| | 2008 | | December 2007 |
+--------------------------------------------+---------------+--+----------------+
| | Group | | Group |
+--------------------------------------------+---------------+--+----------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+---------------+--+----------------+
| | | | |
+--------------------------------------------+---------------+--+----------------+
| Impairment of investment properties | 499 | | 75 |
+--------------------------------------------+---------------+--+----------------+
| | 499 | | 75 |
+--------------------------------------------+---------------+--+----------------+
The impairment loss for the year to 31 December 2008 of GBP499,000 related to
the write down of the carrying value of Rousse of GBP188,000 and Bansko of
GBP311,000, the value calculated by Colliers CRE as at 31 December 2008.
The impairment loss for the six months to 31 December 2007 of GBP75,000 relates
to the write down of the carrying value of Rousse to the value calculated by
Colliers CRE as at 12 December 2007.
6 AUDITORS' REMUNERATION
+-------------------------------------------+----------------+--+---------------+
| | Year ended | | Six months |
| | 31 December | | ended 31 |
| | 2008 | | December2007 |
+-------------------------------------------+----------------+--+---------------+
| | GBP'000 | | GBP'000 |
+-------------------------------------------+----------------+--+---------------+
| | | | |
+-------------------------------------------+----------------+--+---------------+
| Fees payable to the Group's auditor for | 45 | | 48 |
| the audit of the Group's annual accounts | | | |
+-------------------------------------------+----------------+--+---------------+
| | | | |
+-------------------------------------------+----------------+--+---------------+
| Fees payable to the Group's auditor and | | | |
| its associates for other services: | | | |
+-------------------------------------------+----------------+--+---------------+
| | | | |
+-------------------------------------------+----------------+--+---------------+
| Services relating to taxation | 33 | | 9 |
+-------------------------------------------+----------------+--+---------------+
| Other services * | 31 | | - |
+-------------------------------------------+----------------+--+---------------+
| | 109 | | 57 |
+-------------------------------------------+----------------+--+---------------+
+----------+-------------+
| * | Other |
| | services |
| | in the |
| | year to |
| | 31 |
| | December |
| | 2008 |
| | comprised |
| | a fee for |
| | a working |
| | capital |
| | review of |
| | GBP22,000 |
| | for the |
| | purposes |
| | of |
| | preparing |
| | the |
| | company |
| | for the |
| | Special |
| | Dividend |
| | and an |
| | independent |
| | review |
| | report on |
| | the interim |
| | financial |
| | statements |
| | for the six |
| | months to |
| | 30 June |
| | 2008 for a |
| | fee of |
| | GBP9,000. |
+----------+-------------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the year ended 31 December 2008
7TAXATION
+--------------------------------------------+----------------+--+---------------+
| | Year ended | | Six months |
| | 31 December | | ended |
| | 2008 | | 31 December |
| | | | 2007 |
+--------------------------------------------+----------------+--+---------------+
| | GBP'000 | | GBP'000 |
+--------------------------------------------+----------------+--+---------------+
| Analysis of tax charge for the period | | | |
+--------------------------------------------+----------------+--+---------------+
| Current tax: | | | |
+--------------------------------------------+----------------+--+---------------+
| UK corporation tax at 28.5% (2007: 30%) | 346 | | 360 |
+--------------------------------------------+----------------+--+---------------+
| Less: overprovision in prior year | (33) | | (1) |
+--------------------------------------------+----------------+--+---------------+
| | 313 | | 359 |
+--------------------------------------------+----------------+--+---------------+
| | | | |
+--------------------------------------------+----------------+--+---------------+
| Bulgaria corporation tax at 10% (2007: | (29) | | 21 |
| 10%) | | | |
+--------------------------------------------+----------------+--+---------------+
| | 284 | | 380 |
+--------------------------------------------+----------------+--+---------------+
The standard average rate of tax for the year, based on the UK standard rates of
corporation tax applicable during the year, is 28.5% (Bulgaria: 10%). The actual
tax charge for the current year is less than the standard rate for reasons set
out in the following reconciliation:
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| | Year ended 31 December 2008 | | Six |
| | | | months |
| | | | ended |
| | | | 30 |
| | | | December |
| | | | 2007 |
+--------------------------------+---------------------------------------+--+----------+
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| | Bulgaria | | UK | | Total | | Total |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| Reconciliation of current tax | | | | | | | |
| charge | | | | | | | |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| (Loss)/profit before tax for | (684) | | 1,129 | | 445 | | 301 |
| the period | | | | | | | |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| Tax on loss on ordinary | (68) | | 322 | | 254 | | 111 |
| activities at standard | | | | | | | |
| corporation tax rate of 30% to | | | | | | | |
| 31 March 2008 and then 28% to | | | | | | | |
| 31 December 2008 (Bulgaria: | | | | | | | |
| 10%) | | | | | | | |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| | | | | | | | |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| Effects of: | | | | | | | |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| Expenses not deductible for | - | | 24 | | 24 | | 238 |
| tax purposes | | | | | | | |
+--------------------------------+-----------+--+----------+--+----------+--+----------+
| Unrelieved tax losses | 39 | | - | | 39 | | 32 |
+--------------------------------+-----------+--+----------+--+----------+--+----------+ |