24 Sep 2009 12:00
Reconstruction Capital II Limited (the "Company")
24 September 2009
Interim Unaudited Consolidated Financial Statements
for the six months ended 30 June 2009
Reconstruction Capital II Ltd (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 2009.
Financial highlights
Net asset value, after minority interest, as at 30 June 2009 was EUR 85.5m, representing EUR 0.8548 per share, a 2.1% increase since the beginning of the year;
As at 30 June 2009 the Company's market capitalisation was approximately EUR 49.3m, 100m shares were in issue with a closing share price of EUR 0.4925 per share on 30 June 2009;
Profit before taxation as at 30 June 2009 were EUR 1.3m (loss of EUR 23.7 as at 30 June 2008);
The Directors do not recommend the payment of a dividend.
Operational highlights
No new investments were effected during the period under the Private Equity Programme;
Exposure to the listed equity markets in the region was reduced by full or partial exits in certain positions held under the Trading Programme;
Total consolidated cash balances amounted to EUR 4m 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 2009.
The interim report of the Group for the six months ended 30 June 2009 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 2009, Reconstruction Capital II Limited ("RC2" or the "Group") had a total unaudited net asset value ("NAV") of EUR 85.5m after deducting minority interest, or EUR 0.8548 per share, which represents a 2.1% increase since the beginning of the year. The NAV per share as at 30 June 2009 as notified to the London Stock Exchange was EUR 0.9037. The difference of EUR 0.0489 is mainly the result of the effects of the consolidation of Mamaia Resort Hotels SRL and Top Factoring SRL. Both these investments are booked at fair value when computing RC2's published net asset value per share.
During the period under review, under its Private Equity programme, RC2 focussed on growing and improving the profitability of its investee companies. With the exception of Mamaia Resort Hotels, all the main investee companies held under this programme reported considerable improvements in their operating results compared to the same period last year. No new investments were effected during the period.
Under its Trading Programme, RC2 reduced its exposure to the equity markets in the region (Romania, Bulgaria and Serbia). During the first half of 2009, RC2 realised total cash proceeds of EUR 1.4m by exiting or reducing certain of its positions held under the Trading Programme, whilst adding EUR 0.4m to other positions, thereby generating approximately EUR 1m of cash from this progamme. As at 30 June 2009, the total market value of RC2's Trading Programme amounted to EUR 9.6m.
The macroeconomic environment remains challenging, with GDP having contracted in all of RC2's countries of operation. However, the devaluation of the Romanian RON and the Serbian RSD in the first quarter, and falling domestic private consumption across the region, has contributed to a rebalancing of the economic models of these countries, with local current account deficits shrinking substantially: -73% in Romania and Serbia in the first half of 2009, and -57% in Bulgaria (where the local currency is pegged to the Euro).
At the end of June, the Fund, which has no gearing, had total consolidated cash balances of €4m. In addition, the more liquid listed investments held under the Trading Programme could, if needed, be sold in order to fund follow-on investments in investee companies held under RC2's Private Equity Programme.
Yours truly,
New Europe Capital
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
|
|
| Six months | Six months | Year |
|
|
|
| ended | ended | ended |
|
|
|
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 |
|
|
|
| Unaudited | Unaudited* | Audited |
|
|
| Notes | EUR | EUR | EUR |
|
|
|
|
|
|
|
| Revenue |
| 3 | 914,327 | 791,841 | 2,712,877 |
| Total Revenue |
|
| 914,327 | 791,841 | 2,712,877 |
|
|
|
|
|
|
|
| Investment income |
|
|
|
|
|
| Gain/ (loss) on investments at fair value |
|
|
|
|
|
| through the profit and loss account |
| 4 | 3,097,967 | (26,402,661) | (65,229,295) |
| Interest income |
|
| 58,106 | 1,621,871 | 2,409,026 |
| Dividend income |
|
| 292,685 | 492,147 | 569,268 |
| Other income |
|
| 81,232 | 113,819 | 482,321 |
| Total investment income/ (expense) |
|
| 3,529,990 | (24,174,824) | (61,768,680) |
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
| Bargain purchase |
|
| - | (3,210,739) | (3,210,739) |
| Operating expenses |
| 5 | 3,171,364 | 3,102,808 | 7,704,325 |
| Total operating expenses |
|
| 3,171,364 | (107,931) | 4,493,586 |
|
|
|
|
|
|
|
| Profit/ (loss) before taxation |
|
| 1,272,953 | (23,275,052) | (63,549,389) |
| Income tax expense |
| 231,608 | 138,789 | 630,012 | |
| Net profit/ (loss) for the period |
|
| 1,041,345 | (23,413,841) | (64,179,401) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to: |
|
|
|
|
|
| - Equity holders of the parent |
|
| 1,230,228 | (23,707,730) | (64,576,849) |
| - Minority interest |
|
| (188,883) | 293,889 | 397,448 |
|
|
|
| 1,041,345 | (23,413,841) | (64,179,401) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted earnings per share |
| 9 | 0.0123 | (0.2104) | (0.5766) |
* Format revised to accord with presentation adopted at 31 December 2008, see note 2.
The notes on pages 11 to 18 form an integral part of these unaudited interim financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2009
|
|
|
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 |
|
|
|
| EUR | EUR | EUR |
| Assets | Notes |
| Unaudited | Unaudited | Audited |
| Non-current assets |
|
|
|
|
|
| Property, plant and equipment |
| 16,831,227 | 18,454,484 | 16,872,497 | |
| Financial assets at fair value through the profit and loss account | 6 |
| 61,974,732 | 35,410,192 | 57,749,033 |
| Goodwill |
| 1,257,153 | 1,257,153 | 1,257,153 | |
| Total non-current assets |
|
| 80,063,112 | 55,121,829 | 75,878,683 |
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
| Financial assets at fair value through the profit and loss account | 6 |
| 9,607,621 | 42,121,496 | 10,317,104 |
| Inventories |
|
| 59,017 | 124,000 | 80,000 |
| Trade and other receivables |
| 958,605 | 2,523,361 | 855,759 | |
| Cash and cash equivalents |
| 4,049,372 | 75,219,473 | 6,426,366 | |
| Total current assets |
|
| 14,674,615 | 119,988,330 | 17,679,229 |
|
|
|
|
|
|
|
| Total assets |
|
| 94,737,727 | 175,110,159 | 93,557,912 |
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
| Trade and other payables | 8 |
| 1,974,451 | 27,534,616 | 1,312,722 |
| Loans and borrowings |
|
| - | - | 530,000 |
| Corporation tax payable |
|
| 262,974 | 1,047,852 | 199,400 |
| Total current liabilities |
|
| 2,237,425 | 28,582,468 | 2,042,122 |
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
| Loans and borrowings |
|
| 12,560 | - | 89,429 |
| Total non-current liabilities |
|
| 12,560 | - | 89,429 |
|
|
|
|
|
|
|
| Total net assets |
|
| 92,487,742 | 146,527,691 | 91,426,361 |
|
|
|
|
|
|
|
| Capital and reserves attributable to equity holders |
|
|
|
|
|
| Share capital |
| 1,000,000 | 1,126,811 | 1,000,000 | |
| Share premium reserve |
| 121,900,310 | 134,263,071 | 121,900,310 | |
| Retained deficit |
| (35,781,396) | 3,857,495 | (37,011,624) | |
| Foreign exchange reserve |
|
| (1,637,919) | (360,431) | (2,158,146) |
| Total equity and reserves |
|
| 85,480,995 | 138,886,946 | 83,730,540 |
|
|
|
|
|
|
|
| Minority Interest |
|
| 7,006,747 | 7,640,745 | 7,695,821 |
| Total equity |
|
| 92,487,742 | 146,527,691 | 91,426,361 |
The notes on pages 11 to 18 form an integral part of these unaudited interim financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE 2009
|
| Share Capital | Share Premium | Translation of overseas subsidiaries | Retained (Deficit)/ Earnings | Sub-total | Minority Interest | Total |
|
| EUR | EUR | EUR | EUR | EUR | EUR | EUR |
|
|
|
|
|
|
|
|
|
| Balance at 1 January 2008 | 1,126,811 | 134,263,071 | (145,955) | 27,565,225 | 162,809,152 | 2,081,895 | 164,891,047 |
|
|
|
|
|
|
|
|
|
| Exchange differences arising on translation of foreign operations | - | - | (214,476) | - | (214,476) | 164,827 | (49,649) |
|
|
|
|
|
|
|
|
|
| Net income directly recognised in equity | - | - | (214,476) | - | (214,476) | 164,827 | (49,649) |
| Loss for the period | - | - | - | (23,707,730) | (23,707,730) | 293,889 | (23,413,841) |
| Minority interest arising on acquisition | - | - | - | - | - | 6,581,261 | 6,581,261 |
| Dividends payable to minorities | - | - | - | - | - | (1,481,127) | (1,481,127) |
| Balance at 30 June 2008 | 1,126,811 | 134,263,071 | (360,431) | 3,857,495 | 138,886,946 | 7,640,745 | 146,527,691 |
|
|
|
|
|
|
|
|
|
| Exchange differences arising on translation of foreign operations | - | - | (1,797,715) | - | (1,797,715) | - | (1,797,715) |
|
|
|
|
|
|
|
|
|
| Net income directly recognised in equity | - | - | (1,797,715) | - | (1,797,715) | - | (1,797,715) |
| Loss for the period | - | - | - | (40,869,119) | (40,869,119) | 103,559 | (40,765,560) |
| Redemption of Share Capital | (126,811) | (12,362,761) | - | - | (12,489,572) | - | (12,489,572) |
| Dividends payable to minorities | - | - | - | - | - | (48,485) | (48,485) |
| Balance at 31 December 2008 | 1,000,000 | 121,900,310 | (2,158,146) | (37,011,624) | 83,730,540 | 7,695,821 | 91,426,361 |
|
|
|
|
|
|
|
|
|
| Exchange differences arising on translation of foreign operations | - | - | 520,227 | - | 520,227 | - | 520,227 |
|
|
|
|
|
|
|
|
|
| Net income directly recognised in equity | - | - | 520,227 | - | 520,227 | - | 520,227 |
| Profit for the period | - | - | - | 1,230,228 | 1,230,228 | (188,883) | 1,041,345 |
| Dividends payable 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 |
The Share premium is stated net of share issue costs.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
|
| Six months |
| Six months |
| Year |
|
|
| ended |
| ended |
| ended |
|
|
| 30-Jun-09 |
| 30-Jun-08 |
| 31-Dec-08 |
|
|
| Unaudited |
| Unaudited |
| Audited |
|
|
| EUR |
| EUR |
| EUR |
| Cash flows from operating activities |
|
|
|
|
|
|
| Net profit/ (loss) before tax |
| 1,272,953 |
| (23,275,052) |
| (63,549,389) |
| Adjustments for: |
|
|
|
|
|
|
| Depreciation and amortisation |
| 85,648 |
| 877,085 |
| 130,002 |
| (Gain)/loss on financial assets at fair value |
|
|
|
|
|
|
| through profit or loss | (3,097,967) |
| 29,278,620 |
| 65,229,295 | |
| Revaluation |
| (168,000) |
| - |
| - |
| Bargain purchase |
| - |
| (3,210,739) |
| (3,210,739) |
| Gain on foreign exchange |
| 720,906 |
| (1,009,065) |
| - |
| Interest income |
| (58,106) |
| (1,621,871) |
| (2,409,026) |
| Dividend income |
| (292,685) |
| (492,147) |
| (569,268) |
| Net cash (outflow)/ inflow before changes in working capital | (1,537,251) |
| 546,831 |
| (4,379,125) | |
| Decrease/ (increase) in trade and other receivables |
| 152,468 |
| (38,019) |
| 388,664 |
| Increase/ (decrease) in trade and other payables |
| 661,729 |
| 15,643,439 |
| (4,943,089) |
| Decrease/ ( increase) in inventories |
| 20,983 |
| (124,000) |
| (63,125) |
| Interest received |
| 64,977 |
| 1,651,720 |
| 2,528,221 |
| Dividend received |
| 30,499 |
| 486,568 |
| 544,793 |
| Payments for purchase of financial assets |
| (406,029) |
| (34,514,380) |
| (8,571,980) |
| Net proceeds from sale of financial assets |
| 1,427,084 |
| 2,185,240 |
| 12,594,761 |
| Net cash used in/ generated by operating activities |
| 414,460 |
| (14,162,601) |
| 1,900,880 |
|
|
|
|
|
|
|
|
| Income tax paid |
| (168,034) |
| - |
| 1,399,505 |
|
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
|
| Proceeds from sale of investment assets |
| 83,182 |
| 5,495,715 |
| 5,780,449 |
| Purchase of property, plant and equipment |
| (159,841) |
| (357,309) |
| (254,005) |
| Purchase of financial assets |
| (1,439,701) |
| (1,000,000) |
| (66,974,488) |
| Acquisition of subsidiary (net of cash acquired) |
| - |
| (2,276,000) |
| (2,276,000) |
|
|
| (1,269,934) |
| (12,300,195) |
| (64,225,419) |
| Cash flows from financing activities |
|
|
|
|
|
|
| Dividends paid to minorities |
| (500,191) |
| (1,818,904) |
| (1,529,612) |
| Proceeds from loan |
| - |
| 10,032 |
| - |
| Payments of loan |
| (606,869) |
| - |
| (4,657,571) |
| Payments on shares redeemed |
| - |
| - |
| (12,489,572) |
|
|
|
|
|
|
|
|
| Decrease in cash and cash equivalents |
| (2,376,994) |
| (14,109,067) |
| (82,902,174) |
|
|
|
|
|
|
|
|
| Cash at beginning of period |
| 6,426,366 |
| 89,328,540 |
| 89,328,540 |
| Cash at end of period |
| 4,049,372 |
| 75,219,473 |
| 6,426,366 |
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 2009 to 30 June 2009.
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 2009 and are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 31 December 2008, except for the adoption of IAS 1 "Presentation of Financial Statements" (Revised) which has only resulted in changes in terminology used in relation to the primary statements. The presentation of the statement of comprehensive income for the 6 months ended 30 June 2008 has also been updated since the publication of those interim results last year to reflect the revised presentation used in the audited financial statements for the year to 31 December 2008
The financial information for the six months ended 30 June 2009 and the six months ended 30 June 2008 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 2008 has, however, been derived from the audited statutory financial statements for that period. The auditors' report on those accounts was unqualified, did not contain references to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
3. Revenue
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| EUR | EUR | EUR | |
| Revenue from hotel operations | 343,798 | 333,000 | 1,489,346 |
| Revenue from receivables collection operations | 570,529 | 408,841 | 1,223,531 |
| Total Revenue | 914,327 | 791,841 | 2,712,877 |
4. Gain/ (loss) on investments at fair value through profit or loss
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| EUR | EUR | EUR | |
| Unrealised gain/ (loss) on investments | 7,091,226 | (29,278,620) | (68,675,182) |
| Gain on foreign exchange | 1,545 | 2,688,816 | 115,899 |
| Realised investment (loss)/ income | (3,994,804) | 187,143 | 3,329,988 |
| 3,097,967 | (26,402,661) | (65,229,295) |
5. Operating Expenses
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| EUR | EUR | EUR | |
| Investment Management /Advisory fees | 790,786 | 1,094,073 | 2,056,186 |
| Administration fees | 51,642 | 76,029 | 142,480 |
| Custodian fees | 87,545 | 140,842 | 301,366 |
| Audit fees | 29,699 | 36,000 | 72,000 |
| Directors' fees | 99,178 | 95,491 | 208,607 |
| Depreciation | 85,648 | 877,085 | 130,002 |
| Rental of assets-operating leases | 6,344 | 7,105 | 13,791 |
| Profit on disposal of investment property | - | - | 187,143 |
| Staff cost | 431,108 | - | 845,510 |
| Other fees | 1,589,414 | 776,183 | 3,747,240 |
| 3,171,364 | 3,102,808 | 7,704,325 |
6. Financial assets
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| Non-current investments | EUR | EUR | EUR |
| Unlisted equity securities | 49,351,017 | 4,100,000 | 20,377,563 |
| Listed equity securities | 12,623,715 | 31,310,192 | 37,371,470 |
| 61,974,732 | 35,410,192 | 57,749,033 | |
| Cost | 80,274,730 | 34,910,722 | 78,835,029 |
| Unrealised (loss)/ gain on investments | (18,299,998) | 499,470 | (21,085,996) |
| Fair value of the investments | 61,974,732 | 35,410,192 | 57,749,033 |
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| Current investments | EUR | EUR | EUR |
| Listed equity securities | 9,607,621 | 36,844,062 | 10,317,104 |
| Listed debt securities | - | 5,277,434 | - |
| Total financial assets at fair value through profit or loss | 9,607,621 | 42,121,496 | 10,317,104 |
| Cost | 29,917,876 | 50,369,788 | 34,933,736 |
| Unrealised (loss)/ gain on investments | (20,310,255) | (8,248,292) | (24,616,632) |
| Fair value of the investments | 9,607,621 | 42,121,496 | 10,317,104 |
7. Net Asset Value
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| EUR | EUR | EUR | |
| Net assets (excluding minority interest) | 85,480,995 | 138,886,946 | 83,730,540 |
| Number of shares | 100,000,000 | 112,681,054 | 100,000,000 |
| Net Asset Value per share | 0.8548 | 1.2326 | 0.8373 |
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.
|
|
| 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 | 5,429,502 | 94,737,727 |
| Reportable segmental (loss)/ profit | (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 | - | - | - | - | 58,105 | 58,105 |
| Depreciation | (63,000) | - | - | - | (22,648) | (85,468) |
| Dividends | - | - | - | 292,292 | - | 292,292 |
| Income tax expense | - | - | - | (29,229) | (202,379)) | (231,608) |
| Other income | - | - | - | - | 81,232 | 81,232 |
8. Operating segments (Continued)
|
|
| Listed | Unlisted |
|
|
|
|
| Hotel | Private Equity | Private Equity | Trading | All |
|
|
| Operations | Programme | Programme | Programme | Other | Total |
| 30-Jun-08 | 30-Jun-08 | 30-Jun-08 | 30-Jun-08 | 30-Jun-08 | 30-Jun-08 | |
| EUR | EUR | EUR | EUR | EUR | EUR | |
| Reportable segment total assets | 19,157,000 | 43,158,645 | 6,022,784 | 29,793,482 | 76,978,247 | 175,110,159 |
| Reportable segmental (loss)/ profit | (115,000) | (11,073,002) | 49 | (15,028,006) | 2,940,907 | (23,275,052) |
| Reportable segment liabilities | 1,499,000 | - | 251,949 | - | 26,831,519 | 28,582,468 |
|
|
|
|
|
|
|
|
| Revenue from external customers | 383,000 | - | 408,841 | - | - | 791,841 |
| Interest revenue | - | - | - | 187,514 | 1,434,357 | 1,621,871 |
| Depreciation | (58,000) | - | - | - | (819,085) | (877,085) |
| Dividends | - | - | - | 492,147 | - | 492,147 |
| Income tax expense | - | - | - | (5,514) | (133,275) | (138,789) |
| Other income | - | - | - | - | 81,232 | 81,232 |
|
|
| Listed | Unlisted |
|
|
|
|
| Hotel | Private Equity | Private Equity | Trading | All |
|
|
| Operations | Programme | Programme | Programme | Other | Total |
| 31-Dec-08 | 31-Dec-08 | 31-Dec-08 | 31-Dec-08 | 31-Dec-08 | 31-Dec-08 | |
| EUR | EUR | EUR | EUR | EUR | EUR | |
| Reportable segment total assets | 17,013,000 | 37,880,041 | 21,560,977 | 9,329,193 | 7,774,701 | 93,557,912 |
| Reportable segmental loss | (400,654) | (20,167,578) | (14,388,948) | (31,365,840) | 2,773,631 | (63,549,389) |
| Reportable segment liabilities | 1,078,000 |
| 79,359 |
| 974,192 | 2,131,551 |
|
|
|
|
|
|
|
|
| Revenue from external customers | 1,489,346 | - | 1,223,531 | - | - | 2,712,877 |
| Interest revenue | - | - | - | 187,514 | 2,221,512 | 2,409,026 |
| Depreciation | (110,000) | - | (16,571) | - | (3,431) | (130,002) |
| Dividends | - | - | - | 569,268 | - | 569,268 |
| Income tax expense | - | - | - | 57,114 | 572,898 | 630,012 |
| Other income | - | - | 187,514 | - | 294,807 | 482,321 |
8. Operating segments (Continued)
The geographical areas of operation for products and services are as follows:
| 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) | 3,235,26 5 | (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 |
| Romania | Serbia | Other | Total | |
| 30-Jun-08 | 30-Jun-08 | 30-Jun-08 | 30-Jun-08 | |
| EUR | EUR | EUR | EUR | |
| Revenue |
|
|
|
|
| Total investment income/ (loss) | (22,959,552) | (50,653) | (3,392,456) | (26,402,661) |
| Revenue from hotel operations | 383,000 | - | - | 383,000 |
| Revenue from receivables collection operations | 408,841 | - | - | 408,841 |
| Interest income | 1,579,356 | - | 42,515 | 1,621,871 |
| Dividend income | 492,147 | - | - | 492,147 |
| Other income | - | - | 113,819 | 113,819 |
|
| (20,096,208) | (50,653) | (3,236,122) | (23,382,983) |
|
|
|
|
|
|
| Total assets |
|
|
|
|
| Financial assets at fair value through profit or loss | 73,906,339 | 73,222 | 3,552,128 | 77,531,689 |
| Property, Plant and Equipment | 18,446,854 | - | 7,630 | 18,454,484 |
| Investment Property | - | - | - | - |
| Goodwill | 1,257,153 | - | - | 1,257,153 |
| Inventories | 124,000 | - | - | 124,000 |
| Trade and other receivables | 2,417,145 | - | 106,216 | 2,523,361 |
| Cash and cash equivalents | 72,230,138 | 281 | 2,989,054 | 75,219,473 |
| 168,381,629 | 73,503 | 6,655,028 | 175,110,160 |
8. Operating segments (Continued)
|
|
|
| ||
|
|
|
|
|
|
| Romania | Serbia | Other | Total | |
|
|
|
|
|
|
| 31-Dec-08 | 31-Dec-08 | 31-Dec-08 | 31-Dec-08 | |
| EUR | EUR | EUR | EUR | |
| Revenue |
|
|
|
|
| Total investment income/ (loss) | (48,175,053) | (12,366,621) | (4,687,621) | (65,229,295) |
| Revenue from hotel operations | 1,489,346 | - | - | 1,489,346 |
| Revenue from receivables collection operations | 1,223,531 | - | - | 1,223,531 |
| Interest income | 2,351,652 | - | 57,374 | 2,409,026 |
| Dividend income | 541,579 | 287 | 27,402 | 569,268 |
| Other income | 311,537 | - | 170,784 | 482,321 |
|
|
|
|
|
|
|
| (42,257,408) | (12,366,334) | (4,432,061) | (59,055,803) |
|
|
|
|
|
|
| Total assets |
|
|
|
|
| Financial assets at fair value through the profit or loss | 66,778,269 | 17,452 | 1,270,416 | 68,066,137 |
| Property, plant and equipment | 16,866,924 | - | 5,573 | 16,872,497 |
| Goodwill | 1,257,153 | - | - | 1,257,153 |
| Inventories | 80,000 | - | - | 80,000 |
| Trade and other receivables | 765,836 | - | 89,923 | 855,759 |
| Cash and cash equivalents | 5,256,068 | 295,122 | 875,176 | 6,426,366 |
|
|
|
|
|
|
| 91,004,250 | 312,574 | 2,241,088 | 93,557,912 | |
9. Earnings/ (loss) per share
| 30-Jun-09 | 30-Jun-08 | 31-Dec-08 | |
| Unaudited | Unaudited | Audited | |
| EUR | EUR | EUR | |
| Numerator | |||
| (Loss)/ profit for the period | 1,230,228 | (23,707,730) | (64,576,849) |
| Earnings/ (loss) used in EPS | 1,230,228 | (23,707,730) | (64,576,849) |
| Denominator | |||
| Weighted average number of shares used in basic | |||
| and diluted EPS | 100,000,000 | 112,681,054 | 111,988,100 |
| Earnings/ (loss) per share | 0.0123 | (0.2104) | (0.5766) |
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, and has a beneficial interest in New Europe Capital SRL and New Europe Capital DOO, which are the Investment Advisers to the Company. Total management and advisory fees for the period amounted to EUR 1,026,994. Total fees outstanding as at 30 June 2009 were EUR 577,757.
| Investment Management and Advisory fees | 30-Jun-09 | 30-Jun-08 | 31-Dec-08 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| New Europe Capital Ltd * | 236,208 | 551,873 | 964,208 |
| New Europe Capital SRL | 482,688 | 777,790 | 1,419,199 |
| New Europe Capital DOO | 308,098 | 316,283 | 636,987 |
|
| 1,026,994 | 1,645,946 | 3,020,394 |
|
|
|
| |
| Outstanding Amounts | 30-Jun-09 | 30-Jun-08 | 31-Dec-08 |
|
| Unaudited | Unaudited | Audited |
|
| EUR | EUR | EUR |
| New Europe Capital Ltd * | 77,233 | 241,280 | 120,735 |
| New Europe Capital SRL | 399,786 | 243,472 | 286,755 |
| New Europe Capital DOO | 100,738 | 125,157 | 93,905 |
|
| 577,757 | 609,909 | 501,395 |
* New Europe Capital Limited is part of the Group and so these amounts are eliminated on consolidation.