TIDMEBP
RNS Number : 9691N
East Balkan Properties PLC
12 September 2011
EAST BALKAN PROPERTIES plc
INTERIM REPORT
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2011
East Balkan Properties plc ("EBP" / "Company" / "Group"),
formerly Equest Balkan Properties plc, an Isle of Man registered
company for commercial property investments in the Balkan region,
announces today its results for the period ended 30 June 2011.
Highlights for the Interim Period
Financial
-- Net Asset Value per share of EUR 0.39, an increase of 8% from
EUR 0.36 per share at 31 December 2010 (30 June 2010: EUR 0.41)
-- Pre-tax gain of EUR 3.6 million (30 June 2010: pre-tax loss
of EUR 2.9 million)
-- Total assets of EUR 91.5 million (31 December 2010: EUR 89.4
million)
-- Total liabilities of EUR 36.9 million (31 December 2010: EUR
38.3 million)
-- Group cash balance of EUR 2.6 million (31 December 2010: EUR
3.3 million)
-- Gearing ratio of 37.3% on total capital of EUR 87.0 million
(31 December 2010: 38.3% gearing on EUR 82.7 million)
-- Net rental income of EUR 1.1 million (30 June 2010: EUR 2.3
million)
Strategic
-- Completed exit from controlling interest in marginal assets:
Vitantis and Moldova Mall
-- Completed cost reduction program resulting in 54% year on
year reduction in administration expenses
-- Completed group wide restructuring of management and service
providers
-- Improved operational performance through leasing activity
resulting in 83% occupancy at Equest Logistic Center and 92%
occupancy achieved in office portfolio
Commenting on the interim results, James Ede-Golightly,
non-executive chairman of EBP, said:
"The interim results largely reflect measures undertaken in 2010
to exit marginal assets and to reduce administrative costs. This
has allowed East Balkan Properties to report its first interim
profit since 2007. However, conditions in the region remain
difficult and the group continues to experience net cash
outflows.
The ongoing priority is to improve operational performance, to
manage working capital, and to realise value from every company
asset. Despite continued weakness in the underlying markets, the
management and operational teams have made progress in the interim
period, and I would like to thank them for their efforts and
continuing support."
For further information please contact:
IOMA Fund and Investment Management Ltd
Graham Smith
grahams@iomagroup.co.im
Tel: +44 1624 681 250
Michael Uhler
michael.uhler@ebp-plc.com
Tel: +49 172 183 3194
Arbuthnot Securities:
Nomad and Broker
Hugh Field
Tel: +44 20 7012 2000
Chairman's Statement
Introduction
The company's goal is to realise maximum value for shareholders
from the property portfolio. Having exited control of marginal
assets, reduced costs and restructured management, the current
focus is on improving the operational performance of each asset
while seeking opportunities to sell at acceptable valuations.
EBP's portfolio (excluding cash deposits and other working
capital in the holding companies) as at 30 June 2011 can be
summarised as follows:
NAV
Project Use Country Ownership Contribution
----------------- ------------- --------- ---------- --------------
Glorient 13 Land/ EUR37.5
1 Portfolio 35 Retail Bulgaria 40% m
EUR10.0
2 Equest Logistics 3 Warehouses Romania 100% m
Domenii EUR(3.0)
3 / Cartex 4 Offices Romania 100% m
4 Other 6 Land / Mostly Various EUR9.0
2 Retail Serbia m
----------------- ------------- --------- ---------- --------------
At the operational level, we have signed numerous new leases for
our office and logistic premises which should help further
stabilise cash flows. Despite these gains, we do not forecast that
capital values have recovered.
Outlook
While some new lease activity is occurring, price sensitivity
remains high and existing tenants remain under pressure, limiting
the potential for rental growth. A small number of market
transactions have been reported in the region in 2011, but access
to financing remains constrained by global market conditions,
limiting the scope for a recovery in transaction volumes and
capital values.
At EBP, the current leasing activity is expected to provide
incremental support to revenues and recovery of property costs;
however, the scope for further reductions in administration costs
is now limited. Despite this improving financial performance, the
group's working capital position remains constrained and group cash
balances are expected to decline further in the absence of
realisations.
While capital values have been supported by new lease activity,
a continued recovery in the value of the portfolio is not assumed
given market conditions. The board and management continue to
explore options for the realisation of portfolio assets at
acceptable valuations; however, there is insufficient market
visibility to commit to the timing or probability of disposals.
Glorient
Within the Glorient portfolio weak economic conditions have led
to sustained pressure on tenants and financing discussions have
been constrained by the lending restrictions in place in the
region. Glorient benefits from many long leases, some of which
expire in 2016, and a low level of mortgage leverage. Glorient
would seek to offset any concessions granted to tenants with other
lease amendments in order to protect the portfolio's value and
improve access to finance.
Discussions with our majority partner in Glorient have
progressed and resulted in an agreement to appoint Raiffeisen
Investments Bulgaria to market the entire Glorient portfolio for
sale. This process is at an early stage. Additionally, we have
obtained an agreement with our partner to re-evaluate a dividend
policy once the existing bank financing obligations are met. The
portfolio carries mortgage debt of EUR 19.4 million which is
amortising rapidly and could be fully repaid from cashflows by late
2013.
The Directors' valuation at 30 June 2011 is EUR 108.4 million.
This compares to a valuation at 31 December 2010 by CBRE of EUR
107.5 million. As the Group owns 40% of the equity and shareholder
debt, Glorient's NAV contribution to the Group's net assets
(consisting of equity and loans) is EUR 37.5 million and we
recognised EUR 2.0 million contribution to the income for the
half-year through share of profits of associates and interest
income.
The table below shows the major tenants in the Glorient
portfolio. Nearly all the lease contract were signed for an
original 10 year term between 2005 and 2007. The table below shows
the portfolio's key metrics as at 30 June 2011.
Total Percent Weighted
No of Area Rent Average
Tenant Name Stores (m(2)) Roll Lease Duration
------------------- -------- -------- -------- ----------------
Technomarket 20 89,539 57% 5.7 years
Other TM Related
Properties 4 23,434 12% 5.2 years
Billa / Praktiker
/ Baumax, et al 11 34,433 31% 7.6 years
Total 35 147,406 100%
Despite low leverage, debt service consumes nearly all surplus
cash flow due to a high amortisation schedule. Therefore, with
limited working capital, distributions to shareholders from
operational cash flows are not expected until the full debt
repayment is satisfied. Funding alternatives in the region remain
limited.
Equest Logistics
In cooperation with Prime Property Advisers (an affiliate of
Knight Frank), we are marketing for sale the logistic warehouses.
This is a prime asset with stabilised occupancy and in a strong
submarket so there is investor interest and we are reasonably
confident that significant capital recovery can be achieved. Given
current market conditions, we cannot estimate the timing of
completion.
Tenant demand for logistic premises has been growing with lease
commitments for 9 bays signed in 2011, bringing forecast warehouse
occupancy to 83% by year end. The three largest tenants will
account for 42% of the lease premises. Cash flow is also strong and
this investment has consistently met all debt service obligations
and financial covenant thresholds.
At the Directors' asset valuation of EUR 27.2 million at 30 June
2011, Equest Logistic SRL contributes EUR 10.0 million to Group
NAV.
Office Portfolio
At both the 2010 year end and for the current half-year, the
value of the office portfolio is below the outstanding debt balance
so the NAV contribution is negative, despite the debt being
non-recourse to the rest of the group.
At the operational level, recent leases have raised occupancy to
92% and will allow for stepped rent growth over the next 3 years.
The properties are now generating some surplus cashflow after debt
service.
The portfolio is in loan-to-value covenant breach with its
lender, resulting in restrictions on surplus cashflow. The current
debt facility matures in September 2012 and we have requested a
term extension and provided a business plan (see "Going concern"
below).
At the Directors' valuation of EUR 11.1 million at 30 June 2011,
Domenii Imobiliare SRL and Cartex Construct SRL reduce Group NAV by
EUR 3.0 million.
Shopping Malls - Romania
Our last disposal was the sale of a 51% interest in Vitantis and
Moldova Mall which completed in December 2010. This allowed us to
maintain an interest in the assets at minimal cost to the Group.
Due to the levels of debt in these investments, their equity
contribution to Group NAV has been close to zero since the 2010
interim results, and the Directors continue to place limited value
on them as at 30 June 2011.
Other Assets
The Group's remaining holdings consist of various land holdings
and two small retail shops. These assets contribute EUR 9.0 million
to Group NAV. All these assets are for sale though no credible
offers have developed.
-- In Ploesti to the north west of Bucharest, a 39,200 square
meter (sqm) site which is part of a larger assemblage, for which
development plans have been suspended. Once valued at about EUR 154
per square meter, the site is currently being marketed for sale at
EUR 70 per square meter.
-- Simanovci, a 310,900 sqm (76.8 acre) parcel surrounded by
rural farmland located west of Belgrade, beyond the airport. Access
and visibility are good, but this area has not developed as a
logistics submarket.
-- Plot 34, a corner position retail site measuring 5,500 sqm
with flat topography situated along a major arterial roadway in New
Belgrade. The site is suitable for a small retail and office scheme
and is being marketed for sale at EUR 1.6 million.
-- Eurosalon, a 33,700 sqm (8.3 acre) retail site in Zemun, a
northern suburb of Belgrade, for big box retail use.
-- Krusevac is 1,600 sqm of retail premises in a small retail
building anchored by a supermarket. The store was leased to
Technomarket Serbia and has been re-let to a discount store
operator.
We also hold a 36.8% interest in these Slovakian assets:
-- In Bratislava, a 26,700 sqm site adjacent to a Carrefour
anchored shopping center which is suitable for up to 7,000 sqm of
retail premises.
-- In Kosice, an 8,600 sqm outparcel contiguous to a Carrefour
anchored shopping center which can be improved with a 3,630 sqm
retail building. This corner location site has excellent visibility
and Kosice is Slovakia's second largest city so we expect demand to
return when the market recovers.
-- Krasovskaya Str is a 520 sqm retail store along a busy
arterial route in Bratislava. The shop was leased to Technomarket
which went bankrupt in Slovakia and is now vacant.
Financial Results
NAV is EUR 0.39 per share, up from EUR 0.36 per share at 31
December 2010.
In the six months to 30 June 2011, the Company recorded a
pre-tax profit of EUR 3.6 million, compared with a loss of EUR 2.9
million in the same period in the previous year. This result is
attributable mainly to the Group's share of profit in Glorient and
a small positive movement in investment valuations. This gives rise
to an earnings per share figure of EUR 0.03 compared with loss per
share of EUR 0.02 in the same period in the previous year.
Costs & Liquidity
Cost cutting efforts have yielded their expected results and we
now believe we are on track to hold central administrative
expenses, including asset management fees, to under EUR 1.2 million
per annum.
Excluding bad debts, administrative costs fell to EUR 0.6
million (first half 2010: EUR 1.6 million). At this pace, we will
achieve our budget estimates. We continue to seek cost savings and
have opened a Guernsey office to provide a physical location for
management of the company. Until we can sell assets and their
related SPV's, further incremental savings are likely to be
minimal.
At the asset level, we are pushing down operating costs and
improving expense recoveries from our tenants. While working
capital balances are improving, much of the benefits are accruing
to accounts blocked by our lenders.
While the Group posted a slight gain for the period, not all of
the local companies are showing a profit, due in part to bad debts
from tenants and downward pressure on rental income.
Financing
Liquidity has not yet returned to the region and our banks
continue to struggle with their own problems. While we have
negotiated modifications and achieved significant restructurings,
the lenders continue to press for capital events that will allow
them to exit from the region. Fortunately, we still have many
months before refinance deadlines have to be confronted.
While the banking environment remains difficult, we can report
significant progress in stabilising our debt obligations and we are
meeting our interest and principal payment obligations.
Going Concern
The Group continues to adopt a going concern basis for the
preparation of these financial statements.
The Directors believe the Group will be able to manage its
business risks for the foreseeable future despite continued
challenging economic conditions. After making enquiries and
examining major areas which could give rise to significant
financial exposures, the Board has a reasonable expectation that
the Company and the Group have adequate resources to continue their
operations. The Group has primarily mortgage debt facilities
secured at the local company level and without any performance or
payment guarantees from the Group. In the event of a financing
default, each lender only has recourse to the local company assets
and cannot seek recourse from the Company. In a distress situation,
to limit the financial damage to the Group, underperforming assets
could be released back to the appropriate lender, or sold for a
nominal value, as was the case with Vitantis and Moldova Mall.
With respect to the Company's cash position, the Board has a
reasonable expectation that sufficient liquidity will be available
to meet ongoing expenses from a combination of existing cash
reserves and cash flow from normal operations.
Financial Statements
Please refer to the accompanying financial statements and the
Notes for the details on the financial position of the Group.
James Ede-Golightly
Non-executive Chairman
9 September 2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Year
Six months to Six months to to
June 2011 June 2010 Dec 2010
EUR '000 EUR '000 EUR '000
---------------------------------- -------------- -------------- ----------
Revenue 1,789 4,927 9,352
Property operating expenses (658) (2,614) (5,038)
---------------------------------- -------------- -------------- ----------
Net rental and related income 1,131 2,313 4,314
---------------------------------- -------------- -------------- ----------
Net gain/(loss) from fair value
adjustment on property assets 261 (4,699) (30,729)
Share of profit/(loss) from
associate 1,935 2,968 4,207
Profit on sale of a subsidiary - 2,177 10,387
Impairment of goodwill and
acquired building rights - - -
Administrative expenses (580) (1,629) (2,812)
---------------------------------- -------------- -------------- ----------
Operating profit/(loss) 2,747 1,130 (14,633)
---------------------------------- -------------- -------------- ----------
Finance income 1,550 20,726 21,558
Finance costs (723) (24,758) (21,624)
---------------------------------- -------------- -------------- ----------
827 (4,032) (66)
Profit / (loss) before tax 3,574 (2,902) (14,699)
---------------------------------- -------------- -------------- ----------
Income tax credit/(expense) (1) (436) (785)
---------------------------------- -------------- -------------- ----------
Profit / (loss) for the period 3,573 (3,338) (15,484)
---------------------------------- -------------- -------------- ----------
Other comprehensive
income/(expense)
Fair value movement on
development property - 88 -
Realisation of reserves on sale
of subsidiary - - 7,116
Exchange differences on
translating foreign operations (18) 2,359 1,170
Share of other comprehensive
income of associates - 121 -
Other comprehensive
(expense)/income for the period (18) 2,568 8,286
---------------------------------- -------------- -------------- ----------
Total comprehensive
income/(expense) for the period 3,555 (770) (7,198)
---------------------------------- -------------- -------------- ----------
Profit/(loss) attributable to
Owners of the parent 3,573 (3,338) (15,484)
Minority interest - - -
---------------------------------- -------------- -------------- ----------
3,573 (3,338) (15,484)
---------------------------------- -------------- -------------- ----------
Total comprehensive
income/(expense) attributable to
Owners of the parent 3,555 (770) (7,198)
Non-controlling interests - - -
---------------------------------- -------------- -------------- ----------
3,555 (770) (7,198)
---------------------------------- -------------- -------------- ----------
Earnings/(loss) per share - basic
and diluted EUR0.03 EUR(0.02) EUR(0.11)
---------------------------------- -------------- -------------- ----------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
30 June 2011 30 June 2010 31 December 2010
EUR '000 EUR '000 EUR '000
----------------------------- ------------- ------------- -----------------
ASSETS
Non-current assets
Investment property 41,660 101,630 40,885
Development property 1,960 2,740 1,960
Other property, plant and
equipment 1 259 2
Investment in associates 26,433 23,925 24,498
Loans and receivables 12,120 11,639 11,925
Deferred income tax assets - 359 -
82,174 140,552 79,270
----------------------------- ------------- ------------- -----------------
Current assets
Loan receivables 515 830 -
Trade and other receivables 2,659 5,478 3,402
Inventory - Land held for
sale 3,601 4,200 3,400
Cash and cash equivalents 2,570 4,718 3,285
9,345 15,226 10,087
----------------------------- ------------- ------------- -----------------
Total assets 91,519 155,778 89,357
----------------------------- ------------- ------------- -----------------
EQUITY
Share capital 1,400 1,400 1,400
Retained earnings 62,740 71,313 59,167
Translation reserve (9,321) (15,230) (9,303)
Revaluation reserve (238) (29) (238)
----------------------------- ------------- ------------- -----------------
Total equity attributable to
equity holders of the
parent company 54,581 57,454 51,026
Minority interest - - -
Total equity 54,581 57,454 51,026
----------------------------- ------------- ------------- -----------------
LIABILITIES
Non-current liabilities
Bank borrowings 32,636 86,506 32,666
Deposits 278 - 243
Other long term loans 1,956 313 1,489
Other non-current
liabilities - 2,411 -
34,870 89,230 34,398
----------------------------- ------------- ------------- -----------------
Current liabilities
Trade and other payables 1,668 3,758 2,227
Interest rates swaps - 1,118 876
Bank borrowings 400 4,218 830
2,068 9,094 3,933
----------------------------- ------------- ------------- -----------------
Total liabilities 36,938 98,324 38,331
----------------------------- ------------- ------------- -----------------
Net equity and liabilities 91,519 155,778 89,357
----------------------------- ------------- ------------- -----------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Retained Translation Revaluation
Capital Earnings Reserve Reserve Total
EUR
'000 EUR '000 EUR '000 EUR '000 EUR '000
Balance at 1
January 2010 1,400 74,651 (17,589) (238) 58,224
------------------- -------- --------- ------------ ------------ ---------
Loss for the year - (3,338) - - (3,338)
Other
comprehensive
income:
Fair value
movement on
development
property - - - 88 88
Exchange
differences on
translating
foreign
operations - - 2,359 - 2,359
Share of other
comprehensive
income of
associates - - - 121 121
-------- --------- ------------ ------------ ---------
Total
comprehensive
income/(expenses) - (3,338) 2,359 209 (770)
Balance at 30 June
2010 1,400 71,313 (15,230) (29) 57,454
------------------- -------- --------- ------------ ------------ ---------
Balance at 1
January 2010 1,400 74,651 (17,589) (238) 58,224
------------------- -------- --------- ------------ ------------ ---------
Loss for the year - (15,484) - - (15,484)
Other
comprehensive
income:
Realisation of
reserves on sale
of subsidiary - - 7,116 - 7,116
Exchange
differences on
translating
foreign
operations - - 1,170 - 1,170
------------------- -------- --------- ------------ ------------ ---------
Total
comprehensive
income/(expenses) - (15,484) 8,286 - (7,198)
Balance at 31
December 2010 1,400 59,167 (9,303) (238) 51,026
------------------- -------- --------- ------------ ------------ ---------
Loss for the
period - 3,573 - - 3,573
Other
comprehensive
income: -
Exchange
differences on
translating
foreign
operations - - (18) - (18)
------------------- -------- --------- ------------ ------------ ---------
Total
comprehensive
income/(expenses) - 3,573 (18) - 3,555
Balance at 30 June
2011 1,400 62,740 (9,321) (238) 54,581
------------------- -------- --------- ------------ ------------ ---------
CONSOLIDATED STATEMENT OF CASH FLOW
(Unaudited) (Unaudited) (Audited)
Year
Six months to Six months to to
June 2011 June 2010 Dec 2010
EUR '000 EUR '000 EUR '000
Profit or Loss for the period 3,574 (2,902) (14,699)
---------------------------------- -------------- -------------- ----------
Adjustments for:
- share of profit or loss in
associate (1,935) (2,968) (4,207)
- net loss from fair value
adjustment on property assets (261) 4,699 30,729
- finance income (1,550) (20,726) (21,558)
- finance costs 723 16,397 17,082
- foreign exchange loss - 8,713 5,153
- (profit)/loss on sale of
subsidiaries - (2,177) (10,387)
- depreciation of property, plant
and equipment - 37 68
- fair value movement on interest
rate swaps - (353) (611)
Changes in working capital:
- decrease in receivables 743 (499) (169)
- increase in payables (192) (443) (471)
Cash infow/(outflow) from
operation 1,102 (222) 930
---------------------------------- -------------- -------------- ----------
Finance costs paid (721) (3,506) (5,480)
Tax paid (1) (128) 25
Net cash inflow/(outflow) from
operating activities 380 (3,856) (4,525)
---------------------------------- -------------- -------------- ----------
Cash flow from investing
activities
Capital contribution from
associate - 1,400 -
Proceeds on sale of investment
property - (100) 1,400
Purchase of other property, plant
and equipment - - (25)
Loans advanced to associates (30) - -
Loans repaid by subsidiaries - - 588
Acquisition of subsidiaries, net
of cash acquired - (12) (970)
Interest received - 28 30
---------------------------------- -------------- -------------- ----------
Net cash inflow /(outflow) from
investing activities (30) 1,316 1,023
---------------------------------- -------------- -------------- ----------
Cash flows from financing
activities
Repayment of borrowings (451) (822) (1,248)
Proceeds from borrowing and other
loans - 5,118 5,118
SWAP settlements (614) (3,628) (3,628)
---------------------------------- -------------- -------------- ----------
Net cash (outflow) / inflow from
financing activities (1,065) 668 242
---------------------------------- -------------- -------------- ----------
Net (decrease)/increase in cash &
cash equivalents (715) (1,872) (3,260)
---------------------------------- -------------- -------------- ----------
Cash & cash equivalents at
beginning of year 3,285 6,543 6,543
Foreign exchange gains/(losses)
on cash and cash equivalents - 47 2
---------------------------------- -------------- -------------- ----------
Cash & cash equivalents at end of
year 2,570 4,718 3,285
---------------------------------- -------------- -------------- ----------
NOTES TO THE INTERIM REPORT
1. General information
East Balkan Properties plc ("the Company") and its subsidiaries
(together "the Group")are a property group with a portfolio of
development property and investment property assets in South East
Europe.
2. Basis of preparation
This financial information has been prepared in accordance with
the recognition and measurement criteria of International Financial
Reporting Standards (IFRS) as adopted by the European Union and
IFRIC Interpretations. The financial information has been prepared
under the historical cost convention. The annual financial
statements are prepared in accordance with IFRS as adopted by the
European Union.
Except as described below, the accounting policies applied by
the Group in these interim consolidated financial statements are
the same as those applied by the Group in its consolidated
financial statements as at and for the period ended 31 December
2010.
Critical accounting estimates and assumptions
The preparation of condensed consolidated interim financial
statements in conformity with IFRSs requires management to make
judgements, estimates and assumptions that affect the application
of accounting policies and reported amounts of assets and
liabilities, income and expenses. 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 for which form the basis of making the judgements about
carrying values of assets and liabilities that are not readily
available from other sources. Actual results may differ from these
estimates.
The principal risks and uncertainties are consistent with those
disclosed in preparation of the Group's annual financial statements
for the year ended 31 December 2010.
The Group continues to adopt a going concern basis for the
preparation of these financial statements and the Board has a
reasonable expectation that sufficient liquidity will be available
to meet ongoing expenses from a combination of existing cash
reserves, net sales proceeds arising from the disposal program, and
cash flow from normal operations.
3. Earnings/(loss) per share
The basic loss per ordinary share is calculated by dividing the
net earnings/(loss) attributable to the ordinary shareholders of
the Company by the weighted average number of ordinary shares in
issue during the year.
Year
Six months to Six months to to
June 2011 June 2010 Dec 2010
---------------------------------- -------------- -------------- ----------
Earnings/(loss) attributable to
owners of parent (EUR '000) 3,573 (3,338) (15,484)
Weighted average number of
ordinary shares in issue ('000) 140,000 140,000 140,000
Basic earnings/(loss) per share EUR0.03 EUR(0.02) EUR(0.11)
---------------------------------- -------------- -------------- ----------
The Company has no dilutive potential ordinary shares; the
diluted gain or loss per share is the same as the basic gain or
loss per share.
4. Administration expenses
Year
Six months to Six months to to
June 2011 June 2010 Dec 2010
EUR '000 EUR '000 EUR '000
------------------------------- -------------- -------------- ----------
Audit fees and other 64 102 163
Management fees 32 378 686
Other professional expenses 382 572 1,155
Directors' fees 66 118 186
Bad debts - 369 458
Other administration expenses 36 90 164
------------------------------- -------------- -------------- ----------
Total 580 1,629 2,812
------------------------------- -------------- -------------- ----------
5. Property assets
Fair values of the Group's property assets at the half year are
determined by the Directors. At 30 June 2011 and 30 June 2010
Directors' valuations were based on their best estimate of market
value. At 31 December 2010 Directors' valuations were based on
valuations prepared for each individual property asset by
independent professionally qualified valuers CB Richard Ellis.
The carrying value and fair value of the Group's property assets
in the balance sheet are summarised as follows:
30 June 2011 30 June 2010 31 December 2010
EUR '000 EUR '000 EUR '000
----------------------------- ------------- ------------- -----------------
Investment property 41,660 101,630 40,885
Development property 1,960 2,740 1,960
Inventory - Land held for
sale 3,601 4,200 3,400
----------------------------- ------------- ------------- -----------------
Total 47,221 108,570 46,245
----------------------------- ------------- ------------- -----------------
At 30 June 2011 the Group holds two investments that are
accounted for as associates: Glorient BG and IBN SRO. The
investment in IBN SRO was provided against in full. The Group's
share of net assets of Glorient at 30 June 2011 is EUR 26.5 million
(31 December 2010: EUR 24.5 million) which represents 40% of
Glorient.
At 30 June 2011, the Group also held EUR 12.6 million as loan
receivables from associates, of which EUR10.9 million was from
Glorient. These loans are unsecured.
6. Net assets value per share
30 June 2011 30 June 2010 31 December 2010
----------------------------- ------------- ------------- -----------------
Net assets attributable to
owners of the Company
(EUR'000) 54,581 57,454 51,026
Number of ordinary shares
outstanding ('000) 140,000 140,000 140,000
Net Asset Value EUR0.39 EUR0.41 EUR0.36
----------------------------- ------------- ------------- -----------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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