Interim Results
01 April 2006 - 2:05AM
UK Regulatory
RNS Number:7891A
Bulgarian Property DevelopmentsPLC
31 March 2006
FOR IMMEDIATE RELEASE 31 MARCH 2006
BULGARIAN PROPERTY DEVELOPMENTS PLC
("the Group")
(The Group is primarily focussed on the development of commercial property and
in particular building pre-let warehousing, distribution centres and offices)
REVIEWED INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
Main points
* Turnover #2,000
* Loss before tax #165,000
* Loss per share 2p
* Solid progress in assembling sites in Sofia and Bansko
* Value of land portfolio up 55.2% at 25 November 2005
* #32.9 million net new equity raised on 16 January 2006 at 55p per Share
* Bulgaria's GDP growth is estimated to have been 5.4% for 2005
Enquiries:
Bulgarian Property Developments
Ivo Hesmondhalgh (Chief Executive) +44 (0) 20 7243 1336
Matrix Corporate Finance
Ken Vere Nicoll +44 (0) 20 7925 3300
Fairfax I.S. Limited
James King +44 (0) 20 7598 5368
Cubitt Consulting
Brian Coleman-Smith / Nia Thomas / Allison Reid +44 (0) 20 7367 5100
BULGARIAN PROPERTY DEVELOPMENTS PLC
REVIEWED INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005
CHAIRMAN'S STATEMENT
I am pleased to enclose the reviewed Financial Statement for the six months
ended 31 December 2005.
Results
The results do not reflect the significant progress that has been made in the
current calendar year, particularly the successful fundraising which raised
#32.9 million net for the development of the Group. Turnover in the period was
#2,000 and the Group made a loss before tax of #165,000. The loss per share was
2p.
At this stage in the Group's development the Directors do not intend to declare
a dividend.
Progress Report
The Group has continued to make solid progress in assembling its sites in Sofia,
around the airport and on the ring road and in Bansko (Bulgaria's leading ski
resort). Colliers International valued the Group's land portfolio as at 25
November 2005, which produced a 55% uplift in value against the aggregate
purchase price for the property portfolio at that date. The land portfolio is
held in the Group's accounts as trading assets and in accordance with its
accounting policies these assets have not been re-valued in its accounts.
The Group exchanged contracts in November 2005 to sell a parcel of land located
on the eastern side of the ring road. The sale is conditional on rezoning of
the land from agricultural to commercial use, which has been applied for.
Assuming the sale completes at the agreed value, this would represent an uplift
of approximately 90% on the price paid by the Group in January 2005.
Outline planning permission has been applied for in respect of two of our other
sites to change of use from agricultural to commercial and to establish the
height of any buildings and the percentage area of each site that can be built
on. Due to local government elections, the planning process has been slightly
delayed but the Directors believe that permission should be granted within the
next four months.
Outline planning permission has been granted to develop the Group's site in
Bansko as a residential block. Once the communal areas have been taken account
of, this should provide for the development of approximately 10,000 square
metres. Detailed planning permission is being applied for and the Group hopes to
be able to start work on the foundations of the building in the summer. The
development is expected to comprise a total of approximately 120-140 luxury 1-3
bedroom apartments.
The Directors intend to concentrate on the development of commercial property
and in particular building pre-let warehousing, distribution centres and
offices. In order to maximise profitability in these sectors which require the
ownership of sizeable amounts of land, the Group is continuing its strategy of
building up its land bank by consolidating small plots into commercially useable
sites.
As previously reported to Shareholders, the Group raised #32.9 million, net of
expenses, in January 2006, through the placing of new Ordinary Shares
coordinated by Fairfax I.S. This has provided the funds which should enable the
Group to take advantage of the opportunities which it has identified in Bulgaria
and enable it to become an important player in that market.
As part of its strategy the Group has been strengthening its management team in
Bulgaria and also intends to appoint a UK Finance Director to its Board,
initially on a part time basis, to manage the increase in finance and
administration which the Group's much larger asset base will entail.
Bulgaria continues to develop with GDP growth estimated for 2005 of 5.4% and I
believe that your Group is now in a position to participate in a significant way
in its exciting future.
Christian Williams
Chairman
31 March 2006
Consolidated Profit and Loss Account for the six months ending
31 December 2005
Unaudited Audited
6 month period 14 month
ended
31 December period ended
2005 30 June 2005
#000 #000
Turnover 2 -
Cost of sales - -
Gross profit 2 0
Administrative expenses (186) (318)
Operating loss (184) (318)
Interest receivable 19 44
Loss on ordinary activities (165) (274)
Tax on profit on ordinary activities - -
Retained loss for the period (165) (274)
Loss per share (2p) (5p)
Consolidated statement of Total recognised Gains & Losses
Loss on ordinary activities after taxation (165) (273)
Currency translation differences on foreign currency net investments (20) (1)
Total recognised gains and losses for the period (185) (274)
The Company was established on 4 May 2004 but only started trading in January 2005,
therefore no interim figures were produced for the period ended 31 December 2004.
Bulgarian Property Developments Plc - Consolidated Balance Sheet
as at 31 December 2005
31 December 2005 30 June 2005
#000 #000
Fixed assets - -
Current assets
Stock 3,161 2,409
Debtors 26 66
Cash at bank 682 1,550
3,869 4,025
Creditors: amounts due within 1 year (85) (47)
Net current assets 3,784 3,978
Net assets 3,784 3,978
Represented by
Share Capital 2,226 2,226
Share Premium account 2,017 2,026
Profit and loss account (459) (274)
Shareholders funds 3,784 3,978
Consolidated Cash Flow Statement for the period ending
31 December 2005
Unaudited Audited
6 month 14 month
period ended period ended
31 December 30 June
2005 2005
#000 #000
Net cash outflow from operating activities (857) (2,746)
Returns on investments
Interest received 19 45
Net cash inflow from returns on investments 19 45
Net cash outflow before financing (838) (2,701)
Financing
Issue of ordinary shares - 4,452
Less issue costs (9) (200)
- 4,242
Net cash outflow (847) 1551
Cash and cash equivalents at the beginning of the period 1,550 (1)
Translation differences (20) -
Cash and cash equivalents at 31 December 2005 683 1,550
Reconciliation of operating profit to net operating cash outflow
#000 #000
Operating loss (184) (318)
Increase in stocks (751) (2,409)
Increase in debtors 40 (66)
Increase in creditors 38 47
(857) (2,746)
Bulgarian Property Developments Plc
Notes to the Interim financial Statements
for the six months ended 31 December 2005
1. The financial information contained in this document has been prepared on
accordance with the Generally Accepted Accounting Principles in United
Kingdom and with AIM rules and does not constitute statutory accounts with
the meaning of section 240 of the Companies Act 1985. Statutory accounts
for the period ended 30 June 2005 have been filed with the Registrar of
Companies. The auditors have reported on those accounts; their report is
unqualified.
2. Comparatives
The six month period to 31 December 2005 represents the first interim reporting
period. The Group was admitted on to AIM in December 2004. The comparative
period represents audited results for the period ended 30 April 2005.
3. Accounting policies
The interim statement has been prepared on the basis of the accounting policies
set out in the Group's audited accounts for the period ended 30 June 2005. The
main policies are noted below:
Basis of Consolidation
The consolidated accounts incorporate the accounts of the company and all its
subsidiary undertakings. Where subsidiaries are acquired or sold during the
year the group profit and loss account includes the results for the part of the
year for which they were subsidiaries. All subsidiaries are consolidated using
the acquisition method.
Stock
Stock represents land acquired for resale and is valued at the lower of cost and
net realisable value.
4. Loss per ordinary share
The loss per ordinary share is based on the losses for the 6 months ended 30
June 2005 of #165,000 and the weighted average number of ordinary shares in
issue during the period of 8,904,000 (30 June 2005: loss of #273,000 for 14
months ended 30 June 2005 and weighted average number of ordinary shares of
5,163,000).
5. Taxation
No liability to corporation or overseas income taxes arises for the period due
to losses incurred.
Bulgarian Property Developments Plc
Notes to the Interim financial Statements
for the six months ended 31 December 2005 (continued)
6. Post balance sheet events
On 16 January 2006 at an Extraordinary General Meeting the shareholders voted to
raise a further #35 million through a Placing of Ordinary Shares. A total of
63,636,000 Ordinary Shares were issued at 55 pence per share raising #35,000,000
before expenses amounting to #2,100,000. These new Ordinary Shares were
allotted on 18 January 2006, when the total number of Ordinary Shares in issue
increased to 72,541,000.
7. Dividends
No dividends have been proposed.
8. Reconciliation of movement in shareholders' funds
#'000
Opening shareholders funds 3,978
Loss for the period (165)
Currency translation on foreign currency net investments (20)
Issue costs (9)
Closing shareholders funds 3,784
Independent review report to Bulgarian Property Developments plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 31 December 2005 which comprises the Chairman's statement,
the Consolidated Profit and Loss Account, the Consolidated statement of Total
Recognised Gains and Losses, the Consolidated Balance Sheet and the related
notes 1 to 8. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or other
material inconsistencies with the financial information.
This report is made solely to the Company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the AIM
rules of the London Stock Exchange which require that the accounting policies
and presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of the group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2005.
Nexia Audit Limited 25 Moorgate
Chartered Accountants London
Registered Auditors EC2R 6AY
Date 31 March 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
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