REG - Macau Prop Opp Fund - Interim Results for the period ended 31 Dec 2014 <Origin Href="QuoteRef">MPO.L</Origin> - Part 2
27/02/2015 07:01
- Part 2: For the preceding part double click ID:nRSa0279Ga
90,746 141,212 840 233,698
Prior period adjustment 13 - (18,919) - - (18,919)
Balance brought forward at 1 July 2013 - as restated 900 71,827 141,212 840 214,779
Profit for the period - 24,374 - - 24,374
Items that may be reclassified subsequently to profit or loss
Exchange difference on translating foreign operations - - - 338 338
Total comprehensive income for the period - 24,374 - 338 24,712
Share buy back (65) - (20,359) - (20,424)
Balance carried forward at 31 December 2013 835 96,201 120,853 1,178 219,067
MOVEMENT FOR THE YEAR FROM 1 JULY 2013 TO 30 JUNE 2014 (AUDITED)
Share capital Retained earnings Distributable reserves Foreign currency translation reserve Total
US$'000 US$'000 US$'000 US$'000 US$'000
Balance brought forward at 1 July 2013 900 71,827 141,212 840 214,779
Profit for the year - 65,075 - - 65,075
Items that may be reclassified subsequently to profit or loss
Exchange difference on translating foreign operations - - - 249 249
Total comprehensive income for the year - 65,075 - 249 65,324
Return of Capital - - (29,000) - (29,000)
Share buy back (86) - (28,163) - (28,249)
Balance carried forward at 30 June 2014 814 136,902 84,049 1,089 222,854
The notes below form part of these interim condensed consolidated financial
statements.
Macau Property Opportunities Fund Limited
Interim Condensed Consolidated Statement of Cash Flows (Unaudited)
For the 6 month period from 1 July 2014 to 31 December 2014
Unaudited Unaudited Audited
6 months 6 months 12 months
1 Jul 14 - 1 Jul 13 - 1 Jul 13 -
31 Dec 14 31 Dec 13 30 Jun 14
Note US$'000 US$'000 US$'000
Net cash (used in)/ generated from operating activities 10 (51,070) (6,416) 3,859
Cash flows from investing activities
Capital expenditure on investment properties 3 (70) (3,583) (3,604)
Proceeds from disposal of investment property - - 58,199
Movement in pledged bank balances (3,140) 1,195 2,243
Proceeds from disposal of property held in escrow 6,452 - -
Net cash (used in)/generated from investing activities 3,242 (2,388) 56,838
Cash flows from financing activities
Proceeds from bank borrowings 23,025 102,414 111,563
Repayment of bank borrowings - (70,722) (76,716)
Share buy back (11,812) (20,424) (28,249)
Return of Capital - - (29,000)
Interest and bank charges paid (2,477) (2,535) (4,283)
Net cash generated from/(used in) financing activities 8,736 8,733 (26,685)
Net movement in cash and cash equivalents (39,092) (71) 34,012
Cash and cash equivalents at beginning of period/year 43,528 9,864 9,864
Effect of foreign exchange rate changes 157 (57) (348)
Cash and cash equivalents at end of period/year 4,593 9,736 43,528
The notes below form part of these interim condensed consolidated financial
statements.
Macau Property Opportunities Fund Limited
Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)
For the 6 month period from 1 July 2014 to 31 December 2014
General information
Macau Property Opportunities Fund Limited (the "Company") is a Company
incorporated and registered in Guernsey under The Companies (Guernsey) Law,
1994. This law was replaced by the Companies (Guernsey) Law, 2008 on 1 July
2008. The Company is an authorised entity under the Authorised Closed-Ended
Investment Schemes Rules 2008 and is regulated by the Guernsey Financial
Services Commission. The address of the registered office is given below.
The interim condensed consolidated financial statements for the six months
ended 31 December 2014 comprise the interim financial statements of the
Company and its subsidiaries (together referred to as the "Group"). The Group
invests in residential and commercial property and property-related ventures
primarily in Macau.
There have been no changes to the Group's principal risks and uncertainties in
the six month period to 31 December 2014 and the Board of Directors does not
anticipate any changes to the principal risks and uncertainties in the second
half of the year. Principal risks and uncertainties are further discussed in
the Investment Managers Report on above.
The interim condensed consolidated financial statements are presented in US
Dollars ("US$") and are rounded to the nearest thousand ($'000).
These interim condensed consolidated financial statements have been approved
for issue by the Board of Directors on 26 February 2015.
1. Significant accounting policies
Basis of accounting
The annual consolidated financial statements have been prepared in accordance
with International Financial Reporting Standards ("IFRS"), as adopted by the
European Union; applicable legal and regulatory requirements of Guernsey Law
and under the historical cost convention as modified by the revaluation of
investment properties and derivative financial instruments.
The interim condensed consolidated financial statements have been prepared in
accordance with International Accounting Standard ("IAS") 34, Interim
Financial Reporting. The same accounting policies and methods of computation
are followed in the interim financial statements as compared with the annual
financial statements. The interim condensed consolidated financial statements
do not include all information and disclosures required in the annual
financial statements and should be read in conjunction with the Group's annual
financial statements as of 30 June 2014.
As a result of the decision of the IFRS Interpretations Committee in its July
2014 meeting relating to deferred taxation for a single asset held by a
corporate wrapper, the Group has recognised the deferred tax liability for the
taxable temporary difference relating to the investment property carried at
fair value in its interim financial statements and, in line with the prior
period adjustment made in its 30 June 2014 financial statements, the Group has
adjusted the 31 December 2013 comparative numbers (see Note below).
There was a further, presentational, reclassification within the consolidated
statement of cash flows whereby it was deemed appropriate to include the
`movement in pledged bank balances' under `investing activities' as opposed to
`financing activities' as in the prior periods. This resulted in no net cash
flow impact.
New and amended standards and interpretations applied
The following new and amendments to existing standards and interpretations,
either did not have a material impact on the Group or were not applicable are
outlined below:
Effective dates
IFRS 10 Consolidated financial statement 01 January 2014
IFRS 11 Joint arrangements 01 January 2014
IFRS 12 Disclosure of interests in other entities 01 January 2014
IAS 27 Separate financial statements 01 January 2014
IAS 28 Investments in associates and joint ventures 01 January 2014
IAS 32 Financial instruments: presentation - offsetting financial assets and financial liabilities 01 January 2014
IAS 36 Impairment of assets - recoverable amount disclosures for non-financial assets 01 January 2014
IAS 39 Financial instruments: recognition and measurement - novation of derivatives and continuation of hedge accounting 01 January 2014
IFRIC 21 Levies 01 January 2014
IFRS 10, IFRS 12 & IAS 27 Amendments in respect of Investment Entities 01 January 2014
Various Annual improvements to IFRSs 2010 - 2012 cycle 01 July 2014
Various Annual improvements to IFRSs 2011 - 2013 cycle 01 July 2014
IAS 19 Employee Benefits - Defined Benefit Plans: Employee Contributions (Amendments) 01 July 2014
Going concern
As part of their assessment of the going concern of the Group, the Directors
have reviewed the comprehensive cash flow forecasts prepared by management
which make assumptions based upon current and expected future market
conditions. It is the Directors' belief that, based upon those forecasts and
their assessment of the Group's committed banking facilities, it is
appropriate to prepare the financial statements of the Group on the going
concern basis. In arriving at their conclusion that the Group currently has
adequate financial resources, the Directors have taken into consideration the
fact that the Group has cash of US$4.6 million and net current assets of
US$44.4 million as at 31 December 2014.
The Directors believe it is appropriate to prepare the financial statements of
the Group on the going concern basis based upon existing cash resources, the
forecasts described above, the extension of the life of the Company until the
end of 2016 agreed at the EGM on 7 April 2014 and the Directors' assessment of
the Group's committed banking facilities and expected continuing compliance
with related covenants.
Seasonal and cyclical variations
The Group does not operate in an industry where significant or cyclical
variations as a result of seasonal activity are experienced during the
financial year.
2. Segment reporting
The chief operating decision maker (the "CODM") in relation to Macau Property
Opportunities Fund Limited is deemed to be the Board itself. The factors used
to identify the Group's reportable segments are centred on asset class,
differences in geographical area and differences in regulatory environment.
Further, foreign exchange and political risk is identified, as these also
determine where resources are allocated.
Based on the above and a review of information provided to the Board, it has
been concluded that the Group is currently organised into one reportable
segment based on the geographical sector, Macau.
This segment includes residential, commercial and mixed-use properties.
Furthermore, there are multiple individual properties that are held within
each property type. However, the CODM considers on a regular basis the
operating results and resource allocation of the aggregated position of all
property types as a whole as part of their on-going performance review, this
is supported by a further breakdown of individual property groups only to help
support their review and investment appraisal objectives.
3. Investment property
Unaudited Unaudited Audited
1 Jul 14 - 1 Jul 13 - 1 Jul 13 -
31 Dec 14 31 Dec 13 30 Jun 14
US$'000 US$'000 US$'000
At beginning of the period/year 306,575 266,498 266,498
Capital expenditure on property* 70 3,500 3,604
Proceeds from disposals - - (64,651)
Fair value adjustment (12,579) 62,527 83,645
Fair value gain on disposal of investment property - - 17,251
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