According to Q Vara OÜ's bond issue terms' sub clause 13.3.2, Q Vara hereby
presents the consolidated unaudited financial results for the first half of
2007.
1. Introduction
As stated in Q vara's first quarter report, cash flow is the main performance
indicator in 2007 for Q Vara and the net profit expectation is relatively low.
The resoning behind this is presented in Q Vara Group's first quarter report
and in the current report's paragraph “Principles of financial accounting”.
This statement has gained even more importance during the second quarter as the
developers' liquidity in the market has deteriorated. The effect is partly
caused by slower sales pace but also banks have an active role in this - their
financing policy has become more conservative that has decreased the cash
available for real estate development.
In the sluggish real estate market situation of the second quarter Q Vara has
made a very good sales result. Altogether the company's sales revenues for the
six months in 2007 were 57 109 that exceeded the sales results of the first
half of 2006 by 48,5%. The main revenue sources were Kirsiaed and Terminal 11
projects.
At the same time also the negative cash flows have been quite substantial. The
main cash outflows are generated by the following projects: Terminal 11
construction, Pinki project's reorganization and construction. Also Taevasmaa,
Sofia and Trophy projects have reached the phase in which substantial negative
cash flows occur. The regular additional cash outflows are Group's overhead
costs and financial costs. As a result planning and managing cash flows has
been tight.
Q Vara's gross profit from sale (sales revenue minus cost of goods sold), was
16 329 thousand EEK in the first half of 2007. Development, marketing,
financial, and other operating expenses were partly covered by this amount but
altogether these expenses exceeded gross profit. It must be kept in mind that
development expenses that form the majority of the after-gross-profit-expenses,
are made in order to generate revenues in the future. So these should not be
compared to current period's revenues.
Q Vara's overdue tax liability that was reported by the media was not a bad
surprise but as stated in the stock exchange release on July 18, 2007 an
agreement with Estonian Tax and Customs Board. Since the cash flow forecast
showed that in the coming months cash flows out exceed cash flows in it was
decided to postpone the tax payments by two months until the end of August. As
Q Vara has agreed several important sales transactions for August the
management is confident in the company's ability to meet the deadline.
The expectations of strong operating cash flows for the whole 2007 have not
changed because despite the market sentiment the projects sell well
considering. The main cash flow sources are Terminal 11 land plots, Kirsiaed
row house units and Kirsiaed residential land plots. Pinki project's cash flows
are directed into construction of the further stages so in the near future this
project does not generate free cash flows for other uses. Reorganizing Pinki
project is also the main reason why the actual revenue will be lower than the
preliminary forcasts - previously most of the project revenues were planned
into 2007 but as the delay has been longer than expected a major part of
revenues will fall into 2008. Other projects' revenues should be in line with
the beginning of the year forecasts. More detailed overview of the current
sales situation is presented in “Projects' overview”.
According to the Terms and Conditions of Q Vara's January 2006 bond issue, Q
Vara presents financial information to investors quarterly. On the other hand
the regulation of OMX Tallinn Stock Exchange requires the bond issuers to file
financial information once in 6 months and present the information for 6
months. Because Q Vara presented its first quarter results and management
report in April, the current report's management overview consists of only the
developments in the second quarter of 2007. The financial results are presented
for 6 months.
2. Structure
According to the shareholders' decision from March 6, 2007 Q Vara OÜ will be
reorganized from private limited company (osaühing) into public limited company
(aktsiaselts) (see also the I quarter report of 2007). By the end of July the
transaction is not completed due to administrative dealys in the Central
Commercial Registry. The reorganization will be expectedly completed in autumn
2007.
In the second quarter it was decided to abort the buy-out of SIA Quality Nami
minority shareholders that was also approved by the same shareholders' meeting
in March. The reasons for cancelling the negotiations were the minority
shareholder's too high price expectations and relatively low interest of the
financiers to finance the transaction (refusals were related to the cooling
down of the real estate market). After the transaction was taken off the agenda
both shareholders decided to continue developing the Jonathan project with the
same ownership structure.
3. Management and personnel
As stated also in the first quarter report Q Vara OÜ's Supervisory Board
decided on April 24, 2007 to withdraw Tõnis Vare from Q Vara OÜ's management
board. No new management board member was elected and Q Vara OÜ's management
board continues with two members: Meelis Šokman and Andre Poopuu. The
Supervisory Board's decision is related to the deeper integration of Q Vara
OÜ's and Q Ehitus OÜ's activities as a result of which several development
activities are shifted from Q Vara OÜ over to Q Ehitus OÜ.
In the second quarter of 2007 Q Vara Group's team grew by 18 people up to 107
people. Altogether 25 new employees joined the group and 7 people left.
The most significant development during the first half of 2007 has taken place
on Q Vara Group's construction side. By the end of the second quarter Q Ehitus
employed 42 people. The estimated annual capacity of the team is 200 000
thousand of construction revenue which currently exceeds Q Vara's needs. As a
result Q Ehitus is ready to offer construction main contracting services also
outside the Group. The first outside projects are being already analyzed.
Similar notable development has taken place in SIA Q Buve in Latvia where
similar strong team is being completed. Q Buve's capacity is approximatelty
half of Q Vara's capacity. Since Q Buve currently works on Pinki project it is
realistic to offer its services to the outside market too. The construction
team formation is also being prepared in Lithuania. In the beginning Q Vara
Group does not establish a special construction company there but develops a
construction team in UAB Q Vara.
4. Financial results
Q Vara's consolidated operating income in the first half of 2007 was 133 693
thousand EEK; 8 544 thousand EUR (2006 first half: 143 623 thousand EEK; 9 179
thousand EUR). Sales revenue for the same period was 57 109 thousand EEK; 3 650
thousand EUR (2006 first half: 38 458 thousand EEK; 2 458 thousand EUR). Hence
the 2007 first six months' sales revenues exceeded the same period's amount in
2006 by 48,5%.
Q Vara generated altogether 16 329 thousand EEK of gross profit (sales revenues
minus cost of goods sold) in the first half of 2007. It is a good result
despite the fact that development expenses, marketing expenses and financial
expenses exceeded the amount. It must be noted that development expenses are
related to the future revenues and should not be measured against the current
period's revenues. Considering the large projects that are in the development
phase such expenses and cash flows are logical in the high growth phase.
The consolidated net profit for the ended six months was 36 961 thousand EEK; 1
814 thousand EUR (first half of 2006: 100 315 thousand EEK; 6 411 thousand
EUR). The main reason behind the lower profits is the lower real estate
revaluation revenue - in 2007 only Sofia project's balance sheet value was
changed (based on Colliers International evaluation report).
Q Vara's management has not yet acted on investment property value in the
Baltic market and is waiting the market to take a definite direction. The
revaluation decisions will be made in the third and fourth quarter of 2007. Q
Vara has ordered several new evaluation reports according to which the real
estate value estimations vary largely. According to the reports Q Vara should
lower the value of some projects in the total amount of 43 000 thousand EEK
(mainly Taevasmaa project) but at the same time increase the value of other
projects (Terminal 11, Pärtlepõllu, Sofia, Trophy, Maskavas, Maakri) by 114 000
thousand EEK. Also the price ranges for a single project vary considerably as
different evaluators calculate the fair value. In such circumstances Q Vara's
management has taken a waiting position in order to find out what will happen
to the Baltic real estate market. The management will make the final decision
about the property revaluations in the second half of the year as the market is
assumed to show more clear trend.
In the first six months of 2007 also financial expenses have played a
significant role in the net profit amount. More specifically two large
liabilities - bonds and a loan from Gild Arbitrage - that form the majority of
interest expenses. Currently both liabilities' interest expense is accounted
for in the profit and loss statement but has not actually generated negative
cash flow. Altogether the net financial revenues and expenses were -16 700
thousand EEK in the first half of 2007 (10 188 in the first half of 2006). In
the next quarters the interest expense is expected to decrease as Q Vara will
refinance the GILD Arbitrage's loan with cheaper resources.
At the end of the second quarter 2007 Q Vara Group is still strongly
capitalized: equity forms 38,8% of total assets. In the end of the quarter the
total asset amount was 869 229 thousand EEK; 55 554 thousand EUR and total
equity amount was 336 848 thousand EEK; 21 589 thousand EUR. At the end of the
second quarter 2006 the total asset amount was 566 859 thousand EEK; 35 590
thousand EUR. Compared to the end of the second quarter of 2006 the asset
amount of Q Vara has grown 53,3% by the end of the second quarter in 2007.
5. Overview of the projects
5.1. Kirsiaed triple houses
- Location: Viimsi parish, Estonia
- Segment: Residential, high
- Development: Row houses
- Period: 2006-2007
- Sellable space: 3 305 m2
Introduction: Kirsiaed (“Cherry tree”) is a residential development project, in
which a family friendly and enjoyable living environment is created through
combination of architecture, landscape and greenery. Position towards the sun
and privacy of the residents were considered as the main starting points inform
the very beginning. The main features of the units are brightness, practical
and considered interior planning and a magnificent view on the silhouette of
Tallinn. One may choose a unit with high quality finishing's in place or a unit
where one can make the designs by oneself.
By the end of February 2007 15 boxes with final inner decoration are finished,
the rest 15 are still being inner decorated. In springtime the greenery concept
is started to be put into practice.
By the end of February 2007 15 units with final interior decoration were
finished and the other 15 units remain with “grey” finishing and wait for the
client's choice. In spring the greenery concept is realized to finish the
project.
Development: According to the sales pace and clients' choices the interior
finishing of the remaining units continue. In April also the greening works
were started and the works were finalized in June.
Sales: In the second quarter the active realization of booked apartments took
place and by the end of the second quarter altogether 14 units were sold. Also
some new bookings were made some of which ended up in new sales contracts in
July and some will be finalized in August. In the end of the second quarter
already 12 families had moved in.
The client interest is stronger than in the first months of 2007 due to the
fact that the houses are finished and the planned concept is visible. Therefore
the client days have emerged as the most successful marketing tool.
5.2. Kirsiaed plots
- Location: Viimsi parish, Estonia
- Segment: Residential, high
- Development: Residential land plots
- Period: 2006-2007
- Sellable space: 23 219 m2
Introduction: Kirsiaia residential land plot project is one of the few plot
developments in Viimsi that has all utility, connections, asphalt road and
street-lighting. Partial greenery has been planted to the plots already today -
fir-trees, thorn bush hedges, rowan trees and low cherry trees. The plots are
situated on a hilly terrain, from with a nice view on the Tallinn-panorama.
Sales: In March-April the amount of potential clients increased considerably as
a result of what four new sales transactions took place in the second quarter.
At the same time several negotiations failed and all the booked apartments did
not end up in actual transactions. From june the sales activity slowed down due
to summer vacations but nevertheless the sales team got three new bookings by
the end of the second quarter. One more was added in July so in addition to the
5 sold properties the sales team expects to close four transactions in
August-September.
5.3. Taevasmaa
- Location: Harku parish, Estonia
- Segment: Residential, medium
- Development: Gallery- and row houses
- Period: 2007-2009
- Sellable space: 32 137 m2
Introduction: The name Taevasmaa (Skyland) name comes from two architecturally
very different parts of the project (row houses - sky (Taevas in Estonian) and
gallery houses - land (maa in Estonian), which as joined together compile an
interesting and aesthetically pleasing living environment. The residential area
is situated nearby Tabasalu and has already today the value in the surrounding
nature and privacy. Q Vara is developing there apartment houses and row houses
with low acquisition costs and low monthly expenses. In creating the living
areas, the attention is paid on HEALTH and on INTEGRATION, which means houses
with few apartments, surrounding sporting facilities, playgrounds, greeneries',
play parks and kindergarten.
Ergonomics and practicality are considered also as very important details
throughout the development (entrance-room closets, kitchen furniture etc).
Development: After thorough analysis and consultations with local government Q
vara's management decided to change the concept of the project's first stage.
The new concept foresees reducing the number of apartments in each gallery
house as a result of what the first stage consists of 10 gallery houses with 6
apartments in each (60 apartments). The total net space of the first stage
amounts 3 980 sqm.
The construction of the first stage is divided into smaller sets that include
3-4 houses (see the picture). This allows to test the market for demand and
also make the project bankable in the current market situation (banks' risks
are smaller at any point of time). The launch of the first set is yet
undetermined and it depends on the issuance of construction permit and the
final financing decision.
The construction was launched in April with the earth works that were finished
by June. The next phases will be started after the construction permit and
final financing decision is received. The issuance of construction permit is
expected to take place in August 2007.
Sales: The pre-sales is launched after the general construction of the houses
begins. The preparations (marketing materials, project website etc) for sales
launch are underway.
5.4. Terminal 11
- Location: Rae parish, Estonia
- Segment: Commercial, medium
- Development: Warehouses
- Period: 2007-2009
- Sellable space: 42 000 m2
Introduction: Project's name - Terminal 11 - comes from its positioning beside
the Tallinn traffic circle (11th highway). The warehouses are aimed for small
and medium-sized companies, to whom the optimal storage size, common location
of storage and office space, very comfortable working conditions to the
employees and efficient storage managing are crucial. The project's focus is
also on minimizing clients' monthly loan repayments and administration costs.
Development: The construction of Terminal 11, the industrial park near Tallinn,
was launched in March 2007 with earth works. After receiving the construction
permit in the second quarter of 2007 the construction continued with digging
works for utility lines and the construction of the first building's
foundation.
By the end of the second quarter Sampo Pank also gave a positive financing
decision for the whole first stage that includes utility lines and first three
buildings. The decision increased the previous loan limit of 1 569 thousand
euro by 4 071 thousand euro.
Sales: In order to support the own financing part of the warehouses (besides
the pre-sales) part of the project's property is sold as land plots with
utility connections. The estimated sales price per land plot sqm is 800 EEK
(51.1 EUR; not including the VAT). Because the actual cash flows from the sale
of land plots and the pre sales contracts becomes available in a few months
(the marketing was launched in the second half of April) the first months' own
financing is obtained fom other Q Vara's projects.
In May the preparation of sales materials (including the project website
www.terminal11.ee and print materials) was completed. The first marketing stage
included public advertising as well as direct mailing. The focus was mainly on
land plots with warehouses fading in after a few weeks.
The campaign started off successfully and several interested clients asked for
more information right away. By the end of the second quarter eight land plots
were booked and negotiations were opened with three clients on the warehouse
space. The first contracts were signed in the beginning of the third quarter.
As of the end of July two warehouse units and two land plots were sold. The
next contracts were also agreed for august.
5.5. Maakri
- Location: Tallinn, Estonia
- Segment: Residential / commercial, high
- Development: high-rise buildings
- Period: -
- Capacity: -
Introduction: Through an associate (Stansfield OÜ) Q Vara has two properties in
the centre of Tallinn. According to Tallinn City's general plans the area is
going to be a district with high-rise buildings that accommodate residential as
well as commercial space.
Development: In the second quarter the planning for the development was
launched. The first task is to solve the traffic in the neighboring area for
which the first sketch drawings were drawn and the final traffic project was
ordered. To start off with the best solution also Tallinn City officials were
included in the process. The next major step is to launch the next stage of the
design competition for the whole block.
At the same time the shareholders agreement of AS Maakri City were being
finalized and in the coming months it is expected to be signed.
5.6. Pärtlepõllu
- Location: Viimsi parish, Estonia
- Segment: Residential, medium
- Development: -
- Period: -
- Capacity: -
Introduction: Q Vara signed a contract in 2006 to purchase the Pärtlepõllu land
plot in Viimsi parish. Part of the property will be developed into residential
land and part of it remains as a green area. As Q Vara has not finalized the
property's purchase transaction the land is not on Q Vara's balance sheet.
Development: As reported in the first quarter Q Vara's management decided to
sell Pärtlepõllu land plot. After the sale was launched several bids were
received but all bids were significantly lower than the value in the latest
evaluation report that was composed in the end of the first quarter. Due to
that it was decided not to sell the property.
The detail planning process continued as planned. The detail plan sketch was
presented to the local government who after a few consultations and amendments
approved it. The following tasks include receiving several other obligatory
approvals to the detail plan (health board, neighbours etc.)
5.7. Silukalni
- Location: Pinki village, Latvia
- Segment: Residential, medium
- Development: Double and row houses
- Period: 2005-2007
- Sellable space: 8 525 m2
Introduction: Silukalni residential area is located next to a pine forest which
together with its suburban location makes a perfect home for a family. Double-
and row houses includes 72 units.
Development: Starting from the second quarter the main contractor of the whole
project is SIA Q Buve. Q Buve finished the first three houses by the end of
June. After that the construction of the following six houses continues.
Similarly the whole project will be finished in stages.
Sales: In addition to the 28 units that were sold in the first stage of selling
9 units had been sold (pre-sales agreements were signed) by the end of the
second quarter. As a very important development first three houses (six units)
were handed over to the clients and the final sales agreements were signed.
Handing over the next six houses is planned to take place in autumn 2007.
5.8. 365
- Location: Jurmala, Latvia
- Segment: Residential, high
- Development: Apartment building
- Period: 2006-2008
- Sellable space: 2 730 m2
Introduction: “365” apartment building is situated in a prestigious Jurmala
beach town. It is a stylish apartment building designed by Latvian top
architectural company SIA Sīlis, Zābers & Klava. The building includes thirty
exclusive apartments, which net space ranges from 60 to160 m2.
Development: By the end of June the construction of the foundation and the
underground parking floor was closing to an end. The construction pace
currently matches the planned timeline.
Sales: Altogether 7 apartments were soln in the 365 apartment building by the
and of the second quarter. In addition to the already signed agreements three
more interested clients have shown interest in purchasing apartments. On the
contrary to other locations in beach town Jurmala the sales activity increases
in summer. So the sales team has received many client contacts in the past few
months.
5.9. Jonathan
- Location: Riga, Latvia
- Segment: Residential, medium
- Development: Apartment building
- Period: 2007-2010
- Sellable space: 30 575 m2
Introduction: Jonathan is an apartment building that is situated in Riga,
ashore of Daugava River, 15 minutes drive from Riga city centre. The project's
main attraction is a pond in the courtyard which means that the building is
partly in the water and the pond has a direct connecting canal with the river.
Nothing is impossible...
Development: In April the scetch drawings of the apartment building were
approved by the Riga City and preparation of technical plans continued. The
technical project is carried out in two stages of which the zero cycle plans
should be ready by the end of 2007. After that the construction of the
foundation works can be launched and the preparation of the whole buildings'
technical plans can be carried out parallelly and will be finished expectedly
in the second quarter of 2008.
The construction of the project will be divided into stages. According to the
preliminary analysis the zero cycle works can be splitted into two stages and
the rest of the construction into four to five stages. The final decision on
the staging will expectedly be made in the third quarter and the technical
plans well be redrawn accordingly.
Sales: The presales of the project begins after the construction permit is
received and it is expected to take place in the first half of 2008. Currently
the active preparation of the sales materials is the main task on sales and
marketing side.
5.10. Trophy
- Location: Vilnius, Lithuania
- Segment: Residential, high
- Development: Apartment building
- Period: 2007-2008
- Sellable space: 2 340 m2
Introduction: The project is developed on UAB Q Vara's property that was
acquired in the end of 2006 - 1 800 m2 property, addressed in Vilnius, Elniu
20. The price of the property was 3,64 million LVL and 75% was financed by bank
loan. The financer was AB SEB Vilniaus Banka.
The plan is to develop a 2-3 floor apartment building, with total volume of 2
300 m2. The property is located in a prestigious green area in Vilnius called
Zverynas, right next to the downtown of Vilnius. The apartments with high
quality finishing targeted at upper-middle-class customers are priced from 2
300 to 2 900 euros per square meter and the size of the apartments ranges from
55 to 120 m2.
Development: In the second quarter the detail planning of Elniu 20 cotinued and
it was successfully finished by the end of the quarter - Vilnius City approved
the detail plan on July 18, 2007.
Also the sketch drawings of the apartment building were finished and the
agreement with the architects on preparing the technical plans is expected to
be signed in the third quarter.
Sales: The sales and active marketing activities of the project start after the
construction permit is received.
5.11. Sofia
- Location: Sofia, Bulgaria
- Segment: Residential / Business, medium / high
- Development: -
- Period: -
- Sellable space -
Introduction: In 2006 Q Vara entered Bulgarian real estate market and acquired
60% of a company named OOD Delta Retail. The minority shareholder of the
company is a local real estate company OOD Delta Imoti Capital. The acquired
company owns an 11 000 m2 property in the centre of Sofia. Since the
acquisition was not formally documented by the end of 2006, with the
negotiations over the shareholders agreement still pending, the investment was
recorded as a loan granted in the end of 2006.
The purpose of the property allows to develop there high rise buildings with
apartments and office spaces in it. In total Q Vara invested 2,98 million euros
into the project acquisition.
Development: The main event in the second quarter was receiving the design visa
from Sofia City. The design visa allows developing altogether 60 265 sqm of
gross space on the project's property. Also other conditions like unlimited
height and mixed use spaces were confirmed. These conditions allow developing
one of the most spectacular developments on Q Vara Group's property. Also the
sketch drawings competition was finished and based on the filed works the
architect of the technical plans will be chosen in the third quarter.
6. Q Vara's consolidated profit and loss statement for the first half of 2007
-------------------------------------------------------------
01.01.2007- 01.01.2006-
30.06.2007 31.12.2006
Unaudited Audited
thousand EEK thousand EEK
-------------------------------------------------------------
Operating revenues
Sales revenues 57 109 63 231
Change in RE investments' value 73 487 161 545
Other operating revenues 3 097 2 867
Total operating revenues 133 693 227 643
Operating expenses
Cost of construction -40 780 -63 789
Direct development costs -14 076 -8 950
Development overhead costs -16 966 -23 326
Marketing costs -3 904 -9 459
Maintenance expenses -1 779 -1 940
Other operating expenses -2 256 -6 929
Total operating expenses -79 761 114 393
Operating profit 53 932 113 250
Financial income and expenses -16 700 -3 046
Pre-tax profit 37 232 110 204
Deferred income tax -211 -10 787
Real estate tax -60 -59
Net profit (loss) 36 961 99 358
Mother company's shareholders' share 8 578 79 831
Minority share 28 383 19 527
-------------------------------------------------------------
-------------------------------------------------------------
01.01.2007- 01.01.2006-
30.06.2007 31.12.2006
Unaudited Audited
thousand EUR thousand EUR
-------------------------------------------------------------
Operating revenues
Sales revenues 3 650 4 041
Change in RE investments' value 4 697 10 325
Other operating revenues 198 183
Total operating revenues 8 545 14 549
Operating expenses
Cost of construction -2 606 -4 077
Direct development costs -900 -572
Development overhead costs -1 084 -1 491
Marketing costs -250 -605
Maintenance expenses -114 -124
Other operating expenses -144 -443
Total operating expenses -5 098 -7 311
Operating profit 3 447 7 238
Financial income and expenses -1 067 -195
Pre-tax profit 2 380 7 043
Deferred income tax -13 -689
Real estate tax -4 -4
Net profit (loss) 2 362 6 350
Mother company's shareholders' share 548 5 102
Minority share 1 814 1 248
-------------------------------------------------------------
7. Q Vara's consolidated balance sheet as of 30.06.2007
-------------------------------------------------------------
30.06.2007 31.12.2006
Unaudited Audited
thousand EEK thousand EEK
-------------------------------------------------------------
Current assets
Cash and cash equivalents 2 905 1 116
Accounts receivable 37 092 4 174
Short-term loans 17 461 74 334
Other short-term receivables 55 775 48 645
Interest receivables 7 616 6 677
Prepayments 9 752 25 908
Real estate for sale 348 777 216 043
Total current assets 479 378 376 897
Non-current assets
Long-term loans 8 641 5 760
Associated companies 32 618 32 618
Real estate investments 334 901 338 250
Tangible and intangible assets 13 691 8 826
Goodwill 0 2 886
Total non-current assets 389 851 388 340
Total assets 865 931 765 237
-------------------------------------------------------------
Liabilities and equity
Current liabilities
Short-term loans 171 205 290 169
Capital lease liabilities 569 1 149
Customer prepayments 8 370 5 577
Accounts payable 19 731 22 163
Personnel related liabilities 2 688 2 650
Interest liabilities 20 369 14 164
Tax liabilities 7 788 0
Total current liabilities 230 720 335 872
Non-current liabilities
Long-term loans 133 315 14 936
Other long-term payables 59 813 90
Issued bonds 76 863 76 863
Capital lease liabilities 4 486 5 468
Deferred income tax 27 184 27 040
Total non-current liabilities 301 661 124 397
Total liabilities 532 381 460 269
Equity
Mother company's shareholders' equity
Share capital 73 511 73 511
Reserves 7 361 7 361
Unrealized exchange rate differences 200 177
Retained earnings 182 209 175 231
Mother company's shareholders' equity 263 281 256 280
Minority share 73 567 48 688
Total equity 336 848 304 968
Total liabilities and equity 869 229 765 237
-------------------------------------------------------------
-------------------------------------------------------------
30.06.2007 31.12.2006
Unaudited Audited
thousand EUR thousand EUR
-------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents 186 71
Accounts receivable 2 371 267
Short-term loans 1 116 4 751
Other current receivables 3 565 3 109
Interest receivables 487 427
Prepayments 623 1 657
Real estate for sale 22 291 13 808
Total current assets 30 638 24 090
Non-current assets
Long-term loans 552 368
Associated companies 2 085 2 085
Real estate investments 21 404 21 618
Tangible and intangible assets 875 564
Godwill 0 184
Total non-current assets 24 916 24 819
Total assets 55 554 48 909
Liabilities and equity
Current liabilities
Short-term loans 10 942 18 545
Capital lease liabilities 36 74
Customer prepayments 535 357
Accounts payable 1 261 1 416
Personnel related liabilities 172 169
Interest liabilities 1 302 905
Tax liabilities 498 0
Total current liabilities 14 746 21 467
Non-current liabilities
Long-term loans 8 520 955
Other long-term liabilities 3 823 6
Issued bonds 4 912 4 912
Capital lease liabilities 287 349
Deferred income tax liabilities 1 737 1 728
Total non-current liabilities 19 280 7 950
Total liabilities 34 025 29 417
Equity
Mother company's shareholders' equity
Share capital 4 698 4 698
Reserves 470 470
Unrealized exchage rate differences 13 13
Retained earnings 11 645 11 197
Mother company's shareholders' equity 16 827 16 378
Minority share 4 702 3 114
Total equity 21 529 19 492
Total liabilities and equity 55 554 49 909
-------------------------------------------------------------
Additional information:
Meelis Šokman
Chairman of the management board
Q Vara OÜ
Phone: 668 1600
Q Vara's financial results of the first half of 2007
| Source: Q Vara
Attachments
