TIDMBLD
RNS Number : 2383I
Bulgarian Land Development PLC
08 March 2010
Bulgarian Land Development Plc
Preliminary statement for the year ended 31 December 2009
Bulgarian Land Development Plc (the "Group" or the "Company"), the AIM quoted
Bulgarian property developer, today announces its preliminary results for the
year ended 31 December 2009.
Unaudited Preliminary Results for the year ended 31 December 2009
Chairman's Statement
Introduction
2009 was a difficult year for the Group as the widespread turmoil undermining
real estate markets worldwide continued throughout the year.
In August 2008 we committed to return some cash to shareholders but during the
preparation for a tender offer to shareholders in 2009 the terms of bank finance
for the development of the Printing House project by BLD Office Park AD ("BLD
Office Park"), a joint venture company in which the Company has a 50% interest,
were progressively and unilaterally amended by the bank. The bank is
Greek-owned. In these circumstances the Directors announced that the Company may
need to utilise existing resources to complete the development and the tender
offer was postponed.
The directors of BLD Office Park have been negotiating with the bank for several
months although funds have continued to be made available to BLD Office Park,
albeit at a lower level than originally agreed. There is no recourse to the
Group for the bank finance that has been drawn down by BLD Office Park.
Construction has continued at the site and, to date, BLD Office Park has not
required further equity from the Company. The directors of BLD Office Park
expect a satisfactory conclusion to the negotiations with the bank to be
reached. However should that not happen and if the Directors of the Company
choose to complete the development without further third-party financing, the
Group has sufficient cash resources (that would otherwise have been distributed
to shareholders). Construction is progressing and remains within budget with
practical completion due in summer 2010. The Directors are in detailed
discussions with a number of prospective tenants for the project. In the
circumstances, the Directors have adopted a prudent approach in preparing the
financial information and provided against the net amount due to the Group from
BLD Office Park.
The Directors have reduced costs in the Group and will seek to reduce these
further while activity levels are low.
Overview of progress to date
In addition to the Printing House development the Group has continued to sell
remaining units at its Harmony Hills development as well as off-plan units
acquired at Bansko and Sozopol. Construction of one block was commenced at July
Morning, Kavarna to satisfy demand from a number of buyers who had paid deposits
for their units. It is expected that construction will be completed in summer
2010.
During 2009 BLD has sought to add value selectively, at low cost, to its
existing development sites. Re-zoning applications to allow residential
development are in progress at two parcels of agricultural land near Sofia and a
building permit has been obtained for BLD Sofia Tower for a development of
17,945 square metres, an increase on the 13,899 square metres for which initial
permission was granted in December 2008.
Of the 32 units remaining at Harmony Hills, Rogachevo preliminary contracts have
been signed for 23. Deposits averaging 71% have been paid on these units and
completion is expected on them during 2010, 9 units remain for sale and 2 buyers
having decided not to complete, forfeited their deposits. The Group has
recognised a profit of EUR0.25m for sales of units at Harmony Hills and EUR0.1m
profit on off-plan sales in the year ended 31 December 2009.
Net asset value
Net asset value per share as at 31 December 2009 fell to EUR0.79 (31 December
2008: EUR1.01), due to the loss per share of EUR0.22 (2008: EUR0.01 loss). At 30 June
2009 the Group reported a loss of 19.7p per share (equivalent to EUR0.22 per
share) and net asset value per share of 71.1p (equivalent to EUR0.84 per share at
the exchange rate at that time). The Group has changed its functional and
presentational currency to Euro to reflect the fact that virtually all assets,
liabilities, income and expenditure of the Group are now recorded in Euro or
Lev; which is pegged to the Euro. This reduces significantly many of the changes
in asset values due to exchange movements. Jones Lang LaSalle Services SRL
("JLL") have carried out an independent valuation of BLD's incomplete sites as
at 31 December 2009, which shows a valuation of EUR37.4m (31 December 2008:
EUR47.9m). This valuation has not been incorporated within the results. Had this
been done, the net assets would have increased in value to EUR0.86 per share, an
uplift of 9% on the book value.
Risk and cost awareness
In light of the continuing weak market and funding difficulties in Bulgaria the
Board continues to strive to reduce risk and costs going forward. All decisions
are made with those criteria in mind in order to protect value for shareholders.
Risk reduction has included cautiously adding value to developments by
re-zoning, obtaining building permits, reducing development costs or postponing
developments. All costs have been reviewed in the light of the lower level of
current and proposed development activity and, as always, with respect to the
value provided to shareholders. No bonuses have been awarded to directors for
2009 and the non-executive directors have voluntarily reduced their fees
temporarily despite the increase in their workload created by the current
situation.
Outlook
The Board is prepared for further difficult conditions in the upcoming year. The
priority is to manage BLD in a way that protects asset value for shareholders by
reducing both risks and costs and, as such, will consider the sale of assets if
financially justified.
I should like to thank Christo Iliev, our CEO, Dimitar Savov, our Executive
Officer and the team in Bulgaria for their achievements and hard work in 2009.
The team is well placed to address the new challenges and opportunities of
market conditions in 2010.
Per Sjöberg
Chairman
8 March 2010
+----------------------------------+----------------------------+
| For further information, please | |
| contact: | |
+----------------------------------+----------------------------+
| | |
+----------------------------------+----------------------------+
| Bulgarian Land Development Plc | 020 7067 0700 |
+----------------------------------+----------------------------+
| Christo Iliev, Chief Executive | |
+----------------------------------+----------------------------+
| Dimitar Savov, Executive | |
| Director | |
+----------------------------------+----------------------------+
| Andrew Daw, Finance Director | |
+----------------------------------+----------------------------+
| | |
+----------------------------------+----------------------------+
| Weber Shandwick Financial | 020 7067 0700 |
+----------------------------------+----------------------------+
| Terry Garrett | |
+----------------------------------+----------------------------+
| Nick Dibden | |
+----------------------------------+----------------------------+
| Katie Matthews | |
+----------------------------------+----------------------------+
| | |
+----------------------------------+----------------------------+
| Collins Stewart Europe Limited | 020 7523 8350 |
+----------------------------------+----------------------------+
| Helen Goldsmith | |
+----------------------------------+----------------------------+
| Andrew Zychowski | |
+----------------------------------+----------------------------+
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2009
+----------------------------+--------+-----------+-----------+
| | | Unaudited | Audited |
| | | for the | for the |
| | | year | year |
| | | ended | ended |
+----------------------------+--------+-----------+-----------+
| | | 31 | 31 |
| | | December | December |
+----------------------------+--------+-----------+-----------+
| | | 2009 | 2008 |
+----------------------------+--------+-----------+-----------+
| | | | (as |
| | | | restated) |
+----------------------------+--------+-----------+-----------+
| | Notes | EUR'000 | EUR'000 |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Revenue | | 4,961 | 7,992 |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Cost of sales | | | |
+----------------------------+--------+-----------+-----------+
| Before impairment of | | (4,711) | (3,164) |
| inventory | | | |
+----------------------------+--------+-----------+-----------+
| Impairment of inventory | | (5,039) | (20,205) |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| | | (9,750) | (23,369) |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Gross loss | | (4,789) | (15,377) |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Administrative expenses | | (1,935) | (2,475) |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Operating loss | | (6,724) | (17,852) |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Finance income, being: | | | |
+----------------------------+--------+-----------+-----------+
| Bank and other interest | | 459 | 1,063 |
+----------------------------+--------+-----------+-----------+
| Gain on exchange | | 528 | 1,836 |
+----------------------------+--------+-----------+-----------+
| Imputed interest on | | (1,331) | (2,819) |
| deferred land payables | | | |
+----------------------------+--------+-----------+-----------+
| Change in carrying value | | (1,334) | 17,634 |
| of financial liability in | | | |
| respect of deferred land | | | |
| payables | | | |
+----------------------------+--------+-----------+-----------+
| Finance (cost)/income | | (1,678) | 17,714 |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Loss before tax | | (8,402) | (138) |
+----------------------------+--------+-----------+-----------+
| Income tax expense | 3 | (199) | (323) |
+----------------------------+--------+-----------+-----------+
| Loss for the period | | (8,601) | (461) |
| attributable to | | | |
| shareholders of the parent | | | |
| company | | | |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Other comprehensive income | | - | - |
| for the period (net of | | | |
| tax) | | | |
+----------------------------+--------+-----------+-----------+
| Total comprehensive income | | (8,601) | |
| for the period | | | (461) |
| attributable to | | | |
| shareholders of the parent | | | |
| company | | | |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
| Basic and diluted loss per | | | |
| share attributable | | | |
+----------------------------+--------+-----------+-----------+
| to the equity holders | | | |
| during the period | | | |
+----------------------------+--------+-----------+-----------+
| (expressed as cents per | | | |
| share) | | | |
+----------------------------+--------+-----------+-----------+
| Basic and diluted loss per | 4 | (21.50) | (1.15) |
| share | | | |
+----------------------------+--------+-----------+-----------+
| | | | |
+----------------------------+--------+-----------+-----------+
Consolidated Statement of Financial Position
as at 31 December 2009
+--------------------------+--------+-----------+-----------+-----------+
| | | Unaudited | Audited | Audited |
| | | as at 31 | as at | as at |
| | | December | 31 | 31 |
| | | 2009 | December | December |
| | | | 2008 | 2007 |
+--------------------------+--------+-----------+-----------+-----------+
| | | | (as | (as |
| | | | restated) | restated) |
+--------------------------+--------+-----------+-----------+-----------+
| | Note | EUR'000 | EUR'000 | EUR'000 |
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Assets | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Property, plant and | | 126 | 201 | 175 |
| equipment | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Amount due from joint | | 3,250 | 3,372 | - |
| venture | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Total non-current assets | | 3,376 | 3,573 | 175 |
+--------------------------+--------+-----------+-----------+-----------+
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Inventories | | 49,119 | 51,702 | 45,751 |
+--------------------------+--------+-----------+-----------+-----------+
| Trade and other | | 2,795 | 2,168 | 2,401 |
| receivables | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Cash and cash | | 9,300 | 10,512 | 31,637 |
| equivalents | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Total current assets | | 61,214 | 64,382 | 79,789 |
+--------------------------+--------+-----------+-----------+-----------+
| Total assets | | 64,590 | 67,955 | 79,964 |
+--------------------------+--------+-----------+-----------+-----------+
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Equity | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Issued share capital | 5 | 470 | 470 | 470 |
+--------------------------+--------+-----------+-----------+-----------+
| Share premium reserve | | 41,560 | 41,560 | 41,467 |
+--------------------------+--------+-----------+-----------+-----------+
| Retained earnings | | (10,276) | (1,675) | (1,214) |
+--------------------------+--------+-----------+-----------+-----------+
| Total equity | | | | |
| attributable to | | 31,754 | 40,355 | 40,723 |
| shareholders of the | | | | |
| parent company | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Non-current liabilities | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Deferred tax liabilities | | - | - | 28 |
+--------------------------+--------+-----------+-----------+-----------+
| Deferred land payables | | 14,786 | 12,124 | 33,335 |
+--------------------------+--------+-----------+-----------+-----------+
| Amount due to joint | | 3,681 | 3,346 | - |
| venture | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Bank loans | | 9,640 | 6,109 | - |
+--------------------------+--------+-----------+-----------+-----------+
| Total non-current | | 28,107 | 21,579 | 33,363 |
| liabilities | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Current liabilities | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Trade and other payables | | 4,638 | 5,703 | 2,967 |
+--------------------------+--------+-----------+-----------+-----------+
| Bank loans | | - | - | 2,792 |
+--------------------------+--------+-----------+-----------+-----------+
| Taxation | | 91 | 318 | 119 |
+--------------------------+--------+-----------+-----------+-----------+
| Total current | | 4,729 | 6,021 | 5,878 |
| liabilities | | | | |
+--------------------------+--------+-----------+-----------+-----------+
| Total liabilities | | 32,836 | 27,600 | 39,241 |
+--------------------------+--------+-----------+-----------+-----------+
| Total equity & | | | | |
| liabilities attributable | | 64,590 | 67,955 | 79,964 |
| to shareholders of the | | | | |
| parent company | | | | |
+--------------------------+--------+-----------+-----------+-----------+
Company Statement of Financial Position
as at 31 December 2009
+--------------------------+-------+-----------+-----------+-----------+
| | | Unaudited | Audited | Audited |
| | | as at 31 | as at | as at |
| | | December | 31 | 31 |
| | | 2009 | December | December |
| | | | 2008 | 2007 |
+--------------------------+-------+-----------+-----------+-----------+
| | | | (as | (as |
| | | | restated) | restated) |
+--------------------------+-------+-----------+-----------+-----------+
| | Note | EUR'000 | EUR'000 | EUR'000 |
+--------------------------+-------+-----------+-----------+-----------+
| Assets | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Investment in | | 215 | 206 | 206 |
| subsidiaries | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Property, plant and | | 3 | - | - |
| equipment | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Total non-current assets | | 218 | 206 | 206 |
+--------------------------+-------+-----------+-----------+-----------+
| | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Intragroup receivables | | 29,373 | 38,960 | 22,517 |
+--------------------------+-------+-----------+-----------+-----------+
| Trade and other | | 38 | 91 | 17 |
| receivables | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Cash and cash | | 7,765 | 9,282 | 28,303 |
| equivalents | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Total current assets | | 37,176 | 48,333 | 50,837 |
+--------------------------+-------+-----------+-----------+-----------+
| Total assets | | 37,394 | 48,539 | 51,043 |
+--------------------------+-------+-----------+-----------+-----------+
| | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Equity | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Issued share capital | 5 | 470 | 470 | 470 |
+--------------------------+-------+-----------+-----------+-----------+
| Share premium reserve | | 41,560 | 41,560 | 41,467 |
+--------------------------+-------+-----------+-----------+-----------+
| Retained earnings | | (4,755) | 6,420 | 8,568 |
+--------------------------+-------+-----------+-----------+-----------+
| Total equity | | 37,275 | 48,450 | 50,505 |
+--------------------------+-------+-----------+-----------+-----------+
| | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Liabilities - current | | | | |
| liabilities | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Trade and other payables | | 119 | 89 | 415 |
+--------------------------+-------+-----------+-----------+-----------+
| Taxation | | - | - | 123 |
+--------------------------+-------+-----------+-----------+-----------+
| Total current | | 119 | 89 | 538 |
| liabilities | | | | |
+--------------------------+-------+-----------+-----------+-----------+
| Total liabilities | | 119 | 89 | 538 |
+--------------------------+-------+-----------+-----------+-----------+
| Total equity & | | 37,394 | 48,539 | 51,043 |
| liabilities | | | | |
+--------------------------+-------+-----------+-----------+-----------+
Statements of Changes in Equity
for the year ended 31 December 2009
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | Share | Share | Retained | |
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | capital | premium | earnings | Total |
+--------------------------+---------+---------+----------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------------+---------+---------+----------+----------+
| GROUP | | | | |
+--------------------------+---------+---------+----------+----------+
| Balance at 1 January | 470 | 41,467 | (1,214) | 40,723 |
| 2008 (as restated) | | | | |
| (audited) | | | | |
+--------------------------+---------+---------+----------+----------+
| Total comprehensive | - | - | (461) | (461) |
| income | | | | |
| for the period | | | | |
+--------------------------+---------+---------+----------+----------+
| Share issue expenses | - | 93 | - | 93 |
| recovered | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| Balance at 1 January | 470 | 41,560 | (1,675) | 40,355 |
| 2009 (audited) | | | | |
+--------------------------+---------+---------+----------+----------+
| Total comprehensive | - | - | (8,601) | (8,601) |
| income | | | | |
| for the period | | | | |
+--------------------------+---------+---------+----------+----------+
| Balance as at 31 | 470 | 41,560 | (10,276) | 31,754 |
| December 2009 | | | | |
| (unaudited) | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| | Share | Share | Retained | |
+--------------------------+---------+---------+----------+----------+
| | capital | premium | earnings | Total |
+--------------------------+---------+---------+----------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------------+---------+---------+----------+----------+
| COMPANY | | | | |
+--------------------------+---------+---------+----------+----------+
| Balance at 1 January | 470 | 41,467 | 8,568 | 50,505 |
| 2008 (as restated) | | | | |
| (audited) | | | | |
+--------------------------+---------+---------+----------+----------+
| Total comprehensive | | | | |
| income | - | - | (2,148) | (2,148) |
| for the period | | | | |
+--------------------------+---------+---------+----------+----------+
| Share issue expenses | - | 93 | - | 93 |
| recovered | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
| Balance at 1 January | 470 | 41,560 | 6,420 | 48,450 |
| 2009 (audited) | | | | |
+--------------------------+---------+---------+----------+----------+
| Total comprehensive | | | | |
| income | - | - | (11,175) | (11,175) |
| for the period | | | | |
+--------------------------+---------+---------+----------+----------+
| Balance as at 31 | | | | |
| December 2009 | 470 | 41,560 | (4,755) | 37,275 |
| (unaudited) | | | | |
+--------------------------+---------+---------+----------+----------+
| | | | | |
+--------------------------+---------+---------+----------+----------+
Share capital - Amount subscribed for share capital at nominal value.
Share premium- Amount subscribed for share capital in excess of nominal value.
Retained earnings- Cumulative net gains and losses recognised in the
consolidated statement of comprehensive income.
Statements of Cash Flows
for the year ended 31 December 2009
+-----------------------------+-------+---------+----------+----------+------------+
| | | Unaudited for | Audited for |
| | | the year ended | the year ended |
+-----------------------------+-------+--------------------+-----------------------+
| | | 31 December 2009 | 31 December |
| | | | 2008 |
+-----------------------------+-------+--------------------+-----------------------+
| | | | (as restated) |
+-----------------------------+-------+--------------------+-----------------------+
| | | Group | Company | Group | Company |
+-----------------------------+-------+---------+----------+----------+------------+
| | Notes | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash flow from operating | | | | | |
| activities | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| (Loss)/profit for the year | | (8,601) | (11,175) | (461) | 2,703 |
+-----------------------------+-------+---------+----------+----------+------------+
| Adjustments for: | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Net financing | | 1,678 | (625) | (17,714) | (3,029) |
| (income)/expense | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Taxation | | 199 | 113 | 323 | 163 |
+-----------------------------+-------+---------+----------+----------+------------+
| Depreciation | | 62 | - | 64 | - |
+-----------------------------+-------+---------+----------+----------+------------+
| Impairment loss in respect | | 5,039 | - | 20,205 | - |
| of inventories | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Impairment of loan to joint | | 494 | - | - | - |
| venture | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Impairment of inter-company | | - | 12,796 | - | - |
| loans | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Operating profit/(loss) | | | | | |
| before changes | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| in working capital | | (1,129) | 1,109 | 2,417 | (163) |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Increase in intragroup | | - | (3,209) | - | (14,651) |
| balances | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| (Increase)/decrease in | | (899) | 53 | (3,139) | (73) |
| trade and other receivables | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Increase/(decrease) in | | (730) | 30 | 6,084 | (326) |
| trade and other payables | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| (Increase)/ decrease in | | (1,825) | - | (31,622) | - |
| inventories | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Settlement of deferred land | | - | - | (552) | - |
| payable | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash (used in) operations | | (4,583) | (2,017) | (26,812) | (15,213) |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Tax paid | | (530) | (113) | (152) | (102) |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Net cash flows from | | (5,113) | (2,130) | (26,964) | (15,315) |
| operating activities | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Acquisition of subsidiary | | - | (9) | - | - |
| undertakings | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Acquisition of plant and | | (9) | (3) | (125) | - |
| equipment | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Proceeds from sale of plant | | 23 | - | 33 | - |
| and equipment | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Interest received | | 459 | 42 | 1,063 | 731 |
+-----------------------------+-------+---------+----------+----------+------------+
| Interest paid | | (631) | - | (378) | - |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash flows (used in)/from | | (158) | 30 | 593 | 731 |
| investing activities | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Financing activities | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Share issue expenses | | - | - | 93 | 93 |
+-----------------------------+-------+---------+----------+----------+------------+
| Receipt from new bank loans | | 3,531 | - | 6,109 | - |
+-----------------------------+-------+---------+----------+----------+------------+
| Repayment of bank loans | | - | - | (2,792) | - |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash flows generated from | | 3,531 | - | 3,410 | 93 |
| financing activities | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Net (decrease)/increase in | | (1,740) | (2,100) | (22,961) | (14,491) |
| cash and cash equivalents | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Effect of exchange | | 528 | 583 | 1,836 | (4,530) |
| fluctuations on cash held | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash and cash equivalents | | 10,512 | 9,282 | 31,637 | 28,303 |
| at 1 January | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| Cash and cash equivalents | | 9,300 | 7,765 | 10,512 | 9,282 |
| at 31 December | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
| | | | | | |
+-----------------------------+-------+---------+----------+----------+------------+
Notes
(forming part of the unaudited preliminary financial information for the year
ended 31 December 2009)
1. This unaudited preliminary financial information for the year ended 31
December 2009 is unaudited and does not constitute statutory accounts within the
meaning of the Isle of Man Companies Acts 1931 to 2004 (as amended). The
comparatives for the years ended 31 December 2008 and 31 December 2007 are not
the Company's full statutory accounts for those years which were presented and
audited in sterling. The auditors' reports on those accounts were unqualified.
The statutory accounts for the years ended 31 December 2008 and 31 December
2007, which were prepared in accordance with applicable Isle of Man company law
and International Financing Reporting Standards, as adopted by the European
Union ("IFRS"), have been filed with the Isle of Man Companies Registry and
copies can be obtained from the Registered Office of the Company at 3rd Floor,
14 Athol Street, Douglas, Isle of Man, IM1 1JA. This unaudited preliminary
financial information includes the results of the Company and the entities
controlled by the Company for the period under review.
2. Significant accounting policies
2.1 Basis of preparation
The financial information is for the year ended 31 December 2009 and has been
prepared in accordance with the Group's accounting policies based on IFRS
applicable for the 2009 financial year.
2.2 Functional and presentational currency
With effect from 1 July 2009 the functional currency of the Company changed from
sterling to Euro. The functional currency of the Dutch subsidiary is Euros and
that of the Bulgarian subsidiaries is Bulgarian Lev (a currency pegged to the
Euro) as this is the primary currency in which the subsidiaries operate. During
May and June 2009 the Company's loans to its subsidiaries were repaid and new
loans made by the Dutch subsidiary. Hence, from 1 July 2009 virtually all
income, expenditure, assets and liabilities of the Company and its subsidiaries
have been denominated in Euros.
Monetary assets and liabilities denominated in foreign currencies as at 1 July
2009 were translated at the following rates:
+----+---------+
| EUR1 | GBP |
| = | 0.90027 |
+----+---------+
| EUR1 | lev |
| = | 1.95583 |
+----+---------+
As the Company's functional currency changed from sterling to Euro, the
Directors decided to change the presentational currency of the Group's and the
Company's financial information from sterling to Euro. The statements of
financial position at 31 December 2008 and 31 December 2007 and the statement of
comprehensive income for the year ended 31 December 2008 have been restated in
Euros at the following exchange rates:
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
| | Statement of Financial | | Statement of Comprehensive Income | |
| | Position | | | |
+---------------+-------------------------------------+-------------+-----------------------------------+-------------+
| | 31 December 2008 | 31 December 2007 | | Year ended 31 December 2008 | |
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
| | | | | | |
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
| GBP sterling | 0.97576 | 0.73480 | | 0.80123 | |
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
| | | | | | |
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
| Bulgarian lev | 1.95583 | 1.95583 | | 1.95583 | |
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
| | | | | | |
+---------------+------------------+------------------+-------------+-----------------------------------+-------------+
No other changes have been made to prior year statements other than for the
restatement for the change in presentational currency.
3. Taxation
There is no taxation payable on the Company's results as it is based in the Isle
of Man where, since 6th April 2006, the Corporate Income Tax rate for Isle of
Man resident companies has been zero percent. Provision has been made for
EUR0.199m (31 December 2008: EUR0.323m), being EUR0.188m (31 December 2008: EUR0.312m)
10% Bulgarian withholding tax on interest on inter-company loans and management
charges payable by the Bulgarian subsidiaries and EUR0.011m (31 December 2008:
EUR0.021m) deferred tax in the principal Bulgarian subsidiary.
4. Basic and diluted loss per share
Basic (loss) per share for the years ended 31 December 2009 and 31 December 2008
has been calculated by dividing the loss attributable to equity holders of the
Company by the number of shares in issue for the period, being 40 million. There
are no dilutive shares, share options or similar instruments in existence and
therefore the diluted earnings per share are the same as basic earnings per
share.
5. Share capital
+----------+-------------------------------------+----------+----------+
| | | 31 | 31 |
| | | December | December |
| | | 2009 | 2008 |
+----------+-------------------------------------+----------+----------+
| | | GBP'000 | GBP'000 |
+----------+-------------------------------------+----------+----------+
| Authorised | 1,000 | 1,000 |
| 100,000,000 ordinary shares of 1p each | | |
+------------------------------------------------+----------+----------+
| | | | |
+----------+-------------------------------------+----------+----------+
| Issued and fully paid | | |
+------------------------------------------------+----------+----------+
| 40,000,000 ordinary shares of 1p each | 400 | 400 |
+----------+-------------------------------------+----------+----------+
Under a management incentive scheme more fully described in note 13 of the 2008
financial statements, a performance fee can become payable wholly or partly in
shares to a company controlled by Christo Iliev if certain share price related
targets are met. No performance fee has yet become payable.
6. The Board of Directors approved and authorised for issue this unaudited
preliminary financial information on 8 March 2010.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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