29 Sep 2010 11:38
Reconstruction Capital II Limited ("RC2" or the "Company")
29 September 2010
Interim Unaudited Consolidated Financial Statements
for the six months ended 30 June 2010
Reconstruction Capital II Ltd ("RC2" or the "Company"), a closed-end investment company admitted to trading on the AIM market of the London Stock Exchange, today announces its interim results for the six months ended 30 June 2010.
Financial highlights
·; Net asset value, excluding the non-controlling interest, as at 30 June 2010 was EUR 94.6m, representing EUR 0.9465 per share, a 9.2% increase since the beginning of the year;
·; As at 30 June 2010 the Company's market capitalisation was approximately EUR 64.8m, and 100m shares were in issue with a closing share price of EUR 0.6475 per share;
·; Profit before taxation for the period ended 30 June 2010 was EUR 8.2m (EUR 1.3m for the period ended 30 June 2009);
·; The Directors do not recommend the payment of a dividend.
Operational highlights
·; In March, RC2 acquired an 11.1% stake in Klas DOO, a leading industrial bakery business based in Serbia, for a total consideration of EUR 2.7m, and in June it acquired a 3.9% stake in Agri Point Limited for EUR 1.6m. Both companies are majority-owned by EPH.
·; Exposure to the listed equity markets in the region was reduced by full or partial exits from certain positions held under the Trading Programme;
·; Total consolidated cash balances amounted to EUR 3.7m which could, if needed, be used to fund follow-on investments in investee companies held under RC2's Private Equity Programme.
The financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted in the European Union. The financial information set out above does not constitute the Company's statutory accounts for the period ended 30 June 2010.
The interim report of the Group for the six months ended 30 June 2010 has been posted to shareholders. Extracts of the financial statements appear below and the full version is available on the Company's website - www.reconstructioncapital2.com
For further information, please contact:
Reconstruction Capital II Limited
Ion Florescu
Tel: +44 (0) 20 7244 0088
Grant Thornton Corporate Finance (Nominated Adviser)
Philip Secrett, Robert Beenstock
Tel: +44 (0) 20 7383 5100
LCF Edmond de Rothschild Securities (Broker)
Hiroshi Funaki / Claire Heathfield
Tel: +44 (0) 20 7845 5960
INVESTMENT MANAGER AND INVESTMENT ADVISORS REPORT
Dear Shareholders,
On 30 June 2010, Reconstruction Capital II Limited ("RC2" or the "Group") had a total unaudited net asset value ("NAV") of EUR 94.6m after deducting non-controlling interest, or EUR 0.9465 per share, which represents an increase of EUR 0.0799, or 9.2%, since the beginning of the year.
By comparison, as at 30 June 2010, the published NAV per share was EUR 1.0293, with the difference of EUR 0.0829 deriving from the effects of consolidating Mamaia Hotels SRL and Top Factoring SRL. Both these investments are booked at fair value when computing RC2's published net asset value per share.
In April 2010, in exchange for releasing certain claims against East Point Holdings Limited's ("EPH") other shareholders, RC2's shareholding in EPH was increased from 21.33% to 42% for no extra consideration. In March, RC2 acquired an 11.1% stake in Klas DOO, a leading industrial bakery business based in Serbia, for a total consideration of EUR 2.7m and in June it acquired a 3.9% stake in Agri Point Limited for EUR 1.6m. Both companies are majority-owned by EPH. Under its Trading Programme, RC2 continued to reduce its exposure to listed markets in the region, and continued to refocus the Group towards its Private Equity Programme by exiting certain listed positions, thereby realizing EUR 3.5m in cash proceeds.
The economic environment in RC2's three main countries of operation remains challenging. In particular, Romania has had to apply drastic fiscal tightening measures, including cutting public sector wages by 25% and increasing the VAT level from 19% to 24% from 1 July, while Serbia has implemented a freeze on public sector pensions and wages. However, a common pattern in Romania, Serbia and Bulgaria is a strong rise in exports, as demand from the EU picks up, and the countries of South East Europe try to find a new growth-driver in the context of falling local consumption and FDI.
At the end of June, the Fund had cash balances of approximately €3.7m, compared to €5.0m on 31 December 2009.
Yours truly,
New Europe Capital SRL
New Europe Capital DOO
New Europe Capital Limited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2010
|
|
|
| Six months ended | Six months ended | Year ended |
|
|
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
|
| Notes | EUR | EUR | EUR |
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|
|
|
|
|
|
| Revenue |
| 3 | 2,056,398 | 914,327 | 3,083,961 |
| Total Revenue |
|
| 2,056,398 | 914,327 | 3,083,961 |
|
|
|
|
|
|
|
| Investment income |
|
|
|
|
|
| Gain on investments at fair value |
|
|
|
|
|
| through profit or loss |
| 4 | 9,719,750 | 3,097,967 | 10,379,006 |
| Interest income |
|
| 22,422 | 58,106 | 73,311 |
| Dividend income |
|
| 4,041 | 292,685 | 293,312 |
| Other income |
|
| 118,856 | 81,232 | 279,591 |
| Total investment income |
|
| 9,865,069 | 3,529,990 | 11,025,220 |
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
| Operating expenses |
| 5 | 3,704,199 | 3,171,364 | 8,924,356 |
| Total operating expenses |
|
| 3,704,199 | 3,171,364 | 8,924,356 |
|
|
|
|
|
|
|
| Profit before taxation |
|
| 8,217,268 | 1,272,953 | 5,184,825 |
| Income tax expense |
|
| (199,146) | 231,608 | 1,545,772 |
| Net profit for the period |
|
| 8,416,414 | 1,041,345 | 3,639,053 |
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|
|
|
|
|
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| Other comprehensive income |
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|
|
|
|
| Exchange differences on translating foreign operations | (493,300) | 520,227 | (806,210) | ||
|
|
|
|
|
|
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| Total comprehensive income for the period |
|
| 7,923,114 | 1,561,572 | 2,832,843 |
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|
|
|
|
|
|
|
|
|
|
|
|
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| Net profit for the period attributable to: |
|
|
|
|
|
| - Equity holders of the parent |
|
| 8,483,235 | 1,230,228 | 3,731,544 |
| - Non-controlling interest |
|
| (66,821) | (188,883) | (92,491) |
|
|
|
| 8,416,414 | 1,041,345 | 3,639,053 |
|
|
|
|
|
|
|
| Total comprehensive income attributable to: |
|
|
|
|
|
| - Equity holders of the parent |
|
| 7,989,935 | 1,750,455 | 2,925,334 |
| - Non-controlling interest |
|
| (66,821) | (188,883) | (92,491) |
|
|
|
| 7,923,114 | 1,561,572 | 2,832,843 |
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|
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|
|
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| Basic and diluted earnings per share |
| 9 | 0.0848 | 0.0123 | 0.0373 |
The notes form an integral part of these unaudited interim financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2010
|
|
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
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|
|
| EUR | EUR | EUR |
|
|
|
| Unaudited | Unaudited | Audited |
| Assets | Notes |
|
|
|
|
| Non-current assets |
|
|
|
|
|
| Property, plant and equipment |
|
| 13,923,286 | 16,831,227 | 13,795,880 |
| Financial assets at fair value through profit or loss | 6 |
| 77,227,760 | 61,974,732 | 61,977,165 |
| Goodwill |
|
| 1,257,153 | 1,257,153 | 1,257,153 |
| Total non-current assets |
|
| 92,408,199 | 80,063,112 | 77,030,198 |
|
|
|
|
|
|
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| Current assets |
|
|
|
|
|
| Financial assets at fair value through profit or loss | 6 |
| 8,850,105 | 9,607,621 | 13,551,893 |
| Inventories |
|
| 244,619 | 59,017 | 27,000 |
| Trade and other receivables |
|
| 1,403,573 | 958,605 | 1,273,793 |
| Cash and cash equivalents |
|
| 3,680,088 | 4,049,372 | 5,017,459 |
| Total current assets |
|
| 14,178,385 | 14,674,615 | 19,870,145 |
|
|
|
|
|
|
|
| Total assets |
|
| 106,586,584 | 94,737,727 | 96,900,343 |
|
|
|
|
|
|
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| Liabilities |
|
|
|
|
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| Current liabilities |
|
|
|
|
|
| Trade and other payables |
|
| 1,913,945 | 1,974,451 | 1,273,241 |
| Loans and borrowings |
|
| 943,165 | - | - |
| Corporation tax payable |
|
| 50,293 | 262,974 | 49,943 |
| Total current liabilities |
|
| 2,907,403 | 2,237,425 | 1,323,184 |
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
| Deferred tax |
|
| 967,102 | - | 1,180,000 |
| Loans and borrowings |
|
| 1,076,709 | 12,560 | 638,146 |
| Total non-current liabilities |
|
| 2,043,811 | 12,560 | 1,818,146 |
|
|
|
|
|
|
|
| Total liabilities |
|
| 4,951,214 | 2,249,985 | 3,141,330 |
|
|
|
|
|
|
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| Total net assets |
|
| 101,635,370 | 92,487,742 | 93,759,013 |
|
|
|
|
|
|
|
| Capital and reserves attributable to equity holders |
|
|
|
|
|
| Share capital |
|
| 1,000,000 | 1,000,000 | 1,000,000 |
| Share premium reserve |
|
| 121,900,310 | 121,900,310 | 121,900,310 |
| Retained deficit |
|
| (24,796,845) | (35,781,396) | (33,280,080) |
| Foreign exchange reserve |
|
| (3,457,656) | (1,637,919) | (2,964,356) |
| Total equity and reserves |
|
| 94,645,809 | 85,480,995 | 86,655,874 |
|
|
|
|
|
|
|
| Non-controlling interest |
|
| 6,989,561 | 7,006,747 | 7,103,139 |
| Total equity |
|
| 101,635,370 | 92,487,742 | 93,759,013 |
The notes form an integral part of these unaudited interim financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE 2010
|
| Share Capital | Share Premium | Foreign exchange reserve | Retained Deficit | Sub-total | Non- controlling interest | Total |
|
| EUR | EUR | EUR | EUR | EUR | EUR | EUR |
|
|
|
|
|
|
|
|
|
| Balance at 1 January 2009 | 1,000,000 | 121,900,310 | (2,158,146) | (37,011,624) | 83,730,540 | 7,695,821 | 91,426,361 |
|
|
|
|
|
|
|
|
|
| Net profit for the period | - | - | - | 1,230,228 | 1,750,455 | (188,883) | 1,561,572 |
| Other comprehensive income | - | - | 520,227 | - | - | - | - |
| Total comprehensive income | - | - | 520,227 | 1,230,228 | 1,750,455 | (188,883) | 1,561,572 |
| Dividends paid to minorities | - | - | - | - | - | (500,191) | (500,191) |
|
|
|
|
|
|
|
|
|
| Balance at 30 June 2009 | 1,000,000 | 121,900,310 | (1,637,919) | (35,781,396) | 85,480,995 | 7,006,747 | 92,487,742 |
|
|
|
|
| - | - | - | - |
| Net profit for the period | - | - | - | 2,501,316 | 1,174,879 | 96,392 | 1,271,271 |
| Other comprehensive income | - | - | (1,326,437) |
|
|
|
|
| Total comprehensive income | - | - | (1,326,437) | 2,501,316 | 1,174,879 | 96,392 | 1,271,271 |
|
|
|
|
|
|
|
|
|
| Balance at 31 December 2009 | 1,000,000 | 121,900,310 | (2,964,356) | (33,280,080) | 86,655,874 | 7,103,139 | 93,759,013 |
|
|
|
|
|
|
|
|
|
| Net profit for the period | - | - | - | 8,483,235 | 7,989,935 | (66,821) | 7,923,114 |
| Other comprehensive income | - | - | (493,300) | - | - | - | - |
| Total comprehensive income | - | - | (493,300) | 8,483,235 | 7,989,935 | (66,821) | 7,923,114 |
| Dividends paid to minorities | - | - | - | - | - | (46,757) | (46,757) |
|
|
|
|
|
|
|
|
|
| Balance at 30 June 2010 | 1,000,000 | 121,900,310 | (3,457,656) | (24,796,845) | 94,645,809 | 6,989,561 | 101,635,370 |
The Share premium is stated net of share issue costs.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2010
|
|
| Six months ended | Six months ended | Year ended |
|
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
|
| EUR | EUR | EUR |
| Cash flows from operating activities |
|
|
|
|
| Net profit before tax |
| 8,217,268 | 1,272,953 | 5,184,825 |
| Adjustments for: |
|
|
|
|
| Depreciation and amortisation |
| 469,928 | 85,648 | 2,384,109 |
| Gain on financial assets at fair value |
|
|
|
|
| through profit or loss | (9,612,548) | (3,097,967) | (10,379,006) | |
| (Gain)/ loss on foreign exchange |
| (212,286) | 720,906 | 169,559 |
| Reversal of impairment loss of fixed assets |
| (795,642) | (168,000) | - |
| Interest income |
| (22,422) | (58,106) | (73,311) |
| Dividend income |
| (4,041) | (292,685) | (293,312) |
| Net cash outflow before changes in working capital | (1,959,743) | (1,537,251) | (3,007,136) | |
| Increase in trade and other receivables |
| (174,633) | 152,468 | (422,338) |
| Increase/ (decrease) in trade and other payables |
| 627,302 | 661,729 | (39,481) |
| (Increase)/ decrease in inventories |
| (217,619) | 20,983 | 53,000 |
| Interest received |
| 22,763 | 64,977 | 79,912 |
| Dividend received |
| 48,553 | 30,499 | 291,015 |
| Payments for purchase of financial assets |
| (2,886,235) | (406,029) | (405,890) |
| Net proceeds from sale of financial assets |
| 3,509,930 | 1,427,084 | 4,761,660 |
| Net cash (used in)/ generated by operating activities |
| (1,029,682) | 414,460 | 1,310,742 |
|
|
|
|
|
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| Income tax paid |
| - | (168,034) | (515,229) |
|
|
|
|
|
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| Cash flows from investing activities |
|
|
|
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| Proceeds from sale of investment assets |
| - | 83,182 | - |
| Sale of property, plant and equipment |
| - | - | 31,192 |
| Purchase of property, plant and equipment |
| (82,779) | (159,841) | (314,438) |
| Purchase of financial assets |
| (1,559,883) | (1,439,701) | (1,439,700) |
|
|
| (2,672,344) | (1,269,934) | (927,433) |
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| Cash flows from financing activities |
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|
|
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| Dividends paid to minorities |
| (46,757) | (500,191) | (500,190) |
| Loan drawdown |
| 2,019,874 | - | - |
| Payments of loan |
| (638,146) | (606,869) | 18,717 |
|
|
|
|
|
|
| Decrease in cash and cash equivalents |
| (1,337,373) | (2,376,994) | (1,408,906) |
|
|
|
|
|
|
| Cash at beginning of period/ year |
| 5,017,461 | 6,426,366 | 6,426,366 |
| Cash at end of period/ year |
| 3,680,088 | 4,049,372 | 5,017,461 |
NOTES TO THE INTERIM UNAUDITED FINANCIAL STATEMENTS
1. Establishment
Reconstruction Capital II Limited was incorporated on 17 October 2005 in the Cayman Islands as an exempted company created to invest in private and listed equity and fixed income securities, including convertible and other mezzanine instruments, primarily in Romania, Bulgaria and Serbia. The Company was admitted to trading on AIM on 23 December 2005 and started trading on 27 January 2006. These financial statements show the results of the Group for the period from 1 January 2010 to 30 June 2010.
The Company intends to generate returns for its Shareholders through two primary routes: to achieve medium and long term capital appreciation through the investment in and subsequent disposal of significant or controlling stakes in companies, both listed and private, established and/or operating primarily in Romania, Bulgaria and Serbia (the Private Equity Programme), and to make portfolio investments in listed equities and fixed income securities, including convertible and other mezzanine instruments, issued primarily by Romanian, Bulgarian and Serbian entities (the Trading Programme).
The main focus of the Company is investments in Romania, Bulgaria and Serbia. However, the Company reserves the right to make investments into neighbouring countries, notably Ukraine, Montenegro, Moldova, Croatia, Albania and the Former Yugoslav Republic of Macedonia. It is currently anticipated that in the medium term the Company will invest approximately 70 per cent of its assets in Romania and approximately 30 per cent of its assets in Bulgaria, Serbia and neighbouring countries.
2. Basis of Preparation
The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ended 31 December 2010 and are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 31 December 2009.
The financial information for the six months ended 30 June 2010 and the six months ended 30 June 2009 is unaudited and does not constitute the Group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 December 2009 has, however, been derived from the audited statutory financial statements for that period.
The half-yearly report has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRSs) as endorsed by the European Union, using accounting policies that are expected to be applied for the financial year ending 31 December 2010.
The Group has chosen not to adopt IAS 34 Interim Financial Statements in preparing the interim consolidated financial statements.
3. Revenue
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| Revenue from hotel operations | 372,124 | 343,798 | 1,489,000 |
| Revenue from receivables collection operations | 1,684,274 | 570,529 | 1,594,961 |
| Total Revenue | 2,056,398 | 914,327 | 3,083,961 |
4. Gain on investments at fair value through profit or loss
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
|
|
|
|
|
| Unrealised gain on investments | 14,432,818 | 7,091,226 | 17,652,037 |
| Gain on foreign exchange | 39,742 | 1,545 | 1,517 |
| Other realised investment loss | (4,752,810) | (3,994,804) | (7,274,548) |
|
| 9,719,750 | 3,097,967 | 10,379,006 |
5. Operating Expenses
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| Investment Management /Advisory fees | 952,892 | 790,786 | 1,593,979 |
| Administration fees | 52,150 | 51,642 | 99,991 |
| Custodian fees | 96,047 | 87,545 | 176,752 |
| Audit fees | 76,159 | 29,699 | 102,894 |
| Directors' fees | 79,342 | 99,178 | 200,000 |
| Depreciation | 469,928 | 85,648 | 2,384,109 |
| Rental of assets-operating leases | 7,328 | 6,344 | 13,102 |
| Foreign exchange loss/ (gain) | 42,673 | - | 134,171 |
| Staff cost | 407,389 | 431,108 | 1,068,650 |
| Other fees | 1,520,291 | 1,589,414 | 3,150,708 |
|
| 3,704,199 | 3,171,364 | 8,924,356 |
6. Financial assets
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
| Non-current investments | EUR | EUR | EUR |
| Unlisted equity securities | 68,855,670 | 49,351,017 | 47,458,951 |
| Listed equity securities | 8,372,090 | 12,623,715 | 14,518,214 |
|
| 77,227,760 | 61,974,732 | 61,977,165 |
|
|
|
|
|
| Cost | 81,834,610 | 80,274,730 | 80,274,730 |
| Unrealised loss on investments | (4,606,850) | (18,299,998) | (18,297,565) |
| Fair value of the investments | 77,227,760 | 61,974,732 | 61,977,165 |
|
|
|
|
|
|
|
|
|
|
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
| Current investments | EUR | EUR | EUR |
| Listed equity securities | 8,850,105 | 9,607,621 | 8,024,839 |
| Unlisted equity options | - | - | 5,527,054 |
| Total financial assets at fair value through profit or loss | 8,850,105 | 9,607,621 | 13,551,893 |
|
|
|
|
|
|
|
|
|
|
| Cost | 17,862,436 | 29,917,876 | 23,306,074 |
| Unrealised loss on investments | (9,012,331) | (20,310,255) | (9,754,180) |
| Fair value of the investments | 8,850,105 | 9,607,621 | 13,551,893 |
7. Net Asset Value
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
|
|
|
|
|
| Net assets (excluding non-controlling interest) | 94,645,809 | 85,480,995 | 86,655,874 |
|
|
|
|
|
| Number of shares | 100,000,000 | 100,000,000 | 100,000,000 |
|
|
|
|
|
| Net Asset Value per share | 0.9465 | 0.8548 | 0.8666 |
8. Operating segments
The Group manages its business primarily by reference to operating segments. Whilst the Group operates five operating segments there are only four reportable segments. According to its Admission Document, the Company's main objective is to generate returns for its shareholders through two primary routes: to achieve medium and long term capital appreciation through the investment in and subsequent disposal of significant or controlling stakes in companies, both listed and private (the Private Equity Programme), and to make portfolio investments in listed equities and fixed income securities (the Trading Programme). On this basis management has identified its operating segments.
The hotel operations incorporate all summer season activities, together with providing all-year services for business travellers.
The "All other" column includes New Europe Capital Limited and other items which the management does not consider to be operating segments.
The data presented for the period ended 30 June 2009 and 30 June 2010 is for a 6 month period. For the period ended 31 December 2009 the data is presented for 12 month period.
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|
| Listed | Unlisted |
|
|
|
|
|
| Private | Private |
|
|
|
|
| Hotel | Equity | Equity | Trading |
|
|
|
| Operations | Programme | Programme | Programme | All Other | Total |
|
| 30-Jun-10 | 30-Jun-10 | 30-Jun-10 | 30-Jun-10 | 30-Jun-10 | 30-Jun-10 |
|
| EUR | EUR | EUR | EUR | EUR | EUR |
|
|
|
|
|
|
|
|
| Reportable segment total assets | 14,741,449 | 8,893,830 | 70,614,080 | 7,848,754 | 4,488,471 | 106,586,584 |
| Reportable segment (loss)/ profit (before tax) | (429,840) | (6,147,562) | 20,392,527 | (4,009,596) | (1,588,261) | 8,217,268 |
| Reportable segment liabilities | 3,962,907 | - | 168,325 | - | 819,982 | 4,951,214 |
|
|
|
|
|
|
|
|
| Revenue from external customers | 372,124 | - | 1,684,274 | - | - | 2,056,398 |
| Gain/ (loss) on investments at fair value | - | (6,147,563) | 19,836,840 | (3,969,527) |
| 9,719,750 |
| Interest revenue | - | - | 3,185 | 19,105 | 132 | 22,422 |
| Depreciation and impairment | 442,556 | - | 25,537 | - | 1,835 | 469,928 |
| Dividends | - | - | - | 4,041 | - | 4,041 |
| Income tax expense | (208,112) | - | 1,181 | 245 | 7,540 | (199,146) |
| Other Income | 2,671 | - | - |
| 116,185 | 118,856 |
|
|
|
|
|
|
|
|
8. Operating segments (Continued)
|
|
| Listed | Unlisted |
|
|
|
|
| Hotel | Private Equity | Private Equity | Trading | All |
|
|
| Operations | Programme | Programme | Programme | Other | Total |
|
| 30-Jun-09 | 30-Jun-09 | 30-Jun-09 | 30-Jun-09 | 30-Jun-09 | 30-Jun-09 |
|
| EUR | EUR | EUR | EUR | EUR | EUR |
|
|
|
|
|
|
|
|
| Reportable segment total assets | 17,144,670 | 13,038,096 | 49,932,219 | 9,193,241 | 5,429,501 | 94,737,727 |
| Reportable segmental (loss)/ profit (before tax) | (622,944) | 3,910,750 | (1,289,562) | 405,542 | (1,130,833) | 1,272,953 |
| Reportable segment liabilities | 1,018,023 | - | 65,101 | - | 1,166,861 | 2,249,985 |
|
|
|
|
|
|
|
|
| Revenue from external customers | 343,798 | - | 570,529 | - | - | 914,327 |
| Interest revenue | - | - | - | - | 58,106 | 58,106 |
| Depreciation | (63,000) | - | - | - | (22,648) | (85,468) |
| Dividends | - | - | - | 292,685 | - | 292,685 |
| Income tax expense | - | - | - | (29,229) | (202,379) | (231,608) |
| Other income | - | - | - | - | 81,232 | 81,232 |
|
|
|
|
|
|
|
|
|
|
| Listed | Unlisted |
|
|
|
|
| Hotel | Private Equity | Private Equity | Trading | All |
|
|
| Operations | Programme | Programme | Programme | Other | Total |
|
| 31-Dec-09 | 31-Dec-09 | 31-Dec-09 | 31-Dec-09 | 31-Dec-09 | 31-Dec-09 |
|
| EUR | EUR | EUR | EUR | EUR | EUR |
|
|
|
|
|
|
|
|
| Reportable segment total assets | 13,952,000 | 15,041,311 | 54,117,850 | 7,501,741 | 6,287,441 | 96,900,343 |
| Reportable segmental (loss)/ gain (before tax) | (600,000) | 5,913,966 | 2,376,284 | 2,046,461 | (4,551,886) | 5,184,825 |
| Reportable segment liabilities | 1,111,232 | - | 126,152 | - | 1,903,946 | 3,141,330 |
|
|
|
|
|
|
|
|
| Revenue from external customers | 1,489,000 | - | 1,594,961 | - | - | 3,083,961 |
| Gains on investments at fair value through profit or loss | - | 5,913,666 | 2,402,482 | 2,062,558 | - | 10,379,006 |
| Interest revenue | - | - | - | - | 73,311 | 73,311 |
| Depreciation and impairment | 2,328,000 | - | 33,777 | - | 22,332 | 2,834,109 |
| Dividends | - | - | - | 293,312 | - | 293,312 |
| Income tax expense | 1,180,000 | - | - | 25,301 | 340,471 | 1,545,772 |
| Other income | 78,000 | - | - | - | 201,591 | 279,591 |
|
|
|
|
|
|
|
|
8. Operating segments (Continued)
The geographical areas of operation for products and services are as follows:
|
| Romania | Serbia | Other | Total |
|
| 30-Jun-10 | 30-Jun-10 | 30-Jun-10 | 30-Jun-10 |
|
| EUR | EUR | EUR | EUR |
| Revenues |
|
|
|
|
| Total investment (loss) / income | (10,116,560) | 19,837,674 | (1,364) | 9,719,750 |
| Revenue from hotel operations | 372,124 | - | - | 372,124 |
| Commissions from receivables collection operations | 1,684,274 | - | - | 1,684,274 |
| Interest income | 22,290 | - | 132 | 22,422 |
| Dividend income | 4,041 | - | - | 4,041 |
| Other income | 2,671 | - | 116,185 | 118,856 |
|
| (8,031,160) | 19,837,674 | 114,953 | 11,921,467 |
|
|
|
|
|
|
| Total assets |
|
|
|
|
| Financial assets at FVTPL | 48,079,185 | 36,997,329 | 1,001,351 | 86,077,865 |
| Property, Plant and Equipment | 13,918,967 | - | 4,319 | 13,923,286 |
| Goodwill | 1,257,153 | - | - | 1,257,153 |
| Inventories | 244,619 | - | - | 244,619 |
| Trade and other receivables | 1,238,997 | - | 164,576 | 1,403,573 |
| Cash and cash equivalents | 2,987,660 | 294,378 | 398,050 | 3,680,088 |
|
| 67,726,581 | 37,291,707 | 1,568,296 | 106,586,584 |
|
| Romania | Serbia | Other | Total |
|
| 30-Jun-09 | 30-Jun-09 | 30-Jun-09 | 30-Jun-09 |
|
| EUR | EUR | EUR | EUR |
| Revenue |
|
|
|
|
| Total investment income/ (loss) | 3,235,265 | (1,220) | (136,078) | 3,097,967 |
| Revenue from hotel operations | 343,798 | - | - | 343,798 |
| Revenue from receivables collection operations | 570,529 | - | - | 570,529 |
| Interest income | 57,126 | - | 979 | 58,105 |
| Dividend income | 292,685 | - | - | 292,685 |
| Other income | - | - | 81,232 | 81,232 |
|
| 4,499,403 | (1,220) | (53,867) | 4,444,316 |
|
|
|
|
|
|
| Total assets |
|
|
|
|
| Financial assets at fair value through profit or loss | 70,633,213 | 16,233 | 932,907 | 71,582,353 |
| Property, Plant and Equipment | 16,826,702 | - | 4,525 | 16,831,227 |
| Investment property | - | - | - | - |
| Goodwill | 1,257,153 | - | - | 1,257,153 |
| Inventories | 59,017 | - | - | 59,017 |
| Trade and other receivables | 878,886 | - | 79,719 | 958,605 |
| Cash and cash equivalents | 3,223,402 | 294,461 | 531,509 | 4,049,372 |
|
| 92,878,373 | 310,694 | 1,548,660 | 94,737,727 |
8. Operating segments (Continued)
|
| Romania | Serbia | Other | Total |
|
| 31-Dec-09 | 31-Dec-09 | 31-Dec-09 | 31-Dec-09 |
|
| EUR | EUR | EUR | EUR |
| Revenues |
|
|
|
|
| Total investment income/ (loss) | 14,079,779 | (3,677,275) | (23,497) | 10,379,007 |
| Revenue from hotel operations | 1,489,000 | - | - | 1,489,000 |
| Commissions from receivables collection operations | 1,594,961 | - | - | 1,594,961 |
| Interest income | 41,363 | - | 31,948 | 73,311 |
| Dividend income | 293,312 | - | - | 293,312 |
| Other income | 77,983 | - | 201,608 | 279,591 |
|
| 17,576,398 | (3,677,275) | 210,059 | 14,109,181 |
|
|
|
|
|
|
| Total assets |
|
|
|
|
| Financial assets at FVTPL | 60,208,682 | 14,317,741 | 1,002,635 | 75,529,058 |
| Property, plant and equipment | 13,793,178 | - | 2,702 | 13,795,880 |
| Goodwill | 1,257,153 | - | - | 1,257,153 |
| Non-current assets | 75,259,013 | 14,317,741 | 1,005,337 | 90,582,091 |
|
|
|
|
|
|
| Inventories | 27,000 | - | - | 27,000 |
| Trade and other receivables | 1,138,265 | - | 135,528 | 1,273,793 |
| Cash and cash equivalents | 4,311,808 | 294,378 | 411,273 | 5,017,459 |
| Total Assets | 80,736,086 | 14,612,119 | 1,552,138 | 96,900,343 |
9. Earnings per share
|
| 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| Numerator |
|
|
|
| Profit for the period/ year | 8,483,235 | 1,230,228 | 3,731,544 |
| Earnings used in EPS | 8,483,235 | 1,230,228 | 3,731,544 |
|
|
|
|
|
| Denominator |
|
|
|
| Weighted average number of shares used in basic |
|
|
|
| and diluted EPS | 100,000,000 | 100,000,000 | 100,000,000 |
|
|
|
|
|
| EPS | 0.0848 | 0.0123 | 0.0373 |
10. Related-party transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.
Mr Florescu is a director of New Europe Capital Limited, the Investment Manager to the Company, and New Europe Capital SRL, an Investment Adviser to the Company, and has a beneficial interest in New Europe Capital DOO, another Investment Adviser. Total management and advisory fees for the period amounted to EUR 1,121,049. Total fees outstanding as at 30 June 2010 were EUR 503,564.
| Investment Management and Advisory fees | 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| New Europe Capital Ltd * | 168,157 | 236,208 | 476,124 |
| New Europe Capital SRL | 728,682 | 482,688 | 972,948 |
| New Europe Capital DOO | 224,210 | 308,098 | 621,031 |
|
| 1,121,049 | 1,026,994 | 2,070,103 |
|
|
|
|
|
| Outstanding Amounts | 30-Jun-10 | 30-Jun-09 | 31-Dec-09 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| New Europe Capital Ltd * | 58,672 | 77,233 | 81,000 |
| New Europe Capital SRL | 254,247 | 399,786 | 165,523 |
| New Europe Capital DOO | 190,645 | 100,738 | 156,264 |
|
| 503,564 | 577,757 | 402,787 |
* New Europe Capital Limited is part of the Group and so these amounts are eliminated on consolidation.