Chairman's Statement

I am pleased to present the unaudited interim financial statements of the Company for the six months ended 30 June 2019.

The unaudited net asset value as at 30 June 2019 was €9.48 million or 0.75 cents per share (31 December 2018: €12.0 million or 0.95 cents per share).

During the period, the Company continued its re-construction of Camping South Beach EOOD ("CSB") while also marketing the development as a destination for luxury camping holidays which resulted in further revenue generation in the period.  While the value of CSB has been accounted for at its valuation at 31 December 2018, the investment in the project during the period, which amounted to €1.897 million, has been expensed.  The Directors will seek a further valuation at the year-end date of 31 December 2019 which they expect will result in a material uplift reflecting the investment made during the year.

We are currently preparing further development proposals for the UniCredit Building which will be submitted for further approvals in due course. There is currently no letting of the building and we expect to be in a position shortly to advance its refurbishment significantly.

The Directors were disappointed by the delays in completing the accounts for the year ended 31 December 2018, which were published on 1 November 2019.  This was a result of concerns raised by the auditors over the relatively high levels of unbanked cash at CSB at the time of its acquisition and unsatisfactory accounting procedures for recording bookings and reservations which were not appropriate for the Company as a listed entity and trading in the Company's shares was suspended.

All recommendations of the auditors have since been addressed and implemented promptly:

1.   The Company has since adopted an internationally recognised reservations system.

2.   The accounting function has been outsourced to Crowe Bulgaria, the Bulgarian member of Crowe Global which is one of the leading international accounting networks, the eighth largest accounting network in the world in order to improve the accounting and internal control function.

3.   Available cash resources have been utilised in the Company's normal business operations for settlement of liabilities to contractors and suppliers.

Following publication of these unaudited interim results to 30 June 2019, we expect trading in the Company's shares to re-commence in the near future.

We are experiencing increasing demand for our luxury camping business at CSB and are confident that the development on completion will become a popular holiday destination during the summer season.  We are also confident that our plans for the UniCredit building will enhance its valuation on completion of its refurbishment.

I look forward to reporting on further progress with the full year results.

Alex Borrelli

Chairman

04 November 2019

Consolidated Statement of Comprehensive Income
for the period ended 30 June 2019

The notes form an integral part of these financial statements.

Consolidated Statement of Financial Position
at 30 June 2019

The notes form an integral part of these financial statements.

The financial statements were approved and authorised for issue by the Board of Directors on 04 November 2019 and were signed on their behalf by:

Chairman                                                                      Director

Alex Borrelli                                                                   Ventsislava Altanova

Consolidated Statement of Changes in Equity
for the period ended 30 June 2019

The notes form an integral part of these financial statements.

Consolidated Statement of Cash Flows
for the period ended 30 June 2019

The notes form an integral part of these financial statements.

Notes to the Financial Statements
for the period ended 30 June 2019

1.        General information

Black Sea Property Plc (the Company) is a company incorporated and domiciled in the Isle of Man whose shares are publicly traded on NEX Exchange.

2.        Statement of compliance

These interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year-ended 31 December 2018.

The consolidated financial statements of the Group as at and for the year ended 31 December 2018 are available upon request from the Company's registered office at IOMA House, Hope Street, Douglas, Isle of Man or at www.blackseapropertyplc.com.

These interim consolidated financial statements were approved by the Board of Directors on 04 November 2019.

3.        Significant accounting policies

The accounting policies applied in these interim financial statements, except for the ones listed below, are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December 2018.

Changes in significant accounting policies

The Group has initially adopted IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments from 1 January 2018. There were no material effects of initially applying IFRS 15 and IFRS 9 Financial Instruments.

4.        Financial risk management policies

The principal risks and uncertainties are consistent with those disclosed in preparation of the Group's annual financial statements for the year ended 31 December 2018.

5.        Other administration fees and expenses

6.        Investment properties

The Directors confirm that there are no material changes in the valuation of investments as of 30 June 2019.

7.        Bank Loans

8.        Earnings per share

The basic earnings/(loss) per ordinary share is calculated by dividing the net profit/(loss) attributable to the ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the period.

The Company has no potential dilutive ordinary shares; the diluted earnings/(loss) per share is the same as the basic earnings/(loss) per share.

9.        Net asset value per share

10.      Events after reporting date

There are no significant events after reporting date.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.