TIDMRC2
RNS Number : 3415P
Reconstruction Capital II Ltd
30 September 2011
Reconstruction Capital II Limited ("RC2" or the "Company")
30 September 2011
Interim Unaudited Consolidated Financial Statements
for the six months ended 30 June 2011
Reconstruction Capital II Ltd ("RC2" or the "Company"), a
closed-end investment company admitted to trading on the AIM market
of the London Stock Exchange, today announces its interim results
for the six months ended 30 June 2011.
Financial highlights
-- Net asset value, excluding non-controlling interest, as at 30
June 2011 was EUR 92.3m, representing EUR 0.9227 per share, a 1.29%
fall since the beginning of the year;
-- As at 30 June 2011 the Company's market capitalisation was
approximately EUR 74.3m, and 100m shares were in issue with a
closing share price of EUR 0.7428 per share;
-- Loss before taxation for the period ended 30 June 2011 was
EUR 0.2m ( profit of EUR 8.2m for the period ended 30 June
2010);
-- The Directors do not recommend the payment of a dividend.
Operational highlights
-- In April 2011, RC2 sold its shareholding in East Point Metals
Ltd ("EPM") back to EPH, and in return it received non-core real
estate assets from EPH which it is in the process of swapping with
the founding shareholders of EPH for additional shareholding in
EPH. By the end of June 2011, RC2 had increased its shareholding in
EPH from 42.0% to 51.6%.
-- Under its Trading Programme, RC2 continued to reduce its
exposure to listed markets in the region, and continued to refocus
the Group towards its Private Equity Programme by exiting certain
listed positions, thereby realising EUR 0.5m in cash proceeds
The financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted in
the European Union. The financial information set out above does
not constitute the Company's statutory accounts for the period
ended 30 June 2011.
The interim report of the Group for the six months ended 30 June
2011 has been posted to shareholders. Extracts of the financial
statements appear below and the full version is available on the
Company's website - www.reconstructioncapital2.com
For further information, please contact:
Reconstruction Capital II Limited
Ion Florescu, Ivanka Ivanova
Tel: +44 (0) 20 7244 0088
Grant Thornton Corporate Finance (Nominated Adviser)
Philip Secrett, David Hignell
Tel: +44 (0) 20 7383 5100
LCF Edmond de Rothschild Securities (Broker)
Hiroshi Funaki
Tel: +44 (0) 20 7845 5960
INVESTMENT MANAGER AND INVESTMENT ADVISORS REPORT
Dear Shareholders,
On 30 June 2011, Reconstruction Capital II Limited ("RC2" or the
"Group") had a total unaudited net asset value ("NAV") of EUR 92.3m
after deducting non-controlling interest, or EUR 0.9227 per share,
which represents a decrease of EUR 0.0121, or 1.29%, since the
beginning of the year.
By comparison, as at 30 June 2011, the published NAV per share
was EUR 1.0645, with the difference of EUR 0.1418 deriving from the
effects of consolidating Mamaia Hotels SRL, Top Factoring SRL and
East Point Holdings Limited ("EPH"). All three investments are
booked at fair value when computing RC2's published net asset value
per share.
In April 2011, RC2 sold its shareholding in East Point Metals
Ltd ("EPM") back to EPH, and in return it received non-core real
estate assets from EPH which it is in the process of swapping with
the founding shareholders of EPH for additional shareholding in
EPH. By the end of June 2011, RC2 had increased its shareholding in
EPH from 42.0% to 51.6%. Consequently EPH is now consolidated in
the accounts of RC2 (note 8).
Under its Trading Programme, RC2 continued to reduce its
exposure to listed markets in the region, and continued to refocus
the Group towards its Private Equity Programme by exiting certain
listed positions, thereby realising EUR 0.5m in cash proceeds.
Yours truly,
New Europe Capital SRL
New Europe Capital DOO
New Europe Capital Limited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Six months Six months Year ended
30-Jun-11 30-Jun-10 31-Dec-10
EUR EUR EUR
Revenue 30,334,857 2,056,398 4,631,539
Cost of Sales (26,020,344) - -
------------- ----------- -----------
Gross Profit 4,314,513 2,056,398 4,631,539
Investment income
(Loss) / Gain on investments
at fair value through profit
or loss (7,184,966) 9,719,750 11,954,421
Interest income 18,793 22,422 18,237
Dividend income 30,123 4,041 4,082
Other investment income 353,339 118,856 503,154
------------- ----------- -----------
Total investment income (6,782,711) 9,865,069 12,479,894
Expenses
Gain arising on acquisition
of controlling interest in
subsidiary (16,112,647) - -
Administrative expenses 10,822,622 3,704,199 10,955,345
Selling expenses 1,817,780 - -
------------- ----------- -----------
Total expenses (3,472,245) 3,704,199 10,955,345
Operating profit 1,004,047 8,217,268 6,156,088
Share of profit of associates 17,732 - -
Interest expense (1,233,519) - -
------------- ----------- -----------
Profit before taxation (211,740) 8,217,268 6,156,088
Income tax expense (608,000) (199,146) 491,582
------------- ----------- -----------
Net loss / profit for the
period (819,740) 8,416,414 6,647,670
Other comprehensive income
Exchange differences on translating
foreign operations 1,357,286 (493,300) 87,787
Total comprehensive income
for the period 537,546 7,923,114 6,735,457
============= =========== ===========
Net profit for the period
attributable to:
- Equity holders of the parent 3,469,459 8,483,235 6,731,609
- Non-controlling interest (4,289,199) (66,821) (83,939)
(819,740) 8,416,414 6,647,670
============= =========== ===========
Total comprehensive income
attributable to:
- Equity holders of the parent 4,826,745 7,989,935 6,819,396
- Non-controlling interest (4,289,199) (66,821) (83,939)
537,546 7,923,114 6,735,457
============= =========== ===========
Basic and diluted earnings
per share 0.0347 0.0848 0.0673
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE
2011
30-Jun-11 30-Jun-10 31-Dec-10
EUR EUR EUR
Unaudited Unaudited Audited
Assets
Non-current assets
Property, plant and equipment 142,925,210 13,923,286 11,588,403
Financial assets at fair value
through profit or loss 43,442,739 77,227,760 83,387,381
Available for sale financial
assets 515,873 - -
Investment properties 6,067,947 - -
Other receivables 2,030,192 - -
Investments in associates 721,818 - -
Goodwill 1,257,153 1,257,153 1,257,153
------------ ------------ ------------
Total non-current assets 196,960,932 92,408,199 96,232,937
Current assets
Financial assets at fair value
through profit or loss 3,063,735 8,850,105 3,711,882
Other financial assets 3,965,211 - -
Inventories 35,766,855 244,619 181,000
Trade and other receivables 73,946,530 1,403,573 6,607,316
Cash and cash equivalents 16,337,677 3,680,088 812,543
------------ ------------ ------------
133,080,008 14,178,385 11,312,741
Non current assets held for
sale 4,439,000 - -
------------ ------------ ------------
Total current assets 137,519,008 14,178,385 11,312,741
Total assets 334,479,940 106,586,584 107,545,678
Liabilities
Current liabilities
Trade and other payables 23,251,817 1,913,945 2,380,538
Loans and borrowings 110,079,842 943,165 2,924,754
Corporation tax payable 359,767 50,293 9,925
------------ ------------ ------------
Total current liabilities 133,691,426 2,907,403 5,315,217
Non-current liabilities
Deferred tax 10,987,769 967,102 621,000
Provision - employee retirement 758,926 - -
Loans and borrowings 25,997,895 1,076,709 1,290,000
------------ ------------ ------------
Total non-current liabilities 37,744,590 2,043,811 1,911,000
Total liabilities 171,436,016 4,951,214 7,226,217
Total net assets 163,043,924 101,635,370 100,319,461
============ ============ ============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2011
(continued)
Capital and reserves
attributable to equity holders
Share capital 1,000,000 1,000,000 1,000,000
Share premium reserve 121,900,310 121,900,310 121,900,310
Retained deficit (25,194,314) (24,796,845) (26,548,471)
Foreign exchange reserve (5,439,872) (3,457,656) (2,876,569)
------------- ------------- -------------
Total equity and reserves 92,266,124 94,645,809 93,475,270
Non-controlling interest 70,777,800 6,989,561 6,844,191
Total equity 163,043,924 101,635,370 100,319,461
============= ============= =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE
2011
Foreign Non-
Share Share exchange Retained controlling
Capital Premium reserve Deficit Sub-total interest Total
EUR EUR EUR EUR EUR EUR EUR
Balance at
1 January
2010 1,000,000 121,900,310 (2,964,356) (33,280,080) 86,655,874 7,103,139 93,759,013
Net profit for
the period - - - 8,483,235 7,989,935 (66,821) 7,923,114
Other
comprehensive
income - - (493,300) - - - -
---------- ------------ ------------- ------------- ------------ ------------ ------------
Total
comprehensive
income - - (493,300) 8,483,235 7,989,935 (66,821) 7,923,114
Dividends
paid to non
-controlling
interests - - - - - (46,757) (46,757)
---------- ------------ ------------- ------------- ------------ ------------ ------------
Balance at
30 June 2010 1,000,000 121,900,310 (3,457,656) (24,796,845) 94,645,809 6,989,561 101,635,370
Net profit for
the period - - - (1,751,626) (1,751,626) (17,118) (1,768,744)
Other
comprehensive
income - - 581,087 - 581,087 - 581,087
---------- ------------ ------------- ------------- ------------ ------------ ------------
Total
comprehensive
income - - 581,087 (1,751,626) (1,170,539) (17,118) 1,187,657
Dividends
paid to non
-controlling
interests - - - - - (128,252) (128,252)
Balance at
31 December
2010 1,000,000 121,900,310 (2, 876,569) (26,548,471) 93,475,270 6,844,191 100,319,461
Net profit for
the period - - - 3,469,459 3,469,459 (4,289,199) (819,740)
Other
comprehensive
income - - 1,357,286 - 1,357,286 - 1,357,286
---------- ------------ ------------- ------------- ------------ ------------ ------------
Total
comprehensive
income - - 1,357,286 3,469,459 4,826,745 (4,289,199) 537,546
Acquisition
of additional
interest in
subsidiaries - - - - - 68,396,929 68,396,929
Disposal of
interests in
subsidiaries
to non
-controlling
interests - - (3,920,589) (2,115,302) (6,035,891) - (6,035,891)
Dividends paid
to
minorities - - - - - (174,121) (174,121)
---------- ------------ ------------- ------------- ------------ ------------ ------------
Balance at
30 June 2011 1,000,000 121,900,310 (5,439,872) (25,194,314) 92,266,124 70,777,800 163,043,924
========== ============ ============= ============= ============ ============ ============
Share premium is stated net of share issue costs.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30
JUNE 2011
30-Jun-11 30-Jun-10 31-Dec-10
EUR EUR EUR
Cash flows from operating
activities
Net profit before tax (211,740) 8,217,268 6,156,088
Adjustments for:
Depreciation and amortisation 695,145 469,928 210,991
Impairment - - 2,738,000
Gain on financial assets at fair
value through profit or loss 7,184,542 (9,612,548) (11,954,421)
Profit on sale of financial asset - - 50,670
Gain on acquisition of subsidiary (16,112,647) - -
(Gain)/ loss on foreign exchange 3,405,193 (212,286) 268,314
Reversal of impairment loss of
fixed assets - (795,642) -
Share of profit of associates (17,732) - -
Interest income (372,132) (22,422) (18,237)
Interest expense 1,233,519 - -
Dividend income (30,123) (4,041) (4,082)
------------- ------------ -------------
Net cash outflow before changes
in working capital (4,225,975) (1,959,743) (2,552,677)
Increase in trade and other
receivables 2,939,555 (174,633) (5,382,625)
Increase/ (decrease) in trade and
other payables (1,602,731) 627,302 1,140,946
(Increase)/ decrease in
inventories 2,521,181 (217,619) (154,000)
Decrease in provision (40,698) - -
Interest received 19,038 22,763 18,957
Dividend received 4,389 48,553 52,466
Payments for purchase of
financial assets - (2,886,235) (229,995)
Net proceeds from sale of
financial assets - 3,509,930 5,467,342
------------- ------------ -------------
Net cash (used in)/ generated by
operating activities (385,241) (1,029,682) (1,639,586)
Income tax paid (58,227) - (107,439)
Cash flows from investing
activities
Cash acquired on acquisition of
subsidiary 15,307,490 - -
Sale of property, plant and
equipment - - 167,741
Purchase of property, plant and
equipment - (82,779) (1,086,963)
Purchase of financial assets (427,907) (1,559,883) (8,671,500)
Sale of financial assets 1,494,644 - 3,764,880
------------- ------------ -------------
15,930,759 (2,672,344) (7,572,867)
Cash flows from financing
activities
Dividends paid to minorities (174,123) (46,757) (175,009)
Proceeds from loan 3,951,536 2,019,874 4,527,329
Payments of loan (4,183,038) (638,146) (984,369)
------------- ------------ -------------
Decrease in cash and cash
equivalents 15,525,134 (1,337,373) (4,204,916)
Cash at beginning of period/ year 812,543 5,017,461 5,017,459
Cash at end of period/ year 16,337,677 3,680,088 812,543
This information is provided by RNS
The company news service from the London Stock Exchange
END
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