26th Mar 2009 07:00
Raven Russia Limited
("Raven Russia" or the "Company")
This results announcement does not constitute the Company's statutory accounts for the year ended 31 December 2008. The auditor is yet to report on the statutory accounts for the year ended 31 December 2008.
Unaudited results for the period to 31 December 2008
The Board of Raven Russia releases below the unaudited results for the year ended 31 December 2008.
Highlights
364,000 square metres ("sq.m.") of warehouse space completed since 1 January 2008
319,000sq.m. of space let in the same period
26,000sq.m. included above let in the first 2 months of 2009
$51.9 million of annualised NOI at 31 December 2008
A further $24.9 million pre lease agreements in place
Generated operating profit before capital items and goodwill impairment of $5 million
Operating cash inflow of $18 million
Acquisition of the Property Advisor during the year
Preference share issue since the year end raises £76 million
Adjusted NAV per share 101 pence
Fully diluted NAV post preference share issue of 92 pence
IFRS loss before tax of $189 million for the year includes:o Revaluation deficit, impairment of development assets and related foreign exchange of $108 million; ando Write off of intangibles on acquisition of $60 million.
The Company's audited annual report and accounts will be issued on Monday 30 March 2009.
Richard Jewson, Chairman, said: "Despite fundamental shifts in both property valuations and local currency and post the dilution of the preference share issue I am pleased that our net asset value per share remains above 90p. The acquisition of the Property Advisor was successfully completed during the year, and I am delighted that the new Board is working well together."
Anton Bilton, Deputy Chairman, said: "I am pleased that we are profitable at the operating level and that with $24.9 million of pre-leases in place our expected annualised rent roll for 2009 will be in excess of $76 million. This continued letting of our development stock exemplifies the resilience of the logistics warehousing market in Russia."
Glyn Hirsch, Chief Executive Officer, said: "Whilst it is disappointing to report losses, we are profitable at the operating level. We are in a strong market position with increasing net operating income and a strong balance sheet."
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For further enquiries please contact; |
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Raven Russia Limited |
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Anton Bilton / Glyn Hirsch |
Tel: +44 (0) 1481 712955 |
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Bell Pottinger Corporate & Financial |
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Charles Cook / Andrew Benbow |
Tel: +44 (0) 207 861 3232 |
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Numis Securities Limited |
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Nick Westlake (Nomad & Financial Adviser) / Rupert Krefting (Corporate Broking) |
Tel: +44 (0) 207 260 1000 |
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Singer Capital Markets Limited |
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James Maxwell / Brad Cheng (Joint Broker to Raven Russia Limited) |
Tel: +44 (0)20 3205 7500 |
Chairman's Statement
The Board of Raven Russia Limited ("Raven Russia") announces the Group's unaudited results for the year ended 31st December 2008.
In difficult circumstances the Raven Russia team has continued to deliver its construction targets and generate increasing rental income.
Since 1 January 2008 we have completed 364,000sq.m. of warehouse space and let 319,000sq.m., 26,000sq.m. of which since the year end. At the year end our annualised net operating income ("NOI") stood at $51.9 million per annum increasing to $76.8 million, including pre- lets and joint ventures, at the current date.
By summer 2009, we will have a completed portfolio of warehouses comprising of 1,046,000sq.m. of the highest quality and although demand has been affected by global factors we are still letting satisfactorily.
In June 2008 we announced the intended internalisation of the Property Advisor and completed the transaction in November 2008. This results in a Group with 59 employees at 31 December 2008 operating from three separate jurisdictions. Anton Bilton and Glyn Hirsch joined the Board of Raven Russia at the time of internalisation and we can now say that we have truly aligned the objectives of the key Raven Russia team with delivering shareholder value.
As a backdrop to these positive developments, the global crisis arrived in Russia in the second half of the year and by 31 December had manifested itself in three ways for Raven Russia:
a weakening of the Rouble and Sterling relative to the US Dollar;
downward valuations of completed assets and impairment of assets under construction; and
the withdrawal of bank finance from the market.
The weakening Rouble and downward valuation of property carrying values had a detrimental impact on the Group's Net Asset Value (NAV), with adjusted NAV per share at the year end of $1.47 (2007: $2.32). However the weakening of Sterling gives a compensatory cushion on the Sterling equivalent adjusted NAV per share of 101p at today's exchange rate (recorded NAV per share in the 2007 accounts of 115p).
This downward adjustment of NAV was predominantly a non cash movement related to the carrying values of both completed and development assets, the majority of foreign exchange movements relating to a reduction in the carrying value of the latter. Once assets are completed and revalued in US Dollars, the exposure to foreign exchange movements is significantly reduced as the majority of our rental income is US Dollar pegged, the majority of our debt is US Dollar denominated and the transaction currency for completed assets is US Dollars.
These various provisions against our property assets, returns initial yield valuations to 2005 levels of between 12% and 12.5% in Moscow and 13% to 13.5% in other cities including St Petersburg.
With the prevailing global uncertainty on the availability of finance and with a large proportion of the Group's portfolio completing in the first half of 2009, the Board took pre emptive action to ensure the security of the business during the current letting phase of the portfolio development. Since the year end we have announced the raising of £76.2 million through a placing of preference shares and warrants as well as the offer for Raven Mount plc, previously the owner of the Property Advisor, which will further strengthen the Group's balance sheet. At today's share price the warrant issue is not dilutive, however were the warrants to be exercised in full it would result in an adjusted NAV per share of 92p.
As previously reported, the Company intends to move to the Official List over the next 12 months, subject to meeting the Official List eligibility requirements, which the Company will endeavour to do.
With a high quality portfolio, a strong balance sheet and excellent management, we are therefore well placed in this difficult world.
Richard Jewson
Chairman
25 March 2009 Property Review
The focus of the business in the past 12 months has been the construction of our development portfolio and the leasing of the Grade A space we have built. During the year we leased or signed pre lets on 293,063sq.m. of space with a value of $37.5 million per annum. We also completed the construction of 162,289sq.m.
Investment Portfolio
The Company's completed investment portfolio now comprises 390,500sq.m. at different sites in Moscow and St Petersburg. These properties produce a yield on cost on an ungeared basis of 13.9%. Our rent roll at the year end stood at $51.9 million.
Contracted rent on all of the Company's properties is $76.8 million per annum, represented by $51.9 million from the investment portfolio and $24.9 million per annum due under pre lettings, including Megalogix.
The weighted average unexpired lease term on the investment portfolio is 5.73 years and the vacancy rate is 5%, including 17,500sq.m. at Istra that has recently been completed.
The investment properties were valued at the period end by Jones Lang LaSalle ("JLL") in accordance with the RICS Valuation and Appraisal guidelines at an aggregate value of $453.8 million, a decrease of $39 million compared to values at 31st December 2007 or date of completion if later. This reflects the change in market conditions not only in Russia but also globally. The Company continues to hold its development stock at cost less any provision for impairment until each building is complete and ready for occupation.
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Property
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Land plot, ha
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GLA, sq.m.
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Total Development Cost
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Rental Status
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NOI (1)
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Interest(2)
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Baltia
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5.1
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28,000
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$ 29,000,000
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Fully let
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$ 3,500,000
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100%
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Southern
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1.7
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14,000
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$ 15,300,000
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Fully let
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$ 2,100,000
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100%
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Krekshino
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22.2
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118,000
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$ 113,000,000
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Fully let
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$ 13,800,000
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100%
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Constanta
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0.5
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16,000
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$ 57,000,000
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Fully let
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$ 9,400,000
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100%
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Istra phases 1-5
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33.3
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199,000
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$ 171,000,000
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77% Let/Pre-Let
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$ 19,500,000
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100%
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Shushary 1-3
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26.0
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142,000
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$ 144,500,000
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42% Let/Pre-Let
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$ 7,100,000
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100%
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Noginsk I
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21.8
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123,000
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$ 117,000,000
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Under construction
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$ -
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100%
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Pulkovo
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5.1
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36,000
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$ 40,700,000
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Under construction
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$ -
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100%
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EG
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10.0
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53,000
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$ 59,100,000
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100% Pre-Let
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$ 6,900,000
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100%
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Klimovsk I
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9.0
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54,000
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$ 63,000,000
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34% Pre-Let
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$ 2,800,000
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100%
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AKM I
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12.3
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63,000
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$ 75,100,000
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10% Pre-Let
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$ 900,000
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100%
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Rostov on Don I
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18.6
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100,000
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$ 123,900,000
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58% Pre-Let
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$ 6,400,000
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50%
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Novosibirsk
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17.8
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120,000
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$ 127,200,000
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27.5% Pre-Let
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$ 4,400,000
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50%
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Total
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183.4
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1,066,000
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$ 1,135,800,000
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$ 76,800,000
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(1)
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Net Operating Income: net operating income for income producing assets represents the annualised, actual rental income at 31 December 2008. For properties under development net operating income represents the anticipated annual income under signed preliminary lease agreements.
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(2)
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The interest in the project reflects the proportion of the project accounted for in the consolidated financial statements.
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Development Portfolio
Construction of the active projects in the development portfolio is almost complete. During the year 162,289sq.m. of new space was delivered for tenants to occupy, all of it pre-let. Of the balance, 201,225sq.m. is already construction complete and we are in the process of obtaining the requisite permits to permit operation and use. 454,308sq.m. remains in the final phase of construction and we expect this to be completed by the summer. Construction of all projects was slowed by a month or two during the autumn as the impact of the global crisis impacted contractors and sub-contractors who had their credit lines restricted by their own suppliers.
The current investment portfolio is yielding 13.8% on cost. We anticipate the remaining development properties will deliver a yield on cost of 11.9%, based on the estimates of costs to completion and anticipated rents. Overall the Group portfolio of investment and development assets is expected to deliver an ungeared yield on cost of 12.9%.
Development in Russia is a demanding process. Not only does the design have to reflect the extremes of a continental climate, the budget allows for the added steel to withstand the snow load in winter, but the buildings actually get built through those extremes. A recent visit by one of our banking partners to our Novosibirsk project when the temperature was -35c, is a reminder of the physical challenges we have faced on site, when even the simplest of tasks becomes incredibly arduous.
Moscow
At Istra, both the 2nd and 3rd phases, comprising 102,123sq.m. are now complete and the 4th phase of 29,580sq.m. will be finished next month. Phase 2 is let to DSV for a term of 10 years. Seacon have taken 25,847sq.m. in Phase 3 for 7 years and DSV have also committed to 8,824sq.m. for 10 years. 17,502sq.m. remains unlet although we are in discussion with a number of potential tenants.
Phase 5 of 18,140sq.m. has also been pre-let to an international tenant for a term of 10 years. We are in discussions with the tenant to offer them space in an earlier unlet phase of Istra in lieu of Phase 5.
At Noginsk the first phase of 123,000sq.m. will be ready very shortly. Despite being in detailed negotiations with a number of tenants none has yet to commit, although we are hopeful of signing up a number of occupiers soon.
At Klimovsk, the first building of 18,124sq.m. has been delivered and pre-let to Gradient, a local manufacturer and distributor of household cleaning materials, on a 7 year term. The remaining 35,876sq.m. will be ready for occupation by the summer.
Our EG project has continued to suffer delays, and we have taken action to replace elements of the partners on-site team. The project should have completed in Q4 2008 but now the first 40,700sq.m. out of 53,000sq.m. will be ready in May. The remaining space will be delivered by August 2009. This project is 100% pre-let.
St Petersburg
In July we announced the AKM transaction in St Petersburg where we have now completed the construction of the first phase of 63,000sq.m. Prior to the year end we signed a letting on 5,990sq.m. with Krupskaya for a term of seven years.
At our Shushary project the second phase of 45,000sq.m. is now completed and ready for tenants. We have delayed completion of Phase 3 until such time as tenant demand improves. 70% of the construction of this building is complete and the building is now wind and watertight.
At Pulkovo 1 the building will be finished next month and will provide 36,000sq.m. We are in discussions with a number of tenants.
Megalogix
In Novosibirsk we have construction completed the project and delivered 120,000sq.m. of Grade A space; the first high quality warehouse development in the largest city in Siberia with a population of 1.5 million. The project was officially opened with the local administration on 25th February and we expect operation and use permits very shortly. Avalon Logistics has taken 32,932sq.m. on a 10 year lease and we are in discussions with a number of other prospective tenants.
At Rostov on our 45ha land plot we have virtually construction completed the first phase of 100,000sq.m. Once again this is the first Grade A warehouse project in the Rostov region where there are around 4.5 million people. Pre-lets have been signed with Avalon Logistics for 31,614sq.m, Auchan for 15,678sq.m. and X5 for 10,510sq.m. for 10 years, 7 years and 7 years respectively. The project is now 58% pre-let.
Land Bank
The Company holds an additional 463.5ha of land in Kiev and regional cities of Russia that has longer term potential. At the current time we do not envisage any speculative development on these sites. Instead we are focusing on securing all the necessary construction permits to add value to the land and offer selective Build to Suit opportunities for high class tenants where possible.
The Market
The Russian warehouse sector remains an attractive asset class, offering investors high income returns and the potential for capital growth. Compared to other European countries Russia still has a deficit of supply on a per capita basis. This and the difficulty in securing and developing large scale land plots in and around the major Russian cities is likely to limit supply in the future. Very little new development is planned to start this year improving the prospects for a stable market during the end of 2009 and into 2010.
During 2008 only 463,000sq.m. was delivered to the market in Moscow against an estimate of 1.3 million sq.m. at the start of 2008. Take up during 2008 was 528,000sq.m. For 2009 Knight Frank estimate 550,000sq.m will be delivered and demand is predicted to be 1.0 million sq.m. although actual take up is likely to be reduced because of market conditions.
During the first 9 months of the year occupier demand held up and rental levels remained strong in Moscow. But, with the weakening of the Rouble and global confidence a number of tenants postponed or cancelled decisions to lease space. The start of 2009 has seen tenants remaining cautious, although it is difficult to understand whether requirements for new space have been shelved for good or simply delayed.
Tenants have continued to commit to new leases in the Company's portfolio over the past 3 months and discussions are on going on all of the developments with potential occupiers, although at a lower level than previously. However, the lack of capital available has created a new type of demand from occupiers who previously wished to construct their own facilities but are now seeking to rent.
Rental levels have decreased by approximately 10% in Moscow, reflecting increased competition for tenants and the Rouble devaluation against the US Dollar, in which rents are denominated.
Over the next year rents may well soften further if tenant demand weakens further and the Rouble continues to fall against the US Dollar. Leases are also likely to shorten as tenants look for shorter commitments and landlords push back against signing long term leases at lower rents. With debt finance remaining scarce creating long term leases is less essential for a landlord than cash flow so we are likely to enter into a number of shorter term agreements.
The property investment market has been extremely quiet in the last 6 months although those assets that have been sold have been from distressed sellers at depressed prices and probably do not represent the long term value of the real estate simply a need to monetise assets. There have not been any sales of completed warehouses in the last 6 months, although JLL have marked down their valuations by approximately 20% to reflect their opinion of the change in the market.
Outlook
Russia remains a country with huge natural resources, a relatively unleveraged population and an under supply of warehousing per capita. Even in difficult economic times goods need to be moved, stored, repacked and sent to market for sale. Office demand can evaporate as companies relocate workers to call centres around the globe or working from home increases. Warehousing and distribution is more fundamental and defensive.
The next 12 months is about maintaining cash flow from our investment properties and creating cash flow from our development portfolio. In the short term leases may be shorter rents may be lower, but with virtually no new space set to start on site in Moscow in the next few months the potential exists for a positive end to the year if tenant demand holds up.
Glyn Hirsch
Chief Executive Officer
25 March 2009
Financial Review
The Group generated NOI of $43 million (2007: $26 million) in the year and an ongoing operating profit before impairment of goodwill of $5 million (2007: $8 million) after recording a share of losses of the joint venture logistics operator, Avalon Logistics, of $6 million (2007: nil) and abortive project costs of $4 million (2007: $2 million), the latter a factor of the current climate. Avalon Logistics remains in an early stage of growth and we expect this to break even in 2010/11 with minimal additional capital investment required.
The Group is also in a period of internalising all outsourced administrative functions. As well as the Property Advisor, it has now brought administration of its Cypriot operations in house and is in the process of doing the same with its Guernsey head office function. This does involve a duplication of costs in the transition period but will deliver both cost benefits and significant operational efficiencies going forward.
At 31 December 2008, the Group had 8 completed assets, including 3 phases of the Istra project, the 3rd phase of which received its ownership certificate on 26 December 2008. This phase was 66.5% pre let at the year end and we expect to let the remaining space shortly. All other completed assets were fully let. These assets generate an annualised income of $51.9 million on current lettings and $54.1 million when fully let.
An independent valuation of the completed assets at 31 December 2008 by JLL gives a combined valuation of $454 million, an uplift of $52 million on cost of $402 million and a loss on revaluation of $39 million compared to values at 31 December 2007. These year end valuations imply an ungeared initial yield on a well let rack rented warehouse property of 12% to 12.5% in the Moscow region and 13% to 13.5% in St Petersburg and other regional cities.
The shift in valuation yield has prompted us to carry out an impairment review of our assets under construction and regional land bank, which are carried at cost. This review has resulted in a provision for impairment on our St Petersburg and regional assets of $39 million, reducing these assets to a carrying value of $265 million. There is no impairment of our Moscow assets under construction and these are carried at a cost of $179 million at the year end.
Acquisition of Property Advisor
The Property Advisor was acquired in November 2008 for consideration of 80 million Raven Russia shares and £15 million cash. In accounting terms, this was effectively a payment for release from the property advisory contract and therefore the value of the consideration has been expensed in the income statement with no residual assets or liabilities carried on balance sheet. An independent valuation of the contract was completed and this results in a charge to the income statement and a release of negative goodwill of $67 million and $7 million, respectively.
Foreign Exchange
The Group's principal transaction currency on completed assets remains US Dollars. During the development phase however, the assets accrue a cost in Rouble. As the Group's Russian subsidiaries have a Rouble functional currency, this has accounting implications as changes in the US Dollar/Rouble exchange rate will result in a change in carrying cost when the assets are presented in US Dollars in the consolidated financial statements. The Rouble depreciation in the second half of the year resulted in a loss of $34 million in the income statement (2007: profit of $0.3 million) and a decrease in the net investment in subsidiaries of $54 million (2007: $5 million) through the translation reserve within equity.
On completed assets, where the Group's assets have income, debt and a capital transaction currency of US Dollars any movement in the Rouble exchange rate is NAV neutral.
Finance Income and Expense
Income generated from cash holdings reduced significantly in the year to $1.3 million from $24.4 million in 2007. Net interest receivable from joint venture operations was $10.4 million (2007: $2.6 million).
As financing facilities on completed assets were drawn in the year, finance service costs increased from $1.8 million in 2007 to $13.5 million.
Where the Group transacts in currencies other than US Dollars it seeks to hedge its cash flow exposure where practical, either by holding cash balances in the alternative currency to cover expected liabilities or hedging future cash flows with derivative instruments. The principal exposure in 2008 was to construction cash flows where underlying contracts were Russian Rouble denominated and funding was in US Dollars. Non Deliverable Forward instruments (NDF's) were entered into earlier in 2008 to give cash flow certainty on the forecast construction cash flows in the year. This fixed our exchange rate at an average rate of 23.66 Rou over the year. Whilst the depreciating Rouble had a positive impact on construction cash flows towards the end of the period, the losses realised on the unwinding of the NDF's offset this. As the hedging policy does not meet the strict definition of a hedge under IFRS, the loss on the NDF instruments is taken to the income statement as a finance expense. This totalled $17.3 million in the year, (2007: gain of $1.8 million).
The Group also hedges its interest rate exposure with the use of interest rate swaps and caps. These instruments have to be marked to market for accounting purposes and the movement for the year resulted in a loss of $7.6 million (2007: nil) a result of the global reduction in interest rates at the year end.
Together the various items above result in a loss before tax for the year of $189 million (2007: profit of $115 million) of which $185 million results from unrealised movements on property carrying values, the write off of intangible assets, unrealised foreign exchange movements and movements on hedging instruments.
Balance Sheet
As explained above, completed property assets are carried at a value of $454 million (2007: $346 million) and assets under construction at $444 million (2007: $252 million) after an impairment provision of $39 million (2007: nil).
Financing
At 31 December 2008, the Group had financed these assets with $426 million of interest bearing debt. Including its joint ventures, but excluding the Group's Kiev project, bank financing raised for its projects totalled $475 million (2007: $89 million) of which $263 million related to refinancing of completed investment properties (2007: $89 million) and $212 million to construction projects (2007: nil).
The investment debt represents a loan to value ratio on 31 December 2008 values of 62% (2007: 64%).
The weighted average cost of debt to the Group is 8.3% (2007: 6.8%).
No financing covenants have been breached and at 31 December 2008 $27 million was undrawn on a construction facility of $69 million. The Group also had an undrawn construction facility of $53 million on its Kiev project but this project has been postponed due to the current climate and has not been included in the figures above. The facility remains in place until 30 June 2009.
Since the year end, the Group's regional joint venture, Megalogix Limited, has had an additional facility with the European Bank of Reconstruction and Development ("EBRD"), credit and Board approved. The facility is for $40 million and is initially a construction facility, switching to a term loan on completion of the related asset. The term of the loan is 8 years with a margin, on project completion, over US Libor of 6.25%. The first $20 million of the facility is expected to be drawn in May 2009.
Cash Flow
The cash flows for the year give a good representation of the business in 2008. As assets were completed and let the Group increased its positive operating cash flow, generating $18 million (2007: $9 million).
Investing activities represented cash outflow for development projects, totalling $670 million in the year (2007: $364 million) and this was part financed by new bank borrowings of $344 million (2007: $96 million) including our share of joint venture facilities.
Net Asset Value and Dividends
The Group's adjusted NAV at 31 December 2008 is $752.7 million (2007: $995.8 million) giving an adjusted NAV per share of $1.47 (2007: $2.32) converting to 101p (2007: 117p) at the 31 December exchange rate.
The financial statements show a dividend of 7p was paid in the year to 31 December 2008. Given the current climate of uncertainty, it is the intention of the Board to pay a 1p dividend in 2009 and then review the dividend policy once the results of the current letting programme can be ascertained. It is the intention of the Board to return to a higher dividend return to shareholders as soon as practicably possible.
Mark Sinclair
Chief Financial Officer
25 March 2009
RAVEN RUSSIA LIMITED
Unaudited Consolidated Income Statement
For the year ended 31 December 2008
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|
|
|
2008 |
|
|
|
|
2007 |
|||
|
|
Revenue |
|
Capital |
|
Total |
|
Revenue |
|
Capital |
|
Total |
|
(Restated) |
(Restated) |
(Restated) |
|||||||||
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue |
71,311 |
- |
71,311 |
|
38,552 |
|
- |
|
38,552 |
||
|
Property operating expenses |
(28,447) |
- |
(28,447) |
|
(12,618) |
|
- |
|
(12,618) |
||
|
Net rental and related income |
42,864 |
- |
42,864 |
|
25,934 |
|
- |
|
25,934 |
||
|
|
|
|
|
|
|
|
|||||
|
Administrative expenses |
(28,066) |
(5,384) |
(33,450) |
|
(18,483) |
|
- |
|
(18,483) |
||
|
Settlement of advisory contract |
(67,581) |
- |
(67,581) |
- |
- |
- |
|||||
|
Negative goodwill |
7,564 |
- |
7,564 |
- |
- |
- |
|||||
|
Foreign currency (losses) / gains |
(9,656) |
(24,273) |
(33,929) |
|
325 |
|
- |
|
325 |
||
|
Operating expenditure |
(97,739) |
(29,657) |
(127,396) |
|
(18,158) |
|
- |
|
(18,158) |
||
|
|
|
|
|
|
|
|
|||||
|
Operating (loss) / profit before (loss) / profit on investment property |
(54,875) |
(29,657) |
(84,532) |
|
7,776 |
|
- |
|
7,776 |
||
|
|
|
|
|
|
|
|
|||||
|
Unrealised (loss) / profit on revaluation of investment property |
- |
(39,145) |
(39,145) |
|
- |
|
79,659 |
|
79,659 |
||
|
Impairment of investment property under construction |
- |
(38,918) |
(38,918) |
- |
- |
- |
|||||
|
Operating (loss) / profit |
(54,875) |
(107,720) |
(162,595) |
|
7,776 |
|
79,659 |
|
87,435 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
11,613 |
- |
11,613 |
|
27,027 |
|
2,822 |
|
29,849 |
||
|
Finance expense |
(21,066) |
(17,343) |
(38,409) |
|
(1,800) |
|
- |
|
(1,800) |
||
|
|
|
|
|
|
|
|
|||||
|
(Loss) / profit before tax |
(64,328) |
(125,063) |
(189,391) |
|
33,003 |
|
82,481 |
|
115,484 |
||
|
|
|
|
|
|
|
|
|||||
|
Tax |
7,653 |
11,449 |
19,102 |
|
90 |
|
(18,898) |
|
(18,808) |
||
|
(Loss) / profit for the year |
(56,675) |
(113,614) |
(170,289) |
|
33,093 |
|
63,583 |
|
96,676 |
||
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
Earnings per share - basic (cents) |
(38.77) |
|
|
|
|
|
22.69 |
||||
|
|
|
|
|
|
|
|
|||||
|
Earnings per share - diluted (cents) |
(38.77) |
|
|
|
|
|
22.65 |
||||
The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRS as adopted by the EU. The revenue and capital columns are both supplied as supplementary information permitted by IFRS as adopted by the EU. All items in the above statement derive from continuing operations.
RAVEN RUSSIA LIMITED
Unaudited Consolidated Balance Sheet
As at 31 December 2008
|
|
|
|
|
2008 |
|
2007 |
|
(Restated) |
||||||
|
|
|
|
US$'000 |
|
US$'000 |
|
|
Non-current assets |
|
|
|
|
|
|
|
Investment property |
|
|
453,750 |
|
346,250 |
|
|
Investment property under construction |
|
|
443,653 |
|
251,775 |
|
|
Property, plant and equipment |
|
|
|
4,145 |
|
915 |
|
Intangible assets |
|
|
- |
|
2,265 |
|
|
Other receivables |
|
153,092 |
59,510 |
|||
|
Derivative financial instruments |
|
|
64 |
|
- |
|
|
Deferred tax assets |
|
|
34,830 |
|
1,875 |
|
|
|
|
|
|
1,089,534 |
|
662,590 |
|
Current assets |
|
|
|
|
|
|
|
Trade and other receivables |
|
|
82,597 |
|
28,017 |
|
|
Derivative financial instruments |
|
|
- |
|
1,030 |
|
|
Cash and short term deposits |
|
|
108,435 |
|
480,830 |
|
|
|
|
|
|
191,032 |
|
509,877 |
|
Total assets |
|
|
|
1,280,566 |
|
1,172,467 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
|
51,511 |
|
56,410 |
|
|
Derivative financial instruments |
1,027 |
- |
||||
|
Interest bearing loans and borrowings |
|
|
80,042 |
|
4,804 |
|
|
|
|
|
|
132,580 |
|
61,214 |
|
Non-current liabilities |
|
|
|
|
|
|
|
Interest bearing loans and borrowings |
|
|
356,926 |
|
98,947 |
|
|
Other payables |
|
|
31,696 |
|
12,999 |
|
|
Derivative financial instruments |
7,904 |
- |
||||
|
Deferred tax liabilities |
|
|
16,420 |
|
25,258 |
|
|
|
|
|
|
412,946 |
|
137,204 |
|
Total liabilities |
|
|
|
545,526 |
|
198,418 |
|
Net assets |
|
|
|
735,040 |
|
974,049 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
|
|
9,921 |
|
8,648 |
|
|
Share premium |
|
|
46,791 |
|
11,180 |
|
|
Special reserve |
|
|
870,692 |
|
870,692 |
|
|
Capital reserve |
|
|
(41,798) |
|
71,816 |
|
|
Retained earnings |
|
|
(79,476) |
|
29,020 |
|
|
Translation reserve |
|
|
(71,090) |
|
(17,307) |
|
|
Total equity |
|
|
|
735,040 |
|
974,049 |
|
|
|
|
|
|
|
|
|
Net asset value per share (dollars) |
|
|
1.43 |
|
2.27 |
RAVEN RUSSIA LIMITED
Unaudited Consolidated Statement of Changes in Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
|
Share
|
Special
|
Capital
|
Translation
|
Retained
|
|
|
|
|
|
|
Capital
|
Premium
|
Reserve
|
Reserve
|
Reserve
|
Earnings
|
Total
|
|
|
|
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2007 as previously reported
|
|
|
|
8,538
|
-
|
882,942
|
8,233
|
(12,627)
|
23,364
|
910,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year adjustment – functional currency
|
|
|
|
-
|
-
|
-
|
-
|
1,653
|
488
|
2,141
|
|
At 1 January 2007 as restated
|
|
|
|
8,538
|
-
|
882,942
|
8,233
|
(10,974)
|
23,852
|
912,591
|
|
Profit for the year as previously reported
|
|
|
|
-
|
-
|
-
|
-
|
-
|
95,254
|
95,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year adjustment – functional currency
|
|
|
|
-
|
-
|
-
|
-
|
1,022
|
1,422
|
2,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
|
|
|
|
-
|
-
|
-
|
-
|
(7,355)
|
-
|
(7,355)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recognised income for the year as restated
|
|
|
|
-
|
-
|
-
|
-
|
(6,333)
|
96,676
|
90,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued in respect of Property Adviser's fees
|
|
|
|
25
|
2,790
|
-
|
-
|
-
|
(2,815)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scrip dividend issue of ordinary share capital
|
|
|
|
85
|
8,390
|
-
|
-
|
-
|
-
|
8,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
-
|
-
|
-
|
-
|
-
|
(39,556)
|
(39,556)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from special reserves to retained earnings
|
|
|
|
-
|
-
|
(12,250)
|
-
|
-
|
12,250
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer in respect of capital profits
|
|
|
|
-
|
-
|
-
|
63,583
|
-
|
(63,583)
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based payment expense
|
|
|
|
-
|
-
|
-
|
-
|
-
|
2,196
|
2,196
|
|
At 31 December 2007 as restated
|
|
|
|
8,648
|
11,180
|
870,692
|
71,816
|
(17,307)
|
29,020
|
974,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2008
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year
|
|
|
|
-
|
-
|
-
|
-
|
-
|
(170,289)
|
(170,289)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
|
|
|
|
-
|
-
|
-
|
-
|
(53,783)
|
-
|
(53,783)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recognised income for the year
|
|
|
|
-
|
-
|
-
|
-
|
(53,783)
|
(170,289)
|
(224,072)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scrip dividend issue of ordinary share capital
|
|
|
|
49
|
4,101
|
-
|
-
|
-
|
-
|
4,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares issued on acquisition of subsidiary undertakings
|
|
|
|
1,224
|
31,510
|
-
|
-
|
-
|
-
|
32,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
-
|
-
|
-
|
-
|
-
|
(55,074)
|
(55,074)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer in respect of capital losses
|
|
|
|
-
|
-
|
-
|
(113,614)
|
-
|
113,614
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share based payment expense
|
|
|
|
-
|
-
|
-
|
-
|
-
|
3,253
|
3,253
|
|
At 31 December 2008
|
|
|
|
9,921
|
46,791
|
870,692
|
(41,798)
|
(71,090)
|
(79,476)
|
735,040
|
|
|
|
|
|
|
|
|
|
|
|
|
RAVEN RUSSIA LIMITED
Unaudited Consolidated Cash Flow Statement
For the year ended 31 December 2008
|
|
|
|
|
2008
|
2007
(Restated)
|
|||||||
|
|
|
|
|
US$'000
|
|
US$'000
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Cash flows from operating activities
|
|
|
|
|
|
|
||||||
|
(Loss) / profit before tax
|
|
|
|
(189,391)
|
|
115,484
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Adjustments for:
|
|
|
|
|
|
|
||||||
|
Finance income
|
|
|
|
(11,613)
|
|
(29,849)
|
||||||
|
Finance expense
|
|
|
|
38,409
|
|
1,800
|
||||||
|
Loss / (profit) on revaluation of investment property
|
|
|
|
39,145
|
|
(79,659)
|
||||||
|
Foreign exchange loss / (profit) arising from non- operating activities
|
|
|
|
33,929
|
|
(7,706)
|
||||||
|
Settlement of advisory contract
|
|
|
|
67,581
|
|
-
|
||||||
|
Negative goodwill
|
|
|
|
(7,564)
|
|
-
|
||||||
|
Impairment of investment property under construction
|
|
|
|
38,918
|
|
-
|
||||||
|
Impairment of investment in joint venture
|
|
|
|
5,384
|
|
-
|
||||||
|
Share based payments
|
|
|
|
2,410
|
|
796
|
||||||
|
|
|
|
|
17,208
|
|
866
|
||||||
|
Decrease / (increase) in operating receivables
|
|
|
|
3,464
|
|
(6,018)
|
||||||
|
Increase in operating payables
|
|
|
|
1,271
|
|
16,869
|
||||||
|
|
|
|
|
21,943
|
|
11,717
|
||||||
|
Tax paid
|
|
|
|
(3,968)
|
|
(2,327)
|
||||||
|
Net cash generated from operating activities
|
|
|
|
17,975
|
|
9,390
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Cash flows from investing activities
|
|
|
|
|
|
|
||||||
|
Purchase of investment property
|
|
|
|
-
|
|
(55,853)
|
||||||
|
Payments for investment property under construction
|
|
|
|
(461,740)
|
|
(261,004)
|
||||||
|
Increase in VAT recoverable on construction
|
|
|
|
(58,743)
|
|
(24,834)
|
||||||
|
Capital expenditure
|
|
|
|
(3,381)
|
|
(819)
|
||||||
|
Acquisitions
|
|
|
|
(32,976)
|
|
(1,825)
|
||||||
|
Loans advanced
|
|
|
|
(101,363)
|
|
(64,371)
|
||||||
|
Loans repaid
|
|
|
|
1,326
|
|
15,154
|
||||||
|
Settlement of maturing forward currency financial instruments
|
|
|
|
(14,712)
|
|
-
|
||||||
|
Investment income received
|
|
|
|
1,258
|
|
29,849
|
||||||
|
Net cash used in investing activities
|
|
|
|
(670,331)
|
|
(363,703)
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Cash flows from financing activities
|
|
|
|
|
|
|
||||||
|
Proceeds from long term bank borrowings
|
|
|
|
344,301
|
|
95,838
|
||||||
|
Other borrowings
|
|
|
|
5,029
|
|
34,245
|
||||||
|
Repayment of bank borrowings
|
|
|
|
(5,167)
|
|
(17,216)
|
||||||
|
Repayment of other borrowings
|
|
|
|
(2,355)
|
|
-
|
||||||
|
Bank borrowing costs paid
|
|
|
|
(31,046)
|
|
(1,798)
|
||||||
|
Dividends paid
|
|
|
|
(50,923)
|
|
(31,081)
|
||||||
|
Net cash from financing activities
|
|
|
|
259,839
|
|
79,988
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Net decrease in cash and cash equivalents
|
|
|
|
(392,517)
|
|
(274,325)
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Effect of foreign exchange rate changes
|
|
|
|
20,122
|
|
(1,028)
|
||||||
|
Cash and cash equivalents at 1 January
|
|
|
|
480,830
|
|
756,183
|
||||||
|
|
|
|
|
|
|
|
||||||
|
Cash and cash equivalents at 31 December
|
|
|
|
108,435
|
|
480,830
|
||||||
Related Shares:
RAV.L