MLD.L Regulatory News (MLD)

MirLand Development Corporation plc 

Roman Rozental

roman@mirland-development.com

+7 499 130 31 09

Financial Dynamics 

Dido Laurimore / Rachel Drysdale

dido.laurimore@fd.com / rachel.drysdale@fd.com 

+44 20 7831 3113

31 March

31 December

2008

2007

2007

Unaudited

Audited

U.S. dollars in thousands

ASSETS

NON-CURRENT ASSETS:

Investment properties

238,100

75,933

227,030

Investment properties under construction

103,002

92,412

87,963

Long-term loan

15,179

-

14,829

Advances on acquisition of subsidiaries

1,796

1,000

1,080

Deferred expenses

958

-

796

Long-term receivables and prepayments

20,672

-

12,891

Financial derivative

1,089

-

-

Deferred taxes

986

1,143

214

Fixed assets, net

5,350

1,748

4,866

387,132

172,236

349,669

CURRENT ASSETS:

Inventories of buildings under construction

113,023

76,194

103,980

Trade and other receivables

6,289

10,337

7,537

Short-term loans

18,948

-

7,692

Restricted bank deposits

71,210

71,330

71,406

Cash and cash equivalents

77,599

191,304

117,758

287,069

349,165

308,373

Total assets

674,201

521,401

658,042

31 March

31 December

2008

2007

2007

Unaudited

Audited

U.S. dollars in thousands

EQUITY AND LIABILITIES

EQUITY:

Equity attributable to equity holders of the 

parent:

Share capital

1,036

1,036

1,036

Share premium

359,803

359,803

359,803

Employee equity benefits reserve

6,682

2,929

6,199

Retained earnings

101,231

30,489

96,629

Currency translation reserve

18,059

3,229

9,151

486,811

397,486

472,818

Minority interests 

25

25

25

Total equity

486,836

397,511

472,843

NON-CURRENT LIABILITIES:

Debentures, net

63,796

-

62,088

Financial derivative

-

-

50

Long-term loans from banks

19,399

16,989

15,873

Other long-term liabilities

12,966

22,467

12,739

Deferred taxes

6,781

3,030

5,118

102,942

42,486

95,868

CURRENT LIABILITIES:

Accounts payable and accruals

9,204

4,981

11,145

Short-term loans from banks

72,669

74,624

76,696

Income tax payable

2,550

1,799

1,490

84,423

81,404

89,331

Total liabilities

187,365

123,890

185,199

Total equity and liabilities

674,201

521,401

658,042

19 May 2008

Date of approval of the

financial statements

Moshe Morag

CEO

Roman Rozental

CFO

Three months ended

31 March

Year ended

31 December

2008

2007

2007

Unaudited

Audited

U.S. dollars in thousands

Revenues:

Rental income from investment properties

3,958

1,352

10,446

Revenues from managing and consulting fees

547

189

1,977

Total revenues

4,505

1,541

12,423

Fair value adjustments of investment properties

(1,493)

-

82,138

Total income

3,012

1,541

94,561

Operating expenses

(1,732)

(203)

(6,384)

General and administrative expenses 

(4,760)

(3,668)

(26,706)

Registration of land lease

-

-

(5,469)

Finance costs

(3,822)

(1,325)

(8,703)

Finance income

14,050

3,375

23,004

Profit (loss) before tax expense

6,748

(280)

70,303

Tax expense

2,146

980

5,423

Profit (loss) for the year attributable to the equity holders of the parent

4,602

(1,260)

64,880

Earnings (loss) per share (in U.S. dollars per share):

Basic 

0.044

(0.010)

0.627

Diluted

0.044

(0.010)

0.627

Attributable to equity holders of the company

Employee

Total

equity

Currency

recognized

Share

Share

benefits

Retained

translation

Minority

Total

income 

capital

premium

reserve

earnings

reserve

Total

interests

equity

(expenses)

U.S. dollars in thousands

At 1 January 2008

1,036

359,803

6,199

96,629

9,151

472,818

25

472,843

-

Profit for the period

-

-

-

4,602

-

4,602

-

4,602

4,602

Share-based payment

-

-

483

-

-

483

-

483

-

Foreign currency translation adjustments

-

-

-

-

8,908

8,908

-

8,908

8,908

At 31 March 2008 (unaudited)

1,036

359,803

6,682

101,231

18,059

486,811

25

486,836

13,510

At 1 January 2007

1,000

329,028

2,348

 31,749

2,402

366,527

25

366,552

-

Issuance of shares

36

30,775

-

-

-

30,811

-

30,811

-

Loss for the period

-

-

-

(1,260)

-

(1,260)

-

(1,260)

(1,260)

Share-based payment

-

-

581

-

-

581

-

581

-

Foreign currency translation adjustments

-

-

-

-

827

827

-

827

827

At 31 March 2007 (unaudited)

1,036

359,803

2,929

30,489

3,229

397,486

25

397,511

(433)

At 1 January 2006

1,000

329,028

2,348

 31,749

2,402

366,527

25

366,552

-

Issuance of shares

36

30,775

-

-

-

30,811

-

30,811

-

Profit for the year

-

-

-

64,880

-

64,880

-

64,880

64,880

Share-based payment

-

-

3,851

-

-

3,851

-

3,851

-

Foreign currency translation adjustments

-

-

-

-

6,749

6,749

-

6,749

6,749

At 31 December 2007

1,036

359,803

6,199

96,629

9,151

472,818

25

472,843

71,629

Three months ended

31 March

Year ended

31 December

2008

2007

2007

Unaudited

Audited

U.S. dollars in thousands

Cash flows from operating activities:

Profit before the tax expense 

6,748

(280)

70,303

Adjustments for:

Finance costs

3,822

1,325

8,703

Interest paid

(1,653)

(1,082)

(6,881)

Finance income

(14,050)

(3,375)

(23,004)

Interest received

804

-

10,343

Fair value adjustments of investment properties

1,493

-

(82,138)

Share-based payments expense

483

581

3,851

Addition to residential projects for sale under construction

(3,603)

-

(22,003)

Depreciation of fixed assets

149

6

287

Increase in trade and other receivables

(5,465)

(307)

(3,067)

Increase (decrease) in accounts payable and accruals and in provision to service provider

(2,104)

295

6,347

Income taxes paid

(1,167)

(810)

(1,169)

Net cash flows used in operating activities

(14,543)

(3,647)

(38,428)

Cash flows from investing activities:

Additions to fixed assets

(165)

(648)

(3,373)

Additions to investment properties

(3,499)

(4,627)

(36,056)

Additions to investment properties under construction

(9,374)

(11,910)

(62,658)

Interest capitalized in investment properties under construction

-

(1,410)

(2,016)

Loans granted

(10,617)

-

(22,238)

Advance on acquisition of subsidiary 

(796)

(1,000)

(1,080)

Acquisition of subsidiaries, net of cash acquired

-

(15,900)

-

Net cash flows used in investing activities

(24,451)

(35,495)

(127,421)

Cash flows from financing activities:

Proceeds from issuance of shares by the Company

-

30,811

30,811

Advances received on account of IPO

-

-

1,053

Accrued expenses on account of loan

(123)

-

(767)

Proceeds from issuance of bonds

-

-

61,756

Proceeds from long-term borrowings 

-

2,707

-

Proceeds from short-term borrowings

-

279

-

Repayment of long-term borrowings from banks

(765)

-

-

Acquisition of minority

(757)

-

-

Net cash flows (used in)/provided by financing activities

(1,645)

33,797

92,853

Net decrease in cash and cash equivalents

(40,639)

(5,345)

(72,996)

Net foreign exchange differences on cash and cash equivalents

480

63

(5,832)

Cash and cash equivalents at beginning of period

117,758

196,586

196,586

Cash and cash equivalents at end of period

77,599

191,304

117,758

Three months ended

31 March

Year ended

31 December

2008

2007

2007

Unaudited

Audited

U.S. dollars in thousands

Non-cash transactions:

Payables included for investment properties under construction

-

3,425

1,638

Reclassification of inventories of land to inventories of buildings under construction

-

76,194

62,192