OREANDA-NEWS. In 6 months 2014, revenue from continuing operations was 2.2 million euros, which was 3 million euros lower compared to the same period of previous year. Revenue of Service division increased by 19% and revenue of Development division declined by 80%. In Q2 2014, total revenue was 1.1 million euros (in Q2 2013: 3.5 million euros). Decline of revenue in Q2 was also related to Development division, where decrease of revenue amounted to 2.4 million euros compared to the same period of previous year. The main reason for revenue decrease is because the group's development projects are in such stage, where revenue is not accrued yet. Increase of revenue from Development division is expected in second half of 2014.

Operating loss for Q2 2014 from continuing operations was 0.1 million euros, compared to the operating profit of 1.7 million euros in the same period of previous year. The group's net loss amounted to 0.4 million euros in Q2 2014. In Q2 2013, the net profit was 1.5 million euros. In 6 months 2014, the group's operating profit amounted to 0.5 million euros and net profit of 0.03 million euros. In previous year the corresponding profit figures were 2.0 million euros and 1.5 million euros. Profit figures are worse mainly due to the temporary drop in revenue from development division and non-recurrent events (sale of subsidiaries in Q1 2013 and Q1 2014, also revsersal of provisions in Q2 2013)

Equity to assets ratio has decreased slightly compared to the year end 2013. As at 30 June 2014, it was 26% (31 December 2013: 27.2%). The reason is increase of the group's assets during construction activities, which have been financed by loan capital.

The group net loans have increased by 2.2 million euros in 6 months 2014 due to financing development activities through bank loans. As at 30 June 2014, the average annual interest rate of loans is 5.9%, a decrease by 0.1 procentage point since the end of year 2013.

During first 6 months 2014, were sold 3 apartments in projects developed in the group (in 6 months 2013 was sold 35 apartments and 2 plots), that includes one apartment in Q2 2014 (21 apartments and one plot in Q2 2013).