Earnings Release • May 22, 2015
Earnings Release
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RNS Number : 0706O
AFI Development PLC
22 May 2015
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION
IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
22 May 2015
AFI DEVELOPMENT PLC
("AFI DEVELOPMENT" OR "THE COMPANY")
RESULTS FOR THE THREE MONTHS TO 31 MARCH 2015
Stable operational results despite economic uncertainty
AFI Development, a leading real estate company focused on developing property in Russia, has today announced its financial results for the three months ended 31 March 2015.
Q1 2015 financial highlights
· Rental income and income from hotel operations declined to US$24.4 million (from US$36.7 in Q1 2014) as a result of the difficult macroeconomic environment and Russian rouble depreciation
- AFIMALL City contribution at US$19.1 million, compared to US$28.0 million in Q1 2014
· Gross profit up 78% to US$11.2 million compared to US$6.3 million in Q1 2014
· Net profit for the quarter amounted to US$6.0 million compared to US$24.3 in Q1 2014
· Cash, cash equivalents and marketable securities of US$74.7 million
Q1 2015 operational highlights
· AFIMALL City recorded revenue of US$19.1 million for Q1 2015:
- NOI was US$13.7 million for the quarter, compared to US$16.8 million in Q1 2014
- Occupancy levels at 83% of total leasable area (no change compared to end of Q1 2014)
· Sales of apartments continue at Odinburg with 627 sale contracts signed (as of 21 May 2015)
Commenting on today's announcement, Lev Leviev, Executive Chairman of AFI Development, said:
"Although a weaker rouble and the general economic downturn in Russia have caused a decline in our revenues, AFI Development has continued to demonstrate stable operational results during the first quarter of 2015. Given the recent oil price recovery and encouraging macroeconomic developments since the start of the second quarter, we are cautiously optimistic for the remainder of 2015."
Q1 2015 Results Conference Call:
AFI Development will hold a conference call for analysts and investors to discuss its Q1 2015 financial results on Tuesday, 26 May 2015, following the publication of the Company's financial results.
The details for the conference call are as follows:
Date: Tuesday, 26 May 2015
Time: 15:00 BST (17:00 Moscow)
Dial-in Tel: International: +44 (0) 20 3003 2666
UK toll free: 0808 109 0700
US toll-free: 1 866 966 5335
Russia toll-free: 8 10 8002 4902044
Password: AFI
Please dial in 5/10 minutes prior to the commencement time giving your name, company and stating that you are dialling into the AFI Development conference call quoting the reference AFI.
Prior to the conference call, the Q1 2015 Investor Presentation of AFI Development will be published on the Company website at http://www.afi-development.com/en/investor-relations/reports-presentations on 26 May 2015 by 12am BST (2pm Moscow).
- ends -
For further information, please contact:
AFI Development, Moscow +7 495 796 9988
Ilya Kutnov
Ekaterina Shubina
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Sandra Novakov
Shelly Chadda
About AFI Development
AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, the Company is a publicly traded subsidiary of Africa Israel Investments Ltd.
AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction and quality of customer service.
AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centres, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favourable return.
AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighbourhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.
Legal Disclaimer
Some of the information in these materials may contain projections or other forward-looking statements regarding future events, the future financial performance of the Company, its intentions, beliefs or current expectations and those of its officers, directors and employees concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and business. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" or the negative of such terms or other similar expressions. These statements are only predictions and that actual events or results may differ materially. Unless otherwise required by applicable law, regulation or accounting standard, the Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.
Chairman's and Executive Director's Combined Statement
The difficult macroeconomic situation prevalent in Russia during 2014 has continued into the first quarter of 2015, with a noticeable effect on the real estate sector and, consequently, our first quarter results.
The weakening of the rouble during the quarter has negatively influenced rental revenue in dollar terms from properties leased under rouble-denominated rental agreements. At the same time, the profitability remained strong, with gross profit at US$11.2 for the quarter, an increase of 78% versus Q1 2014.
We continue to closely monitor developments in our macroeconomic environment and the real estate sector. We are encouraged by the gradual strengthening of the rouble recorded since the start of Q2 2015, driven mainly by the recovery in oil prices and sharply reduced imports, and the Central Bank's recent decision to reduce the key lending rate to 12.5%. These factors have led us to believe that the economic slowdown will be both less profound and shorter than initially expected.
Projects update
AFIMALL City
During the first quarter of 2015 AFIMALL City experienced a slight decrease in occupancy levels due to some rotation of tenants. However, a number of new tenants have entered the Mall, most notably in the restaurant category. An Italian chain 'Maccheroni', a vegetarian café chain 'Zelen'. Eco-territory', Mediterranean cuisine-focused 'Galata' and popular Russian restaurant chain 'Chaihona № 1' all opened their outlets in the Mall. The lease agreement with the 'Chaihona № 1' lounge-café is of particular significance as this tenant will become one of the largest restaurants at AFIMALL, occupying more than 700 sq. m of space.
In addition, to make family visits to AFIMALL City more convenient, we have opened a 140 sq. m children care outlet during Q1 2015, where parents can leave their children to play under supervision while shopping at AFIMALL.
Odinburg
In Q1 2015 the construction of Building 2 of Korona, the first phase of the overall development, commenced and apartment pre-sales are currently underway. At the same time, sales of apartments in Building 1 are nearly complete.
In response to the more difficult macroeconomic environment in Russia, we increased our marketing efforts during the first quarter. In order to facilitate mortgage-financed purchases, we launched a joint initiative with Sberbank, the largest Russian bank, under which AFI Development provides a special discount to mortgage-financed purchasers. In addition, a special discount is provided to the military, which, in combination with the state subsidy for military housing, makes acquisitions of apartments at Odinburg particularly attractive to this category of clients.
As of the date of publication of this report, 627 contracts for sales of apartments have been signed.
Aquamarine III (Ozerkovskaya III)
The Company continues to market office space in the complex to potential buyers and tenants.
Tverskaya Plaza Ic
AFI Development plans to start construction of this project as soon as debt financing on favourable terms has been secured and the market environment becomes more supportive.
Paveletskaya Phase II
With the planning stage now finalised, the Company is preparing to launch construction, subject to further improvement in the market situation. We are currently developing a marketing programme to start apartment pre-sales in due course.
Bolshaya Pochtovaya
AFI Development continues to develop project designs and aims to obtain a construction permit for this development during 2015.
| Lev Leviev Executive Chairman of the Board |
Mark Groysman Executive Director |
ANNEX A
31.3.2015 - Very significant property disclosure
1. AFIMALL City
| (Data based on 100%. Share of the Company in the property - 100%) | Current quarter (Q1 2015) | Comparative data | |||
| Q1 2015 | Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | |
| Value of the property (000'USD) | 1,000,000 | 1,000,000 | 1,160,000 | 1,160,000 | 1,160,000 |
| NOI in the period (000'US$) | 13,686 | 18,641 | 25,007 | 22,501 | 16,807 |
| Revaluation gains (losses) in the period (000'US$) | 13,821 | (3,655) | 88,473 | (35,442) | 51,904 |
| Average occupancy rate in the period (%) | 83% | 85% | 82% | 82% | 83% |
| Rate of return (%) | 5.5% | 8.3% | 7.4% | 6.8% | 5.8% |
| Average rent per sq.m. (US$/annum) | 1,117 | 1,147 | 1,201 | 1,202 | 1,224 |
| Average rent per sq.m. in agreements signed in the period (US$/annum) | 832 | 1,035 | 1,667 | 1,286 | 673 |
ANNEX B
31.3.2015 - Very significant loans disclosure
| Balance as of 31.03.2015 | Lender type: Bank, Institutional etc. | Indexation/ currency exposure & interest rate | Liens and material legal restrictions on the property | Covenants | Cross default mechanism | Any other covenants or restriction that might increase the cost of debt | In-case it is a credit line facility - what are the terms&conditions for draw downs | The methods/ way that the covenant is calculated | Covenant calculation results | The date of Q1 2015 financial statements were reported | The date that the lender is checking the borrower is line with the covenants |
| USD 296,385,605 and RUR 10,011,529,000(USD 171,241,749). Total amount in USD as of 31.03.2015 is USD 467,627,354 | Specific project financed by VTB Bank JSC | RUR/USD loan provided in five tranches totalling RUR 21 billion. Each tranche can be drown down either in US Dollars or in Rubles (at Company's discretion). The loan facility has differentiated interest rates which are currency dependent: 9.5% for loans drawn down in Russian rubles and 3 months LIBOR + 5.02% for loans drawn down in US dollars. The interest on the loans is payable on a quarterly basis, throughout the term of the credit line. The principal is due to be fully repaid in April 2018. The RUR interest rate may be unilaterally increased by the lending bank, should one of the interest indicators stipulated by the Russian Central Bank and specified in the loan agreement be increased; the interest rate will be increased by the amount of the interest indicator increase. | 1. Liens over all the Bellgate's shares 2. AFI Development PLC company guarantee, limited to USD 1,000,000 3. Mortgage over 100% of the premises of AFIMALL City 4. Mortgage over the premises in the Parking owned by Bellgate, upon registration of Bellgate's rights to land plot under the Parking 5. Permission to debit Bellgate's account held in the lending bank 6. Additional mortgage over the premises of the "Aquamarine" Hotel in Moscow, to be removed in case Bellgate (the borrower) redeems USD 20 million of the principal 7. Additional guarantee by Semprex LLC, a Russian Company - an indirect subsidiary of AFI Development Plc, to be removed in case Bellgate (the borrower) redeems USD 20 million of the principal |
(1) Bellgate'(the Borrower) should have minumum quarterly revenues, ranging from RUR 651,000,000 in Q3 2012 to RUR 1,139,000,000 in Q1 2018. Penalty: 0.5% per annum extra charge to the interest rate applicable under the loan agreement- applicable only for the quarter when the aforesaid revenue threshold was not achieved; (2) Liquidation Value of the property should be higher than sum of the outstanding principal and six months interest. |
N/A | N/A | The loan is given in five tranches: 1st tranche drawn down on 29 June 2012, 2nd tranche drawn down on 3 August 2012 on the amount USD 69, 385,604.64 (RUR 2,252,000,000), 3rd tranche of RUR 1,300,000,000 drawn down on 01.02.2013, 4th tranche of RUR 1,333,333,333.33 drawn down on 28.02.2013 , 5th tranche of RUR 1,333,333,333.34 drawn down on 28.02.2014. | (1) The total of revenue, including VAT , calculated quarterly; (2) The Liquidation Value is determined by an external valuer appointed by the Bank. | (1) The minimum quarterly revenue for Q1 2015 was 1 037 millions Rouble incl. VAT ; (2) Liquidation Value determined by an external valuer appointed by the Bank is USD 663,9 million/RUR 36 bln (VAT not included) | 22 May 2015 | (1) Borrowers revenues are checked quarterly; (2) Liquidation value is checked twice a year, on December and on August. |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the period from 1 January 2015 to 31 March 2015
Page
Independent auditors' report on review of condensed consolidated interim financial information 1
Condensed consolidated income statement 2
Condensed consolidated statement of comprehensive income 3
Condensed consolidated statement of changes in equity 4
Condensed consolidated statement of financial position 5
Condensed consolidated statement of cash flows 6
Notes to the condensed consolidated interim financial statements 7 - 21
Independent auditors' report on review of condensed consolidated interim financial information to the members of AFI DEVELOPMENT PLC
Introduction
We have reviewed the accompanying condensed consolidated statement of financial position of AFI Development PLC as at 31 March 2015, the condensed consolidated statements of income, comprehensive income, changes in equity and cash flows for the three-month period then ended and notes to the interim financial information ('the condensed consolidated interim financial information'). The Company's Board of Directors is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information as at 31 March 2015 is not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting".
Maria H. Zavrou, FCCA
Certified Public Accountant and Register Auditor
For and on behalf of
KPMG Limited
Certified Public Accountants and Registered Auditors
14 Esperidon Street
1087 Nicosia, Cyprus
22 May 2015
For the period from 1 January 2015 to 31 March 2015
| 1/1/15- | 1/1/14- | ||
| 31/3/15 | 31/3/14 | ||
| US$ '000 | US$ '000 | ||
| Note | |||
| Revenue | 6 | 24,446 | 36,655 |
| Other income | 1,135 | 1,729 | |
| Operating expenses | 6 | (11,395) | (21,772) |
| Administrative expenses | 7 | (2,714) | (7,404) |
| Other expenses | 8 | (397) | (2,261) |
| Total expenses | (14,506) | (31,437) | |
| Share of the after tax profit/(loss) of joint ventures | 122 | (644) | |
| Gross Profit | 11,197 | 6,303 | |
| Profit on disposal of investments in subsidiaries | - | 61 | |
| Valuation gain on properties | 11, 12 | 21,444 | 73,279 |
| Impairment loss on inventory of real estate | (658) | (355) | |
| Net valuation gain on properties | 20,786 | 72,924 | |
| Results from operating activities | 31,983 | 79,288 | |
| Finance income | 2,325 | 2,686 | |
| Finance costs | (28,358) | (52,737) | |
| Net finance costs | 9 | (26,033) | (50,051) |
| Profit before tax | 5,950 | 29,237 | |
| Tax benefit/(expense) | 10 | 50 | (4,965) |
| Profit for the period | 6,000 | 24,272 | |
| Profit attributable to: | |||
| Owners of the Company | 5,944 | 24,019 | |
| Non-controlling interests | 56 | 253 | |
| 6,000 | 24,272 | ||
| Earnings per share | |||
| Basic and diluted earnings per share (cent) | 0.57 | 2.29 |
The notes form an integral part of the condensed consolidated interim financial statements.
For the period from 1 January 2015 to 31 March 2015
| 1/1/15- | 1/1/14- | |
| 31/3/15 | 31/3/14 | |
| US$ '000 | US$ '000 | |
| Profit for the period | 6,000 | 24,272 |
| Other comprehensive income Items that are or may be reclassified subsequently to profit or loss |
||
| Realised translation difference on disposal of subsidiaries transferred to income statement | (830) | (77) |
| Foreign currency translation differences for foreign operations | (4,917) | (40,841) |
| Other comprehensive income for the period | (5,747) | (40,918) |
| Total comprehensive income for the period | 253 | (16,646) |
| Total comprehensive income attributable to: | ||
| Owners of the parent | 117 | (16,833) |
| Non-controlling interests | 136 | 187 |
| 253 | (16,646) | |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period from 1 January 2015 to 31 March 2015
| Attributable to owners of the Company | Non-controlling interests | Total equity | |||||||||||||
| Share | Share | Translation | Retained | ||||||||||||
| Capital | Premium | Reserve | Earnings | Total | |||||||||||
| US$ '000 | US$ '000 | US$ '000 | US$ '000 | US$ '000 | US$ '000 | US$ '000 | |||||||||
| Balance at 1 January 2015 | 1,048 | 1,763,409 | (314,880) | (158,982) | 1,290,595 | (8,817) | 1,281,778 | ||||||||
| Total comprehensive income for the period | |||||||||||||||
| Profit for the period | - | - | - | 5,944 | 5,944 | 56 | 6,000 | ||||||||
| Other comprehensive income | - | - | (5,827) | - | (5,827) | 80 | (5,747) | ||||||||
| Total comprehensive income for the period | - | - | (5,827) | 5,944 | 117 | 136 | 253 | ||||||||
| Transactions with owners of the Company Contributions and distributions |
|||||||||||||||
| Share option expense | - | - | - | 657 | 657 | - | 657 | ||||||||
| Balance at 31 March 2015 | 1,048 | 1,763,409 | (320,707) | (152,381) | 1,291,369 | (8,681) | 1,282,688 | ||||||||
| Balance at 1 January 2014 | 1,048 | 1,763,409 | (150,454) | 117,655 | 1,731,658 | (2,179) | 1,729,479 | ||||||||
| Total comprehensive income for the period | |||||||||||||||
| Profit for the period | - | - | - | 24,019 | 24,019 | 253 | 24,272 | ||||||||
| Other comprehensive income | - | - | (40,852) | - | (40,852) | (66) | (40,918) | ||||||||
| Total comprehensive income for the period | - | - | (40,852) | 24,019 | (16,833) | 187 | (16,646) | ||||||||
| Transactions with owners of the Company Contributions and distributions |
|||||||||||||||
| Share option expense | - | - | - | 1,220 | 1,220 | - | 1,220 | ||||||||
| Balance at 31 March 2014 | 1,048 | 1,763,409 | (191,306) | 142,894 | 1,716,045 | (1,992) | 1,714,053 | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2015
| 31/3/15 | 31/12/14 | |||
| Note | US$ '000 | US$ '000 | ||
| Assets | ||||
| Investment property | 11 | 1,375,416 | 1,375,416 | |
| Investment property under development | 12 | 431,474 | 431,474 | |
| Property, plant and equipment | 13 | 33,496 | 35,101 | |
| Long-term loans receivable | 17,632 | 18,071 | ||
| Inventory of real estate | 20,111 | 20,111 | ||
| VAT recoverable | 37 | 42 | ||
| Non-current assets | 1,878,166 | 1,880,215 | ||
| Trading properties | 14 | 2,892 | 2,979 | |
| Trading properties under construction | 15 | 134,867 | 133,036 | |
| Other investments | 6,358 | 6,499 | ||
| Inventory | 543 | 615 | ||
| Short-term loans receivable | 121 | 1 | ||
| Trade and other receivables | 16 | 39,351 | 38,961 | |
| Current tax assets | 1,377 | 1,307 | ||
| Cash and cash equivalents | 17 | 68,353 | 86,756 | |
| Current assets | 253,862 | 270,154 | ||
| Total assets | 2,132,028 | 2,150,369 | ||
| Equity | ||||
| Share capital | 1,048 | 1,048 | ||
| Share premium | 1,763,409 | 1,763,409 | ||
| Translation reserve | (320,707) | (314,880) | ||
| Retained earnings | (152,381) | (158,982) | ||
| Equity attributable to owners of the Company | 18 | 1,291,369 | 1,290,595 | |
| Non-controlling interests | (8,681) | (8,817) | ||
| Total equity | 1,282,688 | 1,281,778 | ||
| Liabilities | ||||
| Long-term loans and borrowings | 19 | 632,713 | 455,097 | |
| Deferred tax liabilities | 103,604 | 102,621 | ||
| Deferred income | 12,228 | 12,966 | ||
| Non-current liabilities | 748,545 | 570,684 | ||
| Short-term loans and borrowings | 19 | 30,631 | 231,684 | |
| Trade and other payables | 20 | 24,511 | 28,216 | |
| Advances from customers | 45,653 | 38,007 | ||
| Current tax liabilities | - | - | ||
| Current liabilities | 100,795 | 297,907 | ||
| Total liabilities | 849,340 | 868,591 | ||
| Total equity and liabilities | 2,132,028 | 2,150,369 | ||
The condensed consolidated interim financial statements were approved by the Board of Directors on 22 May 2015.
For the period from 1 January 2015 to 31 March 2015
| 1/1/15- | 1/1/14- | ||
| 31/3/15 | 31/3/14 | ||
| Note | US$ '000 | US$ '000 | |
| #### Cash flows from operating activities | |||
| Profit for the period | 6,000 | 24,272 | |
| Adjustments for: | |||
| Depreciation | 13 | 232 | 476 |
| Net finance costs | 9 | 25,949 | 49,938 |
| Share option expense | 657 | 1,220 | |
| Net valuation gain on properties | (20,786) | (72,924) | |
| Share of (profit)/loss in joint ventures | (122) | 644 | |
| Profit on disposal of investments in subsidiaries | - | (61) | |
| Profit on sale of property, plant and equipment | - | (16) | |
| Tax (benefit)/expense | 10 | (50) | 4,965 |
| 11,880 | 8,514 | ||
| Change in trade and other receivables | 1,896 | (9,227) | |
| Change in inventories | 45 | 52 | |
| Change in trading properties and trading properties under construction | (4,843) | (6,431) | |
| Change in advances and amounts payable to builders of trading properties under construction | (3,629) | 49 | |
| Change in advances from customers | 8,535 | 1,566 | |
| Change in trade and other payables | (3,142) | (14,251) | |
| Change in VAT recoverable | (3) | 487 | |
| Change in deferred income | (234) | 371 | |
| Cash generated from operating activities | 10,505 | (18,870) | |
| Taxes paid | (232) | (261) | |
| Net cash from/(used in) operating activities | 10,273 | (19,131) | |
| Cash flows from investing activities | |||
| Net cash inflow from the disposal of subsidiaries | - | 1,400 | |
| Proceeds from sale of other investments | 1,172 | - | |
| Proceeds from sale of property, plant and equipment | - | 22 | |
| Interest received | 1,140 | 1,861 | |
| Change in advances and amounts payable to builders | 16,20 | (387) | 1,672 |
| Payments for construction of investment property under development | 12 | (1,114) | (5,231) |
| Payments for the acquisition/renovation of investment property | 11 | (1,198) | (39,110) |
| Change in VAT recoverable | 520 | 1,248 | |
| Acquisition of property, plant and equipment | 13 | (5) | (98) |
| Acquisition of other investments | - | (1,019) | |
| Taxes paid on disposal of investment property | - | (4,005) | |
| Payments for loans receivable | (106) | - | |
| Net cash from/(used in) investing activities | 22 | (43,260) | |
| Cash flows from financing activities | |||
| Proceeds from loans and borrowings | - | 36,986 | |
| Repayment of loans and borrowings | (16,500) | (6,500) | |
| Interest paid | (8,019) | (13,566) | |
| Net cash (used in)/from financing activities | (24,519) | 16,920 | |
| Effect of exchange rate fluctuations | (4,179) | (9,965) | |
| Net decrease in cash and cash equivalents | (18,403) | (55,436) | |
| Cash and cash equivalents at 1 January | 86,756 | 193,330 | |
| Cash and cash equivalents at 31 March | 17 | 68,353 | 137,894 |
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the period from 1 January 2015 to 31 March 2015
1. INCORPORATION AND PRINCIPAL ACTIVITY
AFI Development PLC (the "Company") was incorporated in Cyprus on 13 February 2001 as a limited liability Company under the name Donkamill Holdings Limited. In April 2007 the Company was transformed into public company and changed its name to AFI Development PLC. The address of the Company's registered office is 165 Spyrou Araouzou Street, Lordos Waterfront Building, 5th floor, Flat/office 505, 3035 Limassol, Cyprus. The Company is a 64.88% (31/12/2014: 64.88%) subsidiary of Africa Israel Investments Ltd ("Africa-Israel"), which is listed in the Tel Aviv Stock Exchange ("TASE"). The remaining shareholding of "A" shares is held by a custodian bank in exchange for the GDRs issued and listed in the London Stock Exchange ("LSE"). On 5 July 2010 the Company issued by way of a bonus issue, 523,847,027 "B" shares, which were admitted to a premium listing on the Official List of the UK Listing Authority and to trading on the main market of LSE. On the same date, the ordinary shares of the Company were designated as "A" shares.
These condensed consolidated interim financial statements ("interim financial statements") of the Company as at and for the three months ended 31 March 2015 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interest in jointly controlled entities.
The principal activity of the Group is real estate investment and development. The principal activity of the Company is the holding of investments in subsidiaries and joint ventures.
2. basis of preparation
Statement of compliance
These interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2014.
Functional and presentation currency
These consolidated financial statements are presented in United States Dollars which is the Company's functional currency. All financial information presented in United States Dollars has been rounded to the nearest thousand, except when otherwise indicated.
Foreign operations
Each entity of the Group determines its own functional currency and items included in the financial statements of each entity are measured using its functional currency. Where the functional currency of an entity of the Group is other than US Dollars, which is the presentation currency of the Group, then the financial statements of the entity are translated in accordance with IAS 21 'The effects of changes in foreign exchange rates".
The table below shows the exchange rates of Russian Roubles, which is the functional currency of the Russian subsidiaries of the Group, to the US Dollar which is the presentation currency of the Group:
Exchange rate
Russian Roubles
As of: for US$1 Change
%
31 March 2015 58.4643 3.9
31 December 2014 56.2584 71.9
31 March 2014 35.6871 9.0
Average rate during:
Three-month period ended 31 March 2015 62.1919 77.9
Three-month period ended 31 March 2014 34.9591 14.9
3. USE OF JUDGEMENTS AND ESTIMATES
In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2014.
a. Measurement of fair values
The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the CFO.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified.
Significant valuation issues are reported to the Group Audit Committee.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
· Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
· Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
a. Measurement of fair values (continued)
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
4. significant accounting policies
The accounting policies applied in these interim financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December 2014.
New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2014, except for the adoption of new standards and interpretations effective as of 1 January 2015.
Several new standards and amendments apply for the first time in 2015. However, they do not impact the annual consolidated financial statements of the Group or the interim condensed consolidated financial statements of the Group.
Standards, amendments to standards, and interpretations issued but not yet endorsed by the EU
IFRS 15 - "Revenue from Contracts with Customers". The new standard provides a unified application that regulates the accounting treatment of revenue arising from contracts with customers. This standard supersedes IAS 18 "Revenue" and IAS 11 "Construction Contracts" and the accompanying interpretations thereof. The core principle of the standard is the recognition of revenue from the transfer of goods or services to customers in an amount that represents the economic benefits that the entity expects to receive in return for them. As such, the standard stipulates that the recognition of revenue will occur when the entity transfers the goods and/or services to the customer and the customer obtains control of those goods or services.
The standard is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted under IFRS. However since not endorsed by the EU yet, early adoption is not permitted by the Group.
5. OPERATING SEGMENTS
The Group has 5 reportable segments, as described below, which are the Group's strategic business units. The following summary describes the operation in each of the Group's reportable segments:
· Development Projects - Commercial projects: Include construction of property for future lease.
· Development Projects - Residential projects: Include construction and selling of residential properties.
· Asset Management: Includes the operation of investment property for lease.
· Hotel Operation: Includes the operation of Hotels.
· Other - Land bank: Includes the investment and holding of property for future development.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Group's management team. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm's length basis.
| Development projects | Asset management | Hotel Operation | Other - land bank | Total | ||||||||
| Commercial projects | Residential projects | |||||||||||
| 31/3/15 | 31/3/14 | 31/3/15 | 31/3/14 | 31/3/15 | 31/3/14 | 31/3/15 | 31/3/14 | 31/3/15 | 31/3/14 | 31/3/15 | 31/3/14 | |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
| External revenues | - | 1 | 23 | - | 20,820 | 30,685 | 2,438 | 3,577 | 1,165 | 2,392 | 24,446 | 36,655 |
| Inter-segment revenue | 124 | - | 164 | - | 1,189 | - | 16 | 4 | 329 | 112 | 1,822 | 116 |
| Segment (loss)/profit before tax | (350) | (634) | (519) | (30) | (14,788) | (36,356) | 872 | 1,297 | (1,083) | (5,628) | (15,868) | (41,351) |
| 31/3/15 | 31/12/14 | 31/3/15 | 31/12/14 | 31/3/15 | 31/12/14 | 31/3/15 | 31/12/14 | 31/3/15 | 31/12/14 | 31/3/15 | 31/12/14 | |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
| Segment assets | 209,540 | 208,923 | 180,621 | 175,444 | 1,360,794 | 1,362,157 | 26,771 | 27,471 | 249,359 | 250,735 | 2,027,085 | 2,024,730 |
| Segment liabilities | 8,289 | 4,607 | 45,149 | 38,348 | 780,903 | 808,615 | - | - | 1,182 | 1,323 | 835,523 | 852,893 |
Reconciliation of reportable segment profit or loss:
| 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
|
| US$ '000 | US$ '000 | |
| Total profit or loss for reportable segments | (15,868) | (41,351) |
| Other profit or loss | 910 | (1,753) |
| Share of the after tax profit/(loss) of joint ventures | 122 | (644) |
| Profit on disposal of investment in subsidiaries | - | 61 |
| Valuation gain on properties | 21,444 | 73,279 |
| Impairment loss on inventory of real estate | (658) | (355) |
| Profit before tax | 5,950 | 29,237 |
6. REVENUE AND OPERATING EXPENSES
The decrease of revenue and operating expenses in comparison with first quarter of 2014 of 33% and 48% respectively is mainly due to the change of the average rate of Rouble from first quarter of 2014 to first quarter of 2015. In addition the Company has offered temporary rent discounts to the tenants of the investment properties and in parallel has implemented a cost saving optimisation program. For more information on foreign exchange rates used refer to note 2 above.
7. ADMINISTRATIVE EXPENSES
| 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
|
| US$ '000 | US$ '000 | |
| Consultancy fees | 181 | 555 |
| Legal fees | 164 | 171 |
| Auditors' remuneration | 66 | 152 |
| Valuation expenses | 35 | 28 |
| Directors' remuneration | 252 | 951 |
| Depreciation | 30 | 47 |
| Insurance | 52 | 69 |
| Provision for Doubtful Debts | 148 | 2,463 |
| Share option expense | 657 | 1,220 |
| Donations | 710 | 1,287 |
| Other administrative expenses | 419 | 461 |
| 2,714 | 7,404 |
8. other expenses
| 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
|
| US$ '000 | US$ '000 | |
| Prior year's VAT non recoverable | 5 | 709 |
| Sundries | 392 | 1,552 |
| 397 | 2,261 |
9. FINANCE COST AND FINANCE INCOME
| 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
|
| US$ '000 | US$ '000 | |
| Interest income | 760 | 2,686 |
| Translation reserve reclassified upon disposal of subsidiary | 830 | - |
| Net change in fair value of financial assets | 662 | - |
| Loans written off | 73 | - |
| Finance income | 2,325 | 2,686 |
| Interest expense on loans and borrowings | (11,247) | (13,850) |
| Net change in fair value of financial assets | - | (160) |
| Net foreign exchange loss | (17,027) | (37,893) |
| Other finance costs | (84) | (834) |
| Finance costs | (28,358) | (52,737) |
| Net finance costs | (26,033) | (50,051) |
During the current period the Company has derecognised the investment in subsidiary Stroycapital LLC since it lost the control of its operations. There was no other profit or loss effect apart from an amount of US$830 thousand translation reserve which was reclassified as a realised translation gain in the finance income.
10. tAX (BENEFIT)/EXPENSE
| 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
|
| US$ '000 | US$ '000 | |
| Current tax expense | ||
| Current year | 201 | 196 |
| Adjustment for prior years | - | 56 |
| 201 | 252 | |
| Deferred tax (benefit)/expense | ||
| Origination and reversal of temporary differences | (251) | 4,713 |
| Total income tax (benefit)/expense | (50) | 4,965 |
11. INVESTMENT PROPERTY
Reconciliation of carrying amount
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Balance 1 January | 1,375,416 | 1,609,800 |
| Reclassification to trading properties | - | (432) |
| Renovations/additional cost | 1,198 | 6,814 |
| Fair value adjustment | 17,199 | 110,782 |
| Effect of movement in foreign exchange rates | (18,397) | (351,548) |
| Balance 31 March / 31 December | 1,375,416 | 1,375,416 |
The decrease due to the effect of the foreign exchange rates is a result of the weakening of the rouble compared to the US Dollar by 3.9%, during the first quarter of 2015. The fair value adjustment gain in investments property was a result of this rouble weakening. The Company assessed that the fair value of the properties has not materially changed since 31 December 2014 as there were no significant changes in the macro-economic conditions in Russia. The same applies for investment property under development. See note 12 below.
12. INVESTMENT PROPERTY UNDER DEVELOPMENT
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Balance 1 January | 431,474 | 635,266 |
| Construction costs | 1,114 | 83,820 |
| Disposal | - | (1,400) |
| Fair value adjustment | 4,245 | (196,666) |
| Effect of movements in foreign exchange rates | (5,359) | (89,546) |
| Balance 31 March / 31 December | 431,474 | 431,474 |
The decrease due to the effect of the foreign exchange rates is a result of the rouble weakening compared to the US Dollar by 3.9% during the first quarter of 2015, as described in note 11 above.
13. PROPERTY, PLANT AND EQUIPMENT
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Balance 1 January | 35,101 | 69,735 |
| Additions | 5 | 593 |
| Depreciation for the period/year | (232) | (1,595) |
| Disposals | - | (98) |
| Effect of movements in foreign exchange rates | (1,378) | (33,534) |
| Balance 31 March / 31 December | 33,496 | 35,101 |
14. TRADING PROPERTIES
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Balance 1 January | 2,979 | 6,409 |
| Reclassification from investment property | - | 432 |
| Disposals | - | (1,632) |
| Effect of movements in exchange rates | (87) | (2,230) |
| Balance 31 March / 31 December | 2,892 | 2,979 |
Trading properties comprise of unsold apartments and parking places.
15. TRADING PROPERTIES UNDER CONSTRUCTION
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Balance 1 January | 133,036 | 127,213 |
| Construction costs | 3,495 | 35,874 |
| Effect of movements in exchange rates | (1,664) | (30,051) |
| Balance 31 March / 31 December | 134,867 | 133,036 |
Trading properties under construction comprise the "Odinburg" project, which involves primarily the construction of residential properties.
16. TRADE AND OTHER RECEIVABLES
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Advances to builders | 24,078 | 20,200 |
| Amounts receivable from related parties (note 24) | 390 | 387 |
| Trade receivables, net | 4,684 | 6,014 |
| Other receivables | 2,775 | 3,540 |
| VAT recoverable | 6,325 | 7,141 |
| Tax receivable | 1,099 | 1,679 |
| 39,351 | 38,961 |
Trade receivables, net
Trade receivables are presented net of an accumulated provision for doubtful debts of US$13,393 thousand (2014: US$12,753 thousand).
17. CASH AND CASH EQUIVALENTS
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Cash at banks | 68,214 | 86,504 |
| Cash in hand | 139 | 252 |
| Cash and cash equivalents in the statement of cash flows | 68,353 | 86,756 |
18. SHARE CAPITAL AND RESERVES
| 31/3/15 | 31/12/14 | |
| (i) Share capital | US$ '000 | US$ '000 |
| Authorised | ||
| 2,000,000,000 shares of US$0.001 each | 2,000 | 2,000 |
| Issued and fully paid | ||
| 523,847,027 A shares of US$0.001 each 523,847,027 B shares of US$0.001 each |
524 524 |
524 524 |
| 1,048 | 1,048 |
(ii) Employee share option plan
There were no changes as to the employee share option plan during the three-month period ended 31 March 2015.
(iii) Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations to the Group presentation currency and the foreign exchange differences on loans designated as loans to an investee company which are accounted for as part of the investor's investment (IAS21.15) as their repayment is not planned or likely to occur in the foreseeable future. These foreign exchange differences are recognised directly to Translation Reserve.
(iv) Retained earnings
Retained earnings are available for distribution at each reporting date. No dividends were proposed, declared or paid during the three-month period ended 31 March 2015.
19. LOANS AND BORROWINGS
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Non-current liabilities | ||
| Secured bank loans | 632,713 | 455,097 |
| Current liabilities | ||
| Secured bank loans | 30,335 | 231,297 |
| Unsecured loans from other non-related companies | 296 | 387 |
| 30,631 | 231,684 |
There were no material changes to loans during the quarter ended 31 March 2015 apart from the following:
The two year loan from VTB Bank which was received on 25 January 2013, with a maturity on 24 January 2015, by the Group's subsidiary Krown Investments LLC ("Krown") was reclassified to non-current liabilities. InJanuary 2015, prior to maturity, the subsidiary signed an addendum to the loan facility agreement with VTB Bank OJSC ("the Bank), extending the term of the loan to 26 January 2018. In addition to extending the term of the loan, the new addendum amended the payment schedule, interest rate conditions and introduced new covenants. The payment schedule anticipates repayments of the principal starting from the 4th quarter of 2015, while the new covenants include a "Debt Service Coverage Ratio" of 1.2 also applicable as from the 4th quarter of 2015 and a "Loan to Value ratio" of 65% applicable from January 2015. In line with the addendum, on 26th January 2015 Krown paid US$10 million to the Bank, being a partial repayment of the outstanding loan amount, thus reducing the total to US$195 million. Approximately 90% of the principal is to be paid at maturity.
20. TRADE AND OTHER PAYABLES
| 31/3/15 | 31/12/14 | |
| US$ '000 | US$ '000 | |
| Trade payables | 7,439 | 8,654 |
| Payables to related parties (note 24) | 608 | 2,264 |
| Amount payable to builders | 7,706 | 7,626 |
| VAT and other taxes payable | 6,280 | 7,373 |
| Other payables | 2,478 | 2,299 |
| 24,511 | 28,216 |
Payables to related parties
Include an amount of US$28 thousand (31/12/14: US$1,465 thousand) payable to Danya Cebus Rus LLC, a related party of the Group, for contracts signed in relation to the construction of Group's projects.
21. FINANCIAL INSTRUMENTS
Carrying amounts and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels and the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
| Carrying amount | Fair value | |||||||||
| Non-current assets | Current assets | |||||||||
| Loans Receivable |
Trade and other receivables |
Other investments, Including derivatives |
Cash and cash equivalents |
Loans receivable |
Total | Level 1 | Level 2 | Level 3 | Total | |
| 31 March 2015 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
| Financial assets measured at fair value | ||||||||||
| Investment in listed debt securities | - | - | 6,358 | - | - | 6,358 | 6,358 | - | - | 6,358 |
| Financial assets not measured at fair value | ||||||||||
| Loans receivable | 17,632 | - | - | - | 121 | 17,753 | ||||
| Trade and other receivables | - | 31,927 | - | - | - | 31,927 | ||||
| Cash and cash equivalents | - | - | - | 68,353 | - | 68,353 | ||||
| 17,632 | 31,927 | 6,358 | 68,353 | 121 | 124,391 | |||||
| 31 December 2014 | ||||||||||
| Financial assets measured at fair value | ||||||||||
| Investment in listed debt securities | - | - | 6,499 | - | - | 6,499 | 6,499 | - | - | 6,499 |
| Financial assets not measured at fair value | ||||||||||
| Loans receivable | 18,071 | - | - | - | 1 | 18,072 | ||||
| Trade and other receivables | - | 30,141 | - | - | - | 30,141 | ||||
| Cash and cash equivalents | - | - | - | 86,756 | - | 86,756 | ||||
| 18,071 | 30,141 | 6,499 | 86,756 | 1 | 141,468 |
| Carrying amount | Fair value | |||||||
| Non-current liabilities | Current liabilities | |||||||
| Interest bearing loans and borrowings |
Trade and other payables |
Interest bearing loans and borrowings | Total | Level 1 | Level 2 | Level 3 | Total | |
| 31 March 2015 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
| Financial liabilities not measured at fair value | ||||||||
| Interest bearing loans and borrowings | (632,713) | - | (30,631) | (663,344) | (728,516) | |||
| Trade and other payables | - | (18,231) | - | (18,231) | ||||
| (632,713) | (18,231) | (30,631) | (681,575) | |||||
| 31 December 2014 | ||||||||
| Financial liabilities not measured at fair value | ||||||||
| Interest bearing loans and borrowings | (455,097) | - | (231,684) | (686,781) | (735,004) | |||
| Trade and other payables | - | (20,843) | - | (20,843) | ||||
| (455,097) | (20,843) | (231,684) | (707,624) |
22. CONTINGENCIES
There are no any contingent liabilities as at 31 March 2015.
23. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent with that disclosed in the consolidated financial statements as at and for the year ended 31 December 2014.
Russian business and economic environment
The Group's operations are primarily located in the Russian Federation. Consequently, the Group is exposed to the economic and financial markets of the Russian Federation which display characteristics of an emerging market. The legal, tax and regulatory frameworks continue development, but are subject to varying interpretations and frequent changes which together with other legal and fiscal impediments contribute to the challenges faced by entities operating in the Russian Federation.
The Russian economy continued to be in a state of stagnation. The economic growth rate showed a 2.2% decrease in the first quarter of 2015 compared to a decrease of 0.4% in the fourth quarter of 2014. International sanctions and oil prices continue to affect the economy with a predicted growth between minus 2.5% to 3.8% for 2015 fiscal year. The rouble stabilised and slightly recovered between March and May 2015 reaching the 50 rouble to a dollar mark in mid-May, supported by a recovery in oil prices, seasonal factors and a lighter debt repayment schedule.
The interim financial statements reflect management's assessment of the impact of the Russian business environment on the operations and the financial position of the Group. The future business environment may differ from management's assessment.
24. RELATED PARTIES
| 31/3/15 | 31/12/14 | |
| (i) Outstanding balances with related parties | US$ '000 | US$ '000 |
| Assets | ||
| Amounts receivable from joint ventures | 57 | 20 |
| Amounts receivable from ultimate holding company | 203 | 203 |
| Amounts receivable from other related companies | 130 | 164 |
| Long term loans receivable from joint ventures | 17,527 | 17,962 |
| Short term loan receivable from joint venture | 120 | - |
| Liabilities | ||
| Amounts payable to joint ventures | 9 | 131 |
| Amounts payable to ultimate holding company | 433 | 433 |
| Amounts payable to other related companies | 166 | 1,700 |
| Deferred income from related company | 150 | 156 |
| (ii) Transactions with key management personnel | 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
| US$ '000 | US$ '000 | |
| Key management personnel compensation Short-term employee benefits |
707 | 2,000 |
| Share option scheme expense | 657 | 1,220 |
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director (whether executive or otherwise) of that entity. The person is a member of the key management personnel of the entity or its Parent (includes the immediate, intermediate or Ultimate Parent). Key management is not limited to Directors; other members of the management team also may be key management.
| (iii) Other related party transactions | 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
| US$ '000 | US$ '000 | |
| Revenue | ||
| Related companies - rental income | 217 | 375 |
| Joint venture - consulting services | 36 | - |
| Joint venture - interest income | 346 | 548 |
| Expenses | ||
| Ultimate Holding Company - operating expenses | 112 | 122 |
| Joint venture - operating expenses | 15 | 44 |
| (iv) Other related party transactions | 1/1/15- 31/3/15 |
1/1/14- 31/3/14 |
| US$ '000 | US$ '000 | |
| Construction services capitalised or recognised in advances to builders | ||
| Related company - construction services | 935 | 152 |
25. SUBSEQUENT EVENTS
There were no material events that took place after the three month period end and until the date of the approval of these financial statements by the Board of Directors on 22 May 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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