental revenues are accounted for on an accruals basis. Rent is billed inadvance and then allocated to the appropriate period. Therefore, deferredrevenue generally represents advance payments from tenants. Revenue isrecognised when it is probable that the economic benefits associated with thetransaction will flow to the Group and the amount of revenue can be measuredreliably. Interest income is accrued on a time basis, by reference to theprincipal outstanding and at the effective interest rate applicable. 2.4 Investment and development property and property under construction Property held to earn rentals and/or for capital appreciation and that is notoccupied by the companies in the Group, is classified as investment property.Investment property comprises freehold land, freehold buildings and land heldunder operating leases. Investment property is initially measured at costincluding transaction costs. Subsequent to initial recognition investmentproperty is carried at fair value and adjustments to fair value are reflected inthe income statement. Property under construction or for development is also carried at the revaluedamount being the fair value at the date of revaluation less any subsequentaccumulated depreciation and subsequent impairment losses. The Group has appointed Colliers as property valuers to prepare valuations on asemi-annual basis. Valuations will be undertaken in accordance withInternational Valuation Standards published by the International ValuationsStandards Committee. Gains or losses arising from changes in the fair value of investment propertyare included in the income statement in the period in which they arise. Gainsand losses arising from changes in the fair value of property under constructionor for development are included in the revaluation reserve. 2.5 Expenses Expenses are accounted for on an accruals basis. Fees payable to the PropertyAdviser are calculated with reference to the cost or valuation of the underlyingproperties held by the Group. Transaction costs directly attributable to the purchase of the investmentproperties are included within the cost of the property. Development costs ofinvestment property are also included within the cost of the property. Borrowingcosts that are directly attributable to the construction of investment propertyare capitalised as incurred. All other administration expenses are charged through the income statement. 2.6 Cash and cash equivalents Cash and cash equivalents consist of cash in hand and short term deposits whichare short term highly liquid investments that are readily convertible to knownamounts of cash and which are subject to an insignificant risk of changes invalue. 2.7 Tax and Deferred Tax The Company is resident in the Isle of Man. Its activities in the Isle of Manare liable to tax at a 0% tax rate. The Directors conduct the Group's affairs such that the management and controlis not exercised in the United Kingdom and so that neither the Company nor anyof its subsidiaries carries on any trade in the United Kingdom. Accordingly, theCompany and its subsidiaries will not be liable for UK taxation. The Group is exempt from Guernsey taxation on income derived outside of Guernseyand bank interest earned in Guernsey under the Income Tax (Exempt Bodies)(Guernsey) Ordinance, 1989. A fixed annual fee of £600 is payable to the Statesof Guernsey in respect of this exemption. No charge to Guernsey taxation willarise on capital gains. The Group is liable to Cypriot tax arising on the activities of its Cypriotoperations. The Group is liable to Dutch tax arising on the activities of its Dutchoperations. The Group is liable to Russian tax arising on the activities of its Russianoperations. The Group is liable to Latvian tax arising on the activities of its Latvianoperations. The Group is liable to Estonian tax arising on the activities of its Estonianoperations. The tax expense represents an accrual for tax which may become payable at theend of the financial year, tax currently payable and deferred tax arising ongains and losses recorded through the income statement. The tax currently payable is based on taxable profit for the year. Taxableprofit differs from net profit as reported in the income statement because itexcludes items of income and expense that are taxable or deductible in otheryears and it further excludes items that are never taxable or deductible. TheGroup's liability for current tax is calculated using tax rates that have beenenacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differencesbetween the carrying amount of assets and liabilities in the financialstatements and the corresponding tax bases used in the computation of taxableprofit, and is accounted for using the balance sheet liability method. Deferredtax liabilities are generally recognised for all taxable temporary differencesand deferred tax assets are recognised to the extent that it is probable thattaxable profits will be available against which deductible temporary differencescan be utilised. Such assets and liabilities are not recognised if the temporarydifference arises from goodwill or from the initial recognition (other than in abusiness combination) of other assets and liabilities in a transaction thataffects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheetdate and reduced to the extent that it is no longer probable that sufficienttaxable profits will be available to allow all or part of the asset to berecovered. Deferred tax is calculated at the tax rates that are expected to apply in theperiod when the liability is settled or the asset realised. Deferred tax ischarged or credited in the income statement, except when it relates to itemscharged or credited directly to equity, in which case the deferred tax is alsodealt with in equity. 2.8 Business Combinations The acquisition of subsidiaries is accounted for using the purchase method. Thecost of the acquisition is measured at the aggregate of the fair values at thedate of exchange of assets given, liabilities incurred or assumed and any equityinstruments issued by the Group in exchange of control of the acquiree, plus anycontingent liabilities that meet the conditions for recognition under IFRS 3 arerecognised at their fair values at the acquisition date. Goodwill arising on consolidation is recognised as an asset and initiallymeasured at cost, being the excess of the cost of the business combination overthe Group's interest in the net fair value of the identifiable assets,liabilities and contingent liabilities recognised. Subsequently, goodwillcarried on the balance sheet is assessed for impairment on an annual basis andany impairment charge is recognised in the income statement. If, after reassessment, the Group's interest in the net fair value of theacquiree's identifiable assets, liabilities and contingent liabilities exceedsthe cost of the combination, the excess is recognised immediately in the profitor loss. The interest of minority shareholders in the acquiree is initially measured atthe minority's proportion of the net fair value of the assets, liabilities andcontingent liabilities recognised. 2.9 Foreign currency translation a) Functional and presentation currency Items included in the financial statements of each of the Group entities aremeasured in the currency of the primary economic environment in which the entityoperates (the "functional currency"). The consolidated financial statements arepresented in Euro which is the Groups functional and presentation currency. b) Transactions and balances Foreign currency transactions are translated into the functional currency usingthe exchange rates prevailing at the dates of the transactions. Foreign exchangegains and losses resulting from the settlement of such transactions and from thetranslation at the year-end exchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognised in the income statement. c) Group companies The results and financial position of all the Group entities that have afunctional currency different from the presentation currency are translated intothe presentation currency as follows: (i) assets and liabilities for each balance sheet presented are translated atthe closing rate at the date of the balance sheet;(ii) income and expenses for each income statement are translated at the averageexchange rate prevailing in the period. 2.10 Segmental reporting The Directors consider that the group is at present engaged in a single segmentof business being the property investment and development business and that theregion in which the Company operates is sufficiently homogenous bothgeographically and economically so as to make a segmental analysis unnecessary. 2.11 Estimates In the process of applying the Company's accounting policies described above,management is required to make certain judgements and estimates to arrive atfair carrying values for its assets and liabilities. Significant areas requiringmanagements judgement include assessment of the fair value of investmentproperties and properties under construction described above. 3. Administrative Expenses Administrative expenses include the following 30 June 2007 Group •'000Investment Management Fees 300Performance Fees 874Directors Remuneration 44Auditors Remuneration - audit services 51Other administrative expenses 304 _______ 1,573 ====== Management fees are 1.5% per annum of gross assets under management in Russiaand 1% per annum of all other gross assets. The management fees are calculatedand charged quarterly based on the gross assets of the Company at the end of thequarter. Performance fees are calculated based on the audited net asset value at 31December each year and are payable annually. The performance fee is calculatedas 25% of the increase in the net asset value of the Company in excess of ahurdle rate of 12% over the period. The Performance fee included above is an accrual based on the amount that wouldbe payable to the Manager if the Performance Fee was paid to 30 June 2007. Thisamount may therefore not become payable. Fees of €99,000 were also paid to the auditors for their work as reportingaccountants on the launch of the Company. These costs are included within thecost of the issue of shares. 4. Finance Income 30 June 2007 Group •'000 Interest received on short term deposits 725 ______Finance Income 725 ===== 5. Tax Charge 30 June 2007 Group •'000 Accrued income tax expense 1 ______Tax charge for the period 1 ===== 6. Earnings per share Basic earnings per share The calculation of basic earnings per share at 30 June 2007 was based on theprofit attributable to shareholders of €7,286,000 and on the weighted averagenumber of ordinary shares in issue during the period ended 30 June 2007 of26,200,270. 30 June 2007 Group •'000Basic earnings per share Profit attributable to ordinary shareholders 7,286 _______Weighted average number of ordinary shares in issue during the 26,200,270periodBasic earnings per share (expressed as cents per share) 27.8 Diluted earnings per share Weighted average number of ordinary shares in issue during the 26,200,270period Maximum shares which may be issued to Metro Frontier Ltd in respect 509,192of their success fee based on the net asset value at 30 June 2007 ________ Diluted weighted average number of ordinary shares in issue 26,709,462 Diluted earnings per share (expressed as cents per share) 27.3 7. Investments Development Property 30 June 2007 30 June 2007 Group Company •'000 •'000 At 18 September 2006 - -Acquired with subsidiaries 52,608 - _______ _______Total Development Property 52,608 - ====== ====== There is no fair value movement as the properties were acquired at or close tothe period end and valuations were done at the date of acquisition. Investments in subsidiaries 30 June 2007 Company •'000 Loans to subsidiaries 12,623Equity investment - _______Total investments in subsidiaries 12,623 ====== 8. Trade and other receivables 30 June 2007 30 June 2007 Group Company •'000 •'000 Accrued interest income 14 14Interest due from group companies - 99Prepayments 127 -Other trade receivables 9 - _______ _______Total trade and other receivables 150 113 ====== ====== 9. Cash and cash equivalents 30 June 2007 30 June 2007 Group Company •'000 •'000 Sterling cash 22 22Euro cash 202 - Sterling deposits 1,635 1,635Euro deposits 23,780 23,091 _______ _______Total cash and cash equivalents 25,639 24,748 ====== ====== 10. Bank Loans 30 June 2007 30 June 2007 Group Company •'000 •'000 At 18 September 2006 - -Bank loans acquired as part of acquisitions 5,659 - _______ _______At 30 June 2007 5,659 - ====== ====== Group interest bearing and non-interest bearing loans at 30 June 2007 Current Loan Interest Rate Maturity Amount SEB Latvijas Unibanka - Euro Euribor +1.95% 15/6/2008 1,300Sampo Banka - Euro Euribor +1.95% 15/6/2008 900 2,200Non-current Loan Interest Rate Maturity Amount SEB Latvijas Unibanka - Euro Libor +1.9% 31/8/2008 264Hansabank - Euro Euribor +1.75% 10/7/2008 3,195 3,459 5,659 11. Loan Certificates The loan certificates outstanding at 30 June 2007 relate to loans due to thevendors of 80% of SIA D.Tilts Holdings and the remaining 20% minority interestsin the entity. Since the balance sheet date the loan certificates attributableto the vendors, representing 80% of the total, have been redeemed. 12. Deferred Tax 30 June 30 June 2007 2007 Group Company •'000 •'000 At 18 September - -2006Acquired with 8,205 -subsidiaries Total Deferred 8,205 -Tax The deferred tax liability of €8,205,000 represents a deferred tax liabilityacquired through the acquisition of shares of subsidiaries 13. Trade and other payables 30 June 30 June 2007 2007 Group Company •'000 •'000Management fees 300 -Performance fees 874 -Tax liabilities 46 -Other trade payables 3,003 32Due to vendors in respect of acquisitions 6,481 - Total trade and other payables 10,704 32 14. Issued Capital 30 June 2007 Number of shares •'000AuthorisedOrdinary shares of €0.01 250,000,000 2,500 ========= ==== Issued and fully paidOrdinary shares of €0.01 26,200,270 262 ========= === 2 shares were issued on 18 September 2006 on incorporation. 26,200,268 shareswere issued on 11 December 2006 for the total proceeds of €38,775,000. Theordinary shares carry the right to receive, and shall participate in, anydividends or other distributions out of the profits of the Company available fordividend and resolved to be distributed in respect of any accounting period. 15. Share Premium •'000Share premium on ordinary shares issued 38,513Issue costs paid on ordinary shares issued (2,327) _______ At 30 June 2007 36,186 ====== By virtue of a special resolution passed on 5 December 2006 with confirmation ofthe court of the Isle of Man on 13 August 2007, the amount standing to thecredit of the Share Premium Account was transferred to a Distributable Reserveand the share premium account was cancelled. 16. Net Asset Value per share 30 June 2007 Group •'000 Net Asset Value attributable to ordinary shareholders 43,734 Deferred tax 8,205 ______ Net Asset Value excluding deferred tax 51,939 =====Net Asset Value per share (cents per share) 166.9Diluted Net Asset Value per share (cents per share) 163.7Net Asset Value excluding deferred tax (cents per share) 198.2Ordinary shares in issue at the end of the period 26,200,270Diluted ordinary shares in issue at the end of the period 26,709,462 17. Notes to the cash flow statement 30 June 30 June 2007 2007 Group Company •'000 •'000Cash generated from operations Operating profit for the period 6,562 188Adjustment for: Changes in Creditors 1,348 32Changes in Debtors (8) -FX gain on land and investment property (87) -Excess of fair value of acquisitions over purchase price (7,681) - ______ ______ Cash flow from operations 134 220 ===== ===== 18. Financial Instruments and Property The Group holds cash and liquid resources as well as having debtors andcreditors that arise directly from its operations. The main risks arising from the Group's financial instruments and properties aremarket price risk, credit risk, liquidity risk, foreign exchange risk andinterest risk. The board regularly reviews and agrees policies for managing each of these risksand these are summarised below. Market Price Risk The Group's exposure to market price risk is comprised mainly of movements inthe value of the Group's investment in property. Properties are inherentlydifficult to value due to the individual nature of each property. As a resultvaluations are subject to uncertainty. There is no assurance that the estimatesresulting from the valuation process will reflect the actual sales price evenwhere a sale occurs shortly after the valuation date. Rental income and the market value for properties are generally affected byoverall conditions in the local economy, such as growth in gross domesticproduct, employment trends, inflation and changes in interest rates. Changes ingross domestic product may also impact employment levels or levels of commercialactivity, which in turn may impact the demand for premises. Furthermore,movements in interest rates may also affect the cost of financing for realestate companies. Both rental income and property values may also be affected by other factorsspecific to the real estate market, such as competition from other propertyowners, the perceptions of prospective tenants of the attractiveness,convenience and safety of the properties, the inability to collect rents becauseof the bankruptcy or the insolvency of tenants or otherwise, the periodic needto renovate, repair and release space and the cost thereof, the costs ofmaintenance and insurance, and increased operating costs. The Directors monitor market value by having independent valuations carried outsemi annually. Credit Risk Credit risk is the risk that an issuer or counter party will be unable orunwilling to meet a commitment that it has entered into with the Group. In theevent of a default by an occupational tenant, the group will suffer a rentalincome shortfall and incur additional costs including legal expenses inmaintaining, insuring and re-letting the property. Liquidity Risk Liquidity risk is the risk that the Group will encounter in realising assets orotherwise raising funds to meet financial commitments. Investments in property are relatively illiquid, however, the Group has tried tomitigate this risk by investing in properties in good locations. The Group'sobjective is to maintain a balance between continuity of funding and flexibilitythrough use of long term borrowing to finance the acquisition of properties. Foreign Exchange Risk In all of the regions in which the Group operates with the exception of Russiaassets and liabilities are denominated in Euro. In Russia the assets and incomeare typically denominated in US dollars. To mitigate the foreign exchange riskthe Group will typically arrange its bank funding in the same currency in whichthe assets are denominated. At this point the Company has decided not to engagein foreign currency hedging or other derivative instruments to further reducethis risk. Interest Rate Risk The interest rate profile of the Group at 30 June 2007 was as follows: Total Fixed Rate Variable Rate Non interest Weighted Avg. Bearing Rate •'000 •'000 •'000 •'000 % Development 52,608 - - 52,608 -PropertiesGoodwill 835 - - 835 -Debtors 152 - - 152 -Cash and equivalents 25,639 - 25,639 - 3.9% ______ ______ ______ ______ Total Assets as perBalance Sheet 79,234 - 25,639 53,595 ====== ====== ====== ====== Total Fixed Rate Variable Rate Non interest Weighted Avg. Bearing Rate •'000 •'000 •'000 •'000 % Bank Loans 5,659 - 5,659 - 5.8%Loan Certificates 10,772 - - 10,772 -Creditors 10,704 - - 10,704 -Deferred Tax 8,205 - - 8,205 - ______ ______ ______ ______Total Liabilities asper Balance Sheet 35,340 - 5,659 29,681 ====== ====== ====== ====== 19. Subsidiaries The following were the companies in the Group at 30 June 2007: Name Securities in Issue Principle activity Country of Beneficial incorporation Interest Metro Baltic 2 shares of €1 each Intermediate holding company Guernsey 100%Guernsey ltd Pedragon 2,000 shares of €1 Intermediate holding company Cyprus 100%Investments ltd each Metro Baltic 18,000 shares of €1 Non trading Netherlands 100%Netherlands B.V each Goldbrick 2,000 shares of €1 Non trading Cyprus 100%Investments eachltd. Dante Invest OU 1 share of EEK 40,000 Intermediate holding company Estonia 100% Focus 1 share of EEK 40,000 Development company Estonia 100%Kinnisvara OU OOO Gruppa Kub 1 share of RUB 10,000 Development company Russia 100% SIA D Tilts 100 shares of LVL 27 Intermediate holding company Latvia 80%Holdings each SIA El Mart 20 shares of LVL 100 Development company Latvia 80% each 20. Acquisitions of subsidiaries The Group has made three significant acquisitions during the period: Company acquired Percentage acquired Date Acquired OOO Gruppa KUB 100% 29 May 2007Focus Kinnisvara 100% 30 June 2007SIA D Tilts Holdings 80% 30 June 2007 These transactions have been accounted for using the purchase method ofaccounting. Book Value Fair Value Fair Value Adjustments •'000 •'000 •'000 Net Assets Acquired:Development Property 28,026 24,582 52,608Trade and other receivables 122 - 122Cash and bank balances 343 - 343Bank loans (5,659) - (5,659)Other loans (1,301) - (1,301)Deferred tax (2,427) (5,778) (8,205)Trade and other payables (2,934) - (2,934)Loan certificates (10,772) - (10,772) _______ _______ _______ 5,398 18,804 24,202 ====== ======Minority interest (160) _______Fair value of assets acquired 24,042 Goodwill (6,846) _______ Total consideration 17,196 ====== Satisfied by:Due to Vendor 6,481Cash 10,605Directly attributable transaction costs 110 _______ 17,196 ====== Net cash outflow arising on acquisitionCash consideration 10,715Less cash acquired (343) ______ Net cash consideration 10,372Cash and cash equivalents - _______ 10,372 ====== As the acquisitions were made at the period end, the Directors consider that noimpairment of goodwill has arisen at the period end. 21. Employees At 30 June the Group had 42 employees. The average number of employees for theperiod from incorporation to 30 June 2007 was 7. 22. Related party transactions Transactions between the Company and its subsidiaries which are related partieshave been eliminated on consolidation and are not disclosed in this note. As disclosed in note 3 the Investment Managers management fee from incorporationto 30 June 2007 was €300k. There is a further amount of €874k for performancefees which is accrued but is not yet payable. The Investment Manager has theoption to take some or all of the performance fee when payable in ordinaryshares of the Company. At a minimum 25% of the performance fee will be satisfiedthrough the issue of ordinary shares in the Company (or in certain circumstancesthrough the acquisition of the shares in the market by the Investment Manager).In addition two of the acquisition completed by the Company during the periodrelated to properties which a company connected to the Investment Manager wasmanaging on behalf of third party investors. These acquisitions were negotiatedand completed on the basis of independent market valuations prepared by ColliersInternational for the Board. Both of the acquisitions were in line with theCompany's stated investment criteria. 23. Commitments The Group had an undertaking to redeem 80% of the loan certificates held by thevendors of SIA D Tilts Holdings, this amounted to a further commitment of€8,618,000. This amount has also been paid since the balance sheet date. 24. Subsequent events Since the balance sheet date the Group has agreed to the acquisition of an 80%interest in an Estonian company which holds a 1.3 hectare plot of land inTallinn which the company intends to use for development. With the sanction of an order of the High Court of the Isle of Man made on 13August 2007 the amount standing to the credit of the share premium account wastransferred to a distributable reserve and the share premium was cancelled. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Metir Plc