Barratt Developments PLC

Quarterly Report • Aug 30, 2012

30th August, 2012

COMPANY ANNOUNCMENT

The following is a Company Announcement issued by GAP Developments p.l.c. ("the Company") pursuant to the Malta Financial Services Authority Listing Rules 8.7.4 and 8.7.21 with respect to the Unaudited Interim Financial Statements ended June 2011.

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The Board of Directors of GAP Developments p.l.c. has today approved the attached un audited Interim Financial Statements for the six months period ended 30th June, 2012.

The Board has also authorized for the issue of these unaudited Interim Financial Statements which will be available on the Fort Cambridge website: www.fortcambridge.com.

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Paul Attard Company Secretary

Gap Developments p.l.c., Censu Scerri Street, Tigné Sliema SLM 3060 Malta, Europe. Tel. +356 2327 1000 Fax. +356 2327 1210 E-mail. info@gap.com.mt www.fortcambridge.com Company Reg. No. C38040

GAP DEVELOPMENTS P.L.C.

Interim Report And Unaudited Condensed Interim Financial Statements

30 June 2012

CONTENTS

	rages
Interim Directors' Report	2
Interim statement of comprehensive income	3
Interim statement of financial position
Interim statement of changes in equity	5 - 6
Interim statement of cash flows
Notes to the condensed interim financial statements	8-9
Statement pursuant to Listing Rule 5.75.3	10

INTERIM DIRECTORS' REPORT

The directors submit the unaudited condensed interim financial statements for the period ended 30 June 2012.

Construction and Development

GAP Developments plc. was set up to acquire the Fort Cambridge area to reconstruct and develop the site for a combination of uses within the parameters of the Fort Cambridge Development brief.

During the period under review, the construction of the apartments was completed. The company concentrated its efforts on the total completion of all blocks in order to sign the final deeds of sale. Although there were still some finishes to be completed in full and some snagging which will be rectified in the coming weeks, contracts on apartments in all blocks have also started being published.

Performance results

In spite of depressed worldwide economic conditions, management continued to market the project aggressively both locally and abroad while at the same time effectively controlling expenditure and ensuring commitments are met on time. In spite of the surrounding challenging business climate which has naturally affected the overall sales targets, sales during the period under review have been largely on course, in the number but also in the price range.

The directors are cautiously optimistic that now that the development is almost totally finished, sales will pick up momentum.

The Group's results for the period ended 30 June 2012 are shown on page 3. The loss before tax for the period was EUR 3,884,915 (2011: loss before tax was: EUR1,453,809).

Repurchase of Bonds

During the period, the company repurchased 3,300,709 7% Secured Bonds 2007-2013 from its Bondholders. All bonds so purchased by the company were cancelled.

Directors

During the period ended 30 June 2012 the directors were as listed hereunder:

George Muscat (Chairman) Charles Azzopardi (Executive Director) Anthony Azzopardi (Executive Director) Paul Attard (Executive Director) Adrian Muscat (Executive Director) Dr. Pio M Valletta (Non-executive Director) Hugh Attard Montalto (Non-executive Director)

GAP DEVELOPMENTS P.L.C.

INTERIM STATEMENT OF COMPREHENSIVE INCOME for the six months ended 30 June 2012

	The Group		The Company
	2012	2011	2012	2011
	BIOIR	BUR	BOOK	FUR
		(restated)		(restated)
Revenue	10,494,644		3,171,664 10,482,775	3,171,629
Cost of sales	(14,376,945)		(4,477,535) (14,376,945)	(4,477,535)
Gross loss	(3,882,301)		(1,305,871) (3,894,170)	(1,305,906)
Administrative expenses	(149,378)	(179,053)	(135,394)	(168,038)
Other operating income	21,000	26,094	21,000	26,094
Operating loss	(4,010,679)		(1,458,830) (4,008,564)	(1,447,850)
Finance expense		(27)
Finance income	125,764	5,048	125,764	5,048
Loss for the period before tax	(3,884,915)		(1,453,809) (3,882,800)	(1,442,802)
Income tax expense	(21,554)	(757)	(17,597)	(757)
Loss for the period	(3,906,469)		(1,454,566) (3,900,397) (1,443,559)
Total comprehensive income for the period, net of tax	(3,906,469)		(1,454,566) (3,900,397) (1,443,559)

INTERIM STATEMENT OF FINANCIAL POSITION as at 30 June 2012

		The Group		The Company
	June 2012 ETOR	December 2011 BIOIR	June 2012 EUR	December 2011 EUR
ASSIBILIS
Non-current assets
Property, plant and equipment	7,557,959	7,602,265	7,481,557	7,519,315
Investments in subsidiaries Financial assets: Reserve Account	488,726	1,383,780	3,339,561 488,726	3,339,561 1,383,780
	8,046,685	8,986,045	11,309,844	12,242,656
Current assets
Inventories - Development project	129,703,184	131,129,571	129,703,184	131,129,571
Trade and other receivables	1,470,010	1,051,589	1,264,248	971,729
Current tax assets	1,522,905	933,048	1,522,905	933,048
Cash and cash equivalents	385,922	469,004	392,266	465.427
	133,082,021	133,583,212	132,882,603	133,499,775
Total assets	141,128,706	142,569,257	144,192,447	145,742,431
EQUITY AND LIABILITIES
Capital and reserves
Share capital	18,000,000	18,000,000	18,000,000	18,000,000
Capital contribution reserve	1,066,158	1,066,158	1,066,158	1,066,158
Accumulated losses	(9,177,542)	(5,271,073)	(9,039,102)	(5,138,705
	9,888,616	13,795,085	10,027,056	13,927,453
Non controlling interest	466	466
Total Equity	9,889,082	13,795,551	10,027,056	13,927,453
Non-current liabilities
Borrowings	12,071,100	40,842,223	12,071,100	40,842,223
Provisions for other liabilities and charges	1,400,000	1,400,000	1,400,000	1,400,000
	13,471,100	42,242,223	13,471,100	42,242,223
Current liabilities
Trade and other payables	53,852,144	49,254,037	56,782,400	52,295,841
Borrowings	63,911,891	37,276,914	63,911,891	37,276,914
Current tax liabilities	4,489	532
	117,768,524	86,531,483	120,694,291	89.572.755
Total liabilities	131,239,624	128,773,706	134,165,391	131,814,978
TOTAL EQUITY AND LIABILITIES	141,128,706		142,569,257 144,192,447	145,742,431

The unaudited condensed interim financial statements have been authorised for issue by the Board of Directors on 300" August 2012 and signed on its behalf by:

AGE MUSCAT

Chairman

CHARLES AZZOPARDI Executive Director

GAP DEVELOPMENTS P.L.C.

Interim Report and Unaudited Condensed Interim Financial Statements For the six months ended 30 June 2012

INTERIM STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June 2012

	Issued Capital ordinary contribution		Accumulated		Non- controlling
	Shares EUR	reserve BUR	losses BUR	Total BUIR	interest Cloir	Total BUIR
The Group
Financial period ended 30 June 2011
As at 1 January 2011
- as previously reported - effect of correction	16,000,000		(7,322,807)	8,677,193	466	8,677,659
of prior period errors		551,105	(967,351)	(416,246)		(416,246)
- as restated	16,000,000	551,105	(8,290,158)	8,260,947	466	8,261,413
Total Comprehensive income for the period (as restated)				(1,454,566) (1,454,566)	-	(1,454,566)
Balance at 30 June 2011	16,000,000	551,105	(9,744,724)	6,806,381	466	6,806,847
Financial period ended 30 June 2012
As at 1 January 2012	18,000,000	1,066,158	(5,271,073) 13,795,085		466	13,795,551
Total Comprehensive income for the period				(3,906,469) (3,906,469)	-	(3,906,469)
Balance at 30 June 2012	18,000,000	1,066,158	(9,177,542)	9,888,616	466	9,889,082

INTERIM STATEMENT OF CHANGES IN EQUITY - continued for the six months ended 30 June 2012

	Issued ordinary capital I BI OUR	Capital contributions reserve 1 31 00 R	Accumulated losses BOOK	Total BUR
The Company
Financial period ended 30 June 2011
As at 1 January 2011 - as previously reported - effect of correction of prior period errors	16,000,000	551,105	(7,214,310) (967,351)	8,785,690 (416,246)
- as restated	16,000,000	551.105	(8,181,661)	8.369.444
Total Comprehensive income for the period (as restated)			(1,443,559)	(1,443,559)
At 30 June 2011	16,000,000	551,105	(9,625,220)	6,925,885
Financial period ended 30 June 2012
At 1 January 2012	18.000,000	1,066,158	(5,138,705)	13,927,453
Total comprehensive income for the period			(3,900,397)	(3,900,397)
At 30 June 2012	18,000,000	1,066,158	(9,039,102)	10,027,056

INTERIM STATEMENT OF CASHFLOWS for the six months ended 30 June 2012

	The Group		The Company
	2012 I BIUIR	2011 BUR	2012 BI URR	2011 EUR
Operating activities
Operating loss	(4,010,679)	(1,458,830)	(4,008,564)	(1,447,850)
Adjustments for:
Depreciation	44,306	49,691	37,758	40,001
Changes in working capital:
Trade and other receivables	(418,421)	(66,679)	(292,519)	(31,403)
Inventories	3,667,286	(4,769,271)	3,667,286	(4,769,271)
Trade and other payables	4,598,107	4,928,904	4,486,559	4,867,799
Cash generated from operations	3,880,599	(1,316,185)	3,890,520	(1,340,724)
Income tax paid	(607,454)	(219,382)	(607,454)	(219,382)
Interest Received	125,764	5,048	125,764	5,048
Net cash flows from/used in operating activities	3,398,909	(1,530,519)	3,408,830	(1,555,058)
Investing activities
Utilisation/(Purchases) of other financial investments	895,054	(9,101)	895,054	(9,101)
Net cash flows from/used in investing activities	895,054	(9,101)	895,054	(9,101)
Financing activities
Proceeds from shareholders' loans	5,250,200	7,829,096	5,250,200	7.829.096
Repayment of bank borrowings	(3,317,386)	(968,716)	(3,317,386)	(968,716)
Redemption of bonds	(3,300,709)	(579,353)	(3,300,709)	(579,353)
Interest Paid	(3,009,150)	(3,252,297)	(3,009,150)	(3,252,270)
Net cash flows used/from financing activities	(4,377,045)	3,028,730	(4,377,045)	3,028,757
Movement in cash and cash equivalents	(83,082)	1,489,110	(73,161)	1,464,598
Cash and cash equivalents at beginning of the period	469,004	732,521	465,427	730,889
Cash and cash equivalents at end of the period	385,922	2,221,631	392,266	2,195,487

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

1. STATUTORY INFORMATION

GAP Developments Plc is a limited liability company and is incorporated in Malta, with its registered address at GAP Holdings Head Office, Censu Scerri Street, Tigne, Sliema, SLM 3060, Malta. The company is controlled by Tigne Skies Limited.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

The condensed interim financial statements have been extracted from GAP Development p.l.c. (the company) and its subsidiary undertakings (collectively referred to as the 'group') unaudited management accounts for the six month period ended 30 June 2012. These condensed interim financial statements are being published in terms of Chapter 5 of the Listing Rules issued by the Listing Authority and in terms of the Prevention of Financial Markets Abuse Act, Cap. 476 of the Laws of Malta.

The condensed interim financial statements have been prepared in accordance with EU adopted IAS 34 Interim Financial Reporting. The condensed interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2011.

The accounting policies adopted in the preparation of these unaudited condensed interim financial statements for the six month period ended 30 June 2012 are consistent with those used in the preparation of the annual financial statements for the financial year ended 31 December 2011, as described in those financial statements.

In 2012, the group adopted new standards, amendments and interpretations to existing standards that are mandatory for the group's accounting period beginning on 1 January 2012. The adoption of these revisions to the requirements of IFRSs as adopted by the EU did not result in changes to the group's accounting policies as outlined previously.

TRANSACTIONS WITH RELATED PARTIES et

All companies owned by the same shareholders of GAP Holdings Limited and Tigne Skies Limited, being the shareholders of GAP Developments plc, are considered by the directors to be related parties. During the course of this period the company entered into the following transactions with related undertakings.

		The Group and the Company
	2012	2011
	BUR	ETOIR
Development costs	7,128,412	5,938,141
Interests payable	253,191	226,143

All major contracts of work on the Fort Cambridge development project are carried out by GAP Contracting Limited. GAP Holdings Limited owns 50% of Gap Contracting Limited and Tigne' Skies Limited owns the other 50%. GAP Contracting Limited invoices GAP Developments p.l.c. for works carried out at cost.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS - continued

SEGMENT REPORTING 4.

The Group's main object is the development of the Fort Cambridge Area. In accordance with the requirements of IFRS 8, 'Operating segments', the Group's management the disclosures required in this respect and, taking cognisance of the information utilised within the Group for the purposes of assessing performance, determined that the Group effectively has one operating segment which is the development of the Fort Cambridge project.

5. COMMITMENTS

The contract of purchase of land in the Fort Cambridge a condition that obliges the Company to restore Fort Cambridge within ten years from date of acquisition. The cost to fulfil this contractual obligation is estimated at EUR1,400,000.

PRIOR PERIOD ADJUSTMENTS 6

The following errors have been corrected in the current period's financial statements:

(i) Derecognition of deferred tax asset

Deferred tax balances, arising on the Company's unabsorbed capital allowances and tax losses carried forward, were previously recognised in full as an asset in the financial statements. A reassessment of the temporary differences that gave rise to the deferred tax asset resulted in a conclusion by the Directors that it is not probable that future taxable profit will be available against which temporary differences can be utilised. As a result, these financial statements reflect the deferred tax asset that was recognised by the Company and the Group in the period ended 30 June 2011. This amounted to EUR369,100 and EUR372,790 respectively.

(ii) Adjustment to Cost of Sales

During the period ending 30 June 2011, cost of sales amounting to EUR517,640 was erroneously disclosed with 'Administrative Expenses'. Furthermore, there was an understatement of EUR393,214 in the amount transferred from inventory to cost of sales. These financial statements have been adjusted to reflect these corrections

(iii) Interim Statement of Cashflows

Comparative figures in the interim statement of cashflows have been amended to conform to the current year's presentation format for the purposes of fairer presentation.

7. BOND REPURCHASES

During the period, the company repurchased 3,300,709 7% Secured Bonds 2007-2013 from its Bondholders. All bonds so purchased by the company were cancelled.

EVENTS AFTER THE REPORTING PERIOD 8.

The Company has received a number of judicial letters from persons who had signed the promise of sale agreements with the Company, claiming a refund of the payments on account that were effected to the Company, together with the interest as stipulated in the promise of sale agreements. These claims were made on the basis that the apartments had not been completed by the date stipulated in the agreements.

Statement pursuant to Listing Rule 5.75.3 issued by the Listing Authority

I confirm that to the best of my knowledge:

• 1. The condensed interim financial statements give a true and fair view of the financial position of the company as at 30 June 2012, and of its financial performance and its cash flows for the period then ended in accordance with EU adopted IAS 34 'Interim Financial Reporting'.
• 1. The Interim Directors' report includes a fair review of the information required in terms of the listing rules 5.81 to 5.84.

eorge Muscat

hairman