("Black Sea Property" or the "Company")
Half-yearly report for the period ended
The Board of
Electronic copies of the interim report will be available at the Company's website http://www.blackseapropertyplc.com
- END -
|
+44(0) 774 702 0600 |
PETERHOUSE CAPITAL LIMITED NEX Exchange Corporate Adviser |
+44 (0) 207 469 0930 |
Chairman's Statement
I am pleased to present the unaudited interim financial statements of the Company for the six months ended
The unaudited net asset value as at
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
We are currently preparing further development proposals for the
The Directors were disappointed by the delays in completing the accounts for the year ended
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
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.
Chairman
Consolidated Statement of Comprehensive Income
for the period ended
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
6 months to |
|
6 months to |
|
Year to |
|
|
|
|
|
|
|
|
Notes |
€ |
|
€ |
|
€ |
Total revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
312,459 |
|
272,374 |
|
433,410 |
Property operating expenses |
|
(294,481) |
|
(143,904) |
|
(382,146) |
Net rental and related income |
|
17,978 |
|
128,470 |
|
51,264 |
|
|
|
|
|
|
|
Bargain purchase on acquisition |
|
- |
|
5,338,623 |
|
3,759,352 |
Loss on revaluation of investment properties |
|
(1,896,721) |
|
- |
|
(497,881) |
Other income |
|
- |
|
2 |
|
- |
|
|
|
|
|
|
|
Net (loss)/gain on investment property |
|
(1,896,721) |
|
5,338,625 |
|
3,261,471 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses |
5 |
(386,472) |
|
(298,573) |
|
(628,599) |
|
|
|
|
|
|
|
Total operating expenses |
|
(2,265,215) |
|
5,168,522 |
|
2,684,136 |
|
|
|
|
|
|
|
Operating loss before interest and tax |
|
|
|
|
|
|
Foreign currency exchange differences |
|
- |
|
(3,542) |
|
420,847 |
Interest Income |
|
8,082 |
|
- |
|
- |
Bank charges and interest payable
|
|
(317,964) |
|
(58,397) |
|
(740,646) |
|
|
|
|
|
|
|
(Loss)/profit before tax |
|
(2,575,097) |
|
5,106,583 |
|
2,364,337 |
Tax expense |
|
49,310 |
|
- |
|
(23,645) |
(Loss)/profit and total comprehensive income attributable to shareholders |
|
(2,525,787) |
|
5,106,583 |
|
2,340,692 |
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
|
Basic and Diluted earnings/(loss) per share (cents) |
8 |
(0.20) |
|
0.40 |
|
0.18 |
The notes form an integral part of these financial statements.
Consolidated Statement of Financial Position
at 30 June 2019
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
31 December 2018 |
|
Notes |
€ |
|
€ |
|
€ |
Non-current assets |
|
|
|
|
|
|
Investment properties |
6 |
27,566,766 |
|
28,254,024 |
|
27,566,766 |
|
|
27,566,766 |
|
28,254,024 |
|
27,566,766 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Other receivables |
|
1,304,568 |
|
335,065 |
|
566,263 |
Cash and cash equivalents |
|
978,406 |
|
3,811,844 |
|
3,698,239 |
|
|
|
|
|
|
|
|
|
2,282,974 |
|
4,146,909 |
|
4,264,502 |
|
|
|
|
|
|
|
Total assets |
|
29,849,740 |
|
32,400,933 |
|
31,831,268 |
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
Issued share capital |
|
64,774,886 |
|
64,774,886 |
|
64,774,886 |
Retained deficit |
|
(53,765,198) |
|
(48,473,520) |
|
(51,239,411) |
Foreign exchange reserve |
|
(1,533,086) |
|
(1,533,086) |
|
(1,533,086) |
|
|
|
|
|
|
|
Total equity |
9 |
9,476,602 |
|
14,768,280 |
|
12,002,389 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Bank loans |
7 |
16,576,585 |
|
17,445,368 |
|
16,535,339 |
Deferred tax liability |
|
1,466,552 |
|
41,932 |
|
1,509,773 |
|
|
18,043,137 |
|
17,487,300 |
|
18,045,112 |
Current liabilities |
|
|
|
|
|
|
Trade payables |
|
587,532 |
|
139,678 |
|
234,261 |
Other payables |
|
150,000 |
|
5,675 |
|
|
Bank loans |
7 |
1,592,469 |
|
- |
|
1,549,506 |
|
|
2,330,001 |
|
145,353 |
|
1,783,767 |
|
|
|
|
|
|
|
Total equity and liabilities |
|
29,849,740 |
|
32,400,933 |
|
31,831,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of ordinary shares in issue |
9 |
1,269,407,896 |
|
1,296,407,896 |
|
1,269,407,896 |
|
|
|
|
|
|
|
NAV per ordinary share (cents) |
9 |
0.75 |
|
1.16 |
|
0.95 |
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
Chairman Director
Alex Borrelli Ventsislava Altanova
Consolidated Statement of Changes in Equity
for the period ended 30 June 2019
|
Share capital |
|
Retained deficit |
|
Foreign exchange reserve |
|
Total |
|
€ |
|
€ |
|
€ |
|
€ |
|
|
|
|
|
|
|
|
At |
64,774,886 |
|
(53,580,103) |
|
(1,533,086) |
|
9,661,697 |
|
|
|
|
|
|
|
|
Profit for the six-month period |
- |
|
5,106,583 |
|
- |
|
5,106,583 |
|
|
|
|
|
|
|
|
At |
64,774,886 |
|
(48,473,520) |
|
(1,533,086) |
|
14,768,280 |
|
|
|
|
|
|
|
|
At |
64,774,886 |
|
(53,580,103) |
|
(1,533,086) |
|
9,661,697 |
|
|
|
|
|
|
|
|
Profit for the year |
- |
|
2,340,692 |
|
- |
|
2,340,692 |
|
|
|
|
|
|
|
|
At |
64,774,886 |
|
(51,239,411) |
|
(1,533,086) |
|
12,002,389 |
|
|
|
|
|
|
|
|
At |
64,774,886 |
|
(51,239,411) |
|
(1,533,086) |
|
12,002,389 |
|
|
|
|
|
|
|
- |
Loss for the six-month period |
- |
|
(2,525,787) |
|
- |
|
(2,525,787) |
|
|
|
|
|
|
|
|
At |
64,774,886 |
|
(53,765,198) |
|
(1,533,086) |
|
9,476,602 |
The notes form an integral part of these financial statements.
Consolidated Statement of Cash Flows
for the period ended
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
6 months to |
|
6 months to |
|
Year to |
|
|
|
|
|
|
|
€ |
|
€ |
|
€ |
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit before tax |
(2,575,097) |
|
5,106,583 |
|
2,364,337 |
Loss on revaluation of investment properties |
1,896,721 |
|
- |
|
497,881 |
Bargain purchase on acquisition |
- |
|
(5,338,623) |
|
(3,759,352) |
Finance expense |
317,964 |
|
58,397 |
|
740,646 |
|
|
|
|
|
|
Movement in net cash outflow from operating activities |
(360,412) |
|
(173,643) |
|
(156,488) |
|
|
|
|
|
|
(Increase)/decrease in receivables |
(695,342) |
|
4,618,777 |
|
(628,870) |
Increase/(decrease) in payables |
353,271 |
|
(2,521,901) |
|
(323,539) |
|
|
|
|
|
|
|
(342,071) |
|
2,096,876 |
|
(952,409) |
|
|
|
|
|
|
Withholding tax paid |
6,089 |
|
(943) |
|
(85,309) |
|
|
|
|
|
|
Net cash (outflow)/inflow from operating activities |
(696,394) |
|
1,922,290 |
|
(1,194,206) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
Investment property additions |
(1,896,721) |
|
- |
|
(540,035) |
Fixed assets additions |
- |
|
(470,650) |
|
|
Cash held by the acquired subsidiary |
- |
|
780,231 |
|
4,154,758 |
Cash advance pre-acquisition |
- |
|
- |
|
- |
Net cash (outflow)/ from investing activities |
(2,593,115) |
|
2,231,871 |
|
3,614,723 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
Loans and interest repaid |
(317,964) |
|
(658,838) |
|
(720,719) |
Bank loan received |
41,246 |
|
- |
|
(240,370) |
Loans received |
150,000 |
|
- |
|
- |
Net cash (outflow)/inflow from financing activities |
(126,718) |
|
(658,838) |
|
(961,089) |
|
|
|
|
|
|
Net decrease/increase in cash and cash equivalents |
(2,719,833) |
|
(1,573,033) |
|
1,459,428 |
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
3,698,239 |
|
2,238,811 |
|
2,238,811 |
|
|
|
|
|
|
Cash and cash equivalents at end of period |
978,406 |
|
3,811,844 |
|
3,698,239 |
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
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
The consolidated financial statements of the Group as at and for the year ended
These interim consolidated financial statements were approved by the Board of Directors on
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
Changes in significant accounting policies
The Group has initially adopted IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments from
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
5. Other administration fees and expenses
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
6 months to |
6 months to |
Year to |
|
|
|
|
|
|
|
|
|
€ |
€ |
€ |
Directors' remuneration |
40,547 |
32,535 |
84,247 |
Administration fees - Isle of Man |
23,975 |
23,867 |
47,334 |
Administration fees - Jersey |
17,685 |
19,126 |
39,358 |
Administration fees - Bulgaria |
89,342 |
66,678 |
126,464 |
Investment advisory fees |
53,568 |
107,136 |
214,272 |
Legal and professional fees |
55,828 |
16,550 |
19,361 |
Auditors' fee |
24,490 |
2,404 |
32,404 |
Registrar fees |
1,290 |
1,102 |
2,212 |
Broker fees |
17,118 |
16,994 |
33,933 |
Other administration and professional fees |
62,629 |
12,181 |
29,014 |
|
386,472 |
298,573 |
628,599 |
6. Investment properties
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
30 June 2019 |
30 June 2018 |
31 December 2018 |
|
|
|
|
|
€ |
€ |
€ |
Beginning of year |
27,566,766 |
11,229,740 |
11,229,740 |
Acquisition |
- |
16,294,920 |
16,294,872 |
Fair value adjustment |
(1,896,721) |
- |
(497,881) |
Additions |
1,896,721 |
729,364 |
540,035 |
|
|
|
|
End of year |
27,566,766 |
28,254,024 |
27,566,766 |
The Directors confirm that there are no material changes in the valuation of investments as of
7. Bank Loans
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
30 June 2019 |
30 June 2018 |
31 December 2018 |
|
|
|
|
|
|
|
€ |
€ |
€ |
|
Loan and interest accrued from UniCredit |
7,066,023 |
7,000,000 |
6,975,121 |
|
Loan and interest accrued from |
11,103,031 |
10,445,368 |
11,109,724 |
|
|
|
|
|
|
|
18,169,054 |
17,445,368 |
18,084,845 |
|
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.
|
|||
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
6 months to |
6 months to |
Year to |
|
30 June 2019 |
30 June 2018 |
31 December 2018 |
|
|
|
|
Earnings/(loss) attributable to owners of parent (€) |
(2,525,787) |
5,106,583 |
2,340,692 |
Weighted average number of ordinary shares in issue |
1,269,407,896 |
1,269,407,896 |
1,269,407,896 |
|
|
|
|
Basic (loss)/earnings per share (cents) |
(0.20) |
0.40 |
0.18 |
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
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
30 June 2019 |
30 June 2018 |
31 December 2018 |
|
|
|
|
|
€ |
€ |
€ |
Net assets attributable to owners of the parent (€) |
9,476,602 |
14,768,280 |
12,002,389 |
Number of ordinary shares outstanding |
1,269,407,896 |
1,269,407,896 |
1,269,407,896 |
|
|
|
|
Net Asset Value (cents) |
0.75 |
1.16 |
0.95 |
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
This information is provided by RNS, the news service of the