23 June 2008 AIM:LCSR
Lewis Charles Romania Property Fund Report Its Financials Results For 2007
London, United Kingdom - Lewis Charles Romania Property Fund ("Lewis Charles" or
"the Company" or "the Fund") today reports its financial results for the period
ended December 31, 2007.
2007 FINANCIAL HIGHLIGHTS
* NAV of Eur 2.14 per share
* Eur 40,727,575 million raised when the Fund admitted to AIM in August 2007
* The Fund is now fully invested
* Two acquisitions completed:
* Ploesti Project: 99,000 square meters of land in Ploiesti was acquired for Eur 13.9 million
* Mogosoaia Project: 50% share in 55,700 square meters of land in Mogosoaia was acquired
for Eur 13.4 million
* The proposed development at Mogosoaia is a Joint Venture (JV) with Alchemy Development Management,
and is proposed to comprise over 1,000 apartments
* Overall project design has been completed at Mogosoaia
* The proposed development at Ploesti is currently designed to be a leisure and retail complex
* Outline planning permission received for the Ploesti development
* Well respected and renowned team assembled by the Fund and development partner Westhill Investments
Limited
* Romanian economy grew by 6% in both 2006 and 2007 - similar growth is anticipated in 2008 the
domestic real estate markets continues to grow strongly
Commenting today, Lorraine Pinel, Fund Manager of Lewis Charles Romania Property Fund said
"the Fund has made an encouraging start since admitting to AIM last August and we look forward
to progressing the two projects we have acquired. The Fund is constantly evaluating potential
new areas to invest in and acquisitions"
About Lewis Charles Romania Property Fund
The Fund's objective is to generate capital gains by investing in both
residential and commercial property in Romania, primarily, although not
exclusively, in and around Bucharest and other large Romanian cities.
For more information about the Fund, please visit our website
(http://www.romaniapropertyfund.com/) or contact:
Ed Portman, Leesa Peters,
Conduit PR
+ 44 (0) 207 429 6607 / + 44 (0) 7733 363 501
Loraine Pinel, Mark Anderson,
Lewis Charles Securities Limited
+ 44 (0) 207 456 9100 / + 44 (0) 7876 560 787
Chairman's statement
It is with pleasure that I welcome shareholders to the first financial report of
The Lewis Charles Romania Property Fund Limited ("The Company"). The reporting
period covers the Company's operations from launch to 31 December 2007.
The Fund raised Eur 40,727,575 at the beginning of August 2007, and is intended
to have a life of 6 years (to 2013). This life may be extended by a further year
to 2014 at the discretion of the Directors. Despite the fact that the Fund has
only been going for a short time, I am pleased to say that the Fund has made
substantial progress and is now fully invested.
The Company made the following two acquisitions in 2007:
Mogosoaia:
The first was the acquisition of 50% of SC Gold Developments SPV SRL for Eur
12.9 million that owns a 55,700 square metre site at Mogosoaia, on the outskirts
of Bucharest. As previously announced, the project is a 50/50 joint venture with
Alchemy Development Management SRL. The development is planned to comprise over
1,000 apartments (build area of approximately 132,250 square metres) and will be
phased over a 4 year period. Site preparation is currently underway with demolition
commencing in July and Phase 1 construction in early Autumn 2008.
Ploesti:
The second was the acquisition of 99,000 square metres of land at Ploiesti in
Romania for a total cost of approximately Eur 13.9 million. The 10-hectare site
has outline planning permission for a leisure and retail complex. The Investment
Manager expects to be making further announcements on this project in the near
future.
Valuation
_________
The investments in Ploiesti and Mogosoaia have been valued in accordance with
IAS 2 "Inventories" and are stated at the lower of cost and net realisable
value. Cost comprises direct materials and those overheads that have been
incurred in bringing the developments to their present location and condition.
The estimated fair value of these developments at 31 December 2007 is Eur
35,738,491 (versus an acquisition cost of Eur 28,007,787).
The estimated fair value of these developments as at 31 December 2007 has been
arrived at on the basis of independent valuations carried out at that date by
Regatta Real Estate SRL and REAG Real Estate Advisory Group SRL, independent
valuers not connected to the Company. A full reconciliation between the
accounting NAV and our published valuation NAV is included in note 24 to the
financial statements.
The Group's net loss for this first accounting period was Eur 4,254,033. This
included one off formation expenses of Eur 1,655,929 and losses on foreign
exchange amounting to Eur 1,678,177. The majority of the foreign exchange
movements relate to book gains and losses due to the revaluation of assets and
liabilities.
At the Balance Sheet date the published valuation NAV was Eur 2.14 per share
(GBP 1.57 per share) in comparison to the accounting NAV of Eur 1.81 per share
(GBP 1.33 per share), using a year end exchange rate of Eur / GBP 1.3598.
Richard Prickett FCA (Chairman)
20 June 2008
Investment manager's report
The Romanian economy grew by 6% in both 2006 and 2007. GDP growth in 2008 is
expected to be similar with consumption, investment and exports likely to be
the main drivers of growth. Interest rates are now 9% having increased by 150
basis points in 2008 in an attempt to curb inflation and support the currency
which has weakened on the back of a high current account deficit.
The Romanian real estate market continues to grow strongly, fuelled by the
imbalance between supply and demand. This remains our central theme in managing
the Company. Demand has been supported by a relatively large increase in average
monthly income.
Projects update
_______________
Mogosoia Project
In the Investment Manager's opinion the residential property market continues to
offer attractive returns at relatively low risk. There is a shortage of
residential accommodation in Romania in general and Bucharest in particular.
Although we believe that approximately 1,400 new residential units were
delivered in Bucharest during 2007 this is short of the general assessment of
demand for 100,000 units over the next 5 years or so. The area of the market
that we favour is the middle segment, and we expect that projects that can
deliver well-built and finished units at competitive prices should do well.
Our expectation is that the Company's Mogosoaia project will provide a good
example of this, as its location is sensible for pricing and accessibility.
To date in Bucharest, most of the development has been in the North of the city
and the site is well located to provide fast access to
the Banaesa/Calae Victoria area of Bucharest where most of the banks and office
developments are located. It is in these areas that the target market of young
professionals and those working for international companies are located.
Price pointing has become key in new developments and although Romania has a
very aspirational society, the apartments still need to be within the reach of
our target market. The middle market has largely been ignored to date with
many developers choosing to aim for the higher end of the market. This pent up
demand from the middle market, combined with the recent relaxation of the retail
mortgage market positions the project well in today's Bucharest climate.
As competitor schemes get announced, the project needs to provide a leading edge
to its design and we believe the project team of international experience is
well positioned to achieve this. To date many of the schemes have not offered a
large sense of community, lifestyle, open space or landscaping. The Mogosoaia
scheme will create an affordable lifestyle option where individuals will have
access to restaurants, gyms, walkways, commercial services (pharmacy, laundry,
creche etc) and many other kind of recreational facilities as part of their
community in which they live.
Alchemy Development Management SRL ("Alchemy") has been appointed as development
manager for the Mogosoaia project. Alchemy is headed by Ali Chemais who spent
13 years working on various projects for the international construction company
Bouyges; subsequently he spent 8 years as General Manager of Mivan-Kier, a Romanian
joint venture between Mivan Limited and Kier plc.
Alchemy's experience in construction methodology, link into subcontractors and
economy of scale is vital in a market where construction costs are rising and large
contingencies and profit margins are being demanded. Gardiner & Theobald has also been
engaged to provide the cost consultancy on the project.
Reddy Tate Stevenson SRL, a joint venture between Anthony Reddy (Dublin) and
Tate Stevenson (Belfast) have been appointed on the concept and scheme design.
The masterplan has now been frozen and the total build area is as per the
original financial projections. Phase 1 apartment layouts, interiors, facades
and landscaping will be completed in mid-July in order to commence the build
permit application in August and tender the construction contract.
Reddy Tate Stevenson are supported by ARUP Consulting Engineers in Belfast and
Bucharest to provide state of the art solutions to ensure the building is
efficient in terms of design, areas (gross/net) and structural support
methodology.
The architect team carried out an exercise of scoping the bills of quantities of
the current buildings which lead to a significant 50% saving on the original
demolition quotes. The demolition permit is expected to be received by the end
of June 2008 which will then allow the demolition contractor to mobilize in July
to remove the existing buildings and excavate the site. A fence will be
erected around the site which will allow us to commence marketing and show there
is activity starting in the area.
The masterplan drawings and concept been submitted to several international and
local contractors for tendering of Phase 1. A contractor will be appointed on
a design and build FIDIC contract at the end of the summer, with mobilization
expected in October/November 2008.
Regatta have been appointed as the sales agent on the scheme and will have a
strong 6-8 persons team working at two showrooms in Bucharest and on the site.
Regatta has been involved at each stage of evolution of the scheme design due to
their 15 years of experience of the Romanian market. This has helped us in
designing the correct product for the current market. A large branding agency in
Belfast, AV Browne, has also been engaged and are working with Regatta and a local
branding agent, United to commence the marketing of the scheme at the end of the summer.
Unicredit Tiriac Bank will provide development financing for the scheme and an
initial enabling facility of Euro10m has been secured which will allow the building
of the first phase of the scheme (approximately 200 apartments). By phasing
the bank facility in this way we have reduced the risk of the project and
limited the guarantees. The first draw down is targeted for June 2008.
Ploesti Project
Since 1990, a number of German, French, American, UK and Italian retailers have
entered the Romanian market including: Nike, Adidas, Benetton, Max Mara,
Hugo Boss, Marks & Spencer, IKEA, The Body Shop, Mango, Zara, Quiksilver,
Diesel, Esprit, Guess, Mexx, Mothercare, Lacoste, Ecco, McDonalds, Pizza Hut,
KFC, etc.
The shopping centre market is characterised, in the Investment Managers opinion,
by a shortage of high-quality projects and also by a number of speculative
announcements of future projects which are unlikely to be constructed. We
believe that the actual number of shopping centre projects that will be
completed may be significantly lower than the number currently announced, as
developers try to scare off potential competitors.
The 10-hectare Ploesti Project site already has outline planning permission for
a leisure and retail complex. The Fund and its development partner, Westhill
Investments Limited ("Westhill"), has assembled a team of influential and
well-respected consultants on the project. Benoy (chief architects), are
recognized as one of the largest specialist retail architectural practices
in the UK with offices in Hong Kong, Abu Dhabi and the UK. Their best known
UK developments include Bluewater and the Birmingham Bullring. Benoy are also
involved in a range of projects in Eastern Europe. Gleeds have been appointed
Project Manager and Cost Consultants. Gleeds has over 120 years experience in
the property and construction industry. Past projects include the Hilton Hotel
in Frankfurt, Warsaw and Prague. Other appointments include WSP (one of the
world's fastest growing design, engineering and management consultants),
Cushman & Wakefield and King Sturge.
The project at the moment is subject to a very intensive planning process which
is not yet finalized. The Permit to Build application (PAC) for 76,000 square
metres of Gross Lettable Area (59,000 square metres Net Lettable Area) was
submitted in April.
Recent research carried out by our development management team in Romania
indicates that shopping centre rents for high-quality projects in secondary
cities are currently approximately Eur 18 - Eur 25 per square metre per month.
Anchor tenant rents for this type of project are between Eur 6 - Eur 9 per
square metre per month.
Development summary
___________________
The site is located to the north-west of Ploesti's town centre. It has extensive
frontage on to the principle road (Ploesti-Brasov road), which is the main
access way from Bucharest to the north of the country including Brasov (160 km
from Bucharest), where many Romanians drive to the mountains each weekend.
The south-west side of the site fronts an existing Carrefour
(opened in 2005, 8,000 square metres) and the development plots of Mobexpert
(furniture retailer - the largest national operator) and Media Galaxy (the
largest electrical goods operator in Romania) where construction is due to start
next year. The presence of the Carrefour has established the area as a retail location.
The shopping centre will have high visibility and accessibility.
In addition to Carrefour, just opposite the site are major standalone big box
retailers including Bricostore (DIY), Praktiker (DIY) and Metro.
The plan is to develop approximately 59,000 square metres of net retail area
spread over three floors. The design is for a few anchor tenants including a supermarket,
a furniture store and a fashion anchor as well as approximately 2,400 car parking spaces.
The top floor will include a multi-screen cinema (12 screens), bowling, health club and
a food court totalling approximately 4,060 square metres. An important attraction for this
site is the amount of parking as the main mode of transportation for the locals is by car.
The site is accessible by existing public transportation facilities (buses), which link the
various areas of the city with the existing Carrefour and Metro. The aim of the shopping
centre is to have a strong retail tenant mix offering, which is not available elsewhere in
Ploiesti and the surrounding cities.
The pre-leasing efforts have started and a number of retailers have shown
initial interest. We have received letters of interest from retailers for over
18,000 square metres (approximately 30% of the Net Lettable Area). These
include:
4 Supermarket Retailers
1 Furniture Retailer
4 Department Store Companies
2 DIY Retailers
2 Cinema Groups
4 Fashion/Clothing Retailers
2 Sports Equipment Retailers
Westhill has already obtained outlining planning permission and they anticipate
that the detailed planning application "Permit to Build" will be approved within
the coming weeks. Westhill have strong local political support for the project
as well as having met with the Mayor on several occasions, who is very
supportive of the shopping centre.
According to a feasibility study commissioned by Westhill (from one of the top
international real estate agents) within a 60 minute drive of the development
there is a catchment area of approximately 1 million people and approximately
0.5 million people are within a 30 minute drive. There are a number of
residential developments in the pipeline within the catchment area, which may
also lead to an increase in population in the vicinity and add to the pool of
potential shoppers.
As detailed above, the visibility and accessibility of the site will be
excellent as it is connected to the two main roads, DN1 (to Brasov) and DN1B (to
Buzau). We understand that by 2010, there will be more than 30,000 cars passing
the Ploesti Project every day.
Lewis Charles Securities Limited
Investment Manager
20 June 2008
Consolidated income statement
for the period 29 June 2007 to 31 December 2007
Notes
_____ Eur
Investment income 123,923
____________
Net operating income 123,923
____________
Expenditure
Administration fees 3 101,679
Management fees 5 306,283
Performance fees 6 -
Formation expenses 4 1,655,929
Directors' fees and expenses 7 44,287
Other expenses 8 637,004
Loss on foreign currency
exchange 2.9 1,678,177
____________
Total expenditure 4,423,359
____________
Net operating loss (4,299,436)
____________
Interest receivable 45,403
____________
Net finance income 45,403
____________
Loss before tax (4,254,033)
Taxation 2.8 -
____________
Loss for the period (4,254,033)
____________
Loss per share - basic and
diluted (cents per share) 11 (21.73)
All items in the above statement derive from continuing operations
Company income statement
for the period 29 June 2007 to 31 December 2007
Notes
_____ Eur
Investment income 123,923
____________
Net operating income 123,923
____________
Expenditure
Administration fees 3 83,679
Management fees 5 306,283
Performance fees 6 -
Formation expenses 4 1,483,081
Directors' fees and expenses 7 44,287
Other expenses 8 173,180
Loss on foreign currency
exchange 2.9 582,268
____________
Total expenditure 2,672,778
____________
Net operating loss (2,548,855)
____________
Interest receivable 220,375
____________
Net finance income 220,375
____________
Loss for the period (2,328,480)
____________
All items in the above statement derive from continuing operations
Consolidated balance sheet
as at 31 December 2007
Notes
_____ Eur
Assets
Inventory 12 28,007,787
______________
Total non current assets 28,007,787
______________
Trade and other receivables 16 580,902
Cash and cash equivalents 17 7,257,035
______________
Total current assets 7,837,937
______________
Total assets 35,845,724
______________
Equity
Issued capital and reserves 35,462,009
______________
Total equity 35,462,009
______________
Liabilities
Trade and other payables 18 383,712
Founder shares 3
______________
Total current liabilities 383,715
Total liabilities 383,715
______________
Total equity and liabilities 35,845,724
______________
NAV per ordinary share (Eur per share) 20 1.8115
NAV per ordinary share at launch
(Eur per share) 1.9352
These financial statements were approved by the Board of Directors on 20 June
2008.
Signed on behalf of the Board
P Duquemin C Simon
Director Director
Company balance sheet
as at 31 December 2007
Notes
_____ Eur
Assets
Investment in subsidiaries 13 9,293,000
Loans receivable from
subsidiary companies 14 21,120,434
_____________
Total non current assets 30,413,434
_____________
Trade and other receivables 16 18,706
Cash and cash equivalents 17 6,862,670
_____________
Total current assets 6,881,376
_____________
Total assets 37,294,810
_____________
Equity
Issued capital and reserves 37,188,853
_____________
Total equity 37,188,853
_____________
Liabilities
Trade and other payables 18 105,954
Founder shares 3
_____________
Total current liabilities 105,957
_____________
Total equity and liabilities 37,294,810
_____________
These financial statements were approved by the Board of Directors on 20 June
2008.
Signed on behalf of the Board
P Duquemin C Simon
Director Director
Statements of changes in equity
for the period 29 June 2007 to 31 December 2007
Consolidated
Share Foreign Share Revenue
capital exchange premium reserve Total
reserve
Eur Eur Eur Eur Eur
Issue of ordinary shares - - 40,727,575 - 40,727,575
Commissions payable on issue
of ordinary shares - - (1,210,242) - (1,210,242)
Foreign exchange adjustments
arising on consolidation - 198,709 - - 198,709
Loss for the period - - - (4,254,033) (4,254,033)
_________ _________ ___________ _____________ ___________
As at 31 December 2007 - 198,709 39,517,333 (4,254,033) 35,462,009
_________ _________ ___________ _____________ ___________
Company
Share Foreign Share Revenue
capital exchange premium reserve Total
reserve
Eur Eur Eur Eur Eur
Issue of ordinary shares - - 40,727,575 - 40,727,575
Commissions payable on issue
of ordinary shares - - (1,210,242) - (1,210,242)
Loss for the period - - - (2,328,480) (2,328,480)
_________ _________ ___________ _____________ ___________
As at 31 December 2007 - - 39,517,333 (2,328,480) 37,188,853
_________ _________ ___________ _____________ ___________
Consolidated cash flow statement
for the period 29 June 2007 to 31 December 2007
Eur
Loss for the period (4,254,033)
Adjustment for:
Net finance income (45,403)
_____________
Operating cash flows before movements
in working capital (4,299,436)
Increase in trade and other receivables (580,899)
Increase in trade and other payables 383,712
_____________
Cash used in operations (4,496,623)
Interest received 45,403
_____________
Net cash outflow from operating activities (4,451,220)
_____________
Investing activities
Investment in inventory (28,007,787)
_____________
Net cash outflow from investing activities (28,007,787)
_____________
Financing activities
Proceeds on issue of shares 40,727,575
Costs incurred on issue of shares (1,210,242)
_____________
Net cash inflow from financing activities 39,517,333
_____________
Increase in cash and cash equivalents for the period 7,058,326
Opening cash and cash equivalents -
Effect of foreign exchange rates 198,709
_____________
Closing cash and cash equivalents 7,257,035
_____________
Company cash flow statement
for the period 29 June 2007 to 31 December 2007
Eur
Loss for the period (2,328,480)
Adjustment for:
Net finance income (220,375)
_____________
Operating cash flows before movements
in working capital (2,548,855)
Increase in trade and other receivables (18,703)
Increase in trade and other payables 105,954
_____________
Cash used in operations (2,461,604)
Interest received 220,375
_____________
Net cash outflow from operating activities (2,241,229)
_____________
Investing activities
Investment in subsidiaries (9,293,000)
Issue of loans to subsidiary companies (21,120,434)
_____________
Net cash outflow from investing activities (30,413,434)
_____________
Financing activities
Proceeds on issue of shares 40,727,575
Costs incurred on issue of shares (1,210,242)
_____________
Net cash inflow from financing activities 39,517,333
_____________
Increase in cash and cash equivalents for the period 6,862,670
Opening cash and cash equivalents -
_____________
Closing cash and cash equivalents 6,862,670
_____________
Notes to the financial statements
as at 31 December 2007
1 CORPORATE INFORMATION
Lewis Charles Romania Property Fund Limited (the "Company") and its subsidiaries
(together the "Group") is an investment fund with a major investment portfolio in
Romania. The aim of the Company is to generate capital gains by investing in both
residential and commercial property in Romania, primarily, although not exclusively,
around Bucharest
The Company is a limited company incorporated in Guernsey. The address of the
registered office is shown on page 2. The life of the Company is fixed by the
Articles for the duration of the Company and ends on the sixth anniversary
of Admission. The directors have the right to extend the period for a period
of one year until the seventh anniversary of Admission. Thereafter the duration
of the Company may be extended at an extraordinary general meeting convened
for the purpose.
On 2 August 2007 the Company listed on the Alternative Investment Market (AIM)
of the London Stock Exchange PLC.
These financial statements were authorised by the Board for publication on
20 June 2008.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these
financial statements are set out below. These policies have been consistently
applied, unless otherwise stated.
(2.1) Basis of preparation
The financial statements of the Company and the Group 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.
The financial statements have been prepared on the historical cost basis.
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 Company'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.
Judgements made by management in the application of IFRS that have a significant
effect on the financial statements and estimates with a significant risk of
material adjustment in the next year are disclosed in note 12.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if therevision only affects that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
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 8, Operating Segments - for accounting periods commencing on or after 1
January 2009.
IFRIC 12, Service Concession Arrangements - for accounting periods commencing
on or after 1 January 2008.
IFRIC 13, Customer Loyalty Programmes - for accounting periods commencing on or
after 1 July 2008.
IFRIC 14, IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interactions for accounting periods commencing on
or after 1 January 2008.
(2.2) Consolidation
The consolidated financial statements incorporate the financial statements of
the Company, the entities controlled by the Company (its subsidiaries) and the
Company's' joint ventures, made up to 31 December. 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 and joint ventures acquired during the period are
included in the consolidated statements from the date control passes.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
The Group's interests in jointly controlled entities are accounted for by
proportional consolidation. The Group combines its share of the joint ventures'
individual income and expenses, assets and liabilities and cashflows on a line-
by-line basis with similar items in the Group's financial statements. The Group
recognises the portion of gains or losses on the sale of assets by the Group to
the joint venture that is attributable to the other venturers. The Group does
not recognise its share of profits or losses from joint ventures that result from
the Group's purchase of assets from the joint venture until it resells the asset
to an independent party. However, a loss on the transaction is recognised
immediately if the loss provides evidence of a reduction in the net realisable
value of current assets, or as an impairment loss.
(2.3) Income
Investment income is recognised on a time apportioned basis using the effective
interest method.
Interest income on debt securities and bank balances is accrued for on a day-to-
day basis. Interest accrued on the purchase and sale of debt securities is
excluded from the cost / proceeds and is included as investment income.
Revenue from the sale of property or property units is recognised when the risks
and rewards of ownership have been transferred to the buyer and provided that
the Group has no further substantial acts to complete under the contract.
(2.4) 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.
(2.5) Cash and cash equivalents
Cash and cash equivalents are defined as cash on hand and 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.
Any cash held by the Group may be held in Euro-denominated government bonds with
maximum maturities of the lesser of two years or the remaining life of the Group
and/or invested in AAA rated liquid funds. Such investments will be fair valued
to closing bid price, with movements in fair value being taken to the Income Statement.
(2.6) Inventories
Land held for development potential with the intention for future sale is
accounted for under International Accounting Standard No 2 "Inventories". These
projects are included within Inventories and are stated at the lower of cost and
net realisable value. Cost comprises direct materials, direct labour costs and
those overheads that have been incurred in bringing the properties to their present
location and condition. Net realisable value represents the estimated selling price,
less all estimated costs of completion and costs to be incurred in marketing and
selling the inventories.
The Group has appointed Regatta Real Estate Company and REAG Real Estate Advisory
Group SRL as property valuers to prepare valuations on an annual basis. Valuations
will be undertaken in accordance with the Royal Institute of Chartered Surveyors
Appraisal and Valuation Standards.
(2.7) Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment
of business, being property investment business, and in one geographical area,
Romania.
(2.8) Taxation
The Company is exempt from taxation under the provisions of The Income Tax
(Exempt Bodies) (Guernsey) Ordinance, 1989. As such, the Company is only liable
to pay a fixed annual fee, currently GBP 600.
Current tax arises in jurisdictions other than Guernsey. It is based on taxable
profit for the year and is calculated using tax rates that have been enacted or
substantially enacted. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense that are taxable
or deductible in other years - temporary differences and items that are never
taxable or deductible - permanent differences. Temporary differences principally
arise from using different balance sheet values for assets and liabilities than
their respective tax base values. Deferred tax is provided in respect of all
these taxable temporary differences at the balance sheet date.
Deferred tax liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are regarded as recoverable and therefore
recognised only when, on the basis of all available evidence, it is probable
that suitable taxable profits will be available against which the future
reversal of the underlying temporary differences can be deducted.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised.
(2.9) Foreign currency translation
(a) Functional and presentation currency
The functional currency of the Company is Euros as substantially all expenses
relating to the investments are made in Euros.
The presentation currency of the Company for accounting purposes is also the
Euro. The financial statements are converted into Sterling for information
purposes only.
(b) Transactions and balances
Foreign currency balances are translated into Eur at the rate of exchange ruling
on the last day of the 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 Income Statement for
the period.
Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the "functional currency").
(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 rate on the date of the
transactions); and
(iii) all resulting exchange differences are recognised as a separate component
of equity.
(2.10) Financial liabilities
Financial liabilities are measured at amortised cost and represent accounts
payable and accrued expenses.
(2.11) Financial instruments
Financial assets and financial liabilities are recognised on the Group's balance
sheet when the Group becomes party to the contractual provisions of the
instrument.
(2.12) Trade and other payables
Trade payables are not interest bearing and are stated at their nominal value.
(2.13) Trade and other receivables
Trade and other receivables are stated at their cost less any impairment losses.
(2.14) Investment in subsidiary undertakings
Investment in subsidiary undertakings are stated at cost less, where
appropriate, provisions for impairment.
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 GBP 100 million and 0.07% of the Net
Asset Value of the Company above GBP 100 million, subject to a minimum fee
during the period of GBP 100,000 per annum plus disbursements.
Other administration fees are paid by the underlying subsidiaries at a rate as
may be agreed in writing from time to time.
4 FORMATION EXPENSES
All expenses incurred in the formation of the Company, its subsidiaries and
joint ventures have been included as expenses in the period in which they were
incurred. The Company's principal documents require these expenses to be
written off over the life of the Company, however accounting standards do not
allow such treatment in the financial statements.
5 MANAGEMENT FEES
The Company will pay the Investment Manager a management fee of 2% per annum of
the net proceeds of the placing calculated and payable quarterly in advance. The
first instalment of management fee payable will be calculated in respect of the
period from admission to AIM until 31 December 2007. The Investment Manager is
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.
6 PERFORMANCE FEES
The Investment Manager will 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 10% property hurdle. 50% of the performance
fees calculated will be payable to the Investment Manager within 30 days of the
receipt of the proceeds of the sale of a property. The balance will be paid at
the same time into a reserve account and be invested in Sterling money market
deposits, unless otherwise agreed between the Investment Manager and the
Company, and held pending the calculation of the overall returns on the property
portfolio at the end of the life of the Company. No performance fee is shown
within these financial statements as any provision is based on the uplift shown
in the fair value adjustment of the investment properties and no such uplift is
provided in these financial statements. If the properties were to be reflected
at fair market value a performance fee provision of Eur 953,990 would be
provided for.
7 DIRECTORS' FEES AND EXPENSES
George Inge, Dr Flavius Baias and Paul Duquemin each receive a fee of GBP 15,000
per annum, Clive Simon receives a fee of GBP 18,000 with the Chairman, Richard
Prickett, receiving GBP 20,000. The Chairman and Directors are reimbursed other
expenses properly incurred by them in attending meetings and other business of
the Company.
8 OTHER EXPENSES Consolidated Company
2007 2007
Total Total
Eur Eur
________ ________
Agents fee 380,000 -
Registrar's fees (see note 9) 4,600 4,600
Audit fees 92,478 38,074
Legal and professional fees 55,849 34,336
Consultancy fees 68,343 67,353
Insurance costs 11,664 8,829
Statutory fees 1,477 1,477
Bank charges 3,854 2,660
Other fees and expenses 18,739 15,851
________ ________
637,004 173,180
________ ________
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 GBP 4,000 per annum, or the amount per shareholder,
currently GBP
2.00, on the Register of Shareholders at the commencement of the fee year. The
Company's fee year commenced on the date of admission to AIM and on each
anniversary of that date.
10 COMMISSION PAID
In return for their services as distributors, Canacord Adams Limited and Lewis
Charles Securities Limited received a commission of 3% of the Placing Price of
Shares placed by them pursuant to the Placing. These amounts are a direct expense
of issuing the equity of the Company and have been taken deducted from the proceeds
received on the share issue.
11 LOSS PER SHARE - BASIC AND DILUTED
The consolidated basic and dilluted loss per Ordinary Share of 21.73 cents is
based on the net income loss of Eur 4,254,033 and on 19,576,405 ordinary shares
in issue, being the weighted average number of shares in issue during the period
from admission to the balance sheet date.
12 INVENTORY
Ploesti Mogosoaia Total
Eur Eur Eur
Cost of land held 7,000,000 1,975,000 8,975,000
Development costs 8,053,592 10,979,195 19,032,787
___________ ___________ ___________
Value held for resale 15,053,592 12,954,195 28,007,787
___________ ___________ ___________
Fair value 22,104,029 13,634,462 35,738,491
___________ ___________ ___________
The Group's main activity is the development and sale of residential and
commercial property. The process of obtaining zoning and permits may in itself
take some time. This period is then added to by the time taken to construct the
properties. In this time the costs of the land and the construction are recorded
in Inventories. The Group continually reviews the net realisable value of the
inventory against the cumulative costs that are held on its balance sheet. To
enable this review, management have appointed appropriately qualified personnel
to monitor and control the costs of construction.
The costs that have been incurred and are projected to be incurred are
benchmarked against those available in the market to ensure that best value is
achieved. A strict tendering process is adhered to when procuring construction
services and the costs are controlled locally on a monthly basis. In addition to
this, the Group retains Regatta Real Estate Company and REAG Real Estate
Advisory Group SRL to assist them to undertake an independent assessment of the
net realisable value of its developments.
The fair value of the developments as at 31 December 2007 has been arrived at on
the basis of valuations carried out at that date by Regatta Real Estate Company
and by Real Estate Advisory Group SRL, independent valuers not connected to the
Group. 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.
13 INVESTMENT IN SUBSIDIARIES
2007
Company
Eur
Opening balance -
Additions in period
Romholdings SA 31,000
Roproperties SA 6,931,000
Rominvestments SA 2,331,000
___________
Closing balance 9,293,000
___________
On 9 July 2007 the Company acquired Romholdings SA through the acquisition of
its entire share capital. Romholdings SA is an investment property holding
company registered and incorporated in Luxembourg, funded mainly in cash.
On 11 July 2007 the Company acquired 100% of the share capital of Roproperties
SA an investment property holding company registered and incorporated in
Luxembourg, funded mainly in cash. Roproperties SA has a 100% owned subsidiary,
SC Retail Park Magnolia SRL, a property development company registed and
incorporated in Romania.
On 12 July 2007 the Company acquired 100% of the share capital of Rominvestments
SA, an investment property holding company registered and incorporated in Luxembourg,
funded mainly in cash. Rominvestments SA has a 50% interest of SC Gold Development
SPV SRL , a property development company registered and incorporated in Romania.
14 LOANS RECEIVABLE FROM SUBSIDIARY COMPANIES Company
2007
___________
Eur
Roproperties SA 9,775,816
Rominvestments SA 11,344,618
___________
21,120,434
___________
The loan to Rominvestments SA has been provided under the terms of an agreement
effective 8 August 2007 and is due to expire on 8 August 2013. The facility is
split into two tranches. The initial advance of Eur 2,500,000 accrues interest
at a rate of 5.5% per annum. The second advance of Eur 8,790,000 is interest
free. The whole facility is unsecured.
The loan to Roproperties SA has been provided under the terms of an agreement
effective 8 August 2007 and is due to expire on 8 August 2013. The facility is
split into two tranches. The initial advances totalling Eur 9,327,595 accrues
interest at a rate of 4.75% per annum. An additional advance of Eur 307,405 is
interest free. The whole facility is unsecured.
While the loan agreements regarding the above loans state that they are
repayable on demand it is the Company's' intention that they will not request
repayment of these loans until the specified loan expiry dates. As such it is
felt to be appropriate to disclose these loans as non current assets.
15 JOINT VENTURE
On 12 July 2007 the Group acquired, through the acquisition of Rominvestments
SA, 50% of the equity of SC Gold Developments SPV SRL, which holds the
development project Mogosoaia.
The Group is entitled to a proportionate share of the income generated and a
proportionate share of the outgoings. The following amounts are included in
the Group's financial statements as a result of the proportionate consolidation
of SC Gold Developments SPV SRL.
SC Gold Developments SPV SRL
____________________________
Eur
___________
As at 31 December 2007:
Non-current assets 2,064,223
Current assets 101,794
Non-current liabilities (1,292,179)
Current liabilities (356)
For the period 12 July 2007 to 31 December 2007:
Income 420
Expense 449,222
16 TRADE AND OTHER RECEIVABLES Consolidated Company
2007 2007
____________ __________
Eur Eur
Debtors 491,002 4,939
Prepayments 89,900 13,767
____________ __________
580,902 18,706
____________ __________
The aging of these receivables is as follows:
Less than 3 months 5,064 4,937
3 to 6 months 537,696 -
Over 6 months 38,142 13,769
____________ __________
580,902 18,706
____________ __________
It was assessed that all of the receivables are expected to be recovered. There
is no difference between the carrying value of trade and other receivables and
their fair value.
The allocation of the carrying amount of the Group's trade and other receivables
by foreign currency is presented in Note 22.
17 CASH AND CASH EQUIVALENTS Consolidated Company
2007 2007
____________ __________
Eur Eur
Lehman Eur Liquidity Fund 4,869,431 4,869,431
Blackrock Institutional Eur Fund 1,239,557 1,239,557
Cash at Bank 1,148,047 753,682
____________ __________
7,257,035 6,862,670
____________ __________
The cash equivalent investments are considered to be highly liquid, so that
book cost is considered equivalent to fair value. The weighted average interest
rate on cash balances at 31 December 2007 was 4.14%.
18 TRADE AND OTHER PAYABLES Consolidated Company
2007 2007
____________ _________
Eur Eur
Directors' fees 21,417 21,417
Audit fees payable 92,834 38,074
Legal fee payable 223,173 33,173
Management fee payable 12,358 12,358
Administration fees payable 18,000 -
Sundry creditors 15,930 932
____________ _________
383,712 105,954
____________ _________
19 SHARE CAPITAL 2007
GBP
Authorised
10,000 founder shares of GBP 1 par value 10,000
_________
Unlimited number of ordinary shares of no par value -
_________
Treatment of ordinary shares as equity
As the Company has a fixed life, at the end of which its assets will be
liquidated and distributed to its shareholders, under IFRS the amounts due to
the shareholders of the Company should be shown as a financial liability of the
Company. This was not the intention of the Company at the time of its
formation.
On 14 February 2008 the International Accounting Standards Board published
amendments to IAS 32 - Financial Instruments : Presentation and IAS 1 -
Presentation of Financial Statements. The amendment allows amounts due to the
shareholders of the Company to be shown as equity where the shares meet the
following two criteria;
Firstly, the shareholder must be entitled to a pro rata share of the entity's
net assets on liquidation ; and
Secondly the shares must be in the class of shares that is most subordinate in
issue and all shares in that class must have identical features.
As a result of these amendments the Company is in a position to classify the
amounts due to shareholders as equity. The effective date for the implementation
of these provisions is for periods beginning on or after 1 January 2009, however
the Company has agreed to the early adoption of these amendments within these
financial statements.
Issued and fully paid 2007 2007
Shares Eur
____________ _________
Founder shares
______________
Shares issued during the period 2 3
____________ _________
Closing balance 2 3
____________ _________
Ordinary shares
______________
Shares issued during the period 19,576,405 -
____________ _________
Closing balance 19,576,405 -
____________ _________
The Founder shares may only be issued at par and only to the Investment Manager
or nominee of the Investment Manager. The rights attached to the Founder are as
follows:
a) The Founder shares carry voting rights only when there are no ordinary shares
in issue;
b) The Founder shares do not carry any right to dividends or distributions; and
c) The Founder shares are subject to requisition by the Company when they are
not held by the Investment Manager.
Ordinary shares of nil par value carry no right to fixed income.
20 NAV PER SHARE
Consolidated
2007
Eur
_____________
Net Asset Value attributable to ordinary shareholders 35,462,009
Number of shares in issue 19,576,405
Net asset value per share 1.8115
The Net Asset Value per Ordinary Share is based on the Net Asset Value at the
Balance Sheet date and on 19,576,405 Ordinary Shares, being the number of shares
in issue at the balance sheet date.
21 FINANCIAL INSTRUMENTS
The Group's principal financial instruments comprise intercompany trading
balances with subsidiaries and joint ventures, trade receivables, trade
payables, cash and cash equivalents and any loans.
The Groups' activities expose it to a variety of risks from its use of financial
instruments which include:
- market risk (including interest rate risk, price risk and currency risk)
- credit risk
- liquidity risk
The accounting policy with respect to these 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 Groups' exposure to each of the above risks and the Board
of Directors objectives, policies and processes for measuring and managing these
risks.
Price risk
The Group is exposed to price risk as a result in any change in the underlying
inventory held, however inventory is not a financial instrument.
Interest rate risk
The majority of the Group's financial assets are interest bearing. With the
exception of loans within the Group, interest-bearing financials assets and
interest-bearing financial liabilities mature or reprice in the short-term, no
longer than twelve months. Trade and other receivables and payables are interest
free.
As a result the Group is subject to exposure to fair value interest rate risk
due to fluctuations in the prevailing levels of market interest rates.
In respect of income-earning financial assets and interest-bearing financial
liabilities, the following table indicates their effective interest rates at the
balance sheet date and the periods in which they re-price.
Greater than
Interest rate Total 6 months or less 5 years
Group % Eur Eur Eur
Cash and cash equivalents 3.91 7,257,035 7,257,035 -
Greater than
Interest rate Total 6 months or less 5 years
Group % Eur Eur Eur
Cash and cash equivalents 4.14 6,862,670 6,862,670 -
Loans receivable from subsidiary companies 4.91 11,827,595 - 11,827,595
The Group may invest in Eur 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 chosen to invest in high liquidity, floating rate instruments to
mitigate the risk that similar returns would be unavailable on the expiry of
contracts.
The overall interest rate risks are monitored by the Board of Directors.
The cash and cash equivalent instruments subject to interest rate movements are
disclosed in note 17 and are all at varaiable rates.
Currency risk
Currency risk is the risk that the Income Statement and Balance Sheet can be
affected by currency translation movements where the fair value or the future
cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. The Board consider that the Group's exposure to currency
risk is minimal, with the exception of book gains and losses in the underlying
subsidiaries, as the majority of the Group's transactions are made in Eurs and
the books and records are kept in Eurs.
The Romanian Leu is expected to be replaced by the Eur in 2014.
The tables below summarise the Group and Company exposure to foreign currency
risk at 31 December 2007 in respect of its financial instruments. The assets and
liabilities are included in the table below, in Eur's, categorised by the
currency at their carrying amount.
Group CHF GBP RON Total
_____ ___ ___ ___ _____
Trade and other receivables - 13,766 575,833
Cash and cash equivalents - 514,567 530,957
________ ________ ________ _________
Total assets - 528,333 578,457 1,106,790
________ ________ ________ _________
Trade and other payables (23,400) (55,995) (15,354) (94,749)
Loans - - (699,926) (699,926)
________ ________ ________ _________
Total liabilities (23,400) (55,995) (715,280) (794,675)
________ ________ ________ _________
Net assets (23,400) 472,338 (136,823) 312,115
________ ________ ________ _________
Company GBP
_______ ___
Trade and other receivables 13,767
Cash and cash equivalents 514,567
________
Total assets 528,334
________
Trade and other payables (67,770)
________
Total liabilities (67,770)
________
Net assets 460,564
________
The following significant exchange rates were applied during the period:
Reporting date
Eur Average rate spot rate
2007 2007
RON 1 3.3357 3.5753
GBP 1 1.4614 1.3598
CHF 1 1.6432 1.6564
A 10 percent strengthening / weakening of the Eur against the above currencies
at 31 December 2007 would have increased / decreased net assets by the amounts shown below.
This analysis assumes that all other variables, in particular interest rates, remain constant.
Group Company
Eur Eur
RON (13,682) -
GBP 47,234 46,056
CHF (2,340) -
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 in order to ensure that the
Group can meet its liabilities as and when these fall due. 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.
The ability of the Group to complete on purchases is dependent on the amount of
equity available at the time, which may not be the same as are 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.
A summary table with the maturity of financial assets and financial liabilities
is presented below:
Group Less than 6 to 12 Greater than
_____ 6 months months 12 Months
Financial assets
Trade and other receivables 542,760 - 38,142
Cash and cash equivalents 7,257,035 - -
__________ __________ __________
7,799,795 - 38,142
__________ __________ __________
Financial liabilities
Trade and other payables 383,712 - -
__________ __________ __________
383,712 - -
__________ __________ __________
Company Less than 6 to 12 Greater than
_______ 6 months months 12 Months
Financial assets
Trade and other receivables 4,937 - 13,769
Cash and cash equivalents 6,862,670 - -
__________ __________ __________
6,867,607 - 13,769
__________ __________ __________
Financial liabilities
Trade and other payables 105,954 - -
__________ __________ __________
105,954 - -
__________ __________ __________
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 Group's exposure to
credit risk relates primarily to cash and cash equivalents. The Group has tried
to mitigate this risk by investing in high liquidity, AAA rated instruments.
The Group holds cash and liquid resources as well as having receivables and
payables that arise directly from its operations. The Group's investment
activities expose it to various types of risk associated with the property
market and development of real estate projects. Such risks include the risk
that the developer of a site may become insolvent and unable to complete a
project.
Fair Values
Estimate of fair values
Management deems that there is no significant difference between the fair values
of financial assets and liabilities and their carrying value in the financial
statements.
22 RELATED PARTY DISCLOSURES
Transactions with, and amounts due at period end to, directors, the investment
manager, the administrators , the subsidiaries and joint ventures are as
disclosed in the Directors' report and throughout the financial statements.
23 CONTROLLING PARTY
In the opinion of the Directors there is no immediate or ultimate 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.
24 RECONCILIATION OF NAV PER THE FINANCIAL STATEMENTS TO PUBLISHED NAV
Eur Per share
Net Asset Value per financial statements 35,462,009 1.811
Add back:
Adjustment to value of properties 6,003,168 .307
Adjustment to performance fee (953,990) (.049)
Preliminary expenses 1,384,209 .071
___________ ___________
Published Net Asset Value 41,895,397 2.140
___________ ___________
An adjustment is required within the financial statements to record the value of
the inventory / property assets from fair value, as used for the published Net
Asset Value, to the lower of cost and net realiseable value as required under
International Accounting Standard 2 "Inventories".
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.
25 CAPITAL COMMITMENTS
The Group has no outstanding commitments at 31 December 2007.
26 POST BALANCE SHEET EVENTS
There have been no significant events following the end of the accounting
period.
THE FOLLOWING PAGES DO NOT FORM PART OF THE AUDITED FINANCIAL STATEMENTS OF THE
COMPANY AND ARE PRESENTED FOR INFORMATION PURPOSES ONLY
Consolidated income statement
for the period 29 June 2007 to 31 December 2007
Restated into Pounds Sterling for information purposes only
GBP
Investment income 84,797
__________
Net operating income 84,797
__________
Administration fees 69,576
Management fees 209,582
Performance fees -
Formation expenses 1,133,112
Directors' fees and expenses 30,305
Other expenses 435,886
Loss on foreign currency
exchange 1,148,335
__________
Total expenditure 3,026,796
__________
Net operating loss (2,941,999)
__________
Interest receivable 31,068
__________
Net finance income 31,068
__________
Loss before tax (2,910,931)
Taxation -
Loss for the period
__________
(2,910,931)
__________
Loss per share - basic and
diluted (pence per share) (14.87)
Company income statement
for the period 29 June 2007 to 31 December 2007
Restated into Pounds Sterling for information purposes only
GBP
Investment income 84,797
Net operating income 84,797
__________
Expenditure
Administration fees 57,259
Management fees 209,582
Performance fees -
Formation expenses 1,014,836
Directors' fees and expenses 30,305
Other expenses 118,503
Loss on foreign currency
exchange 398,431
__________
Total expenditure 1,828,916
__________
Net operating loss (1,744,119)
__________
Interest receivable 150,797
__________
Net finance income 150,797
__________
Loss for the period (1,593,322)
__________
Loss per share - basic and
diluted (pence per share) (8.14)
__________
Consolidated balance sheet
as at 31 December 2007
Restated into Pounds Sterling for information purposes only
GBP
Inventory 20,596,990
__________
Total non current assets 20,596,990
__________
Trade and other receivables 427,197
Cash and cash equivalents 5,336,840
__________
Total current assets 5,764,037
__________
Total assets 26,361,027
__________
Issued capital and reserves 26,078,842
__________
Total equity 26,078,842
__________
Trade and other payables 282,183
Founder shares 2
__________
Total current liabilities 282,185
__________
Total equity and liabilities 26,361,027
__________
NAV per ordinary share (pence per share) 133.22
NAV per ordinary share at launch (pence per
share) 140.00
Company balance sheet
as at 31 December 2007
Restated into Pounds Sterling for information purposes only
GBP
Investment in subsidiaries 6,834,093
Loans receivable from
subsidiary companies 15,532,015
__________
Total non current assets 22,366,108
__________
Trade and other receivables 13,756
Cash and cash equivalents 5,046,823
__________
Total current assets 5,060,579
__________
Total assets 27,426,687
__________
Issued capital and reserves 27,348,766
__________
Total equity 27,348,766
__________
Trade and other payables 77,919
Founder shares 2
__________
Total current liabilities 77,921
__________
Total equity and liabilities 27,426,687
__________
Statements of changes in equity
for the period 29 June 2007 to 31 December 2007
Restated into Pounds Sterling for information purposes only
Consolidated
Share Foreign Share Revenue
capital exchange premium reserve Total
reserve
GBP GBP GBP GBP GBP
Issue of ordinary shares - - 27,406,967 - 27,406,967
Commissions payable on issue
of ordinary shares - - (822,209) - (822,209)
Loss for the period - - - (2,910,931) (2,910,931)
-
Foreign exchange -
adjustment arising on -
translation to Sterling - - - 2,405,015 2,405,015
-
_________ ___________________________________________________
As at 31 December 2007 - - 26,584,758 (505,916) 26,078,842
_________ ___________________________________________________
Company
Share Foreign Share Revenue
capital exchange premium reserve Total
reserve
GBP GBP GBP GBP GBP
Issue of ordinary shares - - 27,406,967 - 27,406,967
Commissions payable on issue
of ordinary shares - - (822,209) - (822,209)
-
Loss for the period - - - (1,593,322) (1,593,322)
-
Foreign exchange -
adjustment arising on -
translation to Sterling - - - 2,357,330 2,357,330
-
_________ ___________________________________________________
As at 31 December 2007 - - 26,584,758 764,008 27,348,766
_________ ___________________________________________________
Consolidated cash flow statement
for the period 29 June 2007 to 31 December 2007
Restated into Pounds Sterling for information purposes only
GBP
Loss for the period (2,910,931)
Adjustment for:
Net finance income (31,068)
Operating cash flows before movements _____________
in working capital (2,941,999)
Increase in trade and other receivables (427,197)
Increase in trade and other payables 282,185
_____________
Cash used in operations (3,087,011)
_____________
Interest received 31,068
_____________
Net cash outflow from operating activities 31,068
_____________
Investing activities
Investment in inventory (20,596,990)
_____________
Net cash outflow from investing activities (20,596,990)
_____________
Financing activities
Proceeds on issue of shares 27,406,967
Cost of issuing ordinary shares (822,209)
_____________
Net cash inflow from financing activities 26,584,758
_____________
Increase in cash and cash equivalents for the period 2,931,824
Opening cash and cash equivalents -
Effect of foreign exchange rates 2,405,016
_____________
Closing cash and cash equivalents 5,336,840
_____________
Company cash flow statement
for the period 29 June 2007 to 31 December 2007
Restated into Pounds Sterling for information purposes only
GBP
Loss for the period (1,593,322)
Adjustment for:
Net finance income (150,797)
_____________
Operating cash flows before movements
in working capital (1,744,119)
Increase in trade and other receivables (13,756)
Increase in trade and other payables 77,921
_____________
Cash used in operations (1,679,954)
Interest received 150,797
_____________
Net cash outflow from operating activities (1,529,157)
Investing activities
Investment in subsidiaries (6,834,093)
Issue of loans to subsidiary companies (15,532,015)
_____________
Net cash outflow from investing activities (22,366,108)
_____________
Financing activities
Proceeds on issue of shares 27,406,967
Cost of issuing ordinary shares (822,209)
_____________
Net cash inflow from financing activities 26,584,758
_____________
Increase in cash and cash equivalents for the period 2,689,493
Exchange differences arising on translation to Sterling 2,357,330
Opening cash and cash equivalents -
_____________
Closing cash and cash equivalents 5,046,823
_____________
Grafico Azioni Lewis Char. (See LSE:RPF) (LSE:LCSR)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Lewis Char. (See LSE:RPF) (LSE:LCSR)
Storico
Da Giu 2023 a Giu 2024
