TIDMSPFL
RNS Number : 4599O
Sofia Property Fund Limited
30 June 2010
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| 30 June 2010 AIM: | |
| SPFL | |
| Sofia Property Fund Limited ('the Company') | |
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| Results for the year ended 31st December 2009 | |
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| Overview of 2009 | |
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| · Value of the Sofia Property Fund portfolio at 31st December 2009 is EUR 27.5 million | |
| · Current NAV per share of 28 pence | |
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| · Cash balance at 31st December 2009 of EUR 1,053,703 | |
| · Six contracts with BuySell rescinded after breach of contractual duty by BuySell - the Company is permitted to claim the repayment of | |
| its EUR 9.5 million deposit together with penalties of a further EUR 9.5 million | |
| | |
| · Discussions in progress with assorted groups including BuySell to resolve the Company's outstanding claims - further updates to be | |
| made in future | |
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| · Construction suspended or deferred on majority of projects pending a revival in the market | |
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| · Placing in December raised over EUR 1,000,000 (before expenses) for working capital | |
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| · Disposals: Bistritsa property option was not exercised and option has now lapsed - sale of Veliko Tarnovo in January 2010 raised EUR | |
| 450,000 for working capital | |
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| For further enquires - | |
| Sofia Property Fund Limited | |
| Charles Burton | |
| Dominic Morley, Stuart Gledhill - Panmure Gordon | |
| +44 (0) 20 7459 3600 | |
| Ed Portman, Leesa Peters - Conduit PR | |
| +44 (0) 207 429 6607/+44 (0) 7733 363 501 | |
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| Chairman's Report | |
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| 2009 was a rather difficult year for the residential property market in Bulgaria reflecting a tough economic environment domestically in | |
| Bulgaria and abroad. | |
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| In September 2009, Desmond Swayne stepped down from the Board, following four years of service. The Board placed on record its appreciation | |
| for his contribution to the fund for his service. He was replaced by Duncan Abbot. | |
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| The Board is positioning the Fund to take advantage of any recovery in the Bulgarian property market in the next two years. The land assets | |
| held by the Fund are in a good location which should benefit from any recovery in property values. An important feature of the Fund is the | |
| absence of any debt. We are also reducing costs, including internalising the management of the Fund during 2009. Further cost reduction will | |
| continue to be sought during 2010. | |
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| Finally, the published valuation NAV is currently 28p (EUR 31 cents), having fallen from 92p (EUR 96 cents) in | |
| 2008, in comparison to the accounting NAV of 27p (EUR 30 cents) having fallen from 87p (EUR 91 cents). | |
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| Charles Burton | |
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| 29 June 2010 | | | | | | | | | | | |
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| Investment Managers' Report | | | | | | | | | |
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| THE BULGARIAN ECONOMY | | | | | | | | | | |
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| Management Update | |
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| Disposals | |
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| Due to a shortage of available cash the Company was unable to exercise the Bistritsa property option which had a strike price of EUR4.7 | |
| million; this option has now lapsed. | |
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| Subsequent to the year end a plot of land in Veliko Tarnovo was sold by the Company for EUR450,000 in January 2010 to provide additional | |
| working capital. | |
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| As outlined in note 2(m) of the financial statements the Board has identified further two properties for disposal to meet short term working | |
| capital requirements. | |
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| BuySell | |
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| The Company rescinded 6 contracts with BuySell, a Bulgarian property development company, on 17 April 2009 due to BuySell's non performance | |
| of their contractual duty to deliver completed properties in Sofia to the Company by the due date. As a result of BuySell's non-performance | |
| the Company is entitled to claim the repayment of its EUR9.5 million deposit plus penalties of an additional EUR9.5 million. The Company is | |
| currently in talks with various parties, including BuySell with a view to resolving its outstanding claims. The Company believes that there | |
| is a reasonable possibility that the talks can be concluded successfully. However at this stage the Group continues to value the Buysell | |
| inventory as nil. This would clearly be a positive development for the Company's shareholders. We hope to be able to make further | |
| announcements of progress in the near future. | |
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| Westhill | |
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| One of the Company's Bulgarian subsidiaries is in dispute with Westhill BG 8 AD, a Bulgarian property development company. The latter | |
| submitted an insolvency claim against the Company's subsidiary which, in the Company's opinion, is groundless. The Fund's Bulgarian legal | |
| advisers have submitted a written response to the relevant Bulgarian court stating the lack of legal grounds to Westhill's claim and | |
| requesting its dismissal. The Company is confident that this matter will be concluded successfully. Further announcements will be made as | |
| appropriate. | |
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| THE BULGARIAN ECONOMY | | | | | | | | | | |
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| GDP fell by 4% in the year to Q1 2010 and for 2010 as a whole the economy is now forecast to decline by 1%. Household consumption was | |
| especially weak, with unemployment topping 10%, consumer confidence remaining depressed and the threat of further public sector pay and job | |
| cuts. In 2010, consumer spending is likely to contract by just over 3%. | |
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| Business confidence, industrial output and exports are starting to revive, albeit from depressed levels, providing the basis for an exit from | |
| recession later this year. GDP growth of 3¾% is still projected for 2011. However, there is clearly a risk that fiscal austerity - both at | |
| home and in neighbouring countries - might delay the recovery. | |
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| Despite cuts in infrastructure spending and demands that ministries reduce some public spending by 20%, the fiscal deficit is now expected to | |
| be 4¾% of GDP this year as revenues weaken. Reserves are to be tapped to finance the deficit, but increased domestic borrowing has not been | |
| ruled out. Finally, a VAT rate rise may still be required if further fiscal slippage threatens. | |
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| Low debt levels provide some protection but, given recent FDI outflows, finance minister Djankov still wishes to reinforce the currency board | |
| with an ERM-II application in 2011. | |
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| BULGARIAN PROPERTY MARKET UPDATE | | | | | | | | |
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| Overview: | |
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| Sofia | |
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| | - The average price of sold flats in Sofia is 75 500 Euro during 2009 which reflects 953 Eur/m2. There was a 40% decrease in the | |
| | number of flats sold in 2009 compared to 2008. | |
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| | - Prices on average in Sofia are around 925 Eur/m2 but better quality properties in more desirable locations are still able to | |
| | secure over 1,200 Eur/m2. | |
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| | - Recovery in the residential market is not expected to return in Sofia until first half of 2011 and only a more sustained | |
| | recovery by Q4 of 2011 - the main driver is expected to be the return of mortgage financing to the market. | |
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| Residential real estate prices in Sofia have fallen by up to 32% since the peak in 2008 but these discounts tend to be in poorly located and | |
| poorly constructed sites. Prices for good quality apartments in good locations such as Vitosha, Dragalevski or Krustova Vada have held up | |
| well, with price falls of between 15 - 17%. | |
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| During the second half of 2009, residential prices declined by a further 7% on average. Obtaining mortgage financing continued to be | |
| difficult; this coupled with the newer and stricter application requirements caused the market to stagnate. The year-on-year decrease for | |
| Bulgaria as a whole was close to 20% on a country average. Sofia overall fared slightly better with a decline of 17% but with significant | |
| differences between neighbourhoods. Property prices in the Doctor's Garden remained above 2007-levels. | |
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| Supply | |
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| During the second half of 2009 the overall supply of new residential units was very modest with only those projects part way through | |
| construction being finished and delivered. Practically no new projects were started in Q4 of 2009. According to data published by the | |
| National Statistical Institute, the delivery rate was reduced to almost half of what was delivered to the market in 2008. | |
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| The supply of high-quality properties on the market is even lower, generally being projects that had previously secured financing but | |
| experienced delays due to administrative obstacles. Many residential developments continued to be built out, but at a slower speed. Some | |
| projects were put on temporary hold, either due to shortages in financing or low demand. | |
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| During second half of 2009 the supply of foreclosed properties increased. It is however not a significant supply factor in the residential | |
| market. Whilst statistics are not wholly reliable there are estimated to be around 10,000 unsold units in the Greater Sofia area with a | |
| further 3,800 units under construction. | |
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| Demand | |
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| Demand started picking up marginally in August/September 2009 after an almost complete stand still. This was also driven by lower prices, and | |
| slowly decreasing interest rates together with some opportunistic buyers. | |
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| Generally buyers are seeking bargains. There are two main trends. Buyers whose budget would normally be only sufficient for a one-bedroom | |
| apartment in 2009 are now looking to purchase a larger two-bedroom apartment. Others, who could not afford to purchase a property before are | |
| now actively seeking small one-bedroom apartments. The majority of the demand is focused on properties priced below EUR 1,100/sqm for a fully | |
| finished product (source King Sturge). Transactions rarely take place before construction is completed, or very close to completion. | |
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| Overall the market is demand-driven, and buyers are taking advantage of the market conditions by negotiating optimal terms and prices. The | |
| private investment market disappeared during second half of 2009 - demand is now driven almost exclusively by urgent demographic needs. | |
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| Pricing | |
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| Rental levels in prime locations in Sofia followed the trend of the other sectors of the residential real estate market. On average rental | |
| rates fell 25% on a year-on-year basis which is broadly in line with the fall in capital values. In the worst affected areas prices fell on | |
| average by EUR 2/sqm/month to an average of just above EUR 5/sqm/month. | |
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| The trend was further enforced by the declining number of expatriates coming to Bulgaria due to the economic downturn. | |
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| Forecast | |
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| Only very few projects are expected to enter the pipeline in the first half of 2010. | |
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| Demand is expected to pick up in 2011 driven by genuine, demographic needs, availability of mortgages and reduced prices. | |
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| Price levels are expected to bottom out by the summer with demand rising from a very low level beginning in Q3 2010. A more pronounced | |
| recovery of the market is expected within 12-18 months. | |
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| GROUP PROPERTIES | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | Land | | Build | | Cost EUR | | Valuation EUR | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | Area | | Area M2 | |31/12/2009 | | 31/12/2009 | |
| | | | | | | M2 | | | | | | | |
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| | | | | | | | | (Note 1) | | | | | |
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 1 | Goverdartsi (Crystal Vale/ Crystal | 36,562 | | 34,604 | | 5,720,733 | | 5,530,000 | |
| | | Glade) | | | | | | | | |
+----------+----------+-----------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 2 | Beli Iskar (Crystal | | 19,432 | | 19,432 | | 1,322,579 | | 1,190,000 | |
| | | Heights) | | | | | | | | | |
+----------+----------+------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 3 | Razlog/Bansko | | | 18,353 | | 26,119 | | 9,210,616 | | 6,050,000 | |
+----------+----------+--------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 4 | Dolna Banya | | | 48,548 | | 57,621 | | 1,662,035 | | 1,430,000 | |
+----------+----------+--------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 5 | Plovdiv | | | | 12,141 | | 12,712 | | 3,890,991 | | 2,770,000 | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 6 | Banya | | | | 117,774 | | 182,130 | | 3,608,801 | | 4,450,000 | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 7 | Sofia Project 55 | | | 1,298 | | 2,685 | | 1,738,358 | | 1,610,000 | |
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | Sub Total | | | | 254,108 | | 335,303 | | 27,154,113 | | 23,030,000 | |
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 8 | Sofia Kambanite Bistritsa (Note 2) | - | | - | | 9,284,572 | | 3,955,695 | |
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+----------+----------+-----------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 9 | Veliko (Note 3) | | | - | | - | | 2,494,869 | | 488,277 | |
+----------+----------+--------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 10 | Buy Sell Rescinded Contracts (Note 4) | 48,218 | | 89,967 | | 9,531,780 | | - | |
+----------+----------+-----------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | 302,326 | | 425,270 | | 48,465,334 | | 27,473,972 | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | Note 1: Some build areas are estimated subject to planning approval. | |
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| | Note 2: The option on Bistritsa was allowed to lapse post year end and the valuation for the year end was arrived at by | |
| | discounting the option exercise price payable at balance sheet date. | |
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| | Note 3: Veliko was sold post year end and the valuation for the year end is based on the disposal proceeds. | |
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| | Note 4: The Group has terminated these contracts with BuySell and accordingly they have been valued at Nil on the balance sheet. | |
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| 1 GOVEDARCI | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| CRYSTAL VALE | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Crystal Vale has full residential planning approval and is situated inside the Super Borovets project boundary. Super Borovets is a joint | |
| venture between the Omani State General Reserve Fund, Equest and the Municipality of Samokov for the development of an enhanced ski resort in | |
| the area surrounding Borovets; the project plans call for the investment of up to EUR500 million in the construction of new hotels, apartments, | |
| ski lifts and supporting infrastructure. The Crystal Vale site has a footprint of 16,776 sq m and a build area of 17,589 sq m. | |
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| The project has been designed as an exclusive retreat destination and is aimed at the international and domestic leisure market. The | |
| 'Clubhouse' building, which will contain 22 apartments and all central facilities for the project (including swimming pool, spa and | |
| restaurant), has been partly completed - to the extent that the roof is in place. Construction was halted in September 2009 awaiting a | |
| recovery in market conditions. | |
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| CRYSTAL GLADE | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Crystal Glade project is located approximately one kilometre away from Crystal Vale and has a site footprint and build area of 19,786 sq | |
| m. The site has residential planning permission and is intended to be a complementary leisure development to Crystal Vale. It will remain in | |
| the land bank until Crystal Vale has been substantially completed. | |
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+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| 2 BELI ISKAR | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| CRYSTAL HEIGHTS | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Fund has purchased 19,432 sq m, currently designated as agricultural land, inside the Super Borovets project area beside the village of | |
| Beli Iskar. Residential planning permission for the land will be sought in due course. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| 3 RAZLOG | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| PANORAMA VILLAS | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| This project is located close to the ski resort of Bansko and Phase 1 has reached the stage of rough construction; but further work has been | |
| suspended pending improved market conditions. Until Phase 1 has been completed the remaining 3 phases will remain in the land bank. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| NIRVANA | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| This undeveloped plot close to the centre of Bansko has residential planning permission and will remain in the land bank. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| BANYA | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The site will remain in the land bank while neighbouring leisure developments, not owned by the Fund, are completed. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| 4 DOLNA BANYA | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Fund owns 4 plots in and around the town of Dolna Banya; the plots have a total surface area of 48,548 sq m and a build area of 57,621 sq | |
| m. One of the plots has a construction permit for residential buildings and a restaurant and the other 3 are zoned for residential | |
| development. Dolna Banya is famed for its geothermal hot springs and is 16 km from the Boroverts ski resort. The 4 plots will continue to be | |
| held in the land bank. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| 5 PLOVDIV | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Fund owns 12,151sq m of land in Plovdiv, split between 2 separate locations. Both projects have residential planning permission. The | |
| first plot ('Plovdiv Reach') is situated 2 km from the city centre, beside the national rowing centre. The second site ('Roman View') is a | |
| disused tobacco factory located in the heart of the city centre. Both plots will be held in the land bank until economic recovery warrants | |
| their development or sale. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| INVESTING POLICY | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| - The Fund is restricted to investments in Bulgaria and these investments must be largely (but not exclusively) residential in nature. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| - The Fund may invest in early stage residential developments mainly, but not exclusively, in and around Sofia and its adjacent ski resorts. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| - The Fund may buy land and seek to develop its land through partnerships with Developers. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| - The Fund may borrow in order to develop its assets. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| - The Fund should be liquidated and proceeds distributed to shareholders by 27 September 2012 (7 years from launch) unless shareholders vote | |
| to extend the life of the Fund. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| - The Fund does not intend to pay a dividend (although the Fund is not restricted from doing so). | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Mark Anderson and Loraine Pinel | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Investment Managers | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| June 2010 | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Board of Directors | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Charles Burton (Chairman) | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Charles, a UK resident, has an excellent track record of senior executive responsibility, most recently at Experian Group where he was Global | |
| Managing Director of the Business Strategies Division from 2002 until 2008. This role encompassed widespread exposure to the property | |
| investment sector, for which the division supplied data, forecasts and due diligence on portfolios and individual sites throughout Europe. | |
| Charles is a member of the Scottish Executive's Economic Consultants' group and a Fellow and council member of the Society of Business | |
| Economists. He is also a Director of Oxford Economics Ltd. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Daniela Bobeva | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Daniela is a Bulgarian resident and has a Master's degree from the Sofia Institute of Economics and a PhD in Economics. She started her | |
| career as an economic analyst and adviser to the Prime Minister of Bulgaria and then in 1995-1996 became the President of the Bulgarian | |
| Foreign Investment Agency. In 1997, she became Minister of Trade and Foreign Economic Co-operation. From 1998 to 2001, she was elected as the | |
| first vice-president of Banking in the newly established multilateral development bank. She is currently Director of European Integration and | |
| International Relations at the Bulgarian National Bank. She has more than 30 international publications in the area of macro-economics. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Gerald Williams | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Gerald Williams, a Guernsey resident, is a Director of Bachmann Fund Administration Limited and Chief Executive of Concordia Holdings | |
| Limited, its parent company. He was previously a Director of Coutts Fund Managers and head of private banking for Coutts offshore private | |
| bank. Mr Williams has worked in most major offshore jurisdictions including the Bahamas, Cayman Islands, Isle of Man and Jersey. Mr Williams | |
| has a wealth of experience in the trust field and is an associate of the Chartered Institute of Bankers. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Clive Simon | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Clive Simon is a Guernsey resident, the Chairman of Bachmann Fund Administration Limited and a Director of Concordia Holdings Limited, its | |
| parent company. Before joining the Bachmann Group of Companies in 1998, he was a senior partner with Coopers and Lybrand (now | |
| PricewaterhouseCoopers), working in London, Africa and the Channel Islands. His business background is predominantly in the financial | |
| services sector. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| Duncan Abbot | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Duncan Abbot, a UK resident, is a Fellow of the Securities Institute and a Chartered Accountant. From 1995 to 2001 he was Chairman of | |
| Christows Group Limited, a stock broking and fund management group. In 2001 he co-founded IIMIA Investment Group plc, subsequently renamed | |
| Midas Capital plc, and served as its business development Director until October 2007; he continued to be employed by the group until 31 | |
| March 2009. He is a co-founder and Chairman of Coalition Holdings Limited and Chairman of Global Special Opportunities Trust plc. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Directors' report | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Directors present their report and the consolidated financial statements of Sofia Property Fund Limited which is incorporated in | |
| Guernsey, Channel Islands, for the year ended 31 December 2009. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Company status | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Company is a closed-ended, Guernsey registered investment fund. Its shares are listed and traded on AIM. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| Change of name | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Pursuant to an EGM held on 1 December 2009 the Company changed its name from Lewis Charles Sofia Property Fund Limited to Sofia Property Fund | |
| Limited with effect from 2 December 2009. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Principal activity | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Company offers an opportunity to invest in the Bulgarian residential property market and, particularly, apartments and villas to be built | |
| in and around Sofia. Its objective is to provide Shareholders with a high level of long-term capital appreciation. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Results and dividends | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The results for the year are set out in the consolidated statement of comprehensive income statement on page 17. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Directors did not declare a dividend for the year. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Listing requirements | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Throughout the year the Company complied with the conditions set out in the AIM Rules for Companies. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Directors | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Directors during the year and to date are as follows: | | | | | | | |
+----------------------------------------------------------------------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Charles Burton (Chairman) | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Daniela Bobeva | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Desmond Swayne (resigned 10 September 2009) | | | | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Gerald Williams | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Clive Simon | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Duncan Abbot (appointed 10 September 2009) | | | | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Paul Duquemin (As alternate to Clive Simon) | | | | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Steve Desmond (As alternate to Gerald Williams) | | | | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The biographies of Directors are on page 9. | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Directors shall be subject to retirement by rotation at least every three years. No person shall be or become incapable of being appointed as | |
| a Director by reason of having attained the age of 70 or any other age and no Director will be required to vacate his office at any time by | |
| reason of the fact that he has attained the age of 70 or any other age. A retiring Director shall be eligible for reappointment. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Board considers that there is balance of skills within the Board and that each of the Directors contributes effectively. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Directors' fees | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| During the year the Directors received the following remuneration in the form of fees: | | | |
+----------------------------------------------------------------------------------------------------------------------------+----------+--------------+----------+
| | | | | | | | | 2009 | | 2008 | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | EUR | | EUR | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Charles Burton (Chairman) | | | | | 17,194 | | 11,138 | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Daniela Bobeva | | | | | | 13,755 | | 15,493 | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Duncan Abbot (appointed 10 September 2009) | | | 3,420 | | - | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Gerald Williams | | | | | | 8,578 | | 9,193 | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Clive Simon | | | | | | 8,578 | | 9,193 | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Desmond Swayne (resigned 10 September 2009) | | | 9,592 | | 14,711 | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Lord Howard of Penrith (resigned 29 April 2008) | | | - | | 9,760 | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| There are no service contracts in existence between the Company and any of the Directors. The Company has put in place relevant cover for | |
| Directors in the form of Directors and officers insurance. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Companys' Articles of Association limit the aggregate fees to the Directors at GBP75,000 per annum. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Directors' interests | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Gerald Williams and Clive Simon are Directors of the Company and the Administrator. The fee paid to Bachmann Fund Administration Limited is | |
| disclosed on the face of the statement of comprehensive income and in note 3. No other Directors have any interest in contracts with the | |
| company or group. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| As at the date of the approval of these financial statements the Directors have the following beneficial interests in the ordinary share | |
| capital of the Company; | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | Number of ordinary shares | | % of issued share capital | | |
+----------+----------+----------------+---+---------+----------------------------------+------------+----------------------------------+--------------+----------+
| | | | | 2009 | | 2008 | | 2009 | | 2008 | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Daniela Bobeva | | - | | - | | - | | - | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Gerald Williams | | 50,000 | | 50,000 | | 0.07% | | 0.10% | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Clive Simon | | 50,000 | | 50,000 | | 0.07% | | 0.10% | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Charles Burton | | 50,000 | | - | | 0.07% | | - | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Duncan Abbot | | - | | - | | - | | - | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Substantial interests in Company Shares | | | | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| At 31 December 2009 the following holdings representing more than 3 per cent of the Company's issued shares had been notified to the Company. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | Interest | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | Ordinary | | in voting | | | | | |
| | | | | | | shares | | capital | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Vidacos Nominees Limited DMG 7 | 8,346,004 | | 12.44% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Rathbone Nominees Limited | 7,863,339 | | 11.72% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Goldman Sachs Securities (Nominees) Limited ILSEG | 7,798,700 | | 11.63% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Nortrust Nominees Limited ADT01 | 4,605,000 | | 6.87% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Goldman Sachs International CREPTEMP | 4,275,000 | | 6.37% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| BNY (OCS) Nominees Ltd | 3,800,000 | | 5.67% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Credit Suisse Client Nominees (UK) Limited D6M5PB | 3,275,000 | | 4.88% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Securities Services Nominees Limited | 3,221,166 | | 4.80% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Smith and Williamson Nominees Limited | 2,899,750 | | 4.32% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Bank of New York (Nominees) Limited IMAF | 2,815,000 | | 4.20% | | | | | |
+---------------------------------------------------------------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Management | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The former investment manager provided investment advisory services to the Company and property advisory, property management and monitoring | |
| services to those members of the Group which acquire property, in each case in accordance with the investment objectives and investment | |
| policies of the Group. The Group has, however, terminated the management contract with effect from 1 October 2009, internalised the | |
| management and employed three people to run its business and day to day affairs. All the functions that were previously being performed by | |
| the Investment Manager are now responsibility of the employees of the Company. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Corporate governance | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| As a Guernsey registered company, the Company is not required to comply with the Combined Code on Corporate Governance. However, it is the | |
| Company's policy to comply with best practice on good corporate governance that is applicable to investment companies. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Arrangements in respect of corporate governance have therefore been made by the Board, which it believes are appropriate for the Company. The | |
| Board consists solely of non-executive Directors of which Charles Burton is appointed as Chairman. Since all the Directors are considered by | |
| the Board to be independent non-executive Directors, the provisions of the Code in respect of Directors' remuneration are not relevant to the | |
| Company except in so far as they relate to non-executive Directors. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| In view of its non-executive nature and the requirement of the Articles of Association that all Directors retire in rotation at least every | |
| three years, the Board considers that it is not appropriate for the Directors to be appointed for a specified term as recommended by the | |
| Code. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Until 30 September 2009 a management agreement existed between the Company and its Manager, Lewis Charles Securities Limited. After | |
| termination of the above the Company entered in to agreements with Mark Anderson, Peter Yallup and Loraine Pinel to manage the Company. Their | |
| employment contracts with the Company sets out the matters over which Managers have authority and the limits above which Board approval must | |
| be sought. All other matters, including strategy, investment and dividend policies, gearing and corporate governance procedures, are reserved | |
| for the approval of the Board of Directors. The Board currently meets at least quarterly and receives full information on the Company's | |
| investment performance, assets, liabilities and other relevant information in advance of Board meetings. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The table below sets out the number of Board meetings held during the year ended 31 December 2009 and the number of meetings attended by each | |
| Director. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | Total | | Quarterly | | Ad- hoc | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | Held | | Attended | | Attended | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | C Burton | | | | | | 21 | | 3 | | 5 | |
+----------+---------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | D Bobeva | | | | | 21 | | 1 | | 3 | |
+----------+-------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | D Abbot | | | | | 21 | | - | | 4 | |
+----------+-------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | C Simon | | | | | | 21 | | 3 | | 18 | |
+----------+---------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | G Williams | | | | | | 21 | | 2 | | 18 | |
+----------+---------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | D Swayne | | | | | | 21 | | 3 | | 2 | |
+----------+---------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Individual Directors may, at the expense of the Company, seek independent professional advice on any matters that concern them in the | |
| furtherance of their duties. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Going concern | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| After making enquiries, and bearing in mind the nature of the Company's business and assets, and for the reasons disclosed in note 2(m) of | |
| the financial statements, the Directors consider that the Company will have adequate resources to continue in operational existence for the | |
| foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Internal controls | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Board is responsible for the Company's system of internal control and for reviewing its effectiveness. The Board has documented an | |
| ongoing process by which the needs of the Company in managing the risks to which it is exposed can be met. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The procedures, as documented, have been in place throughout both the financial years and to the date of approval of the Annual Report and | |
| the Financial Statements. The Board is satisfied with the effectiveness of the procedures. By their nature these procedures are able to | |
| provide reasonable, but not absolute, assurance against material misstatement or loss. During each Board meeting the Board monitors the | |
| investment performance of the Company in comparison to its objectives. The Board also reviews the Company's activities since the last Board | |
| meeting and ensures that the Managers have followed the agreed investment policy. Also, at each meeting, the Board receives reports from the | |
| Administrator in respect of compliance matters and duties performed on behalf of the Company. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Board has decided that the systems and procedures employed by the Secretary and employees of the fund, provide assurance that a sound | |
| system of internal control, which safeguards shareholders' investments and the Company's assets, is maintained. An internal audit function | |
| specific to the Company is therefore considered unnecessary. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Relations with Shareholders | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Company welcomes the views of shareholders and places great importance on communications with them. The Chairman and the other Directors | |
| are available to meet shareholders if required. The Annual General Meeting of the Company provides a forum, both formal and informal, for | |
| shareholders to meet and discuss issues with the Directors and Managers of the Company. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| Independent Auditors | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Our Auditors, BDO Limited, have indicated their willingness to continue in office and a resolution to reappoint them will be proposed at the | |
| forthcoming AGM. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Annual General Meeting | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The notice for the Annual General Meeting of the Company, which is to be held on 5 August 2010 at Frances House, Sir William Place, St Peter | |
| Port, Guernsey, is set out at the end of this document. Included in the document is a form of proxy for use at the meeting. Details and | |
| reasons for the items of business to be proposed at the Annual General Meeting are set out below: | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ORDINARY RESOLUTIONS | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 1. | To receive and consider the Financial Statements and Chairman's report for the year ended 31 December 2009. | |
+----------+----------+--------------------------------------------------------------------------------------------------------------------------------+----------+
| | 2. | To re-appoint the following persons as Directors of the Company for the ensuing year: | |
+----------+----------+--------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | Charlie Burton | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | Clive Simon | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | Duncan Abbot | | | | | | | | | | |
+----------+----------+--------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | 3. | To re-appoint BDO Limited as Auditors of the Company. | | | | | |
+----------+----------+------------------------------------------------------------------------------+----------+------------+----------+--------------+----------+
| | 4. | To authorise the Directors to fix the remuneration of the Company's Auditors. | | | |
+----------+----------+------------------------------------------------------------------------------------------------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| By order of the board | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| G Williams | | | | C Simon | | | | | |
+--------------------------------------+---+---------+----------+------------------------------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Director | | | | | Director | | | | | | |
+---------------------+----------------+---+---------+----------+-----------------------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| 29 June 2010 | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Statement of Directors' responsibilities in respect of the financial statements | | |
+---------------------------------------------------------------------------------------------------------------------------------------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Guernsey company law requires the Directors to prepare financial statements for each financial period which give a true and fair view of the | |
| state of affairs of the Group and of the profit or loss of the Group for that year. In preparing those financial statements, the Directors | |
| are required to: | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ? | select suitable accounting policies and then apply them consistently; | | | | |
+----------+----------------------------------------------------------------------------------------------------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ? | make judgements and estimates that are reasonable and prudent; | | | | |
+----------+----------------------------------------------------------------------------------------------------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ? | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in | |
| | the financial statements; and | |
+----------+ +----------+
| | | |
+----------+-------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ? | prepare the financial statements on the going concern basis unless it is inappropriate to presume that company will continue in | |
| | business. | |
+----------+ +----------+
| | | |
+----------+-------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial | |
| position of the Group and to enable them to ensure that the financial statements have been properly prepared in accordance with the Companies | |
| (Guernsey) Law, 2008. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the | |
| prevention and detection of fraud and other irregularities. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| The Directors confirm that they have complied with the requirements in preparation of the financial statements. | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| So far as the Directors are aware, there is no relevant audit information of which the company's auditor is unaware, having taken all the | |
| steps the Directors ought to have taken to make themselves aware of any relevant audit information and to establish that the company's | |
| auditor is aware of that information. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Independent auditors' report | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| to the members of Sofia Property Fund Limited | | | | | | |
+---------------------------------------------------------------------------------------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| We have audited the consolidated financial statements ("the Financial Statements") of Sofia Property Fund Limited for the year ended 31 | |
| December 2009, which comprise the Consolidated statement of comprehensive income, Consolidated statement of financial position, Consolidated | |
| statement of cash flows, Consolidated statements of changes in equity and the related notes 1 to 30. The financial reporting framework that | |
| has been applied in their preparation is applicable law and International Financial Reporting Standards ('IFRS'). These financial statements | |
| have been prepared in accordance with the accounting policies as set out on pages 21 to 28. | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| This report is made solely to the Company's members, as a body, in accordance with Section 262 of the Companies (Guernsey) Law, 2008. Our | |
| audit work is undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' | |
| report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the | |
| Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Respective responsibilities of the Directors and auditors | | | | | | |
+---------------------------------------------------------------------------------------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| As described in the Statement of Directors' Responsibilities the Company's Directors are responsible for the preparation of the financial | |
| statements in accordance with applicable law and International Financial Reporting Standards (IFRS) and for being satisfied that they give a | |
| true and fair view. | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International | |
| Standards on Auditing (UK and Ireland). | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| We report to you as to whether the financial statements give a true and fair view and are properly prepared in accordance with, the Companies | |
| (Guernsey) Law, 2008. We also report to you if, in our opinion, the Directors' Report is not consistent with the financial statements, if the | |
| Company has not kept proper accounting records, if we have not received all the information and explanations that we require for our audit, | |
| or if information specified by law is not disclosed. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| We read the other information included in the Annual Report and consider whether it is consistent with the audited financial statements. This | |
| other information comprises only the Officers and Professional Advisers, Company Summary, Chairman's Statement, Investment Manager's Report, | |
| Board of Directors and Directors' Report. We consider the implications for our report if we become aware of any apparent misstatements or | |
| material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Basis of opinion | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An | |
| audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also | |
| includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial statements, and | |
| of whether the accounting policies are appropriate to the Company's circumstances, consistently applied and adequately disclosed. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us | |
| with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by | |
| fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Opinion | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| In our opinion: | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ? | The Consolidated Financial Statements give a true and fair view, in accordance with IFRS, of the state of the Group's affairs at | |
| | 31 December 2009 and of its loss for the year then ended. | |
+----------+ +----------+
| | | |
+----------+-------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| ? | The Financial Statements have been properly prepared in accordance with the Companies (Guernsey) Law, 2008. | |
+----------+ +----------+
| | | |
+----------+-------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Emphasis of Matter | | | | | | | | | | |
+------------------------------------------+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of disclosure made in note 2(m) | |
| to the financial statements concerning the group's ability to continue as a going concern. As disclosed in note 2(m) to the financial | |
| statements, the group will require additional funding in the next three months. The Directors are reviewing the various options available to | |
| the group. However, as at the date of this report, no plans have been finalised. This indicates the existence of a material uncertainty which | |
| may cast significant doubt about the group's ability to continue as a going concern. The financial statements do not include the adjustments | |
| that would result if the group was unable to continue as a going concern. | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+ +----------+
| | |
+------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| BDO Limited | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| 29 June 2010 | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| | | | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| CHARTERED ACCOUNTANTS | | | | | | | | | |
+----------------------------------------------------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Place du Pre | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Rue du Pre | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| St Peter Port | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| Guernsey | | | | | | | | | | | |
+--------------------------------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
| GY1 3LL | | | | | | | | | | | |
+----------+----------+----------------+---+---------+----------+------------+----------+------------+----------+------------+----------+--------------+----------+
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+---------+------------+----------+--------------------------+
| Consolidated statement of comprehensive income | | | | | | | | |
+----------------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | 31 December | | |
| | | | | | | | | | | | | 2008 | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | Notes | | Revenue | | Capital | | Total | | Total | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | EUR | | EUR | | EUR | | EUR | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Revenue | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Property sales | | | | 326,618 | | - | | 326,618 | | 144,374 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Cost of sales | | 15 | | (597,394) | | - | | (597,394) | | (109,806) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Other revenue | | 15 | | - | | - | | - | | 853,005 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Gross (loss) / profit | | | | (270,776) | | - | | (270,776) | | 887,573 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Expenses | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Administration fees | | 3 | | 168,953 | | - | | 168,953 | | 192,211 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Management fees | | 4 | | 586,127 | | - | | 586,127 | | 901,712 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Performance fees | | 5 | | - | | (2,841,623) | | (2,841,623) | | (2,551,587) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Directors' fees and expenses | | 6 | | 61,117 | | - | | 61,117 | | 69,488 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Foreign exchange (loss) / profit | | | (4,240) | | - | | (4,240) | | 32,602 | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Salaries and other disbursements | 7 | | 88,985 | | - | | 88,985 | | - | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Other expenses | 8 | | 1,470,470 | | - | | 1,470,470 | | 1,206,711 | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Impairment of inventories | | 15 | | - | | (693,289) | | (693,289) | | 13,846,603 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Revaluation of investment properties | 14 | | - | | 24,922,721 | | 24,922,721 | | 10,640,268 | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | 2,371,412 | | 21,387,809 | | 23,759,221 | | 24,338,008 | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Operating loss | | | | (2,642,188) | | (21,387,809) | | (24,029,997) | | (23,450,435) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Finance income | | 10 | | 2,823 | | - | | 2,823 | | 63,492 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Finance cost | | 11 | | (2,237,929) | | - | | (2,237,929) | | - | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Loss before taxation | | | | (4,877,294) | | (21,387,809) | | (26,265,103) | | (23,386,943) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Taxation | | 12 | | 1,413,792 | | - | | 1,413,792 | | 1,273,422 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Loss for the year | | | | (3,463,502) | | (21,387,809) | | (24,851,311) | | (22,113,521) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Other comprehensive income | | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year | | | | - | | - | | - | | - | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Total comprehensive loss | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year | | | | (3,463,502) | | (21,387,809) | | (24,851,311) | | (22,113,521) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Earnings per share - basic and | | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| diluted (cents per share) | | 13 | | | | | | (50.60) | | (45.74) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| The total column of this statement represents the Group's Consolidated Statement of Comprehensive Income prepared in accordance | | |
| with IFRS. The revenue and capital columns are supplied as supplementary information permitted under IFRS. | | |
+ +----------+--------------------------+
| | | |
+ +----------+--------------------------+
| | | |
+----------------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| All items in the above statement derived from continuing operations. All income is attributable to the equity holders of the parent | | |
| company, there are no minority interests. | | |
+ +----------+--------------------------+
| | | |
+----------------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| The accompanying notes 1 to 30 form an integral part of these financial statements | | | | | | |
+------------------------------------------------------------------------------------------------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Consolidated statement of financial position | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| as at 31 December 2009 | | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+---------------------------------------+--+------------------------------------------------+----------+--------------------------+
| | | | | Notes | | 31 December 2009 | | 31 December 2008 | | |
+-----+----------+--------------------------+--+----------+----------+---------------------------------------+--+------------------------------------------------+----------+--------------------------+
| | | | | | | EUR | | EUR | | EUR | | EUR | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Non-current assets | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Investment properties | | 14 | | | | 19,545,693 | | | | 44,848,000 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Investment properties - held for sale | 14 | | | | 488,279 | | | | - | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Current assets | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Inventory | | 15 | | 7,440,000 | | | | 6,801,000 | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Property options | | | | 5 | | | | 5 | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Trade and other receivables | | 17 | | 196,308 | | | | 548,827 | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Cash and cash equivalents | | 18 | | 1,053,703 | | | | 767,920 | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | 8,690,016 | | | | 8,117,752 | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Total assets | | | | | | 28,723,988 | | | | 52,965,752 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Current liabilities | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Trade and other payables | | 19 | | (1,387,412) | | | | (3,072,785) | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Short term loan payable | | 20 | | (4,063,687) | | | | - | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | (5,451,099) | | | | (3,072,785) | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Non-current liabilities | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Trade and other payables | | 19 | | (3,075,519) | | | | (4,386,477) | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Deferred taxation | | | | - | | | | (1,414,464) | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | (3,075,519) | | | | (5,800,941) | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Total liabilities | | | | | | (8,526,618) | | | | (8,873,726) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Net assets | | | | | | 20,197,370 | | | | 44,092,026 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Equity | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Share capital | | 21 | | | | - | | | | - | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Special reserve | | 22 | | | | 57,913,640 | | | | 56,956,985 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Capital reserve | | 23 | | | | (23,910,711) | | | | (2,522,902) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Revenue reserve | | 23 | | | | (13,805,559) | | | | (10,342,057) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Total Equity | | | | | | 20,197,370 | | | | 44,092,026 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| NAV per share (Euro per share) | 24 | | | | 0.301 | | | | 0.912 | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| NAV per share at launch (Euro | | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| per share) | | | | | | 1.1781 | | | | 1.1781 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| The consolidated financial statements were approved by the Board of Directors and authorised for issue on 29 June 2010. | | |
+----------------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| They were signed on its behalf by G. Williams and C. Simon | | | | | | | | |
+----------------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| G. Williams | | | C. Simon | | | | | | | | |
+-------------------------------------------+--+----------+------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Director | | | Director | | | | | | | | |
+-------------------------------------------+--+----------+------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| The accompanying notes 1 to 30 form an integral part of these financial statements | | | | |
+------------------------------------------------------------------------------------------------------------------------------+----------+----------------------+----------+--------------------------+
| Consolidated statement of changes in equity | | | | | | | | |
+----------------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | Share | | Special | | Capital | | Revenue | | Total | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | Capital | | Reserve | | Reserve | | Reserve | | Equity | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | EUR | | EUR | | EUR | | EUR | | EUR | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| As at 1 January 2008 | | - | | 56,956,985 | | 18,138,960 | | (8,890,398) | | 66,205,547 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Total comprehensive loss | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year | | - | | - | | (20,661,862) | | (1,451,659) | | (22,113,521) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| As at 31 December 2008 | | - | | 56,956,985 | | (2,522,902) | | (10,342,057) | | 44,092,026 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Total comprehensive loss | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year | | - | | - | | (21,387,809) | | (3,463,502) | | (24,851,311) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Issue of shares | | - | | 1,051,886 | | - | | - | | 1,051,886 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Commission payable on issue of | | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| shares | | - | | (95,231) | | - | | - | | (95,231) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| As at 31 December 2009 | | - | | 57,913,640 | | (23,910,711) | | (13,805,559) | | 20,197,370 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| The accompanying notes 1 to 30 form an integral part of these financial statements | | | | | | |
+------------------------------------------------------------------------------------------------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Consolidated statement of cash flows | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | 31 Dec | | 31 Dec 2008 | | |
| | | | | | | | | | | 2009 | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | EUR | | EUR | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Loss for the year | | | | | | | | (24,851,311) | | (22,113,521) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Adjustment for: | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Interest income | | | | | | | | (2,823) | | (63,492) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Interest expense | | | | | | | | 2,237,929 | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Revaluation of investment properties | | | | | | | 24,922,721 | | 10,640,268 | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Impairment of inventory | | | | | | | | (693,289) | | 13,846,603 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Taxation | | | | | | | | (1,413,792) | | (1,273,422) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Operating cash flows before movements | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| in working capital | | | | | | | | 199,435 | | 1,036,436 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Decrease / (increase) in trade and other | | | | | | 352,519 | | (35,927) | | |
| receivables | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Decrease in trade and other payables | | | | | | (2,996,331) | | (2,122,210) | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Decrease / (increase) in inventory | | | | | | | 54,289 | | (5,022,432) | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Cash used in operations | | | | | | | | (2,390,088) | | (6,144,133) | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Interest received | | | | | | | | 2,823 | | 63,492 | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Taxation | | | | | | | | (672) | | - | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Net cash outflow from operating activities | | | | | | (2,387,937) | | (6,080,641) | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Investing activities | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Additions to investment properties | | | | | | | (108,693) | | (361,060) | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Net cash outflow from investing activities | | | | | | (108,693) | | (361,060) | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Financing activities | | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Proceeds from issue of shares | | | | | | | | 1,051,886 | | - | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Share issue costs | | | | | | | | (95,231) | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Proceeds from loan | | | | | | | | 1,825,758 | | - | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Net cash inflow from financing activities | | | | | | 2,782,413 | | - | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Net increase / (decrease) in cash and cash equivalents | | | | 285,783 | | (6,441,701) | | |
+----------------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Cash and cash equivalents at start of year | | | | | | 767,920 | | 7,209,621 | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Cash and cash equivalents at end of year | | | | | | 1,053,703 | | 767,920 | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| The accompanying notes 1 to 30 form an integral part of these financial statements | | | | | | |
+------------------------------------------------------------------------------------------------------------+--+--------------+----------+----------------------+----------+--------------------------+
| Notes to the consolidated financial statements | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| 1 | CORPORATE INFORMATION | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Sofia Property Fund Limited, formerly Lewis Charles Sofia Property Fund Limited, (the "Company") and its subsidiaries (together | | |
| | the "Group") is an investment fund with a major investment portfolio in Bulgaria. The aim of the Fund is to generate capital | | |
| | gains through investing in residential property primarily in Sofia and the adjacent ski resorts. The investment strategy of the | | |
| | Company is to work with developers at the earliest possible stage. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The company is a closed-ended limited company incorporated in Guernsey. The address of the registered office is shown on page | | |
| | 2. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The Group's shares are listed on the London Stock Exchange, Alternative Investment Market (AIM). | | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | These financial statements were approved and authorised by the Board for issue on 29 June 2010 and signed by G. Williams and C. | | |
| | Simon on behalf of the board. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | | | | | | | | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. | | |
| | These policies have been consistently applied to all the years presented, unless otherwise stated. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (2.1) Basis of preparation | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+-------------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") which | | |
| | comprise standards and interpretations issued by the International Accounting Standards Board ("IASB"), and International | | |
| | Accounting Standards and Standing Interpretations approved by the International Accounting Standards Committee that remain in | | |
| | effect, and to the extent they have been adopted by the European Union. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It | | |
| | also requires the Board of Directors to exercise its judgement in the process of applying the Group's accounting policies. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The estimates and associated assumptions are based on historical experience and various other factors that are believed to be | | |
| | reasonable under the circumstances, the results of which form the basis of making judgements about the carrying value of assets | | |
| | and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and underlying | | |
| | assumptions are reviewed on an ongoing basis. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects | | |
| | that period, or in the period of the revision and future periods if the revision affects both current and future periods. The | | |
| | areas involving high degree of judgement or complexity, or areas where the assumptions and estimates are significant to the | | |
| | financial statements are disclosed in part (2.2). | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Adoption of new and revised Standards | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | A number of standards and interpretations issued by the international Financial Reporting interpretations Committee are | | |
| | effective for the current year. These were: | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | New Standards | | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | IFRS 8: Operating Segments - for accounting periods commencing on or after 1 January 2009 | | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | a) Revised and amended Standards | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Amendment: IFRS 7: 'Improving disclosures about financial instruments' - for accounting periods commencing on or after 1 | | |
| | January 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | Amendment: IFRS 7: 'Improving disclosures about financial instruments' - for accounting periods commencing on or after 1 | | |
| | January 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 1: Presentation of Financial Statements - Amendments relating to disclosure of puttable instruments and obligations arising | | |
| | on liquidation - for accounting periods commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 16: Property, Plant and Equipment Amendments resulting from May 2008 Annual improvements to IFRS - for accounting periods | | |
| | commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 19: Employee Benefits, amendments resulting form May 2008 annual improvements to IFRS - for accounting period commencing on | | |
| | or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 20: Government Grants and Disclosure of Government Assistance Amendments resulting from May 2008 Annual Improvements to | | |
| | IFRS - for accounting periods commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 23: Borrowing Costs -Amendments resulting from May 2008 Annual Improvements to IFRS - for accounting periods commencing on | | |
| | or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 27: Consolidated and Separate Financial Statements - Amendments resulting from May 2008 Annual improvements to IFRS - for | | |
| | accounting periods commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 28: Investments in Associates - Amendments resulting from May 2008 Annual improvements to IFRS - for accounting periods | | |
| | commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | IAS 29: Financial Reporting In Hyperinflationary Economies - Amendments resulting from May 2008 Annual improvements to IFRS - | | |
| | for accounting periods commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 31: Interests In Joint Ventures - Amendments resulting from May 2008 Annual Improvements to IFRS - for accounting periods | | |
| | commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 32: Financial Instruments: Presentation -amendments relating to puttable instruments and obligations arising on liquidation | | |
| | - for accounting periods commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 36: Impairment of assets - Amendments resulting from May 2008 Annual Improvements to IFRS - for accounting periods | | |
| | commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 38: Intangible Assets - Amendments resulting from May 2008 Annual improvements to IFRS - for accounting periods commencing | | |
| | on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 39: Financial Instruments: Recognition and Measurement- Amendments resulting from May 2008 Annual improvements to IFRS - | | |
| | for accounting periods commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 40: investment Property - Amendments resulting from May 2008 Annual Improvements to IFRS - for accounting periods | | |
| | commencing on or after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 41: Agriculture - Amendments resulting from May 2008 Annual improvements to IFRS - for accounting periods commencing on or | | |
| | after 1 January 2009. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Interpretations | | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | IFRIC 13: Customer Loyalty Programmes -for accounting periods commencing on or after 1 July 2008. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRIC 15: Agreements for the Construction of Real Estate - for accounting periods commencing on or after 1 January 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRIC 16: Hedges of a Net investment In a Foreign Operation - for accounting periods commencing on or after 1 October 2008. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | The adoption of these standards and interpretations has not led to any changes in the Groups accounting policies, except as | | |
| | follows: | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | IFRS 8, 'Operating Segments' (effective from 1 January 2009): This standard requires disclosure of information about the | | |
| | Group's operating segments and replaced the requirement to determine business and geographical reporting segments of the Group. | | |
| | For management purposes, the Group is organised into one business unit. The Group determined that this operating segment was | | |
| | the same as the business and geographical segment previously identified under IAS 14, 'Segment Reporting'. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | IAS 1 (revised), 'Presentation of Financial Statements' (effective from 1 January 2009): The revised standard prohibits the | | |
| | presentation of items of income and expenses (that is, 'non-owner changes in equity') In the statement of changes in equity, | | |
| | requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All non-owner changes in | | |
| | equity will be required to be shown in a performance statement, but entities can choose whether to present one performance | | |
| | statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive | | |
| | income). Application of IAS 1 (revised) did not impact on the net assets of income for the year ended 31 December 2009. Apart | | |
| | from formatting and the titles of the primary statements there have been no other changes. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Amendment: IFRS 7, 'Improving disclosures about financial instruments': The IASB published amendments to IFRS 7 in March 2009. | | |
| | The amendment requires enhanced disclosures about fair value measurements and liquidity risk. In particular, the amendment | | |
| | requires disclosure of fair value measurements by level of a three-level fair value of measurement hierarchy. In addition to | | |
| | that, the amendment clarifies that the maturity analysis of liabilities should include issued financial guarantee contracts at | | |
| | the maximum amount of the guarantee in the earliest period in which the guarantee could be called; and secondly requires | | |
| | disclosure of remaining contractual maturities of financial derivatives if the contractual maturities are essential for an | | |
| | understanding of the timing of the cash flows. The entity has to disclose a maturity analysis of financial assets it holds for | | |
| | managing liquidity risk, if that information is necessary to enable users of its financial statements to evaluate the nature | | |
| | and extent of liquidity risk. The adoption of the amendment results in additional disclosures, but does not have an impact on | | |
| | profit or earnings per share. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | b) Standards and Interpretations in Issue and not yet effective; | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | At the date of authorisation of these financial statements, the following standards and interpretations, which have not been | | |
| | applied in these financial statements, were in issue but not yet effective:- | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 2: Share-based Payment Amendments relating to group cash-settled share-based payment transactions - for accounting periods | | |
| | commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 2: Share-based Payment - Amendments resulting from April 2009 Annual improvement. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 3: Business Combinations - Comprehensive revision on applying the acquisition method - for accounting periods commencing | | |
| | on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 6: Non-current Assets Held for sale and Discontinued Operations - Amendments resulting from May 2008 Annual improvements | | |
| | to IFRSs - for accounting periods commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 6: Non-current Assets Held for Sale and Discontinued Operations - Amendments resulting from April 2009 Annual improvements | | |
| | to IFRSs - for accounting periods commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 8: Operating Segments - Amendments resulting from April 2009 Annual improvements to IFRSs - for accounting periods | | |
| | commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRS 9: Financial Instruments - Classification and Measurement - for accounting periods commencing on or alter 1 January 2013. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 1: Presentation of Financial Statements - Amendments resulting from April 2009 Annual improvements to IFRSs - for | | |
| | accounting periods commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 7: Statement of Cash Flows- Amendments resulting from April 2009 Annual Improvements to IFRSs - for accounting periods | | |
| | commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 17: Leases - Amendments resulting from April 2009 Annual Improvements to IFRSs - for accounting periods commencing on or | | |
| | after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 24: Related Party Disclosures - Revised definition of related parties - for accounting periods commencing on or after 1 | | |
| | January 2011. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 27: Consolidated and Separate Financial Statements - Consequential amendments arising from amendments to IFRS 3 - for | | |
| | accounting periods commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 28: Investments In Associates - Consequential amendments arising from amendments to IFRS 3- for accounting periods | | |
| | commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 31: Interests in Joint Ventures - Consequential amendments arising from amendments to IFRS 3- for accounting periods | | |
| | commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 32: Financial instruments: Presentation - Amendments relating to classification of rights issues - for accounting periods | | |
| | commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 36: Impairment of Assets - Amendments resulting from April 2009 Annual improvements to IFRS - for accounting periods | | |
| | commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 39: Financial instruments: Recognition and Measurement Amendments for eligible hedged items - for accounting periods | | |
| | commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 39: Financial instruments: Recognition and Measurement - Amendments resulting from April 2009 Annual improvements to IFRS - | | |
| | for accounting periods commencing on or after 1 January 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IAS 39: Financial Instruments: Recognition and Measurement - Amendments for embedded derivatives when reclassifying financial | | |
| | instruments - for accounting period commencing on or after 30 June 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Interpretations | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | IFRIC 14 IAS 19 - November 2009 amendment with respect to voluntary prepaid contributions is effective for annual periods | | |
| | beginning on or after 1 January 2011. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRIC 17: Distributions of Non-cash Assets to Owners - for accounting periods commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRIC 18: Transfers of Assets from Customers - for accounting periods commencing on or after 1 July 2009. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | IFRIC 19 Extinguishing Financial Liabilities with Equity instruments - for accounting periods commencing on or after 1 July | | |
| | 2010. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The Directors anticipate that with exception of, IFRS 3, IAS 27 and IFRS 9 the adoption of these standards and interpretations | | |
| | in future periods will not have material impact on the financial statements of the Group. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Revised IFRS 3, Business Combinations and complementary Amendments to IAS 27 'Consolidated and separate financial statements' | | |
| | (both effective for accounting periods beginning on or after 1 July 2009): This revised standard and the amendments are still | | |
| | to be endorsed by the EU. The revised IFRS 3 and amendments to IAS 27 arise from a joint project with the Financial Accounting | | |
| | Standards Board (FASB), the US standards setter, and result in IFRS being largely converged with the related, recently issued, | | |
| | US requirements. There are certain very significant changes to the requirements of IFRS, and options available, if accounting | | |
| | for business combinations. The Group is currently assessing the impact of IFRS 3 on the Financial Statements. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | In November 2009, the Board issued the first part of IFRS 9 relating to the classification and measurement of financial assets. | | |
| | IFRS 9 will ultimately replace IAS 39. The standard requires an entity to classify its financial assets on the basis of the | | |
| | entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, | | |
| | and subsequently measures the financial assets as either at amortised cost or fair value. The new standard is mandatory for | | |
| | annual periods beginning on or after 1 January 2013. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | The principal accounting policies adopted are set out below: | | | | | | | | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (2.2) Significant accounting estimates and judgements | | | | | | | | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The Group makes estimates and assumptions concerning the future. The resulting accounting estimate will, by definition, seldom | | |
| | equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment | | |
| | to the carrying amounts of assets and liabilities within the next financial year are discussed below. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Estimates and judgements are continually evaluated and are based on historical experience and other factors, including | | |
| | expectations of future events that are believed to be reasonable under the circumstances. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | In applying the Group's accounting policies, the Directors make judgements in the following areas: | | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (a) Investment property and inventory | | | | | | | | | |
+-----+--------------------------------------------------------------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | With the exception of Bistritsa and Veliko Tarnavo, investment properties are carried at fair value which is calculated using | | |
| | the residual method undertaken by a professional valuer. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Inventory is tested for impairment at each balance sheet date. Impairment reviews are undertaken using a valuation under the | | |
| | residual method, also undertaken by a professional valuer. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The theoretical basis of the residual method is based on the expected sales proceeds used to arrive at the total capital value | | |
| | for the specific project. From this figure the budgeted total development costs are deducted, the resultant figure represents | | |
| | the residual value/profit. Valuations using this method requires numerous estimates and assumptions to be used such as | | |
| | estimated build area, current design and plans, future sales revenue, costs to complete and an applicable discount rate. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | In addition given the current market situation, resulting in a limited number of transaction and the general uncertainty in the | | |
| | market, valuers have relied on their professional judgement to a greater extent than normal in deriving their opinion of value. | | |
| | Accordingly, fair value is not intended to represent the liquidation value of the property which would be dependent upon the | | |
| | price negotiated at the time of sale. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The Bistritsa land has been included in these financial statements at EUR3,955,695 based on post year end value attributable to | | |
| | the property when used as settlement of the loan payable on non exercise of option. Please refer to note 30 for further | | |
| | details. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The Veliko Tarnavo land has been included in these financial statements based on the sale proceeds received post year end. | | |
| | Please refer to note 30 for further details. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The fair value of investment property at 31 December 2009 was EUR20,033,972 (2008: EUR44,848,000). The inventory was valued at | | |
| | EUR7,440,000 as at 31 December 2009 (2008: EUR6,801,000). Refer to note 14 and 15 for further details. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (b) Taxation | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The Group is subject to income, capital gains and withholding taxes in Bulgaria. Significant judgement is required in | | |
| | determining the provision for income and deferred taxes. There are many transactions and calculations for which the ultimate | | |
| | tax determination and timing of payment are uncertain during ordinary course of business. The Group recognises liabilities for | | |
| | anticipated tax issues based on estimates of whether additional tax will be due. Where the final tax outcome of these matters | | |
| | is different from the amount that were initially recorded such differences will impact the income and deferred tax provisions | | |
| | in the period on which there determination is made. The deferred tax liability as at 31 December 2009 was EURnil (2008: | | |
| | EUR1,414,464). Refer to note 12 for further details. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (2.3) Accounting policies | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The principal accounting policies are set out below. | | | | | | | | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (a) Consolidation | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the | | |
| | Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the | | |
| | financial and operating activities of an investee entity so as to obtain benefits from its activities. The results of | | |
| | subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from | | |
| | the effective date of acquisition or disposal. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Where necessary, adjustments are made to the financial statements of the subsidiaries to bring the accounting policies used | | |
| | into line with the those used by the parent company. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | All intra-group transactions, balances, income and expenses are eliminated on consolidation. | | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (b) Presentation of income statement | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the | | |
| | Association of Investment Trust Companies, supplementary information which analyses the Statement of Comprehensive Income | | |
| | between items of a revenue and capital nature has been presented alongside the income statement. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (c) Revenue recognition | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the amount of | | |
| | revenue can be reliably measured. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Interest income is recognised on a time apportioned basis using the effective interest method. | | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (d) Expenses | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Expenses are measured at the fair value of the consideration paid or payable and are recognised in the Income Statement on an | | |
| | accruals basis. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (e) Operating profit or loss | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Group operating profit or loss includes gross profit, net gains or losses on revaluation of investment properties less | | |
| | administrative expenses including impairment losses. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (f) Options over property | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Options over property are treated as current assets and included in the balance sheet at cost. Cost is deemed to be the fair | | |
| | value of consideration given. No depreciation is provided on these assets, however the Directors review each option for | | |
| | impairment annually. | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (g) Investment property | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost | | |
| | being the fair value of consideration given including related transaction costs. After initial recognition at cost, investment | | |
| | properties are carried at their fair values based on professional valuations made by King Sturge Kft. The valuations are in | | |
| | accordance with standards complying with the Royal Institution of Chartered Surveyors Approval and Valuation manual and the | | |
| | International Valuation Standards Committee. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Gains or losses arising from changes in fair value of investment property are included in the Consolidated statement of | | |
| | comprehensive income for the period in which they arise. Properties are treated as acquired when the Group assumes the | | |
| | significant risks and returns of ownership and as disposed of when these are transferred to the buyer. When the Group | | |
| | redevelops an existing investment property for continued future use as an investment property, the property remains an | | |
| | investment property and is not reclassified. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | All costs directly associated with the purchase and construction of a property, and all subsequent capital expenditures are | | |
| | capitalised. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | Transfers are made to investment property when there is a change in use, evidenced by the end of owner occupation, commencement | | |
| | of an operating lease to another party or completion of construction or development. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Transfers are made from investment property when, and only when, there is a change in use, evidenced by commencement of owner | | |
| | occupation or commencement of development with a view to sale. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (h) Inventory | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Inventory which comprises buildings under construction includes capitalised interest where applicable and is carried at cost | | |
| | or, if lower, net realisable value. Cost includes all directly attributable third party expenditure incurred. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | (i) Segmental reporting | | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+----------------------+----------+--------------------------+
| | Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision | | |
| | maker. The chief operating decision maker is the person or group that allocates resources to and assesses the performance of | | |
| | the operating segments of an entity. The Group has determined that its chief operating decision maker is the Board of Directors | | |
| | of the Company. The Directors are of the opinion that the Company is engaged in a single segment of business, being property | | |
| | investment business, and in one geographical area, Bulgaria. Accordingly, all significant operating decisions are based upon | | |
| | analysis of the Group as one segment. The financial results from this segment are equivalent to the financial statements of the | | |
| | Group as a whole. | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+ +----------+--------------------------+
| | | | |
+-----+----------------------------------------------------------------------------------------------------------------------------------------------------------+----------+--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | All of the Group's revenue is from sale of properties that are included in the Consolidated statement of comprehensive income. All of | |
| | Group's non current assets are located in Bulgaria. The Group has no major customer. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (j) Taxation | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Company is exempt from Guernsey taxation. As such, the Company is only liable to pay a fixed annual fee, currently GBP600. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Bulgarian subsidiaries will be liable for Bulgarian Corporation Tax at 10% of the income. The subsidiaries are not liable for any | |
| | further local taxes, however withholding taxes may be payable on repatriation of assets and income to the Company, as currently there is | |
| | no double tax treaty between Guernsey and Bulgaria. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the | |
| | financial statements and corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet | |
| | liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are | |
| | recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be | |
| | utilised. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable | |
| | that sufficient taxable profits will be available to allow all or part of the asset to be recovered. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. | |
| | Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in | |
| | which case the deferred tax is also dealt with in equity. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (k) Foreign currency translation | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (a) Functional and reporting | | | | | | | | | |
| | | currency | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The functional currency of the Company is Euros as substantially all expenses relating to the investments are made in Euros. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The reporting currency of the Company for accounting purposes is also the Euro. The information on pages 38 to 42 is converted | |
| | | into Sterling, for information purposes only and does not form part of these audited financial statements. Income statement | |
| | | accounts are being converted using the average exchange rate for the year while balance sheet accounts are converted using the | |
| | | balance sheet date rate for supplementary information. Exchange gains/losses on translation are taken to statement of changes | |
| | | in equity. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (b) Transactions and balances | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Foreign currency balances are translated into Euro at the rate of exchange ruling on the last day of company's financial | |
| | | period. Foreign currency transactions are translated at the rate of exchange ruling on the date of transaction. Gains and | |
| | | losses arising on currency translation are included in the Consolidated Statement of Comprehensive Income. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (c) Group companies | | | | | | | | | | |
+-----+----------+-----------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) | |
| | | that have a functional currency different from the presentation currency are translated into the presentation currency as | |
| | | follows: | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance | |
| | | sheet; | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (ii) income and expenses for each income statement are translated at average exchange rates (unless the average is not a | |
| | | reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and | |
| | | expenses are translated at the dates of the transactions); and | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | (iii) all resulting exchange differences are recognised as a separate component of equity. | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (l) Financial instruments | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual | |
| | provisions of the instrument. The Group shall offset financial assets and financial liabilities if the Group has a legally enforceable | |
| | right to set off the recognised amounts and interests and intends to settle on a net basis. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (a) Financial assets | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The Group's financial assets fall into the category of only loans and receivables. The Group has not classified any of its | |
| | | financial assets as held at fair value through profit or loss, held to maturity or as available for sale. Unless otherwise | |
| | | indicated, carrying amount of the Group's financial assets are a reasonable approximation of their fair value. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (a)(i) Loans and receivables | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. | |
| | | They arise principally through trade receivables and cash and cash equivalents, but also incorporate other types of contractual | |
| | | monetary assets. They are initially recognised at fair value plus transaction costs that are directly attributable to the | |
| | | acquisition or issue and subsequently carried at amortised cost using the effective interest rate method, less provision for | |
| | | impairment. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The effect of discounting on these financial instruments is not considered to be material. | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part | |
| | | of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due | |
| | | under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present | |
| | | value of the future expected cash flows associated with the impaired receivable. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Cash and cash equivalents are defined as cash on hand, short term deposits, and other short-term highly liquid investments that | |
| | | are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (a) (ii) De-recognition of financial assets | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | A financial asset (in whole or in part) is derecognised either: | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | - when the group has transferred substantially all the risks and rewards of ownership; or | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | - when it has transferred nor retained substantially all the risks and rewards and when it no longer has | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | control over the asset or a portion of the asset; or | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | - when the contractual right to receive cash flow has expired. | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (b) Financial liabilities | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The Group classifies its financial liabilities as other financial liabilities at amortised cost. Unless otherwise indicated, | |
| | | the carrying amounts of the Group's financial liabilities are a reasonable approximation of their fair values. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (b)(i) Financial liabilities measured at amortised cost | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Other financial liabilities include trade payables and other short-term monetary liabilities, which are initially recognised at | |
| | | fair value and subsequently carried at amortised cost using the effective interest method. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (b) (ii) De-recognition of financial liabilities | | | | | |
+-----+----------+-------------------------------------------------------------------------------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | A financial liability (in whole or in part) is derecognised when the Group has extinguished its contractual obligations, it | |
| | | expires or is cancelled. Any gain or loss on de-recognition is taken to the income statement. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (c) Share Capital | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a | |
| | | financial liability. The Company's ordinary shares are classified as equity instruments. For the purposes of the disclosures | |
| | | given in Note 25 the Group considers all its share capital, share premium and all other reserves as equity. The Company is not | |
| | | subject to any externally imposed capital requirements. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (d) Effective interest method | | | | | | |
+-----+----------+--------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The effective interest method is a method of calculating the amortised cost of a financial asset or liability and of allocating | |
| | | interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated | |
| | | future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective | |
| | | interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or | |
| | | liability, or, where appropriate, a shorter period. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (m) Going concern | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Directors have reviewed the current budgets and cashflow projections for a period no less than 12 months from the date of this report. | |
| | These forecasts highlight the need for additional funding for working capital within the next three months. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Various sources of financing have been considered by the Directors including the raising of fresh equity and potential disposal of | |
| | properties. The Directors have recognised the imminent income cash flow arising from the sale of various apartments known as Project 55 | |
| | which was part of the BuySell development and have given consideration to the deferral and reduction of Fund operating costs. In addition | |
| | to this the Board are considering various property disposal options in the short term. Although no agreement has been reached, formal | |
| | offers concerning two properties have been received. Either offer would raise the required cash identified within the cashflow forecast. | |
| | The Directors are confident that sales will be achieved in the timeframe and values realised will be sufficient. As a result of this, the | |
| | Directors are of the opinion that a fundraising will be more appropriate later in the year | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Accordingly the Directors have prepared the financial statements on the going concern basis. | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 3 | ADMINISTRATION FEES | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Under the Administration Agreement the Administrator is entitled to receive an annual administration fee at a rate as may be agreed in | |
| | writing from time to time between the Company and the Administrator. The present fee is 0.09% per annum of the Net Asset Value of the | |
| | Company up to GBP50 million and 0.07% of the Net Asset Value of the Company above GBP50 million, subject to a minimum fee during the year | |
| | of GBP68,185 per annum (2008: GBP68,185) plus disbursements. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 4 | MANAGEMENT FEES | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Under the terms of Investment Management Agreement the Company was required to pay the Manager, a Management fee of 2% per annum of the | |
| | Net Proceeds of the Placing, calculated and payable quarterly in advance. The Manager was also entitled to a Management fee of 2% of any | |
| | realised but undistributed capital gains on the sale of Properties, calculated and payable quarterly in arrears. The Group, however, | |
| | terminated management agreement with effect from 30 September 2009, and accordingly no further management fee is payable. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 5 | PERFORMANCE FEE | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Before termination of management agreement the Manager was to receive a performance fee calculated and payable in Sterling from the | |
| | Company based on 20% of the excess of the net cash proceeds from the sale of property over the 7% Property Hurdle. The Manager would have | |
| | also received a performance fee of 5% over the 23% Property Hurdle. For these purposes, the 7% Property Hurdle is a 7% compound per annum | |
| | return on the amount of the deposit paid on the relevant investment property and the 23% Property Hurdle is a 23% compound per annum | |
| | return on the amount of the deposit paid on the relevant property. In the event that the Company does not sell on the property prior to | |
| | completion on an off-plan basis and instead completes on a property, the Property Hurdles shall be calculated by reference to the | |
| | aggregate of the deposit and the completion balance. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | As a result of the decrease in the fair value of investment properties as at 31 December 2009 accruals made in prior years for the | |
| | performance fee have been reversed in the current year. The Group has terminated the management agreement with the Manager with effect | |
| | from 1 October 2009. No performance fee was payable on termination of management agreement. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 6 | DIRECTORS' FEES AND EXPENSES | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Chairman receives GBP15,000 per annum, with other Directors receiving GBP12,000 per annum. Clive Simon and Gerry Williams receive an | |
| | annual fee of GBP7,500 each. The Chairman and Directors are also reimbursed for other expenses properly incurred by them in attending | |
| | meetings and other business of the Company. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 7 | SALARIES AND OTHER DISBURSEMENTS | | | | | | 2009 | | 2008 | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Salaries | | | | | | | 79,430 | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Social security contributions | | | | | | | 9,555 | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 88,985 | | - | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | On 1 October 2009, after termination of the Investment Management Agreement, the Group employed three professionals to run day to day | |
| | business of the fund and to manage its property investments. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The above salary costs are in relation to key management personnel who have authority and responsibility for planning, directing and | |
| | controlling the activities of the Group. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 8 | OTHER EXPENSES | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Registrar's fees (see note 9) | | | | | | | 10,285 | | 14,877 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Audit fees | | | | | | | 35,933 | | 38,235 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Legal and professional fees | | | | | | | 669,160 | | 553,554 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Consultancy fees | | | | | | | 40,583 | | 118,309 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Insurance costs | | | | | | | 23,734 | | 16,411 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Statutory fees | | | | | | | | 10,915 | | 11,901 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Travel expenses | | | | | | | | 28,999 | | 43,583 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Bank charges | | | | | | | | 13,198 | | 13,621 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Property and municipal taxes | | | | | | | 255,409 | | 333,630 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Commission on sales | | | | | | | | 103,916 | | - | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Other fees and expenses | | | | | | | | 110,629 | | 62,590 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | General administration and maintenance of properties | | | | 167,709 | | - | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 1,470,470 | | 1,206,711 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | No amounts were paid to BDO Limited by the Company and its subsidiary undertakings in respect of non-audit services. | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 9 | REGISTRAR'S FEES | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Under the Registrar's Agreement, the Registrar is entitled to receive an annual fee at the rate of whichever shall be the greater of the | |
| | amount of the minimum Annual Basic Fee, currently GBP4,400 per annum, or the amount per shareholder, currently GBP2.20, on the Register of | |
| | Shareholders at the commencement of the fee year. The Company's fee year commenced on the date of Admission and on each anniversary of | |
| | that date whilst this Agreement shall continue. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 10 | FINANCE INCOME | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Bank interest | | | | | | | 2,823 | | 63,492 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The above interest arises from financial assets classified as loans and receivables, including cash and cash equivalents, and has been | |
| | calculated using the effective interest method. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | There are no other gains or losses on loans and receivable other than those disclosed above. | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 11 | FINANCE EXPENSE | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Interest on short term loan | | | | | | | 2,237,929 | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The above finance cost arise as financial liabilities measured at amortised cost using effective interest rate method. No other losses | |
| | have been recognised in respect of financial liabilities at amortised cost other than disclosed above. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 12 | TAXATION | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (a) | Analysis of tax charge for the year | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The tax payable for the year | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | comprises:- Current taxation | | | | | | 672 | | - | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | - Deferred taxation | | | | | | | (1,414,464) | | (1,273,422) | |
+-----+----------+-----------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Income tax (credit) | | | | | | | | (1,413,792) | | (1,273,422) | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | The credit for the year can be reconciled to the result per income statement as follows: | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Loss before tax | | | | | | | | (26,265,103) | | (23,386,943) | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Tax at the domestic corporate tax rate applicable to | | | | | | | |
+-----+----------+-----------------------------------------------------------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | profits in the country concerned | | | | | | (2,626,510) | | (2,338,694) | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Tax effect of non deductible expenses and effect of foreign exchange | | 1,212,718 | | 1,065,272 | |
+-----+----------+-------------------------------------------------------------------------------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Tax credit | | | | | | | | (1,413,792) | | (1,273,422) | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (b) | Deferred taxation | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Deferred taxation is calculated, in full, on all temporary timing differences under the liability method using a principal | |
| | | Bulgarian tax rate of 10% (2008: 10%). The movement on the deferred tax account is as follows: | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Deferred tax liabilities | | | | | | | | | | |
+-----+----------+-----------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Investment properties revaluation | | | | | | | | | |
+-----+----------+----------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | At start of year | | | | | | | | 1,414,464 | | 2,687,886 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | (Credit) to income | | | | | | | | (1,414,464) | | (1,273,422) | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | At end of year | | | | | | | | - | | 1,414,464 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Deferred tax assets of EUR1,753,452 have not been recognised on losses of EUR17,534,519 carried forward due to lack of certainty of | |
| | | availability of future taxable profits against which such losses will be utilised. Tax losses can be carried forward in | |
| | | Bulgaria for five years. | |
+-----+----------+ +--------------------------+
| | | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 13 | EARNINGS PER SHARE - BASIC AND DILUTED | | | | | | | | |
+-----+--------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The consolidated loss per Ordinary Share of 50.60 (2008: 45.74) cents are based on the net revenue loss of EUR 3,463,502 (2008: EUR1,451,658) | |
| | and the net capital loss for the period of EUR 21,387,809 (2008: EUR20,661,862). Calculations are made based on 49,114,706 (2008: 48,345,000) | |
| | Ordinary Shares, being the weighted average number of shares in issue during the year. There are no potentially dilutive shares in issue. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 14 | INVESTMENT PROPERTIES | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Market value of investment properties at 1 January | | | | 44,848,000 | | 55,127,208 | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Acquisitions during the year at cost | | | | | | - | | - | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Subsequent expenditure | | | | | | | 108,693 | | 361,060 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Fair value adjustment in the year | | | | | | (24,922,721) | | (10,640,268) | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Market value of investment properties at 31 December | | | | 20,033,972 | | 44,848,000 | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | With exception of Bistritsa and Veliko Tarnavo, the fair value of the Group's investment properties at 31 December 2009 and at 31 December | |
| | 2008 has been arrived at on the basis of valuations carried out at that date by King Sturge Kft, independent valuers not connected to the | |
| | Group. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Bistritsa land has been included in these financial statements at EUR3,955,695 based on post year end value attributable to the | |
| | property. This amount has been calculated by amortising the interest payable on loan by using the effective interest method. Please refer | |
| | to note 30 for further details. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The valuation basis has been market value as defined by the Royal Institute of Chartered Surveyors (RICS). The approved RICS definition of | |
| | market value is the "estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing | |
| | seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without | |
| | compulsion." | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cost of investment properties at 31 December 2009 was EUR29,436,970 (2008: EUR28,614,331). | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Included in the above is land at Veliko Tarnavo ("VT") valued at EUR488,279 based on the sale proceeds received after adjustment for | |
| | liabilities post year end and has been classified as Investment Property held for sale. A fair value decrease of 2,302,648 has been | |
| | recognised in the Consolidated statement of Comprehensive Income during the year in respect of this property. Please refer to note 30 for | |
| | further details. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 15 | INVENTORY | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Group | | | | | | | | 2009 | | 2008 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At 1 January | | | | | | | 6,801,000 | | 15,625,171 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Additions | | | | | | | | 543,105 | | 5,998,040 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Disposals | | | | | | | | (597,394) | | (109,807) | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Repayment of deposit | | | | | | | | - | | (865,801) | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Impairment | | | | | | | | (630,054) | | (13,846,603) | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Reversal of impairment | | | | | | | | 1,323,343 | | - | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At 31 December | | | | | | | 7,440,000 | | 6,801,000 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At valuation | | | | | | | 7,440,000 | | 6,801,000 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Inventories were valued on an open market basis as at 31 December 2009 by King Sturge Kft, independent valuers not connected to the Group. | |
| | As a result of decrease in the market value of the properties, as determined by the valuers, an impairment charge has been recognised on | |
| | Panorama Villas. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | During last year an agreement was reached whereby the Group agreed with the property developer (BuySell) to relinquish its rights to parts | |
| | of the inventory under the BuySell contract. In consideration for this the Group received a return of its deposit totalling EUR865,801 | |
| | together with a termination fee of EUR853,005 which was included in the income statement as other income. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | BuySell project was written down to a nil value and an impairment charge of EUR10,379,426 was included in the income statement for the year | |
| | ended 2008. Negotiations with BuySell, its Bankers and the Fund are on going and accordingly the Directors continue to carry the asset at | |
| | a nil value. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The carrying value has been set as the lower of cost and net realisable value as set out under the requirements of IAS 2, Inventories. The | |
| | total carrying value of all the properties impaired is EUR7,440,000. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 16 | INVESTMENT IN SUBSIDIARIES | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Details of the Company's subsidiary undertaking are as follows: | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | % Holding | | Country | | Principal | | | |
| | | | | | | and | | of | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Name of subsidiary undertaking | | | voting | | incorporation | | activity | | | |
| | | | | rights | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Lewis Charles Sofia Property | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Fund Bulgaria EOOD | | | 100% | | Bulgaria | | Property Investment | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Splendid Investments S.A. | | | 100% | | Luxembourg | | Holding company | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Black Sea Properties EOOD | | | 100% | | Bulgaria | | Property Investment | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Fumero Properties S.A. | | | 100% | | Luxembourg | | Holding company | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | VT Developments Bulgaria EOOD | | 100% | | Bulgaria | | Property Investment | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Panorama Villa EOOD | | | 100% | | Bulgaria | | Property Investment | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Roman View EOOD | | | 100% | | Bulgaria | | Property Investment | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Plovdiv Reach EOOD | | | 100% | | Bulgaria | | Property Investment | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | Nirvana Estates EOOD | | | 100% | | Bulgaria | | Property Investment | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+-----------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | During the year four new subsidiary companies were incorporated in Bulgaria that hold Investment Properties. | |
| | Black Sea Properties EOOD and VT Developments Bulgaria EOOD have been disposed of post year end. Please refer to note 30 for further | |
| | details. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 17 | TRADE AND OTHER RECEIVABLES | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Accrued income | | | | | | | 1 | | 433 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Prepayments | | | | | | | 20,131 | | 17,598 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | VAT receivable | | | | | | | - | | 453,778 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Other receivables | | | | | | | | 176,176 | | 77,018 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 196,308 | | 548,827 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The aging of these receivables is as follows: | | | | | | | | |
+-----+--------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Less than 3 months | | | | | | | - | | 433 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | 3 to 6 months | | | | | | | 107,801 | | 535,472 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Over 6 months | | | | | | | 88,507 | | 12,922 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 196,308 | | 548,827 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade receivables are not considered impaired and relate to receivables for which there is no recent history of default and as such it is | |
| | assessed that all of the receivables will be recovered. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Directors consider that the carrying amount of trade and other receivables approximates fair value. Allocation of the carrying amount | |
| | of the Group's trade and other receivables by foreign currency is presented in Note 25. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 18 | CASH AND CASH EQUIVALENTS | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Lehman Euro Liquidity Fund | | | | | | | - | | 30,403 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Blackrock Euro Liquidity Fund | | | | | | | 3,107 | | 152,443 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash at Bank | | | | | | | | 1,050,596 | | 585,074 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 1,053,703 | | 767,920 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The cash equivalent investments are considered to be highly liquid investments readily convertible to a known amount of cash subject to | |
| | minimum risk of change in value such that book cost is considered equivalent to book value. The weighted average interest rate on cash | |
| | balances at 31 December 2009 was 0.6% (2008: 0.87%). | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 19 | TRADE AND OTHER PAYABLES | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Current liabilities | | | | | | | EUR | | EUR | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Audit fee payable | | | | | | | 35,601 | | 30,028 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Legal fee payable | | | | | | | | 149,644 | | 134,970 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Performance fee accrual | | | | | | | | - | | 2,841,623 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Other creditors | | | | | | | | 1,202,167 | | 66,164 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 1,387,412 | | 3,072,785 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Non-current liabilities | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Sundry creditors | | | | | | | 3,075,519 | | 4,386,477 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 3,075,519 | | 4,386,477 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Group has financial management policies in place to ensure that all payables are paid within the credit time frame. There is no | |
| | difference between the carrying value of trade and other payables and their fair value. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 20 | LOAN PAYABLE | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Balance at 1 January 2009 | | | | | | | - | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Loan advanced | | | | | | | 1,825,758 | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Accrued | | | | | | | | 2,237,929 | | - | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Balance at 31 December 2009 | | | | | | | 4,063,687 | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | During the year Splendid Investments S.A. a wholly owned subsidiary of the Group entered into a sale and buyback transaction in which | |
| | shares of Blacksea Properties were sold at EUR1.825m with an option to buyback at an agreed price of EUR4.7m. This option was required to be | |
| | exercised before 28 February 2010. This arrangement has been treated as a financing transaction with the intention to exercise the buyback | |
| | option, however the Group decided not to exercise the option at the expiry date. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 21 | SHARE CAPITAL | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | Shares | | Shares | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Authorised | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Unlimited shares of no par value | | | | | | | - | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Issued and fully paid | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At 1 January 2009 | | | | | | | 48,345,000 | | 48,345,000 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Issued during the year | | | | | | | 18,729,515 | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At 31 December 2009 | | | | | | | 67,074,515 | | 48,345,000 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The company has one class of ordinary share which carries no right to fixed income. | | | | |
+-----+---------------------------------------------------------------------------------------------------------+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Company will have a maximum life of seven years expiring on 2012. It is intended to arrange the Property Portfolio so that it can be | |
| | realised in an orderly way by the end of six years. If this is achieved the Company will be liquidated at the end of the six year period. | |
| | The life of the Company may be extended by no more than a year (to seven years in total) at the discretion of the Directors, if it is | |
| | necessary for an orderly realisation of the Company's assets. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 22 | SPECIAL RESERVE | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Special reserve | | | | | | | 57,913,640 | | 56,956,985 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At 31 December 2009 | | | | | | | 57,913,640 | | 56,956,985 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | On 8 July 2005 the Royal Court of Guernsey approved the reduction of capital by way of a cancellation of the Company's share premium | |
| | account. The amount cancelled, being EUR56,956,985, has been credited as a distributable reserve established in the Company's books of | |
| | account. This shall be available as distributable profits to be used for all purposes permitted under Guernsey Company Law including the | |
| | buy back of shares and the payment of dividends. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Group, on 17 December 2009, issued 18,729,515 ordinary shares of no par value at a price of 5p per share to raise net proceeds of | |
| | EUR0.94 million approximately. The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares. The new | |
| | shares have been included in special reserves as all amount can be distributed. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 23 | CAPITAL AND REVENUE RESERVE | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Balances in the capital reserve reflect cumulative unrealised gains on the revaluation of properties, impairment losses on inventory, | |
| | provision for performance fees that will become payable as a result of the uplift in property values and the notional loss on foreign | |
| | currency dating back to the conversion of the initial subscription proceeds. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The balance on the revenue reserve reflects cumulative operational expenditure in excess of the non-property inventory related operational | |
| | income. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 24 | NAV PER SHARE | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Net Asset Value | | | | | | | 20,197,370 | | 44,092,026 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Number of shares in issue | | | | | | | 67,074,515 | | 48,345,000 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Net asset value per share | | | | | | | 0.301 | | 0.912 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 25 | FINANCIAL INSTRUMENT RISK MANAGEMENT | | | | | | | | |
+-----+--------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Categories of financial assets and liabilities | | | | | | | | |
+-----+--------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Loans and receivable | | | | | | | EUR | | EUR | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other receivables* | | | | | | 176,177 | | 548,827 | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash and cash equivalents | | | | | | | 1,053,703 | | 767,920 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Financial liabilities measured at amortised cost | | | | | | | |
+-----+----------------------------------------------------------------------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other payables | | | | | | | (4,462,931) | | (7,459,262) | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Loan payable | | | | | | | (4,063,687) | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Net financial liabilities | | | | | | | (7,296,738) | | (6,142,515) | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | *Does not include prepayments | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Financial risk factors | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Company's' activities expose it to a variety of risks from its use of financial instruments: | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------+-----------------------+--------------------------+
| | - market risk (including interest rate risk, price risk and currency risk) | | | | | |
+-----+------------------------------------------------------------------------------------------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | - credit risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | - liquidity risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The accounting policy with respect to the financial instruments are disclosed in note 2 | | | |
+-----+------------------------------------------------------------------------------------------------------------------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Board of Directors has overall responsibility for the establishment and oversight of the Groups' risk management framework. This note | |
| | presents information about the Group's' exposure to each of the above risks and the Board of Directors' objectives, policies and processes | |
| | for measuring and managing these risks. There have been no changes in such policies during the year. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Market risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Market risk is the risk that changes in the market prices will affect the Group's' income or the value of its holdings of financial | |
| | instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (a) Price risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Group has no exposure to price risk as its investments are in property development or land banks. | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | If property prices in the Bulgarian property market fall by more than the discounts to current market value | | |
| | achieved by the Company when it exchanges contracts, investment properties held in the Property Portfolio may only | | |
| | be realisable at a loss and may prove difficult to sell at all. In these circumstances, the Company may complete | | |
| | on the purchase of investment properties and let them. The ability of the Company to complete on purchases is | | |
| | dependent on the amount of equity available at the time, which may not be the same as is currently available. A | | |
| | combination of higher interest rates, a deteriorating economy (with higher unemployment) and prolonged | | |
| | deflationary conditions, may result in falling capital values combined with falling rents and/or void periods. | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------+-----------------------+--------------------------+
| | (b) Interest rate risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Interest-bearing financial assets consist only of cash and cash equivalents while interest-bearing financial liabilities consist of loans | |
| | payable. The following table indicates effective interest rates at the balance sheet date for financial assets and liabilities. All other | |
| | financial assets and liabilities are non-interest bearing | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | Greater than | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | 2009 | |Interest | | Total | | 6 months | | 6 -12 | | 1 year | |
| | | | | rate | | | | or less | | months | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | % | | EUR | | EUR | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash and cash equivalents | 0.6% | | 1,053,703 | | 1,053,703 | | - | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Short term loan payable | 83% | | 4,063,687 | | 4,063,687 | | - | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | 2008 | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash and cash equivalents | 0.87% | | 767,920 | | 767,920 | | - | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | At any time that the Group is not fully invested, the Group may invest in Euro denominated government bonds with maximum maturities of the | |
| | lesser of two years or the remaining life of the Company and/or invest in AAA rated liquidity funds. Any change to interest rates relevant | |
| | for a particular security may result in income either increasing or decreasing. The Group has not invested in bonds during the years ended | |
| | 2009 and 2008. The Group has chosen to invest in high liquidity, floating rate instruments to mitigate the risk that similar returns would | |
| | be unavailable on the expiry of contracts. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | A 100 basis points change in interest rate would increase/decrease the net interest expense/income by EUR30,100 (2008: EUR7,679). | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Instruments subject to interest rate movements are disclosed in note 18 and 20. | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | (c) Currency risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Currency risk is the risk that the Statement of Comprehensive Income and Statement of Financial Position can be affected by currency | |
| | translation movements. The Board consider that the Group's exposure to currency risk is minimal as the majority of the Group's | |
| | transactions are made in Euros and the books and records are kept in Euros. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Where there are assets and liabilities recorded in Bulgarian Lev, the risk is considered minimal as the Lev is tied to the Euro in | |
| | preparation for adoption of the Euro in Bulgaria. The Lev is expected to be replaced by the Euro in future. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The tables below summarise exposure to foreign currency risk at 31 December 2009 and 2008. Assets and liabilities at carrying amounts are | |
| | included in the table, categorised by the currency at their carrying amount. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Group | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | As at 31 December 2009 | | | | | EUR | | GBP | | Total | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other receivables | | | | | 176,177 | | - | | 176,177 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash and cash equivalents | | | | | 278,371 | | 775,332 | | 1,053,703 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Total assets | | | | | | 454,548 | | 775,332 | | 1,229,880 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other payables | | | | | 4,218,771 | | 244,160 | | 4,462,931 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Loan payable | | | | | 4,063,687 | | - | | 4,063,687 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Total liabilities | | | | | 8,282,458 | | 244,160 | | 8,526,618 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Net balance sheet currency position | | | | (7,827,910) | | 531,172 | | (7,296,738) | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Group | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | As at 31 December 2008 | | | | | EUR | | GBP | | Total | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other receivables | | | | | 548,827 | | - | | 548,827 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash and cash equivalents | | | | | 767,847 | | 73 | | 767,920 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Total assets | | | | | 1,316,674 | | 73 | | 1,316,747 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other payables | | | | | 7,386,157 | | 73,105 | | 7,459,262 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Total liabilities | | | | | 7,386,157 | | 73,105 | | 7,459,262 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Net balance sheet currency position | | | | (6,069,483) | | (73,032) | | (6,142,515) | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The following significant exchange rates applied during the year: | | | | | | |
+-----+-------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | Average rate | | Reporting date spot rate | |
+-----+----------+--------------------------+--+----------+----------+---------------------------------------+--+-----------------------------------------------------------+--------------------------+
| | | | | | | 2009 | | 2008 | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | Euro | | | | | | | | | |
+-----+----------+--------------------------+-------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | 1 GBP | | 1.127 | | 1.247 | | 1.127 | | 1.045 | |
+-----+----------+--------------------------+-------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | 1 BGN ** | | 0.511 | | 0.511 | | 0.511 | | 0.511 | |
+-----+----------+--------------------------+-------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | ** The Bulgarian Lev (BGN) was fixed to the Euro at 1.95583 BGN to 1 Euro on 5 July 1999. | | |
+-----+----------+----------------------------------------------------------------------------------------------------------------------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The tables above present financial assets and liabilities denominated in foreign currencies held by the Group in 2009 and 2008 used to | |
| | monitor foreign currency risk at the reporting dates. If the Euro had strengthened/weakened by 10% against the UK pound as at 31 December, | |
| | with all other variables held constant, post-tax Group profit for the year would have been EUR53,367 (2008: EUR7,303) higher/lower. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | As the Lev is fixed against the Euro this results in no additional exposure to any Euro movements. | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Liquidity risk | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially | |
| | enhances profitability, but can also increase the risk of losses. The Group has procedures with the object of minimising such losses such | |
| | as maintaining sufficient cash and other highly liquid current assets and will negotiate additional credit facilities as and when | |
| | required. Cash and cash equivalents are placed with financial institutions on a short term basis reflecting the Group's desire to maintain | |
| | a high level of liquidity to enable timely completion of investment transactions. An analysis of other financial assets is provided in | |
| | notes 18 and 19. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | A summary table with maturity of financial liabilities is presented below: | | | | | |
+-----+------------------------------------------------------------------------------------------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | Total | | Less | | 6 to 12 | | Greater than | |
| | | | | | | | | than | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Financial liabilities | | | 2009 | | 6 months | | months | | 12 months | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other payables | | | 4,462,931 | | 1,387,412 | | - | | 3,075,519 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Loan Payable | | | 4,063,687 | | 4,063,687 | | - | | - | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Total liabilities | | | 8,526,618 | | 5,451,099 | | - | | 3,075,519 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | Total | | Less | | 6 to 12 | | Greater than | |
| | | | | | | | | than | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Financial liabilities | | | 2008 | | 6 months | | months | | 12 months | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other payables | | | 7,459,262 | | 231,162 | | 2,841,623 | | 4,386,477 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Credit risk | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Credit risk is the risk that a counterparty will be unwilling or unable to meet a commitment that it has entered into with the Group. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Company has exposure to credit risk relating to its cash and cash equivalents. The Group has tried to mitigate this risk by investing | |
| | in high liquidity, AAA rated instruments. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Group's maximum exposure to credit risk by class of financial instruments is shown below. | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | Group 2009 | | Group | | Group 2008 | | Group 2008 | |
| | | | | | | | | 2009 | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | Carrying | | Maximum | | Carrying | | Maximum | |
| | | | | | | value | | exposure | | value | | exposure | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | EUR | | EUR | | EUR | | EUR | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Trade and other receivables* | | 176,177 | | 176,177 | | 548,827 | | 548,827 | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Cash and cash equivalents | | 1,053,703 | | 1,053,703 | | 767,920 | | 767,920 | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | Total | | | | 1,229,880 | | 1,229,880 | | 1,316,747 | | 1,316,747 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | *Refer to note 17 for ageing of trade and other receivables and impairment review. | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | Capital risk management | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide | |
| | returns for shareholders and benefits for other stakeholders and to maintain an optimal structure to reduce the cost of capital. In order | |
| | to maintain or adjust the capital structure, the Group may return the capital to shareholders, issue new shares or sell assets to reduce | |
| | debt. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 26 | RELATED PARTY DISCLOSURES | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Transactions with Directors are as disclosed in Director's report, the Consolidated statement of comprehensive income and note 6 to the | |
| | financial statements. The balances outstanding as at the year end was EUR15,210 (2008: EUR14,097). | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Bachmann Fund Administration Limited is a related party by virtue of its appointment as Administrator and Secretary to the Group. Fees | |
| | paid to this entity are disclosed on the face of the income statement and also in note 3. The balances outstanding as at the year end was | |
| | nil (2008: nil). | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Lewis Charles Securities Limited was a related party by virtue of its appointments as Investment Manager, Co-distributor and Promoter, | |
| | however, the investment management agreement was terminated with effect from 30 September 2009. Fees paid to this entity are disclosed on | |
| | the face of the Consolidated statement of comprehensive income and also in note 4. The balances outstanding as at the year end are nil | |
| | (2008: nil). | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 27 | CONTROLLING PARTY | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | In the opinion of the Directors there is no controlling party as no one party has the ability to direct the financial and operating | |
| | policies of the Company with a view to gaining economic benefits from their direction. | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 28 | RECONCILIATION OF NAV PER THE FINANCIAL STATEMENTS TO PUBLISHED NAV | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | 2009 | | 2008 | |
+-----+----------+--------------------------+--+----------+----------+---------------------------------------+--+-----------------------------------------------------------+--------------------------+
| | | | | | | EUR | | Per | | EUR | | Per share | |
| | | | | | | | | share | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Net Asset Value per financial statements | | 20,197,370 | | 0.30 | | 44,092,026 | | 0.91 | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Add back: | | | | | | | | | | | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Preliminary expenses | | | | 501,822 | | 0.01 | | 736,896 | | 0.02 | |
+-----+-------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Adjustment to calculate deferred tax | | - | | - | | 1,414,464 | | 0.03 | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Published Net Asset Value | | | 20,699,192 | | 0.31 | | 46,243,386 | | 0.96 | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | An adjustment is required within the financial statements to record the value of inventory from fair value, as used for the published Net | |
| | Asset Value, to cost as required to ensure compliance with International Accounting Standard 16 "Property, Plant and Equipment". | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Company's principal documents require the dealing valuation of the Company's net assets to include preliminary expenses incurred in | |
| | the establishment of the Company, such expenses to be amortised over the expected life of the Company. However, this accounting treatment | |
| | is not permitted for financial reporting purposes and has been adjusted accordingly within these financial statements. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 29 | CONTINGENT LIABILITY | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | The Company is in litigation with Westhill BG8 AD ("Westhill"), a developer with which the Company has partnered on selected projects. As | |
| | part of this litigation Westhill has lodged a claim with the relevant court in Bulgaria petitioning the court for insolvency proceedings | |
| | to be brought against the Company's Bulgarian subsidiary. The claim is for an aggregate of EUR7.7million which included EUR3.1million that has | |
| | already been included within long term creditors based on the initial acquisitions. The balance is in relation to future potential income | |
| | under the Development Management Agreement. The Group's Bulgarian legal advisers are confident that this claim is fully defensible and in | |
| | Directors' opinion no provision for EUR4.6million is required. The Group is vigorously defending its position. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| 30 | POST BALANCE SHEET EVENTS | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Bistritsa - buy back option | | | | | | | | | | |
+-----+----------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | On 20 January 2009 the Group entered into a financing arrangement with Enderton Company Assets Inc. ("Enderton"), whose registered office | |
| | is in British Virgin Islands. The shares of Blacksea Properties EOOD were sold and the loan receivable from Blacksea EOOD was transferred | |
| | to Enderton with an option to transfer back both the shares and the loan. Proceeds raised from this financing transaction amounted to | |
| | EUR1.826 million. This transaction was originally treated as a financing transaction with an intention to exercise the buy back option. The | |
| | Directors, having explored a number of possibilities for exercising the Option Agreement, have decided to let the Option Agreement lapse. | |
| | The option subsequently expired during 2010. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | Sale of VT Developments EOOD ("VT") | | | | | | | | | |
+-----+---------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | On 26 January 2010, the Group disposed of its Bulgarian subsidiary VT, to International Residential Holdings SA for a cash consideration | |
| | of EUR450,000. The sole asset of VT was 13,443 square meters of land in Bulgarian city of Veliko Tarnavo, which at last published valuation, | |
| | dated 30 June 2009, was valued at EUR1.9 million. Further information on valuation of VT is included in note 14. | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+ +--------------------------+
| | | |
+-----+---------------------------------------------------------------------------------------------------------------------------------------------------------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Consolidated statement of comprehensive income | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Restated into Pounds Sterling for information purposes only | | | | | |
+------------------------------------------------------------------------------------------------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | 31 December 2008 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | Revenue | | Capital | | Total | | Total | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | GBP | | GBP | | GBP | | GBP | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Revenue | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Property sales | | | 289,863 | | - | | 289,863 | | 115,774 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Cost of sales | | | (530,169) | | - | | (530,169) | | (88,053) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Other revenue | | | - | | - | | - | | 684,025 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Gross (loss) / profit | | | (240,306) | | - | | (240,306) | | 711,746 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Expenses | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Administration fees | | | 149,941 | | - | | 149,941 | | 154,134 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Management fees | | | 520,170 | | - | | 520,170 | | 723,083 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Performance fees | | | - | | (2,521,852) | | (2,521,852) | | (2,046,118) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Directors' fees and expenses | | | 54,239 | | - | | 54,239 | | 55,722 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Foreign exchange (loss) / profit | | | (3,763) | | - | | (3,763) | | 26,144 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Salaries and other disbursements | | | 78,971 | | - | | 78,971 | | - | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Other expenses | | | 1,304,996 | | - | | 1,304,996 | | 967,663 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Impairment of inventories | | | - | | (615,272) | | (615,272) | | 11,103,591 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Revaluation of investment properties | | | - | | 22,118,141 | | 22,118,141 | | 8,532,431 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | 2,104,554 | | 18,981,017 | | 21,085,571 | | 19,516,650 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Operating loss | | | (2,344,860) | | (18,981,017) | | (21,325,877) | | (18,804,904) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Finance income | | | 2,505 | | - | | 2,505 | | 50,914 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Finance cost | | | (1,986,092) | | - | | (1,986,092) | | - | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Loss before taxation | | | (4,328,447) | | (18,981,017) | | (23,309,464) | | (18,753,990) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Taxation | | | 1,254,696 | | - | | 1,254,696 | | 1,021,157 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Loss for the year | | | (3,073,751) | | (18,981,017) | | (22,054,768) | | (17,732,833) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Other comprehensive income | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| for the year | | | - | | (3,065,937) | | (3,065,937) | | 11,269,590 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Total comprehensive loss | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| for the year | | | (3,073,751) | | (22,046,954) | | (25,120,705) | | (6,463,243) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Consolidated statement of financial position | | | | | | | | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| as at 31 December 2009 | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Restated into Pounds Sterling for information purposes only | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | 31 December 2009 | | 31 December 2008 | |
+-----+----------+--------------------------+--+----------+----------+---------------------------------------+--+-----------------------------------------------------------+--------------------------+
| | | | | | | GBP | | GBP | | GBP | | GBP | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Non-current assets | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Investment properties | | | | | 17,347,735 | | | | 42,921,330 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Investment properties - held for sale | | | | | | 433,370 | | | | - | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Current assets | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Inventory | | | 6,603,355 | | | | 6,508,829 | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Property options | | | 4 | | | | 5 | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Trade and other receivables | | | 174,233 | | | | 525,249 | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Cash and cash equivalents | | | 935,212 | | | | 734,930 | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | 7,712,804 | | | | 7,769,013 | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Total assets | | | | | | 25,493,909 | | | | 50,690,343 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Current liabilities | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Trade and other payables | | | (1,231,394) | | | | (2,940,778) | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | (1,231,394) | | | | (2,940,778) | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Non-current liabilities | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Loan payable | | | (3,606,716) | | | | - | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Trade and other payables | | | (2,729,670) | | | | (4,198,034) | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Deferred taxation | | | - | | | | (1,353,699) | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | (6,336,386) | | | | (5,551,733) | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Total liabilities | | | | | | (7,567,780) | | | | (8,492,511) | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Net assets | | | | | | 17,926,129 | | | | 42,197,832 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Equity | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Share capital | | | | | - | | | | - | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Special reserve | | | | | 39,525,002 | | | | 38,676,000 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Capital reserve | | | | | (23,046,357) | | | | (4,065,340) | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Revenue reserve | | | | | 1,447,484 | | | | 7,587,172 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Total Equity | | | | | | 17,926,129 | | | | 42,197,832 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| NAV per share (Pence per share) | | | | | 26.726 | | | | 87.28 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| NAV per share at launch (Pence per | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| share) | | | | | 72.80 | | | | 72.80 | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Consolidated statement of changes in equity | | | | | | | |
+----------------------------------------------------------------------------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | | |
+----------------------------------------------+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Restated into Pounds Sterling for information purposes only | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | Share | | Special | | Capital | | Revenue | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | Capital | | Reserve | | Reserve | | Reserve | | Total | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | GBP | | GBP | | GBP | | GBP | | GBP | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| As at 31 December 2007 | | - | | 38,676,000 | | 12,503,407 | | (2,518,332) | | 48,661,075 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Profit/(loss) for the period | | - | | - | | (16,568,747) | | (1,164,086) | | (17,732,833) | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Foreign exchange adjustment arising | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| on translation to Sterling | | - | | - | | - | | 11,269,590 | | 11,269,590 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| As at 31 December 2008 | | - | | 38,676,000 | | (4,065,340) | | 7,587,172 | | 42,197,832 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Issues of shares | | - | | 933,517 | | - | | - | | 933,517 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Profit/(loss) for the period | | - | | - | | (18,981,017) | | (3,073,751) | | (22,054,768) | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Commission payable on issue of | | | | (84,515) | | | | | | (84,515) | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| shares | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Foreign exchange adjustment arising | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| on translation to Sterling | | - | | - | | - | | (3,065,937) | | (3,065,937) | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| As at 31 December 2009 | | - | | 39,525,002 | | (23,046,357) | | 1,447,484 | | 17,926,129 | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | |
+-------------------------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Consolidated statement of cash flows | | | | | | | | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| for the year ended 31 December 2009 | | | | | | | | | |
+---------------------------------------------------------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Restated into Pounds Sterling for information purposes only | | | | | |
+------------------------------------------------------------------------------------------------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | 31 Dec | | 31 Dec 2008 | |
| | | | | | | | | | | 2009 | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | GBP | | GBP | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Loss for the year | | | | | (22,054,768) | | (17,732,833) | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Adjustment for: | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Interest income | | | (2,505) | | (50,914) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Revaluation of investment properties | | | 22,118,141 | | 8,532,431 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Impairment of inventory | | | (615,272) | | 11,103,591 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Taxation | | | - | | (1,021,157) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Operating cash flows before movements | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| in working capital | | | (554,404) | | 831,118 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Decrease / (increase) in trade and other receivables | | | 351,017 | | (28,810) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Decrease in trade and other payables | | | (3,177,748) | | (1,701,800) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Decrease / (increase) in inventory | | | 169,366 | | (4,027,488) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | (3,211,769) | | (4,926,980) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Interest received | | | 2,505 | | 50,914 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Taxation | | | - | | - | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Net cash outflow from operating activities | | | | | (3,209,264) | | (4,876,066) | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Investing activities | | | | | | | | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Additions to investment properties | | | (96,462) | | (289,534) | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Net cash outflow from investing activities | | | | | (96,462) | | (289,534) | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Financing activities | | | | | | | | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Proceeds from issue of shares | | | 933,517 | | - | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Proceeds from loan | | | 1,620,447 | | - | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Net cash inflow from financing activities | | | | | 2,553,964 | | - | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Net increase / (decrease) in cash and cash equivalents | | | | | (751,762) | | (5,165,600) | |
+--------------------------------------------------------------------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Exchange difference arising on translation to Sterling | | | 952,044 | | 601,458 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Cash and cash equivalents at start of period | | | 734,930 | | 5,299,072 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| Cash and cash equivalents at end of period | | | 935,212 | | 734,930 | |
+-------------------------------------------------------------------------------------+----------------------+--+--------------+--------------------+-----------------------+--------------------------+
| | | | | | | | | | | | | | | | |
+-----+----------+--------------------------+--+----------+----------+-------------+--+----------------------+--+--------------+----------+---------+------------+----------+--------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Sofia Prop (LSE:SPFL)
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