ADVANCED FINANCIAL REPORTING

Advanced Financial Reporting

Advanced Financial Reporting

Damaar Plc Statement of Financial Position

£000's

30 June

2010

£000's

30 June 2009

Non Current Assets

Tangible (Note 1)

2778.1

2611.8

2778.1

2611.8

Current Assets

Inventories

302.0

280.0

Trade Receivables

270.9

205.6

Short term deposits

250.0

35.5

Cash

68.7

14.9

891.6

536.0

Total Assets

3669.7

3147.8

Equity

Ordinary Share Capital

797.9

684.0

Share Premium Account

437.1

361.1

Revaluation Reserve

490.7

182.2

Retained Profits

998.1

856.1

2723.8

2083.4

Non Current Liabilities

298.1

589.7

Current Liabilities (Note 2)

647.8

474.7

Total Equity and Liabilities

3669.7

3147.8

Damaar Plc Statement of Changes in Equity at 30 June 2010

Share

Capital

£000's

Share

Premium

£000's

Reval

Reserve

£000's

Income

Stat

£000's

Total

£000's

Balance at 30 June 2009

684.0

361.1

182.2

856.1

2083.4

Share Issue

113.9

76.0

189.9

Revaluation

308.5

308.5

Profit for year

297.5

297.5

Dividends

-155.5

-155.5

Balance at 30 June 2010

797.9

437.1

490.7

998.1

2723.8

Damaar Plc Income Statement/Statement of Comprehensive Income

£000's

30 June 2010

£000's

30 June

2009

Revenue (Note 3)

2294.1

1994.9

Cost of Sales

-1423.4

-1144.5

Gross Profit

870.7

850.4

Operating Expenses

-489.3

-472.0

Operating Profit (Note 3)

381.4

378.4

Finance Costs

-29.0

-35.6

352.4

342.8

Income Tax

-54.9

-60.8

Profit for the year

297.5

282.0

Other Comprehensive Income

Revaluation

308.5

0

Total Comprehensive earnings for the year

606.0

282.0

Damaar Plc Statement of Cash Flows

£000's

30 June 2010

£000's

30 June

2009

Profit before Tax

352.4

342.8

Interest

29.0

35.6

Depreciation

262.6

186.8

Profit/Loss on disposal of Non present Asset

-33.3

19.2

610.7

584.4

Decrease/Increase in Trade Receivables

-65.3

48.8

Decrease/Increase in Inventories

-22.0

56.0

Increase/Decrease in Trade Payables

122.1

-33.6

Increase/Decrease in Accruals

23.4

-17.6

Cash generated from operations

668.9

638.0

Finance Costs paid

-24.3

-17.2

Income Tax paid

-57.2

-51.2

Net money Flow from Operating Activities

587.4

569.6

Cash Flows from buying into Activities

Purchase of house vegetation and Equipment

-320.4

-576.0

Sale of house Plant and Equipment

233.3

48.0

-87.1

-528.0

Cash Flow from Financing Activities

Dividends paid

-155.5

-96.0

Proceeds from Share Issue

189.9

0

Debt Reduction/Increase

-291.6

32.0

-257.2

-64.0

Net boost in money and money Equivalents

243.1

-22.4

Cash and Cash Equivalents at start of year (Note 4)

40.3

62.7

Cash and money Equivalents at end of year (Note 5)

283.4

40.3

Notes to the Accounts

Note 1: Movement on substantial Non Current Assets

Land and Property

£000's

Fixtures

Fittings

£000's

Equipment

Vehicles

£000's

Total

£000's

Cost

Opening Balance (01/07/09)

1924.8

480.3

720.0

3125.1

Additions

226.5

93.9

320.4

Disposals

-106.7

-320.0

-426.7

Revaluation

308.5

308.5

2233.3

600.1

493.9

3327.3

Depreciation

Opening Balance (01/07/09)

168.0

105.3

240.0

513.3

Disposals

-53.3

-173.4

-226.7

Charge for year

24.8

109.6

128.2

262.6

192.8

161.6

194.8

549.2

Net Book Value (30/06/10)

2040.8

438.5

299.1

2778.1

Note 2: Analysis of Current Liabilities

£000's

30 June 2010

£000's

30 June 2009

Trade Payables

395.2

273.1

Accrued Charges

140.2

116.8

Finance costs

18.6

13.9

Income tax

58.5

60.8

Bank overdraft

35.3

10.1

647.8

474.7

Note 3: Segmental Analysis year ended 30 June 2010

Hotels

£000's

Restaurants

£000's

Pubs

£000's

Total

Revenue

688.2

1147.0

458.9

2294.1

Cost of Sales

498.2

640.5

284.7

1423.4

Operating Expenses

122.3

171.2

195.8

489.3

Operating Profit

67.7

335.3

-21.6

381.4

Note 4 Analysis of Cash and Cash Equivalents at 30 June 2009

£000's

Cash at Bank

14.9

Bank Overdraft

-10.1

Bank Deposit

35.5

40.3

Note 5: Analysis of Cash and Cash Equivalents at 30 June 2010

£000's

Cash at Bank

68.7

Bank Overdraft

-35.3

Bank Deposit

250.0

283.4

Part B: Detailed discussion of operating assumptions.

Significant Accounting Judgments and Estimates

Judgments

In the process of applying the Group's accounting policies, management has made the following judgments, apart from those involving estimations, which have the most significant impact on the amounts recognised in the financial statements.

Investment properties

The assembly has voted into office to adopt the cost model for buying into properties. Accordingly, investment properties are carried at cost less any accumulated depreciation and any accumulated impairment losses.

Classification of investment properties

The Group has determined that serviced apartment buildings operated by the Group are to be classified as part of property, plant and equipment rather than investment properties.

Transfer of equitable interest in development properties

The Group has entered into a number of contracts with buyers for the sale of land, villas and condominium units. Management has determined that equitable interest in such assets and therefore risks and rewards of the ownership are transferred to the buyer once he is committed to complete the payment for the purchase. This firm pledge is evidenced by a marked contract for the buy of the house and payments of sufficient progress payments. Based on this, the

Group identifies revenues and earnings as the actions to complete the house are performed.

Classification of equity investments

The Group buys into in both cited and uncited equities. Management does not wish to account for short term unrealised gains or losses in the income statement and therefore has decided to classify such investments as “available ...