Quarterly Report • Nov 20, 2014
Quarterly Report
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Q3
RomReal is a Company focusing in the Romanian Real Estate market. Established in 2005 it holds premium property in Constanta and Bucharest.
Under IFRS, Net Asset Value was EUR 0.51 (NOK 4.23) per share at the end of Q3 2014, a decrease of 1.2% compared to the end of Q2 2014.
The Company has not made any changes to the land bank portfolio valuation since the 2013 year-end independent valuation.
Pre-tax loss in Q3 2014 of EUR 0.40 million. Total assets at end of Q3 2014 were EUR 33.5 million compared to EUR 33.6 million at end of Q2 2014.
The Company continues to sell smaller plots and closed one more sale during Q3. This sale follows the 4 plots sold during Q2 and relates to the actions taken by the Company to divide one of the land plots into smaller ones to increase saleability. The sales value of the plot sold during the Q3 is EUR 37,000, VAT excluded. Following an initial down payment, remaining due amounts shall be received in instalments.
The down payment collected by the Company as a result of the pre-sale agreement for the Brasov plot has been used during Q3 to reduce the Alpha Bank loan balance.
Romania's economy has been on a recovery path in 2013, as a result of strong export performance and higher agricultural production compared with the previous year. This growth remained strong in the first quarter of 2014 at 3.8 per cent, with industrial production and exports continuing to perform well. After a second quarter which showed a fall in annual growth to 1.4 per cent, the quarter three results, just released by the national statistics institute confirm a more positive climate with GDP growth of 1.9% compared to the second quarter and 2.8% for year to date against same period last year. Romania has the highest GDP growth compared with the rest of the EU countries for Q3 2014.
Going forward, most analysts expect growth to remain between 2 and 3 per cent in 2014 and 2015, driven by continuous export growth and a pickup in domestic demand. However, the high level of non-performing loans in the banking system and increased uncertainties in Ukraine may alter expected performance in the short term. Prospects for the medium term remain optimistic, reflecting the diversified economy, large market size and significant potential for catch-up in in terms of GDP per capita considering this is according to Eurostat just a little over half the EU average. The Government has announced the intention to adopt the euro in 2019, but further real convergence is needed before that can take place.
Following the second round result for the Presidential elections in November 2014, Romania has elected Mr. Klaus Iohannis as president. The end of the electoral campaign is expected to improve investment confidence based on initial market reaction.
| EUR '000 | Q3 2014 |
Q3 2013 |
YTD 2014 | YTD 2013 |
|---|---|---|---|---|
| Operating Revenue | 117 | 93 | 363 | 283 |
| Operating Expenses | (228) | (232) | (682) | (665) |
| Other operating income/ (expense), net |
151 | 33 | (703) | 673 |
| Net financial income/(cost) | (446) | (155) | 652 | (723) |
| Pre-tax result | (406) | (261) | (370) | (432) |
| Result for the period | (423) | (265) | (296) | (398) |
| Total assets | 33,463 | 35,889 | 33,463 | 35,889 |
| Total liabilities | 12,522 | 12,179 | 12,522 | 12,179 |
| Total equity | 20,941 | 23,731 | 20,941 | 23,731 |
| Equity % | 62.6% | 66.1% | 62.6% | 66.1% |
| NAV per share (EUR) | 0.51 | 0.57 | 0.51 | 0.57 |
| Cash position | 652 | 1,768 | 652 | 1,768 |
The movement in the Net Asset Value (NAV) in Q3 2014 was negative EUR 0.243m. This shows a decrease of 1.2% compared to Q2 2014. This is mainly due to the small foreign exchange effect resulting from the translation of the financial statements into EUR, the reporting currency of the Group.
| Asset base | Q3 2014 |
Q2 2014 |
||||
|---|---|---|---|---|---|---|
| EUR '000 | EUR/share | NOK/share | EUR '000 | EUR/share | NOK/share | |
| Investment property | 28,980 | 0.70 | 5.85 | 29,006 | 0.70 | 5.93 |
| Inventories | 2,563 | 0.06 | 0.52 | 2,563 | 0.06 | 0.52 |
| Cash | 652 | 0.02 | 0.13 | 669 | 0.02 | 0.14 |
| Other assets/(liabilities) |
(11,254) | (0.27) | (2.27) | (11,040) | (0.27) | (2.26) |
| Net asset value | 20,941 | 21,199 | ||||
| NAV/Share | 0.51 | 4.22 | 0.52 | 4.33 | ||
| Change in NAV | -1.2% | -0.8% |
The total issued number of shares at end Q3 2014 was 41,367,783.
The Management has not made any changes to the value of the investment property as compared to the end of Q4 2013 and Q2 2014. The end of year 2013 independent valuation of the Company's Property was carried out by Knight Frank Romania. The Property portfolio was evaluated in accordance with the ANEVAR Valuation Standards 2013, which include the International Valuation Standards, issued by the IVSC in 2011. The valuation also complies with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB); and it is performed in accordance with the RICS Valuation Standards, 8th edition, as published by the Royal Institution of Chartered Surveyors (RICS) in March 2012.
| EUR '000 | Q3 2014 |
YTD 2013 |
|---|---|---|
| Net cash flow from operating activities | (321) | (412) |
| Net cash flow used in investing activities | 157 | (731) |
| Net cash flows from financing activities | (157) | 1,414 |
| Net cash change during period | (321) | 271 |
The Cash flow from investing activities during Q3 relates to the advance paid under the pre-sale agreements for the Brasov plot and has been used entirely to reduce the Alpha Bank loan outstanding balance.
The Cash flow from investing activities for the year to date 31 December 2013 refers to a bond acquisition the Company made with a view to place the surplus liquidity and secure a safe return. The bond is BBB+ rated and carries a coupon of 4.19%. The bond is expected to be called by its issuer, Svenska Handelsbanken on 16 December 2015.
RomReal pursues a strict cost control with a view to keep expenses at the minimum level possible to maintain its subsidiaries compliant with local legal and tax requirements as well as managing the Oslo exchange listing requirements at the Group level.
With a view to fund the activities, the Company carried out a Rights Issue in 2013 to provide the necessary working capital. RomReal presently has negative cash flow from operations and is dependent on assets disposal, and/or new equity/debt to maintain operations. If no asset disposals materialise over the next couple of years, the Company's Board of Directors is of the opinion that the EUR 1.4 million net proceeds from this Rights Issue is only sufficient to maintain the present activity level for the next up to 18 months to 21 months and are not deemed sufficient to service all interests rolled up on the Alpha Bank loan on 28 November 2015. Proceeds from the recent disposals are set to improve the financial flexibility of the Group further.
Furthermore, the Company's policy is to hedge any foreign exchange differences created between the inter-Company loans and the loan taken from Alpha Bank in principal amount of EUR 11.6 million plus its accrued interest to date. This is achieved by retaining most of its cash in Euros and also by denominating all receivables in Euros. Although not reflected from an accounting perspective, practice in real estate is that transactions are denominated in EUR and payments made at the exchange rate ruling at the date of payment, hence reducing the risk of cash losses due to exchange rate movements.
As the end of Q3 2014 the Company's consolidated interest-bearing debt amounted to EUR 12,139,000, representing principal amount of EUR 11,442,000 and interest accrued to date of EUR 697,000. This is an assets finance facility agreed by the Company in December 2007 with Alpha Bank Romania. The loan had an initial term of 3 years which was prolonged for another 2 years during Q4 2010. During Q4 2012, the Company achieved an approval from Alpha Bank for a further extension of the loan for a period of 3 years until 30 Nov 2015, with a possibility afterwards for an extra 2 years subject to certain conditions. The extension of the loan bears interest at a rate of EURIBOR+3%, payable bullet on maturity. The Company has the option of extending the loan for an additional two (2) years, in subsequent periods of one (1) year, if the interest is paid in advance for each year of extension. For further extension the applicable interest rate will be Fixed Base Rate (to be provided by the Bank at the moment, by reference to 1 year swap rate) + 3.0% per annum. As part of the extension, the security was extended to include additional real estate mortgage of EUR 6,000,000.
The table below shows the interest baring debt for RomReal Ltd as at end Q3 2014 and estimated at maturity:
| EUR '000 | End Q3 2014 |
30 Nov 2015 |
|---|---|---|
| Principal (Alpha Bank loan) | 11,442 | 11,442 |
| Accrued Interest | 697 | 1,085* |
| Total | 12,139 | 12,527 |
*Estimated based on current Euribor levels
On the 14th of November, the national Statistics Institute released the macro figures for the third quarter of 2014. This confirms a more positive trend with GDP growth picking up again in Q3 2014 with 1.9% growth compared to previous quarter, 3.2% growth against the same quarter of last year and 2.8% annual growth to date. Romania has the highest GDP growth compared with the rest of the EU countries for Q3 2014.
Nevertheless, the GDP slowdown in the second quarter of 2014 has resulted in the European Commission (EC) to significantly reduce its growth forecast for Romania's economy for 2014 and 2015. The European Commission cut Romania's GDP growth forecast for 2014 to 2%, from 2.5% in the spring forecast and also lowered the growth estimate for 2015 from 2.6% to 2.4%.
The drop in investments has pushed down economic growth, according to the EC report. The same report identified private consumption and net exports as the main drivers of growth while investments continued to contribute negatively (gross fixed capital formation dropped by 11.1% y-o-y in the first half of 2014).
Going forward, Romania's GDP is forecast to slowly pick up and stay at 2.4% in 2015 and 2.8% in 2016. Private consumption is expected to grow, supported by increasing real disposable income on account of still dynamic growth of wages, low inflation and declining interest rates. Credit growth is expected to marginally improve based on local currency lending and a general slowdown in the deleveraging process. The increase of investor confidence, together with a tax exemption for reinvested profits and a 5% cut in social-security contributions (from 1 October 2014) are likely to provide additional resources for businesses to boost investment.
Recently, the National Bank of Romania has reduced its interest rates to a record low of 2.75%. It has also cut the minimum required cash reserves for hard currency liabilities of banks, which will release about EUR 450m in the market. According to the National Bank Governor, the uncertainties still faced by Romania relate to external developments, mainly capital flow volatility, banking system deleveraging and geopolitical tensions.
Following the second round result for the Presidential elections, Romania has elected Mr. Klaus Iohannis as president. The end of the electoral campaign is expected to improve investment confidence based on initial market reaction.
Direct foreign investment to Romania totalled EUR 1.5 billion at the end of September, according to data from the Central Bank BNR. Out of the total FDI, equity stakes, included reinvested earnings, amounted to EUR 1.3 billion while intragroup loans stood at EUR 171 million. The top investing countries were Holland (with 24.4 percent of the total), Austria (with 19.1 percent), Germany (with 11.2 percent) and France (with 7.6 percent).
It became clearer in 2014 that an evident improvement in the fundaments of real estate market was recorded in 2013. The reticent attitude of the market players has been significantly diminished, as a result of more stable market indicators, improvement of the local and regional economic environment, as well the positive evolution of the more mature European markets.
Development of the market in the first half of 2014 showed a price stabilisation tendency. Slight improvement of access to mortgage loans (mainly in local currency) and the constant price reductions by developers in the recent years have led to a visible recovery in sales of newly built apartments.
Despite this positive news, the housing market remains fragile to regional instability and macroeconomic turbulences due to the large share of foreign owned banks in the system. A sign that the market is maturing and upturning would be the diversification of financing solutions beyond the Prima Casa state-backed loan scheme, which was set up to help firsttime buyers. At present, home acquisitions financed through the savings-lending schemes have a very low penetration of only 2 percent in Romania compared to over 60 percent in Austria, 42 percent in the Czech Republic, 25 percent in Slovakia and 13 percent in Hungary, according to a statement of Raiffeisen Banca pentru Locuinte. One sign that local buyers are starting to trust in the system is that Raiffeisen saw in the last two years an increase in the number of savings-lending contracts. For the first nine months, building permits decreased marginally from 29 196 in 2013 to 29 147 in 2014.
According to the largest online broker in Romania imobiliare.ro apartment prices in Constanta have shown a marginal improvement compared to Q2 2014 and are currently estimated at an average of euro 851 per square meter. Apartment prices in Bucharest remain at fairly steady levels currently estimated at an average of euro 1,043 per square meter.
According to a CRBE report which takes stock of the transactions during H1 2014, number and volume of land transactions are on the rise. 15 major land transactions were counted, in all parts of Romania for a total cumulated surface of 630,000 sqm. The buyers could be split into three major categories: (i) retailers (mainly Lidl, Dedeman, Kaufland, Leroy Merlin) looking to buy properties in secondary cities, (ii) industrial buyers looking for land available to development new manufacturing capacities (e.g. Dr. Oetker, Best Food, Continental) and real-estate developers securing prime properties in some of the larger cities for future developments (of which NEPI and Globalworth being most active). The western part of Romania accounted for almost half of the land transactions, followed by Bucharest, Brasov and a number of smaller cities which presented interest mostly for industrial developments.
RomReal Limited [Third quarter 2014] Page 7 of 16
Pricing for such land properties varies depending of future use, location and accessibility, availability in the area, with prime properties located in Bucharest or in larger cities suitable for retail or office development priced between EUR 200 - 500 / sqm.
As part of the focus to realize the value locked in its Land Bank, the Management has actively worked to improve zoning and plot sizes with the aim to increase the plots' attractiveness. A first step was made in late 2013 and the Company is currently focusing resources on continuing the assets divestment process with a view to release larger amounts of cash currently locked into its land bank.
The actions taken by the Company to increase the saleability of its land plots continues to produce results. Another plot was sold during Q3 2014 bringing the number of total small plots sold to date to 6 and for a total consideration of EUR 212,000. Part of the money has already been cashed, for the rest an instalments payment was agreed.
During Q3 2014, the Company entered a pre-sale agreement for its land plot in Brasov and received a down payment of EUR 157,000. The transaction is expected to close by April next year. The selling price marginally above the carrying amount as determined based on the 2013 year end independent valuation. As part of the agreement with Alpha Bank, the proceeds will be used to reduce the outstanding bank debt and the cashed down payment has already been utilised to reduce the loan outstanding.
The main income producing asset of the Company is the Balada market in Constanta. The asset has a total letting area of 1,250 sqm which is leased out to small retail businesses. Other income producing assets of the Company include the agricultural land in Constanta, which is currently rented out to farmers.
RomReal Ltd operates in Romania through its fully owned subsidiary S.C. Westhouse Group SRL (WHG). WHG holds an office in Constanta, Romania, and a small team of four employees, headed by RomReal CEO Kay Thorkildsen. The employees mainly deal with managing the assets, accounting compliance and reporting, and sales/ marketing.
Total size of the Company's Property Portfolio ("Land Bank") totalled 1,255,300 sqm at the end of Q3 2014.
| Plot name | Location | Size (m2) |
|---|---|---|
| 1 Ovidiu Lakeside | Constanta North/Ovidiu | 61,029 |
| 2 Badulescu plot | Constanta North/Ovidiu | 50,000 |
| 3 Tatar Peninsula | Constanta North/Ovidiu | 4,202 |
| 4 Ovidiu Town | Constanta North/Ovidiu | 4,641 |
| 5 Ovidiu (Oasis) | Constanta North/Ovidiu | 25,127 |
| 6 Centrepoint | Constanta North/Ovidiu | 122,350 |
| 7 Gunaydin plot | Constanta North/Ovidiu | 15,000 |
| 8 Balada Market | Central Constanta | 7,188 |
| 9 Carrefour plot | Constanta | 15,000 |
| 10 Morii Lake | Bucharest Sector 6 | 11,716 |
| 11 Hospital plot | Bucharest Sector 5 | 13,263 |
| 12 Brasov plot | Central Brasov | 4,127 |
| 13 Un-zoned land | Constanta | 865,062 |
| 14 Mamaia North plot | Navodari/Mamaia | 56,167 |
| Total | 1,255,300 |
Please see below the list of the top 20 shareholders in RomReal as of 18 November 2014 -
| Shareholder | Holding | % |
|---|---|---|
| CREDIT SUISSE SECURI (EUROPE) PRIME BROKE | 11,691,024 | 28.26 |
| THORKILDSEN KAY TØNNES | 5,415,756 | 13.09 |
| GRØNSKAG KJETIL | 3,850,307 | 9.31 |
| SILJAN INDUSTRIER AS | 2,162,598 | 5.23 |
| SEB Private Bank S.A | 1,323,373 | 3.20 |
| SAGA EIENDOM AS | 1,223,667 | 2.96 |
| CO/JONAS BJERG NTS TRUSTEES LTD | 1,058,306 | 2.56 |
| SPAR KAPITAL INVESTO | 940,236 | 2.27 |
| Carnegie Investment CLIENT ACCOUNT | 851,692 | 2.06 |
| ENERGI INVEST A/S | 848,220 | 2.05 |
| THORKILDSEN INVEST A | 829,478 | 2.01 |
| ORAKEL AS | 700,000 | 1.69 |
| HOEN ANDERS MYSSEN | 689,557 | 1.67 |
| CLEARSTREAM BANKING | 653,181 | 1.58 |
| PERSSON ARILD | 588,000 | 1.42 |
| MIDELFART INVEST AS | 561,967 | 1.36 |
| Skandinaviska Enskil A/C CLIENTS ACCOUNT | 508,384 | 1.23 |
| KBC SECURITIES NV A/C CLIENTS NON-TREA | 477,676 | 1.15 |
| DANSKE BANK A/S 3887 OPERATIONS SEC. | 457,998 | 1.11 |
| LUNDE DANIEL PETTER | 294,100 | 0.71 |
| TOTAL TOP 20 | 35,125,520 | 84.92 |
(1) This is the Top 20 Shareholder list as per 18 November 2014.
(2) The total issued number of shares issued at end Q3 2014 was 41,367,783.
(3) Thorkildsen Invest AS is a company controlled by RomReal CEO Kay Thorkildsen. Altogether RomReal CEO Kay Thorkildsen owns 15.09% of the Company.
(4) RomReal Director Arne Reinemo controls directly or indirectly SILJAN INDUSTRIER AS.
(5) The above list is the 20 largest shareholders according to the VPS print out; please note that shareholders might use different accounts and account names, adding to their total holding.
The objective of the Company for 2014-2015 is to maintain a reasonable financial position that will allow it to sustain its operations while awaiting a possible recovery in the real estate markets following the financial crisis.
The Company targets to create value for its investors by seeking to sell individual plots from its Land Bank at attractive prices. The Management is proactively seeking to procure buyers through its network of contacts in Romania and abroad, and by dealing with incoming requests from interested parties. In case a serious offer is received for a plot, the Management will arrange a transaction process which will include organising due diligence, developing the required legal documentation, and negotiating the final price and other terms of the deal.
In addition to aiming to sell plots, the Company is seeking to add incremental value to the individual plots during the period in which they are part of the Land Bank up until a potential sale is completed. The various forms of adding value include upgrading of planning permission as well as maintenance of plot surfaces, buildings, fencing and similar. Management will also attempt to create income from the plots in its Land Bank by renting out to third parties for commercial use, structured in a way so it does not prevent or interfere with an eventual sale of the plots.
The financial statements for the Q3 2014 report have been prepared in accordance with IAS 34 – Interim Financial Reporting. The quarterly result has been prepared in accordance with the current IFRS standards and interpretations. The accounting policies applied in the preparation of the quarterly result are consistent with the principles applied in the financial statements for the year to 31 December 2013.
The interpretations below refer to comparable financial information for Q3 2014 and Q3 2013. They are prepared for RomReal on a consolidated basis and use consistent accounting policies and treatments.
The operating revenue during Q3 2014 was EUR 117,000 compared to a total of EUR 93,000 in Q3 2013. The income relates to the rent received on some of the land bank assets awaiting development (EUR 80,000 in Q3 2014 and EUR 92,000 in Q3 2013) and the difference to the divestment of some small plots (see Sale of Plots above). The reduction in rent is related to the incentives granted to tenants with a view to timely meet due rental payments.
Total operating expenses amounted to EUR 228,000 in Q3 2014 compared to EUR 232,000 in Q3 2013. Out of these operating expenses, the payroll costs were EUR 54,000, down compared to the level registered in Q3 2013. Adjustment for inventories not considered, the total operating expenses of the Company in Q3 2014 were around 4% higher than the ones in the same quarter of 2013. Out of the total operating expenses, the main cost items relate to general and administration costs in connection with the running of the Group.
The other operating income/(expense) is driven mainly by the change in the value of investment property as a result of the change in the foreign currency exchange rate before translating them into the functional currency of the Group. During Q3 2014, there were no changes to the EUR value of the investment property.
The net of Other Operating Income/ (Expense) in Q3 2014 amounted to a net gain of EUR 151,000, compared to a net gain of EUR 33,000 in Q3 2013.
During Q3 2014, RomReal generated an operating profit of EUR 40,000, compared to a loss of EUR 106,000 in Q3 2013.
The interest expense includes the expense accrued for the period with the interest in respect of the Alpha Bank loan in amount of EUR 94,000. Foreign exchange result for Q3
RomReal Limited [Third quarter 2014] Page 11 of 16
2014 was a loss of EUR 352,000 compared to a net foreign exchange loss of EUR 61,000 in Q3 2013. During the quarter the RON depreciated by 0.6% against the EUR.
The main items that generate foreign exchange differences are the inter-Company loans and the loan taken from Alpha Bank in principal amount of EUR 11.4 million plus its accrued interest to date.
The Company's policy is to hedge these effects by retaining most of its cash in Euros and also by denominating all receivables in Euros. Although not reflected from an accounting perspective, practice in real estate is that transactions are denominated in EUR and payments made at the exchange rate ruling at the date of payment, hence reducing the risk of cash losses due to exchange rate movements.
The result before tax in Q3 2014 was a loss of EUR 406,000 compared to a loss before tax of EUR 261,000 in Q3 2013.
The Company's cash and cash equivalents position at end of Q3 2014 was EUR 652,000 compared to EUR 669,000 as at end of Q2 2014.
Following the finalisation of the rights issue exercise aimed at consolidating the cash position of the Group, it decided to place part of the collected proceeds into a financial asset. The Group invested in a bond issued by Svenska Handelsbanken. The bond is issued in perpetuity but the issuer has a call option for 16 December 2015. The bond was acquired at 102.43% of par and carries a coupon of 4.19%. The bond is expected to be called by its issuer at par and the expected yield to maturity amounts to 3.01%. At the end of Q3 2014, the principal amount placed in the bond and the accrued interest totalled EUR 749,000.
The Company is required to calculate its current income tax at a flat rate of 16%. From 2013, the companies in the Group with turnover below a EUR 65,000 threshold are subject to a 3% tax calculated on total revenue. This is the case for 7 of the Group companies while 3 of them are subject to 16% on taxable profits.
The Company accounts for deferred tax on all movements in the fair values of its investment properties at a flat rate of 16%. Any change in the deferred tax liability or change in the deferred tax asset is reflected as an element of income tax in the profit and loss statement. The Company recognises deferred tax asset for the amount of carried forward unused tax losses to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilised.
Figures in thousand EUR
| Q3 2014 | Q3 2013 | YTD 2014 | YTD 2013 | |
|---|---|---|---|---|
| Rent revenue | 80 | 92 | 199 | 274 |
| Revenue from sale of assets | 37 | 1 | 164 | 9 |
| Operating revenue | 117 | 9 3 |
363 | 283 |
| Payroll expenses | (54) | (64) | (155) | (195) |
| Depreciation and amortization | (6) | (6) | (8) | (11) |
| Management fees | (16) | (16) | (48) | (54) |
| Inventory (write off)/reversal | 14 | 1 | (40) | 20 |
| General and administrative expenses | (166) | (147) | (431) | (425) |
| Operating expenses | (228) | (232) | (682) | (665) |
| - | ||||
| Profit/ (loss) before other operating items | (111) | (139) | (319) | (382) |
| Other operating income/(expense), net | 151 | 33 | (703) | 673 |
| Profit from operations | 4 0 |
(106) | (1,022) | 291 |
| Interest income | 0 | 2 | 2 | 8 |
| Interest costs | (94) | (96) | (285) | (263) |
| Foreign exchange, net | (352) | (61) | 935 | (468) |
| - | ||||
| Result before tax | (406) | (261) | (370) | (432) |
| Tax expense | (17) | (4) | 74 | 34 |
| Result of the period | (423) | (265) | (296) | (398) |
| Figures in thousand EUR | |||
|---|---|---|---|
| ASSETS | September 30, 2014 |
December 31, 2013 |
September 30, 2013 |
| Non-current assets | |||
| Intangible fixed assets | 0 | 0 | 1 |
| Financial assets | 749 | 733 | 0 |
| Investment properties | 28,980 | 29,304 | 30,953 |
| Property, plant and equipment | 47 | 23 | 20 |
| Deferred tax asset | 222 | 144 | 179 |
| Total non current assets | 29,998 | 30,204 | 31,153 |
| Current assets | |||
| Inventories | 2,563 | 2,544 | 2,816 |
| Other short term receivables | 239 | 123 | 141 |
| Prepayments | 11 | 7 | 11 |
| Cash and cash equivalents | 652 | 973 | 1,768 |
| Total current assets | 3,465 | 3,646 | 4,736 |
| TOTAL ASSETS | 33,463 | 33,850 | 35,889 |
| EQUITY AND LIABILITIES | September 30, 2014 |
December 31, 2013 |
September 30, 2013 |
|
|---|---|---|---|---|
| Equity | ||||
| Share capital | 103 | 103 | 103 | |
| Contributed surplus | 87,117 | 87,117 | 87,114 | |
| Other reserves | 425 | 425 | 425 | |
| Retained earnings | (66,414) | (63,783) | (63,781) | |
| Result of current period | (296) | (2,630) | (397) | |
| FX reserve | 5 | 439 | 267 | |
| Total equity | 20,941 | 21,671 | 23,731 | |
| Non current liabilities | ||||
| Non current debt | 12,139 | 12,011 | 11,915 | |
| Deferred income tax | 77 | 81 | 150 | |
| Total non current liabilities | 12,216 | 12,092 | 12,065 | |
| Current Liabilities | ||||
| Other payables | 148 | 86 | 91 | |
| Deferred income | 156 | 0 | 0 | |
| Tax payable | 2 | 1 | 2 | |
| Total current liabilities | 306 | 8 7 |
9 3 |
|
| TOTAL EQUITY AND LIABILITIES | 33,463 | 33,850 | 35,889 |
Figures in thousand EUR
| September 30, 2013 |
December 31, 2013 |
|
|---|---|---|
| Profit for the year | (296) | (2,613) |
| Other comprehensive income | ||
| Exchange differences on translation of foreign operations | (434) | 351 |
| Other comprehensive income for the year, net of tax | (434) | 351 |
| Total comprehensive income for the year, net of tax | (730) | (2,262) |
| September 30, 2013 |
December 31, 2013 |
|
|---|---|---|
| Net cash flow from operating activities | (321) | (412) |
| Net cash flow used in investing activities | 157 | (731) |
| Net cash flows from financing activities | (157) | 1,414 |
| Net cash change during period | (321) | 271 |
| Cash at beginning of period | 973 | 702 |
| Cash and cash equivalents at end of the period | 652 | 973 |
| September 30, 2013 |
December 31, 2013 |
|
|---|---|---|
| Equity at the beginning of the period | 21,671 | 22,474 |
| Result for the period | (296) | (2,630) |
| Equity increase | (0) | 1,376 |
| Other changes | (435) | 451 |
| Equity at the end of the period | 20,941 | 21,671 |
RomReal Limited Postal address: 9 Burnaby Street, Hamilton HM12, Bermuda. Telephone: Tel- +1-441-293-6268 Fax +1-441-296-3048 | www.romreal.com
Visiting address: Mamaia Avenue, Constanța, Romania
Tel: +40-241-551488 Fax: +40-241-551322
IR Harris Palaondas +40 731123037 | [email protected]
For further information on RomReal, including presentation material relating to this interim report and financial information, please visit www.romreal.com.
The information included in this Report contains certain forward-looking statements that address activities, events or developments that RomReal Limited ("the Company") expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to economic and market conditions in the geographic areas and markets in which RomReal is or will be operating, counterparty risk, interest rates, access to financing, fluctuations in currency exchange rates, and changes in governmental regulations. For a further description of other relevant risk factors we refer to RomReal's Annual Report for 2012. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and RomReal disclaims any and all liability in this respect.
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