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Equable Properties PLC (EQU)

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Monday 23 July, 2007

Equable Properties PLC

Final Results


FOR IMMEDIATE RELEASE: 23 JULY 2007

EQUABLE PROPERTIES PLC

REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD 23 DECEMBER 2005 TO 31 MARCH 2007

Company number 5662476

DIRECTORS, ADVISERS AND OFFICERS

DIRECTORS                              
                                       
Nicholas Jeffrey LLB                   
                                       
Desmond Lawrence Bloom                 
                                       
Ivan William Minter                    
                                       
Robert Thomas Dursley                  
Stott                                  
                                       
SECRETARY                              
                                       
Ivan William Minter                    
                                       
REGISTERED OFFICE                      
                                       
2 Bloomsbury Street                    
                                       
London WC1B 3ST                        
                                       
AUDITORS                               
                                       
Baker Tilly UK Audit LLP               
                                       
Chartered Accountants                  
                                       
2 Bloomsbury Street                    
                                       
London WC1B 3ST                        
                                       
SOLICITORS                             
                                       
Nabarro                                
                                       
Lacon House                            
                                       
Theobald's Road                        
                                       
London WC1A 2AW                        

CHAIRMAN'S STATEMENT

I am pleased to present the first financial results of Equable Properties
covering the period from incorporation on 23 December 2005 to 31 March 2007,
during which the shares of the Company were admitted to AIM on 30 March 2007.

Financial Results

The profit for the period was £446,949 on turnover of £2,096. It should be
noted that these accounts relate to a period prior to the commencement of
operational business and the acquisition of any property assets, save for the
final two days of the accounting period when the Company acquired its first
property assets. To that extent these results should not be treated as general
indicator for the business moving forward.

Business and Operations

Equable Properties has stated its intention to build a broadly based and mainly
commercial property investment company, initially focused on the UK market of
retail, offices, industrial, hotels and pubs. The Company is led by Desmond
Bloom who has successfully traded commercial property for 30 years and has
gained an extensive network of contacts both domestically and internationally.
To this end, Equable Properties completed its first acquisition, simultaneously
to the admission to AIM on 30 March 2007, of a portfolio of ten pubs in England
and Wales.

Outlook 

A number of possible property acquisitions are being evaluated in the UK at
present that will likely lead to an increased level of corporate activity both
in the current financial year and beyond. I am optimistic that Equable will be
reporting progress in these areas soon.

In addition to expanding Equable's core portfolio in the UK, the Company
intends, in the future, to explore opportunities internationally and, in
particular, within the developing economies of Eastern Europe.

 

Nicholas Jeffrey

Chairman

23 July 2007

DIRECTORS' REPORT

The Directors submit their report and the financial statements of Equable
Properties Plc for the period from incorporation on 23 December 2005 to 31
March 2007.

PRINCIPAL ACTIVITY

The principal activity of the Company during the year was that of property
investment. The Company was incorporated in England and Wales on 23 December
2005 and commenced trading in August 2006.

REVIEW OF BUSINESS

The profit for the year after taxation was £446,949. The directors do not
recommend the payment of a dividend. A more detailed review is in the
Chairman's Statement on page 2.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's main assets are its investment property holdings and the
company's performance is dependent on these assets. Factors including changes
to tenancy profiles, or levels, across the portfolio, have an impact on the
value of the assets, and the properties' financial performances are also
affected by market conditions for property as an asset class, which are in turn
are also dependent on a variety of external factors. In adverse conditions a
reduction in property values could occur, which could be amplified by the
effect of the company's borrowings.

Analysis of performance by reference to key performance indicators.

The most important measure of the group's performance is its increase in net
asset value. In 2007 net assets were £1,840,958.

FUTURE DEVELOPMENTS

The directors consider that the programme of investment undertaken since the
AIM listing will continue and will result in an increase in the Company's
profits during the year ending 31 March 2008. Further details are provided in
the Chairman's Statement on page 2.

DIRECTORS

The following directors were appointed and have held office during the period:

Nicholas Jeffrey LLB (appointed 27/03/2006)

Desmond Lawrence Bloom (appointed 23/12/2005)

Ivan William Minter (appointed 23/12/2005)

Robert Thomas Dursley Stott (appointed 27/03/2006)

Instant Companies Limited were appointed on 23/12/2005 and resigned on 31/12/
2005:

DIRECTORS' INTERESTS IN SHARES

Directors' interests in the shares of the Company, including family interests,
were as follows:

                                   31.03.07   
                                              
Nicholas Jeffrey                   1,000,000  
                                              
Desmond Lawrence Bloom             8,892,857  
                                              
Ivan William Minter                1,250,000  
                                              
Robert Thomas Dursley Stott        1,000,000  

DIRECTORS' REPORT (CONTINUED)

The directors hold options over the Company's ordinary shares as follows:

                                  31.03.07     Exercise    Date from   Expiry  
                                                 price       which      date   
                                                          exercisable          
                                                                               
Desmond Lawrence Bloom            8,000,000       3p      30/03/2007   29/03/  
                                                                        2012   
                                                                               
Ivan William Minter               2,000,000       3p      30/03/2007   29/03/  
                                                                        2012   

CREDITOR PAYMENT POLICY

The Company's payment policy for the forthcoming year is to agree terms of
payment with all suppliers before business is transacted, to ensure suppliers
are aware of the agreed terms and to settle accounts in accordance with those
terms. The Company does not currently have a history of credit terms for the
period ended 31 March 2007.

CHARITABLE AND POLITICAL DONATIONS

No such donations were made in the period.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

The Directors who were in office on the date of approval of these financial
statements have confirmed that, as far as they are aware, there is no relevant
audit information of which the auditors are unaware. Each of the

Directors have confirmed that they have taken all the steps that they ought to
have taken as Directors in order to make themselves aware of any relevant audit
information and to establish that it has been communicated to the auditor.

SUBSTANTIAL SHAREHOLDINGS

Desmond Bloom held 8,892,855 ordinary shares of 1p (6.85%), Igor Franchuk held
42,857,143 ordinary shares of 1p (33%), and The Bervies Limited held 12,000,000
ordinary shares of 1p (9.24%). Pershing Keen Nominees Limited held 21,428,570
ordinary shares of 1p (16.5%) and Glenn Maud held 19,642,857 ordinary shares of
1p (15.13%). No other person has reported an interest of more than 3% in the
ordinary shares.

AUDITORS

The Directors, having been notified of the cessation of the partnership known
as Baker Tilly, resolved that Baker Tilly UK Audit LLP be appointed successor
auditor with effect from 1 April 2007, in accordance with the provisions of the
Companies Act 1989, s26(5). Baker Tilly UK Audit LLP has indicated its
willingness to continue in office.

By order of the board

Ivan William Minter

Secretary

23 July 2007

DIRECTORS' RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS

The Directors are responsible for preparing the Annual Report and the financial
statements in accordance with applicable law and regulations. 

UK Company law requires the directors to prepare financial statements for each
financial year. The Directors have elected to prepare financial statements in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the EU.

 

The financial statements are required by law and IFRS adopted by the EU to
present fairly the financial position and performance of the company; the
Companies Act 1985 provides in relation to such financial statements that
references in the relevant part of the Act to financial statements giving a
true and fair view are references to their achieving a fair presentation.

 

Directors are also required to:

 

 a. select suitable accounting policies and then apply them consistently; and

 b. make judgements and estimates that are reasonable and prudent; and 

 c. state whether they have been prepared in accordance with IFRSs adopted by
    the EU; and
   
 d. prepare the accounts on a going concern basis, unless it is inappropriate
    to presume the company will continue in business.
   
The directors are responsible for keeping proper accounting records which
disclose within reasonable accuracy at any time the financial position of the
company, for safeguarding the assets, for taking reasonable steps for the
prevention and detection of fraud and other irregularities and for the
preparation of a directors' report which complies with the requirements of the
Companies Act 1985.

.

INDEPENDENT AUDITORS REPORT

We have audited the financial statements on pages 7 to 19.

This report is made solely to the company's members, as a body, in accordance
with section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the company's members those matters we are required
to state to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company's members as a body, for our
audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

The Directors' responsibilities for preparing the Annual Report and the
financial statements in accordance with applicable law and International
Financial Reporting Standards as adopted by the European Union are set out in
the Statement of Directors' Responsibilities.

Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true
and fair view and are properly prepared in accordance with the Companies Act
1985. We also report to you whether in our opinion the information given in the
Directors' Report is consistent with the financial statements. The information
given in the Directors' Report includes that specific information presented in
the Chairman's Statement that is cross referenced from the Review of Business
section of the Directors' Report.

In addition, we report to you if, in our opinion, the company has not kept
proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law
regarding directors' remuneration and other transactions is not disclosed.

We read other information contained in the Annual Report, and consider whether
it is consistent with the audited financial statements. This other information
comprises only the Directors' Report and the Chairman's Statement. We consider
the implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial statements. Our
responsibilities do not extend to any other information.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the
significant estimates and judgements made by the directors in the preparation
of the financial statements, and of whether the accounting policies are
appropriate to the company's circumstances, consistently applied and adequately
disclosed.

We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.

Opinion

In our opinion

  * the financial statements give a true and fair view, in accordance with
    International Financial Reporting Standards as adopted by the European
    Union, of the state of the company's affairs at 31 March 2007 and of its
    profit for the period then ended and have been properly prepared in
    accordance with the Companies Act 1985; and
   
  * the information given in the Directors' Report is consistent with the
    financial statements.
   
BAKER TILLY UK AUDIT LLP

Registered Auditor

Chartered Accountants

2 Bloomsbury Street

London WC1B 3ST

23 July 2007

INCOME STATEMENT

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

                                                                           2007
Continuing Operations                      Notes                              £
                                                                               
Gross rental income                          3                            2,096
                                                                               
Net property and related income                                           2,096
                                                                               
Administrative expenses                      4                         (15,002)
                                                                               
Share option charge                         14                         (22,400)
                                                                               
Net operating lossbeforefinancing costs                                (35,306)
                                                                               
Fair value adjustment                       10                          691,357
                                                                               
Investment income                            6                              532
                                                                               
Financial costs                              7                          (2,227)
                                                                               
Profit before taxation                                                  654,356
                                                                               
Taxation                                     8                        (207,407)
                                                                               
Profit forperiodafter taxationfrom                                      446,949
continuing activities                                                          
                                                                               

Earnings per share (pence) from continuing operations

Basic                                        9                            10.16
                                                                               
Diluted                                      9                             9.95

BALANCE SHEET AS AT 31 MARCH 2007

                                             Notes                             
                                                                               
                                                                           2007
                                                                              £
                                                                               
ASSETS                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Investment properties                           10                    5,700,000
                                                                               
Current assets                                                                 
                                                                               
Other receivables                               11                    1,585,401
                                                                               
Cash and cash equivalents                       11                           41
                                                                               
                                                                      1,585,442
                                                                               
TOTAL ASSETS                                                          7,285,442
                                                                               
LIABILITIES                                                                    
                                                                               
Current liabilities                                                            
                                                                               
Bank loan                                       12                     (76,000)
                                                                               
Other payables                                  13                    (796,778)
                                                                               
                                                                      (872,778)
                                                                               
Non-current liabilities                                                        
                                                                               
Bank loan                                       12                  (3,864,299)
                                                                               
Other loans                                     12                    (500,000)
                                                                               
Deferred tax liabilities                         8                    (207,407)
                                                                               
                                                                    (4,571,706)
                                                                               
Net assets                                                            1,840,958
                                                                               
CAPITAL AND RESERVES                                                           
                                                                               
Share capital                                   14                    1,298,500
                                                                               
Share premium account                           15                       39,359
                                                                               
Profit and loss account                                                 503,099
                                                                               
SHAREHOLDERS' FUNDS                                                   1,840,958
                                                                               

The financial statements were approved and authorised for issue by the board on
23 July 2007 and signed on its behalf by:

Desmond Bloom

DIRECTOR

Ivan Minter

DIRECTOR

COMPANY STATEMENT OF CHANGES IN EQUITY

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

                                           Share       Share Retained     Total
                                         Capital     Premium Earnings          
                                                                               
                                                                              £
                                                                               
23 December 2005                               -           -        -         -
                                                                               
Profit for the period                          -           -  446,949   446,949
                                                                               
Total recognised income and expense            -           -  446,949   446,949
for the period                                                                 
                                                                               
Share option charge                            -           -   56,150    56,150
                                                                               
Equity issued during period            1,298,500           -        - 1,298,500
                                                                               
Share premium                                  -      39,359        -    39,359
                                                                               
Total shareholders' equity carried     1,298,500      39,359  503,099 1,840,958
forward                                                                        

STATEMENT OF CASH FLOWS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

                                                     Notes                     
                                                                               
                                                                           2007
                                                                              £
                                                                               
Net cash from operating activities                      16            (351,229)
                                                                               
Investing Activities                                                           
                                                                               
Interest received                                        6                  532
                                                                               
Purchase of investment properties                       10          (5,008,643)
                                                                               
Net cash used in investing                                          (5,008,111)
activities                                                                     
                                                                               
Financing Activities                                                           
                                                                               
Proceeds of issue of new share                                        1,371,608
capital                                                                        
                                                                               
New bank loans raised                                                 3,990,000
                                                                               
Interest paid                                            7              (2,227)
                                                                               
Net cash raised from financing                                        5,359,381
activities                                                                     
                                                                               
Net increase in cash and cash                                                41
equivalents                                                                    
                                                                               
Represented by:                                                                
                                                                               
Cash and cash equivalents at 31                                              41
March 2007                                                                     

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

 1. General Information
   
Equable Properties Plc is a company incorporated and domiciled in England and
Wales under the Companies Act 1985. It was formerly registered as a private
company on 23 December 2005, and was re-registered as a public limited company
on 26 March 2007.

The address of the registered office is given on page 1. The nature of the
company's operations and its principal activities are set out in note 3.

At the date of authorisation of these financial statements the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective:

IFRS 6       Exploration for and Evaluation of Mineral Resources          
                                                                          
IFRS 7       Financial instruments: Disclosures; and the related amendment
             to IAS 1 on capital disclosures                              
                                                                          
IFRIC 4      Determining whether an Arrangement contains a Lease          
                                                                          
IFRIC 5      Rights to Interest Arising from Decommissioning, Restoration 
             and Environmental Rehabilitation Funds                       
                                                                          
IFRIC 7      Applying the Restatement Approach under IAS 29 Financial     
             Reporting in Hyperinflationary Economies                     
                                                                          
IFRIC 8      Scope of IFRS 2 Share-based Payment                          
                                                                          
IFRIC 9      Reassessment of Embedded Derivatives                         
                                                                          
IFRIC 10     Interim Financial Reporting and Impairment                   
                                                                          
IFRIC 11     Group and Treasury Share Transactions                        
                                                                          
IFRIC 12     Service Concession Arrangements                              
                                                                          
IFRIC 13     Customer Loyalty                                             
                                                                          
IFRIC 14     The Limited on Defined Benefit Assets                        

The Directors anticipate that the adoption of these Standards and
Interpretations in future periods will have no material impact on the financial
statements of the Company when the relevant standards and interpretations come
into effect.

 2. Significant Accounting Policies
   
Statement of Compliance

These are the company's first financial statements and cover the period 23
December 2005 (date of incorporation) to 31 March 2007.

The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the EU.

Basis of Preparation

The financial statements are presented in pounds sterling and are prepared on
the historical cost basis as modified by the revaluation of investment
properties. The preparation of financial statements in conformity with IFRS
requires management to make judgement, estimates and assumptions that affect
the application of policies and the reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates. The estimates and underlying assumptions are reviewed on an on going
basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current
and future periods.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

Significant Accounting Policies (continued)

Investment Property

Investment properties are properties held for long-term rental yields.
Investment properties are carried in the balance sheet at fair value,
representing open market value determined annually by independent valuers.
Gains or losses arising from changes in fair value of investment property are
included in the income statement for the period in which they arise.

Rental Income

Rental income from investment property leased out under operating leases is
recognised in the Income Statement on a straight-line basis over the term of
the lease. Lease incentives granted are recognised as an integral part of total
rental income.

Income and Expense Recognition

Rental income, bank interest and expenses are accounted for on an accruals
basis. All expenses are recognised in the income statement with the exception
of transaction costs incurred on the acquisition of investment property.

Taxation

The tax expense represents the sum of the tax currently payable and deferred
tax.

The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a
transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.

Borrowings

Borrowings other than bank overdrafts are recognised initially at fair value
less attributable transaction costs. Subsequent to initial recognition,
borrowings are stated at amortised cost with any difference between the amount
initially recognised and redemption value being recognised in the income
statement over the period of the borrowings, using the effective interest
method.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

Significant Accounting Policies (continued)

Net Financing Costs

Net financing costs comprise interest payable on borrowings calculated using
the effective interest rate method net of interest capitalised.

Interest income is recognised in the Income Statement as it accrues, taking
into account the effective yield on the asset.

Financial Instruments

Financial assets and financial liabilities are recognised on the Company's
balance sheet when the Company becomes a party to the contractual provisions of
the investment.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank.

Equity Instruments

Equity instruments issued by the Company are recorded at par value. Proceeds
received in excess of par value are recorded in the share premium account, net
of direct issue costs.

Share-based Payments

The Company has applied the requirements of IFRS 2 Share-based Payment. For all
grants of share options, the fair value as at the date of grant is calculated
using the option price model and the corresponding expense is recognised over
the vesting period. The share based payments expense is recognised as a staff
cost and the associated credit entry is made to reserves.

 3. Gross Rental Income
   
The company only has one business segment, that of property investment and has
only one geographical segment. Consequently no segmental information has been
presented.

                                                                              £
                                                                               
Gross rental income                                                       2,096

 4. Administrative expenses
   
The following has been included in arriving at                                 
operating profit                                                               
                                                                               
                                                                              £
                                                                               
Auditor's fees                                                           15,000
                                                                               
Bank charges                                                                  2
                                                                               
                                                                         15,002

Amounts payable to Baker Tilly UK Audit LLP in the period for both audit and
non audit services are disclosed below:

                                                                              £
                                                                               
Fees payable to the auditor for the audit of the                         15,000
company's annual accounts                                                      
                                                                               
Other Services                                                          100,000
                                                                               
                                                                        115,000

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

 5. Employees and Directors
   
There were no employees of the Company other than the directors who served in
their professional capacities. No directors received any remuneration in the
period. The share option charge relating to directors was £22,400. All
directors are deemed to be key management personnel.

 6. Investment Income
   
                                                                              £
                                                                               
Interest received                                                           532

 7. Financing Costs
   
                                                                              £
                                                                               
Interest paid on bank loan                                                2,227

 8. Taxation
   
                                                                              £
                                                                               
Current tax                                                                   -
                                                                               
Deferred tax                                                            207,407
                                                                               
                                                                        207,407

Corporation tax is calculated at 30% of the estimated assessable profit for the
year.

The charge for the year can be reconciled to the profit per the income
statement as follows:

Profit before tax:                                                             
                                                                               
Continuing operations                                                   654,356
                                                                               
Tax at the UK corporation tax rate of 30%                               196,307
                                                                               
Expenses not deductible for tax purposes                                  6,720
                                                                               
Other differences                                                         4,380
                                                                               
Tax expense and effective tax rate for the year                         207,407

Deferred tax liabilities

                                                                    Revaluation
                                                                             of
                                                                     investment
                                                                       property
                                                                               
                                                                              £
                                                                               
At 23 December 2005                                                           -
                                                                               
Charge to income statement                                              207,407
                                                                               
31 March 2007                                                           207,407

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

 9. Earnings per Share
   
The basic and diluted earnings per share is based on the profit for the period
after taxation of £446,949.

The weighted average number of ordinary shares outstanding during the period
used in the basic earnings per share was 4,397,084.

Diluted earnings per share is based on a diluted number of ordinary shares of
4,491,191, as calculated below:

Weighted average number of ordinary shares for the purposes           4,397,084
of basic eps                                                                   
                                                                               
Dilutive effect of share options                                         94,107
                                                                               
Weighted average number of ordinary share for the purposes of         4,491,191
diluted eps                                                                    

10. Investment Property
   
                                                                              £
                                                                               
Cost at 23 December 2005                                                      -
                                                                               
Additions in the period                                               5,008,643
                                                                               
Increase in fair value during the                                       691,357
year                                                                           
                                                                               
At 31 March 2007                                                      5,700,000

The fair value of the Company's investment property at 31 March 2007 has been
arrived at on the basis of a valuation carried out on 31 March 2007 by Knight
Frank LLP, independent valuers not connected with the Company. The valuation,
which conforms to International Valuation Standards, was arrived at by
reference to market evidence of transaction prices for similar properties.

The Company has pledged all of its investment property to secure banking
facilities granted to the Company.

11. Other Financial Assets
   
Receivables

                                                                              £
                                                                               
Unpaid share subscriptions                                            1,554,900
                                                                               
VAT refund                                                               27,916
                                                                               
Other debtors                                                             2,585
                                                                               
                                                                      1,585,401

The directors consider that the carrying amount of other receivables
approximates their fair value.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

Other Financial Assets Continued

Cash and cash equivalents

                                                                              £
                                                                               
Cash at bank                                                                 41

The carrying amount of this asset approximates its fair value.

Credit risk

The Company's principal financial assets are bank balances, other receivables
and investment property.

The main risks arising from the Company's financial instruments are market
price, interest, credit and gearing risks.

Market Price Risk

The Board of Directors meets regularly to consider the asset allocation of the
portfolio in order to maximise the investment return for the company while
minimising the risk associated with particular industry sectors whilst
continuing to follow the investment objective. There is, however, no assurance
that this objective will be achieved as the value of investment property may
fall as well as rise and investors may not recoup the original amount invested.
The difference at any one time between the cost of subscribing for shares or
redeeming shares may differ. As a result of this, any investments in the
company should be viewed as a medium to long-term investment.

Interest Risk

The Company has interest rate risk on its outstanding finance loans. Any change
to interest rates may result in the loan interest payable either increasing or
decreasing. Details of loans in place are outlined in note 12.

12. Financial liabilities - Loans
   
Current                                                                        
                                                                               
                                                                              £
                                                                               
Secured bank loan                                                        76,000

Non-current                                                                    
                                                                               
                                                                              £
                                                                               
Secured bank loan                                                     3,914,000
                                                                               
Unamortised arrangement costs                                          (49,701)
                                                                               
Other loan                                                              500,000
                                                                               
                                                                      4,364,299
                                                                               
Total                                                                 4,440,299

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

Financial liabilities - Loans Continued

The borrowings are repayable as follows:

On demand or within one year                                             76,000
                                                                               
More than 1 year but not more than 2 years                              576,000
                                                                               
More than 2 years but not more than 5 years                             228,000
                                                                               
In 5 years or more                                                    3,610,000
                                                                               
Unamortised arrangement costs                                          (49,701)
                                                                               
                                                                      4,440,299

The Company has a loan of £3,990,000 with HSBC. This loan is due to be repaid
on 29 March 2022. £3,990,000 had been drawn down under this facility at 31
March 2007. The loan is secured by a debenture comprising fixed and floating
charges over all the assets and undertakings of Equable Properties Plc
including all present and future freehold and leasehold property, book and
other debts, chattels and goodwill and uncalled capital, both present and
future and incorporating an assignment of the rental guarantees given by The
Bervies Limited in favour of Equable Properties Plc.

Repayments of £19,000 plus interest are due quarterly and commenced on 2 July
2007. Interest on the loan is charged at 1.54% per annum over HSBC's Sterling
Base Rate. This loan is due for repayment on 29 March 2022.

In addition the Company has owes £500,000 to The Bervies Limited, being the
balance owed on the property acquisition. £250,000 is due on 30 June 2008 and £
250,000 is due on 8 October 2008. Interest on the loan is charged at 2% per
annum over Yorkshire Bank's Base Rate.

The directors consider that the carrying amount of borrowings approximates to
their fair value.

13. Other Financial Liabilities
   
Payables

                                                                              £
                                                                               
Accruals and deferred income                                            796,778

The directors consider that the carrying amount of payables approximates to
their fair value.

14. Share Capital
   
Authorised                                                                    £
                                                                               
500,000,000 ordinary shares of £0.01                                  5,000,000
each                                                                           
                                                                               
Issued and fully paid                                                         £
                                                                               
18,785,700 ordinary shares of £0.01 each                                187,857
                                                                               
Issued and not fully paid                                                      
                                                                               
111,064,300 ordinary shares of £0.01                                  1,110,643
each                                                                           
                                                                               
Total issued                                                                   
                                                                               
129,850,000 ordinary shares of £0.01                                  1,298,500
each                                                                           

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

Share Capital Continued

The Company has one class of ordinary shares which carry no right to fixed
income.

On incorporation 1 ordinary share of 1p was issued at par for cash. On 20
January 2006 999,999 ordinary shares of 1p each were issued at par for cash. On
26 March 2006 4,000,000 ordinary shares of 1p each were issued at par for cash.
On 30 March 2007 111,064,300 ordinary shares of 1p each were issued at a
premium of 0.4p; 1,785,700 ordinary shares of 1p each were issued at a premium
of 0.4p as payment for services provided in relation to the purchase of the pub
portfolio; and 12,000,000 ordinary shares of 1p each were issued at a premium
of 0.4p as consideration for the purchase of the pub portfolio.

The company has granted share options to certain executives and professional
advisers. Details of the share options outstanding during the period are as
follows:

Grant Date                      Number     Outstanding Expiry date  Exercise 
                                            as at 31                 price   
                                           March 2007                        
                                                                             
26/03/2007                    10,000,000   10,000,000  25/03/2012      3p    
                                                                             
30/03/2007                     3,571,428    3,571,428  29/03/2012     1.6p   

Share based payments

The share based payment charge is based on the fair value of the share options.
Details of these share options are disclosed in the director's report. The fair
value of the share options has been calculated using the Black-Scholes option
-pricing model. The inputs into the model are as set out below:

Expected volatility                                         40%
                                                               
Expected life                                           5 years
                                                               
Risk free rate                                            5.15%
                                                               
Expected dividends                                          nil

The expected volatility was determined by analysing the daily share price from
AIM companies within the same industry using a 3 year average.

The expected useful life used in the model is based on management's best
estimates based on non-transferability, exercise restrictions and behavioural
considerations.

The group's share option charge for the year in respect of share options is £
22,400.

15. Share Premium Account
   
                                                                              £
                                                                               
Balance at 23 December 2005                                                   -
                                                                               
Premium arising on issue of equity                                      499,400
shares                                                                         
                                                                               
Expenses of issue of equity shares                                    (460,041)
                                                                               
Balance at 31 March 2007                                                 39,359

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

For the period 23 December 2005 (Date of Incorporation) to 31 March 2007

Reconciliation of Operating Profit to Net Cash Outflow from Operating A
ctivities Continued

16. Reconciliation of Operating Profit to Net Cash Outflow from Operating A
    ctivities
   
                                                                              £
                                                                               
Operating loss from continuing                                         (35,306)
operations                                                                     
                                                                               
Increase in receivables                                             (1,635,101)
                                                                               
Increase in payables                                                  1,296,778
                                                                               
Share option charge                                                      22,400
                                                                               
Net cash from operating                                               (351,229)
activities                                                                     

Gearing Risk

The use of borrowing means that a change in the value of the investment
portfolio of the Company can be expected to result in a disproportionate
movement in the net asset value of the Company. Whilst this will have a
positive impact on performance in a rising market, it would be unfavourable
when the market moves downwards.

17. Related Party Transactions
   
During the period Baron Bloom, the son of director and shareholder Desmond
Bloom was granted 1,785,714 ordinary 1p shares in respect of services provided
to the company.

18. Comparatives
   
As these are the company's first financial statements there are no comparative
figures to report.

ENQUIRIES:

Desmond Bloom, Chief Executive

Ivan Minter, Finance Director

Equable Properties Plc

Tel. 07793 125625

Ben Simons

Hansard Group

Tel. 020 7245 1100

Robert Lo / Natasha Reed

Nabarro Wells & Co. Ltd

Tel. 020 7710 7400


                                                                                                                                                                                                                                            

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