P
Report & Accounts
2009 Bulgarian Land Development is a company incorporated to act 
as a residential and commercial property developer in Bulgaria. 
It offers investors the opportunity to invest in Bulgaria’s growing
economy with the benefit of the considerable experience of the
Group’s management team. 1 Bulgarian Land Development Plc Annual Report 2009
Contents
2 Management and Administration
3 Business Highlights
4 Chairman’s Statement
5 Chief Executive Officer’s Review
8 Finance Director’s Review
10 Report of the Directors
13 Report of the Independent Auditors 
14 Consolidated Statement of Comprehensive Income 
15 Consolidated Statement of Financial Position
16 Company Statement of Financial Position
17 Statements of Changes in Equity
18 Statements of Cash Flows
19 Notes to the Consolidated Financial Statements
36 Notice of the Annual General Meeting
38 Explanatory Notes for the Resolutions contained 
in the Notice of the Annual General Meeting
39 Form of Proxy 2
Management and Administration
Bulgarian Land Development Plc Annual Report 2009
Directors
Per H Sjöberg Chairman
Christo T Iliev Chief Executive Officer
Dimitar B Savov Executive Director
Andrew St.J I Daw, FCA Finance Director
Dimitar I Popov Non Executive Director
E Henry Klotz Non Executive Director
James Green Non Executive Director
Registered Office
3rd Floor
14 Athol Street
Douglas
Isle of Man
IM1 1JA
Bankers
Isle of Man
Royal Bank of Scotland International
2 Victoria Street
Douglas
Isle of Man
IM99 1NJ
Bulgaria
Piraeus Bank
Bulgaria Boulevard Branch
146 Vitosha Boulevard
1463 Sofia
Bulgaria
Eurobank EFG Bulgaria AD (Postbank)
14 Tzar Osvoboditel Boulevard
1048 Sofia
Bulgaria
Auditors
BDO LLP
55 Baker Street
London
W1U 7EU
Valuers
Jones Lang LaSalle Services SRL
133 Calea Serban Voda
Central Business Park
Building E, 2nd floor
Section E 2.11
District 4
Bucharest
Romania
Nominated Adviser and Broker
Collins Stewart Europe Limited
9th Floor
88 Wood Street
London
EC2V 7QR
Company Secretary
Sarah Marshall, ACIS, MSI
Assistant Company Secretary
Anne Couper Woods, FCIS
Registrar
Capita Registrars (Isle of Man) Limited
3rd Floor, Exchange House
54-62 Athol Street
Douglas
Isle of Man
IM1 1JD
Solicitors
UK Legal Counsel
Davies Arnold Cooper LLP
6-8 Bouverie Street
London
EC4Y 8DD
Isle of Man Advocates
Simcocks Advocates Limited
Ridgeway House
Ridgeway Street
Douglas
Isle of Man
IM99 1PY
Bulgarian Legal Counsel
Varadinov & Co
38 Vasil Levski Blvd
1000 Sofia 
Bulgaria 3 Bulgarian Land Development Plc Annual Report 2009
 Further income from sales of completed units
 Diverse portfolio ranging from holiday homes on the Black Sea coast
to ski lodges in leading ski resorts and apartments and commercial
property in Sofia, coupled with land banking outside Sofia
 Printing House development funding agreement amended unilaterally
by bank causing proposed tender offer to be postponed
 Net asset value of €0.79 per share (31 December 2008: €1.01 per share;
30 June 2009: €0.84) – share price 18p at close of business on 19 March
2010 at a 75% discount to net asset value at 31 December 2009
 Cost cuts continue
Business Highlights 4
Chairman’s Statement
Bulgarian Land Development Plc Annual Report 2009
Introduction
2009 was a difficult year for the Group as the widespread turmoil
affecting real estate markets worldwide continued throughout 
the year. 
In August 2008 we committed to return some cash to shareholders
but during the preparation for a tender offer to shareholders in
2009 the terms of bank finance for the development of the Printing
House project by BLD Office Park AD (“BLD Office Park”), a joint
venture company in which the Company has a 50% interest, were
progressively and unilaterally amended by the bank. The bank is
Greek-owned. In these circumstances the Directors announced that
the Company may need to utilise existing resources to complete the
development and the tender offer was postponed. 
The directors of BLD Office Park have been negotiating with the
bank for several months although funds have continued to be
made available to BLD Office Park, albeit at a lower level than
originally agreed. There is no recourse to the Group for the bank
finance that has been drawn down by BLD Office Park. Construction
has continued at the site and, to date, BLD Office Park has not
required further equity from the Company. The directors of BLD
Office Park expect a satisfactory conclusion to the negotiations
with the bank to be reached. However should that not happen, and
if the Directors of the Company choose to complete the
development without further third-party financing, the Group has
sufficient cash resources (that would otherwise have been
distributed to shareholders). Construction is progressing and
remains within budget with practical completion due in summer
2010. The Directors are in detailed discussions with a number of
prospective tenants for the project. In the circumstances, the
Directors have adopted a prudent approach in preparing the
financial statements and provided against the net amount due to
the Group from BLD Office Park. 
The Directors have reduced costs in the Group and will seek to
reduce these further while activity levels are low.
Overview of progress to date
In addition to the Printing House development the Group has
continued to sell remaining units at its Harmony Hills development
as well as off-plan units acquired at Bansko and Sozopol.
Construction of one block was commenced at July Morning,
Kavarna to satisfy demand from a number of buyers who had paid
deposits for their units. It is expected that construction will be
completed in summer 2010.
During 2009 BLD has sought to add value selectively, at low cost, to
its existing development sites. Re-zoning applications to allow
residential development are in progress at two parcels of
agricultural land near Sofia and a building permit has been
obtained for BLD Sofia Tower for a development of 17,945 square
metres, an increase on the 13,899 square metres for which initial
permission was granted in December 2008.
Of the 32 units remaining at Harmony Hills, Rogachevo preliminary
contracts have been signed for 23. Deposits averaging 71% have
been paid on these units and completion is expected on them
during 2010, 9 units remain for sale, and 2 buyers, having decided
not to complete, forfeited their deposits. The Group has recognised
a profit of €0.25m for sales of units at Harmony Hills and €0.1m
profit on off-plan sales in the year ended 31 December 2009. 
Net asset value
Net asset value per share as at 31 December 2009 fell to €0.79 
(31 December 2008: €1.01), due to the loss per share of €0.22
(2008: €0.01 loss). At 30 June 2009 the Group reported a loss of
19.7p per share (equivalent to €0.22 per share) and net asset value
per share of 71.1p (equivalent to €0.84 per share at the exchange
rate at that time). The Group has changed its functional and
presentational currency to Euro to reflect the fact that virtually all
assets, liabilities, income and expenditure of the Group are now
recorded in Euro or Lev, which is pegged to the Euro. This reduces
significantly many of the changes in asset values due to exchange
movements. Jones Lang LaSalle Services SRL (“JLL”) have carried 
out an independent valuation of BLD’s incomplete sites as at 
31 December 2009, which shows a valuation of €37.4m (31 December
2008: €47.9m). This valuation has not been incorporated within the
results. Had this been done, the net assets would have increased in
value to €0.86 per share, an uplift of 9% on the book value. 
Risk and cost awareness
In the light of the continuing weak market and funding difficulties
in Bulgaria the Board continues to strive to reduce risk and costs
going forward. All decisions are made with those criteria in mind in
order to protect value for shareholders. Risk reduction has included
cautiously adding value to developments by re-zoning or obtaining
building permits and reducing development costs or postponing
developments. All costs have been reviewed in the light of the lower
level of current and proposed development activity and, as always,
with respect to the value provided to shareholders. No bonuses
have been awarded to directors for 2009 and the non-executive
directors have voluntarily reduced their fees temporarily despite the
increase in their workload created by the current situation.
Outlook
The Board is prepared for further difficult conditions in the
upcoming year. The priority is to manage BLD in a way that protects
asset value for shareholders by reducing both risks and costs. 
The Board will consider the sale of assets if financially justified. 
I should like to thank Christo Iliev, our CEO, Dimitar Savov, our
Executive Officer and the team in Bulgaria for their achievements
and hard work in 2009. The team is well placed to address the new
challenges and opportunities of market conditions in 2010.
Per Sjöberg
Chairman
22 March 2010 5 Bulgarian Land Development Plc Annual Report 2009
Financial Review
BLD generated €5.0m of revenue in 2009 (2008: €8.0m), €4.2m of
which related to sales of 92 Harmony Hills units, €0.5m
management fees at Printing House, €0.1m from the sale of off-
plan units and €0.2m of sundry income. The Group’s pre-tax result
was a loss of €8.4m (2008: €0.1m loss). As indicated in my report
last year we are taking a cautious approach to developing new sites
and did not complete any developments in 2009 but we expect to
complete construction at both Printing House and July Morning,
Kavarna in 2010.
Further financial information is given in the Finance Director’s
Review and in the Report of the Directors.
Bulgaria – the economy and property markets 
2009 marked an abrupt end to almost a decade of high economic
growth and low unemployment in Bulgaria. While the economy
expanded by 6.3% in 2008, the preliminary figure for 2009 shows
a contraction of 5.1% (source: National Statistical Institute). 
The forecast for 2010 is for an expansion of 0.3%. Unemployment
reached 9.1% in December 2009.
The real estate market lags the overall economy and therefore an
economic recovery will be followed by an improvement in this
market as well. BLD’s well-diversified portfolio should allow the
company to benefit later in 2010. 
In 2009 the most important characteristics of the segments in
which the Group operates were as follows:
• Commercial property (Printing House)
As many office projects were initiated before the onset of the
property crisis, the total office stock in Sofia increased by 20%
to 1,060,000 sq. m during 2009, the largest increase for 4 years
(source: Colliers International Bulgaria (“Colliers”)). 14% of the
total stock is located in the Central Business District (where the
Printing House is located), 23% in the Broad Centre and the
remaining 63% in the Suburban area. The past year was
characterised by significant delays in delivery dates due to
protracted negotiations for bank financing and decreases in
construction costs. On the demand side, the economic
downturn has enabled tenants, which are relocating to demand
up-to-date space at no additional cost with better lease terms
and efficient space planning. Adjusting to the market
conditions, many landlords have started to offer rent-free
periods, step-rents, coverage of relocation costs and other
incentives. As of December 2009, the total vacancy rate in
existing office space in Sofia reached 17.9% due to the high
vacancy rate of 25% in the Suburban area, where almost two-
thirds of inventory is located. The vacancy rates for the Central
Business District and the Broad Centre were 4.5% and 6.75%,
respectively (source: Colliers). 
• City centre, premium residential property (Sofia Tower)
Due to the scarcity of available plots of land in central Sofia the
supply of newly-built, high specification residential properties is
limited. Demand for such units (mainly from expatriates) has
been little affected by the crisis and, in general, is less sensitive
to the availability of credit. Rental levels for these properties
have been holding up in 2009. 
• Suburban residential property (land to the south and
west of Sofia)
2009 was characterised by many projects being put on hold
with very few transactions taking place for greenfield sites. 
The limited number of deals completed resulted in a decrease in
the price of land by approximately 40% in 2009. In the long run,
demand is expected to recover as Sofia continues to expand and
demand for suburban property increases. 
• Ski resort second/holiday home property (Borovets)
The postponement of the Super Borovets master plan has led
the Municipality of Samokov, which holds a 25% stake in the
entity to carry out the project, to seek alternative partners in
order to resurrect it. Prices of completed apartments in the area
remain at low levels, (source: Index Imoti magazine). 
• Coastal second/holiday home property (Harmony Hills
and July Morning)
Russian buyers continued to dominate this market segment
during 2009. Despite limited budgets of €30,000-€50,000,
clients are highly selective as to the location and construction
quality of units. Interest continues in Russia, particularly among
two groups of clients, 50-60 year-olds and younger families
with children.
Operational Review
During 2009 BLD reduced its activities to reduce risks and costs.
Construction work at the Printing House in Sofia commenced
during 2009 and should be completed by the summer of 2010.
Additionally, in reaction to demand at July Morning, Kavarna
construction of a small development was commenced. The delays to
the connection of the electricity supply at Harmony Hills reported
last year caused further delays in completions at the site. Preliminary
sales agreements had been signed for 23 of the remaining 32 units
and 9 were being re-marketed at the end of 2009. The Group has
continued working with other local developers at the sites where it
had bought units off plan and 31 remain to be sold.
Banking facilities were put in place in 2008 to complete the
development of the Printing House, however during 2009 the bank
progressively and unilaterally amended the terms of the funding.
The directors of BLD Office Park have been in negotiations with the
bank for several months and have also reduced the scale of the
Chief Executive Officer’s Review 6 Bulgarian Land Development Plc Annual Report 2009
development in order to obtain commercially acceptable funding.
At other sites the Board implemented its strategy of adding value
and improving marketability where it could be done at relatively
low cost and with low risk - such as re-zoning. Where pre-sales
interest has been low, sales activity has been stopped until the
market starts to improve. 
At the year end, the Group had a portfolio of developments with its
share of the estimated completed development value of €87m
(2008: €241m). In 2009 developments in progress or with building
permits have been included in the completed development value.
The reduction in the year is due to the postponement of the
Riverland, Borovets project and the reduction in scope of the July
Morning, Kavarna and Printing House projects. The projects are
described below.
Commercial property – Printing House
Having acquired (via a joint venture) the 29,000 square metres
Dimitar Blagoev Printing House in 2008 construction commenced
in 2009. Built in the 1950s, it is a historical landmark building, ten
minutes from the Parliament and close to Eagles’ Bridge; it is on the
main highway to the airport. 
The site forms five buildings out of eight on an island site; the key
owner-occupier of the other three buildings is the largest media
and press company in Bulgaria, owned by German WAZ. The five
buildings are being converted into modern class A commercial
space. The project scope has been reduced and now comprises
19,311 square metres of office accommodation and 1,310 square
metres of retail space, together with 190 above ground parking
spaces. 
Total project costs, including the purchase price, are estimated at
€44m. If the project cannot be sold at a profit at the end of the
development the joint venture partners will consider retaining the
property and leasing it out until conditions improve. The joint
venturers each made an initial investment of €6.5m as their 50/50
share in the joint venture and bank financing to cover the
remaining 75% of the project costs was secured in March 2008.
However the terms of the loan agreement have not been adhered
to by the bank and are currently in the process of being
renegotiated. The completed project is expected to attract first class
tenants, on account of its unique location and high end
specification and is now attracting interest from a number of
potential tenants, who have signed initial Heads of Terms.
Construction is expected to be completed in summer 2010.
BLD has earned project management fees of €0.5m (2008: €0.6m
initial fees) which have been included in the consolidated results in
2009. BLD’s joint venture profit share will be calculated on a rising
scale, dependent on the level of profits.
BLD Sofia Tower 
In September 2006, the Group acquired, off-market, the right to
develop this prime site on a small hill in the Lozenets area of central
Sofia, adjacent to the five star Kempinski Hotel. The site, which is 20
minutes from the international airport, is zoned for residential use.
The Group received a building permit in November 2009 for a
17,945 square metres mixed development of high class luxury
apartments with retail/office space on the lower levels and
underground car parking, with an estimated sale value of €51m. 
Under the terms of the acquisition agreement the consideration
payable to the vendors is a share of the sale proceeds, thereby
creating a liability for deferred payments. At 31 December 2008 it
was anticipated that the development would amount to 13,899
square metres, however the permit was ultimately issued for 17,945
square metres. The Board has therefore reviewed its assumptions
for the build area and the timing of the building work following
delays in obtaining the permit, along with changes in market and
credit conditions. The Board has taken a conservative approach and
has assumed that the Group will develop 17,945 square metres and
that building work will be completed 12 months later than
anticipated, commencing in early 2011 for completion by the end
of 2012. These changes have been reflected in the calculation of the
liability for deferred payments on the development, resulting in a
net charge to the 2009 statement of comprehensive income of
€2.7m.
Land acquisition, West and South of Sofia
In March 2008, BLD announced that it had made initial purchases
of agricultural land at two locations in the Sofia region. In the first
case 38,146 square metres were initially acquired at a cost of
approximately €1.7m, €45 per square metre. During 2008 further
parcels of land were acquired, at a similar cost per square metre,
creating a total of 60,159 square metres. BLD is in the process of
changing the planning zoning to residential use. BLD expects this
area to be attractive to Bulgarians as there is a trend for relocating
from the city centre to the suburbs with its better standard of
living, mountain views and good access to main roads.
In the second case, BLD initially acquired 46,673 square metres of
agricultural land in an area with good development potential
outside Sofia. The purchase price was approximately €500,000,
giving a price of approximately €11 per square metre. During 2008
further plots were purchased, at a similar price per square metre,
giving a total site area of 274,527 square metres. BLD is in the
process of changing the planning zoning to residential use. BLD
expects this area to be attractive to Sofia citizens and holiday home
buyers as it is within a 45 minute drive of Sofia. This location will
combine the benefits of city residential housing with easy access to
golf courses, spa facilities and ski runs.
Chief Executive Officer’s Review continued 7 Bulgarian Land Development Plc Annual Report 2009
Riverland, Borovets
In December 2006, BLD paid an initial sum of €5.0m for a 56,000
square metre former meat processing factory with planning
permission for residential development. Further payments, which
were also due on the ultimate sale of the development were settled
in October 2008 for cash and assets amounting to €5.8m.
The site is approximately 45 minutes from Sofia, near Borovets,
Bulgaria’s oldest and most famous ski resort. It is also attractive in
summertime. The location provides easy access to the existing
Borovets ski runs and other facilities. Shortly after BLD bought the
site, it was announced that the Super Borovets ski based resort was
to move ahead, developing 33 new ski runs, although that has now
been indefinitely postponed. The Directors consider that Super
Borovets would enhance the value of the Riverland project.
The site master plan has been completed, a design contract was
awarded in 2007 and a building permit for construction of Phase 1
and the local road servicing the complex was received in May 2008.
However, the Directors have decided not to add further costs to the
development and marketing was ceased in early 2009. 
See www.riverland-bg.com
Harmony Hills, Rogachevo
Building work at this small development of 180 apartments and 
22 villas was completed in September 2008. During 2008 sales of
78 units were completed and deposits were received on all 124 of
the remaining units but, due to unforeseen delays with the
electricity connection, legal completion of these units was delayed.
Sales of €8.0m and profit of €4.8m were taken in 2008 (78 units),
sales of a further €4.2m and profit of €0.3m (92 units) have been
taken in 2009. The 2008 sales revenue was affected by the
accounting for the settlement of the deferred payment at Borovets
described in the 2008 report and accounts. 32 units remain, for
which deposits have been paid on 23 and 9 have been re-marketed. 
See www.harmony-hills.com
July Morning Seaside Resort, Kavarna
BLD assembled part of this site in September 2006 through several
off-market purchases; it had seaside access but no road access. The
Group then purchased the intervening land to gain road access and
so benefited from the “marriage value”. The whole site of 95,000
square metres had permission for agricultural use and cost €4.3m.
It is right beside the Black Sea, in the Balchik-Kavarna area, one of
the most exclusive areas along the coast. Three internationally
designed golf courses and a yacht marina are nearby. 
After the development of a master plan, at a cost of €0.3m, a
change to residential zoning was granted in January 2008 that
would enable BLD to create an 80,000 square metre holiday
complex, producing a development (to be carried out in three phases
of approximately equal size) with an estimated ultimate sales value
of €75m. 
The original intention was to commence building Phase 1, comprising
432 units, in late 2008. However, as a result of limited pre-sales
demand the Board decided to develop a smaller Phase 1 of 55 units
predominantly funded by deposits from acquirers. The expected
sales value of the phase is €3.2m and development costs are
expected to amount to €2.2m with construction due to be finished
in summer 2010. 
See www.July-morning.com
Underwriting off-plan apartments
In order to provide a wider spread of risk in BLD’s portfolio and to
produce profits more quickly than from its own developments, BLD
partnered with a local Bulgarian developer in relation to projects
which were in areas where BLD had no involvement. BLD
underwrote the price at which units would sell and the developer
continued to market all of the apartments in return for a share of
the profit that would be made. This was important for two reasons:
it avoided buyer confusion as to who was marketing the
apartments and it gave the developer an incentive to sell those
apartments which BLD had underwritten.
This strategy has enabled BLD to generate profits without
committing considerable resources within BLD. Of the 346 units
originally contracted for 31 remained unsold at 31 December 2009.
Gains of €0.1m were recorded in 2009 (2008: nil). The commitment
to acquire the remaining units amounts to €0.8m.
Outlook
The impact of difficult worldwide markets, particularly in Europe,
began to affect Bulgaria towards the end of 2008 and has
continued throughout 2009 since much of the country’s
development funding was originally provided by overseas,
particularly Greek, banks. The Board has undertaken measures to
reduce risk and costs and will continue to manage its resources
cautiously while the market is depressed. 
Christo Iliev
Chief Executive Officer
22 March 2010 8 Bulgarian Land Development Plc Annual Report 2009
Change of functional and presentational currency
The Group’s property development activities have always taken
place in Bulgaria and transactions are undertaken in either Euro or
Bulgarian Lev, a currency pegged to the Euro. The Company raised
funds from shareholders in sterling and made loans direct to its
Bulgarian subsidiaries until June 2009. During the course of May
and June 2009 these loans were repaid to the Company and new
loans issued from the Company’s new Dutch subsidiary
(Mercatorius Holdings BV) denominated in Euros. As a result the
Directors considered that with effect from 1 July 2009 the Group’s
functional currency had changed from sterling to Euros. They also
considered that the presentational currency should also be changed
to Euros. These Report and Accounts are therefore prepared and
presented in Euros. All comparatives have been translated into, and
restated in, Euros in accordance with International Financial
Reporting Standards (“IFRS”).
Consolidated statement of comprehensive income
Pre-tax Group loss was €8.402m (2009: pre-tax loss €0.138m) on
revenue of €4.961m (2008: €7.992m). 
Of the total revenue, the major items were €4.178m (2008:
€7.499m) arising from sales of 92 units at the Harmony Hills
development, €0.543m (2008: €0.471m) from management fees at
the Printing House development, €0.131m (2008: nil) underwriting
income on apartments bought off plan and €0.109m of sundry
other income. Gross profit on the sales of the Harmony Hills units
amounted to €0.258m (2008: €4.335m). 
Within the cost of sales of €9.750m (2008: €23.369m) the Group
has recognised charges amounting to €5.039m (2008: €20.205m)
for the write-down of a number of its developments following a
full valuation by JLL as at 31 December 2009. An impairment charge
of £6.851m (equivalent to €7.705m) was reported at 30 June 2009.
Additionally an impairment of €0.482m has been charged against
the loan made by the Company to its joint venture following an
assessment of the recoverable value of the asset.
Group overheads in the year amounted to €1.935m (2008:
€2.475m). Average employee numbers fell to 32 in 2009 from 33 in
2008. The Group made two appointments in the Isle of Man to
reduce administration and accounting costs that were previously
provided by a third party. The Directors have reviewed all costs and
actions have been taken to reduce the overheads in 2009 as activity
has reduced. The costs of maintaining a listing are approximately
€0.200m per annum, which would be saved should the Directors
become confident that a de-listing can proceed.
Interest income of €0.459m (2008: €1.063m) was earned on the
Group’s bank and other deposits. This amount was lower than in
2008 primarily due to significantly lower interest rates and also due
to lower cash balances on hand. Gains on exchange amounted
€0.528m (2008: €1.836m). 
In accordance with IAS39 Financial Instruments: Recognition and
Measurement, the Directors reviewed the carrying value of the
deferred land payable on the Sofia Tower development, described
above in the Chief Executive Officer’s Review. The change in
assumptions as to the area of the development increasing from
13,899 square metres to 17,745 square metres and the delay in
construction and completion by a year resulted in a charge of
€1.334m. The imputed interest charge in respect of the
amortisation of the discounted value of the liability was €1.331m. 
Consolidated statement of financial position
Included within current assets is €3.250m (2008: €3.372m) due
from the commercial property – Printing House - joint venture, net
of the impairment noted above. As each of the joint venture’s
shareholders has loaned funds to the joint venture, the proportional
consolidation accounting treatment results in 50% of the Group’s
loan, after impairment, being shown in non-current assets and
50% of Northridge Capital Limited’s gross loan being shown in
non-current liabilities (€3.681m, 2008: €3.346m). 
The statement of financial position shows cash balances of
€9.300m (2008: €10.512m) with the only loan, €9.640m, (2008:
€6.109m) being the Group’s share of the development loan to the
Printing House joint venture. The funding position with respect to
Printing House is explained more fully in the Chairman’s Statement.
Payments on account from apartment buyers amount to €1.989m
(2008: €4.506m) on the Harmony Hills and July Morning
developments. 
At the end of 2009 the unamortised cost of the deferred land
payable shown as a liability in the Group statement of financial
position is €14.786m (2008: €12.124m) relating to BLD Sofia Tower.
The Directors estimate the carrying value of the deferred land
payable by applying certain assumptions to the ultimate sales
proceeds from a development, thereby calculating what deferred
payment would be due to a vendor. The payment is then discounted
by applying assumptions as to the completion date of the
development and a discount rate appropriate to the cost of funds
of the Group. 
The net increase of €2.665m in the deferred land payable is a result
of an increase of €1.334m due to the increase in size of the
development and the expected delay of twelve months in
completion of the development and an increase of €1.331m due to
the unwinding of the amortisation of the liability. The size of the
development is based on the building permit for the site. The sales
value per square metre of the development is an estimate made by
the Directors based on their knowledge of the local market and
supported by the valuation undertaken by JLL at the balance sheet
date. The split of sales revenue is subject to an agreement between
the Group and the vendors of the site. The Directors estimate that
building will commence in early 2011 for completion by the end of
2012 – these timings have been delayed by twelve months due to
Finance Director’s Review 9 Bulgarian Land Development Plc Annual Report 2009
delays in obtaining the building permit and currently depressed
market conditions. The discount rate used is 11%.
The rate of corporation tax in the Isle of Man is nil and therefore
the Company has no liability for tax payable there. The Group made
a taxable profit of €0.699m in Bulgaria, after allowance for timing
differences, and a provision of €0.070m (2008: €0.234m) has been
made for the payment of Bulgarian tax (which is calculated at a
rate of 10%). The timing differences noted above give rise to a
deferred tax charge of €0.011m (2008: €0.021m) and an asset of
€0.613m (2008: €0.251m) but the Group has not recognised this
asset due to the uncertainty of future profits from the same source.
Bulgarian withholding tax is due on interest payable on loans and
management charges from the Company and a net charge of
€0.118m (2008: €0.229m) has been made for the year in this
respect as this cannot be recovered by the Company. 
Net asset value and valuation
Audited net asset value per share as at 31 December 2009 (“NAV”)
was €0.79, a €0.22 reduction from 2008’s €1.01, reflecting the loss
for the year. It should be noted that the Group reported a loss of
€0.22 (19.7p restated) in the first half of the year.
Having instructed valuers to carry out desk-top valuations at 
31 December 2008 and 30 June 2009, the Directors decided to
instruct JLL to undertake a full valuation of the Group’s property
interests as at 31 December 2009. The Directors intend to continue
to commission site valuations every six months with a full valuation
occurring annually at most sites while development activity
remains low. 
The 31 December 2009 valuation of the Group’s incomplete
investments amounted to €37.37m compared with €47.88m as at
31 December 2008 and €35.6m at 30 June 2009. The valuation
excludes Harmony Hills, completed prior to 31 December 2009, and
also the deferred land payable included in the work in progress of
Sofia Tower.
As the valuation relates to properties held in inventories – BLD is
not a property investment concern and so does not hold its
properties in property, plant and equipment – the revaluation
surplus has not been incorporated in the financial statements.
Unaudited net asset value per share, after including the
professional valuation at as 31 December 2009 (“Adjusted NAV”)
was €0.86 (2008: €1.25).
No allowance has been made in the calculation of Adjusted NAV for
any dilutive effect which might arise from the award of shares
through the Company’s management incentive arrangements 
(“the Plan”). The Plan applies only if total shareholder return (being
the increase in share price (above the 100p Placing price) during the
year plus dividends paid in the year) exceeds a hurdle rate of 10%
of the share price at the beginning of the year; in such an event,
20% of the surplus is payable as a performance fee (up to 50%
(such percentage being determined by the Directors) can be paid in
cash with the rest being in shares). 
Andrew Daw
Finance Director
22 March 2010
* In this report an exchange rate of £1/€1.111 has been used to
convert sterling denominated assets and liabilities held at 31
December 2009 to Euros. Income and expenses have been
converted in accordance with the Group’s accounting policy, based
on exchange rates on the date of the transaction.  10
Report of the Directors
Bulgarian Land Development Plc Annual Report 2009
The Directors hereby submit their annual report together with the
audited consolidated financial statements of Bulgarian Land
Development Plc (“BLD” or “the Company”) for the year ended 
31 December 2009 (the “Directors’ Report”).
The Company and Activities
The Company is incorporated in the Isle of Man. The Company, its
subsidiaries and associated company (the “Group”) are engaged in
residential and commercial property development in Bulgaria
where its executive management is based.
Results and Dividends
The results and position of the Group and the Company at the year
end are set out on pages 14 to 18 of the financial statements. 
The Directors have decided not to declare a dividend (2008: nil).
Directors 
The Directors during the period and up to the date of this Report
and their interests in the Company’s issued share capital were:
Shareholdings
31 December 1 January
2009 2009
Per H Sjöberg
1
– –
Christo T Iliev 
2
10,559,988 5,796,498
Dimitar B Savov 
3
95,000 95,000
Andrew St.J I Daw 90,000 90,000
Dimitar I Popov – –
E Henry Klotz 
1
– –
James Green 
4
– –
1
Mr Sjöberg was a director and Chief Executive Officer of CLS Holdings plc until 2 May 2008
when he ceased to be a director and employee of CLS Holdings plc. On 2 May 2008, Mr Klotz
became Chief Executive Officer of CLS Holdings plc. CLS Holdings plc owned, through its
wholly-owned subsidiary Museion Förvaltning AB, 19,084,778 shares at 31 December 2009
(14,321,287 shares at 1 January 2009)
2
1,425,000 shares held directly by Mr Iliev, 9,134,988 held by AG Capital Management
Limited, a company controlled by Mr Iliev
3
95,000 shares held directly by Mr Savov, 9,134,988 held by AG Capital Management Limited,
a company in which Mr Savov holds 10% of the share capital 
4
Funds under the discretionary management of Laxey Partners Limited, with whom Mr Green
had a relationship until May 2009, were the beneficial holders of 6,115,246 shares at 
31 December 2009 and 31 December 2008.
The following biographical information is given about the Directors
Per Sjöberg 
Aged 48 (Non Executive Chairman)
Per Sjöberg became Chairman of the Group in March 2007. From 
1 January 2006 until 2 May 2008 he was Chief Executive Officer of
CLS Holdings plc and on a number of boards within CLS Holdings
plc. Mr Sjöberg graduated from Stockholm University with a
Bachelor degree in Business Administration. He is also an engineer
with global experience in large development projects. Before
joining CLS in 2001, he was the owner and manager of a project
and construction management company which he established in
1996. Mr Sjöberg now works as an independent consultant.
Christo Iliev 
Aged 37 (Chief Executive Officer) 
Christo Iliev obtained a degree in Economy and Management of the
Industry from the Economic University of Varna in 1995 and
following that a Master’s degree in Marketing in 1997. In the early
1990s Mr Iliev established Address Real Estate, one of the first
Bulgarian real estate agencies. During the last 16 years, Mr. Iliev has
expanded it to become AG Capital, the Balkan property business
group with involvement in residential and commercial agency and
investment, as well as mortgage and insurance broking. It now has
over 70 offices in the Balkans. AG Capital is linked to Cushman 
& Wakefield through one of its subsidiaries, Forton International, 
to Christie’s Great Estates through Unique Estates, and to April
Group through April Risk Solutions. He is chairman of AG Capital
and he was appointed Chief Executive Officer of the Group on its
flotation in March 2006 and devotes at least 50% of his time to the
Group’s affairs.
Dimitar Savov
Aged 33 (Executive Director) 
Dimitar Savov obtained a degree in Banking from the Economic
University of Varna in 2000 and following that a Master’s degree in
Finance in 2001. He joined Address Group in 2000 and in 2002
became Chief Financial Officer and later a Member of the Board of
Address Group. In 2005, he was appointed Executive Chairman of
two Address subsidiaries, Forton International and Address Invest
(specialising in residential property development). He transferred 
to BLD on its flotation in March 2006 and now works full time for
the Group.
Andrew Daw, FCA
Aged 53 (Finance Director) 
Andrew Daw is a qualified accountant who has held a number of
financial roles at board level since leaving Deloitte in 1996. 
At Deloitte (and previously at BDO Binder Hamlyn) he was a partner
within the corporate finance department for an aggregate period
of 6 years. Most recently he was Chief Finance Officer of Premium
TV Limited, a sport and media promotions company, where he 
was recruited to assist with turning around the business. 
Other appointments have included non-executive roles with IT
consulting businesses and executive roles with other professional
services and trading companies. 
Dimitar Popov
Aged 82 (Non Executive Director) 
Dimitar Popov was Prime Minister of the first coalition government
of Bulgaria in 1990-91. He obtained an Master’s degree in law from
the University of Sofia in 1950. After a number of legal posts in
government, he was appointed a judge in the Sofia City Court in
1971, a position he held until he became Prime Minister. He has
written numerous publications and since retiring as Prime Minister
has run his own legal practice. 11 Bulgarian Land Development Plc Annual Report 2009
Henry Klotz 
Aged 65 (Non Executive Director) 
Henry Klotz has been engaged in the property and construction
industry for over 30 years and was managing director of a
Stockholm-listed property company. From 1999-2006 he was
managing director of Solna Business Park and responsible for the
Swedish business of CLS Holdings plc (which is a 35.80%
shareholder in the Company). Following a successful sale of Solna
Business Park by CLS Holdings plc, Mr Klotz moved to Hamburg
where he was in charge of CLS’s German and other property
interests. In January 2008 he moved to London and became Chief
Executive Officer of CLS Holdings plc on 2 May 2008.
James Green
Aged 60 (Non Executive Director)
James Green is a Chartered Director with particular expertise in
corporate governance, tax planning and restructuring of
companies. Over the previous 20 years, he has held a number of
executive and non-executive roles and public appointments
(including appointment to the West Midlands Regional Planning
Authority and the Inland Revenue Tribunal Service). Executive
appointments over the last 5 years have included positions within
companies involved in the provision of accounting and consultancy
services, fiduciary services, corporate finance and property
investment and development. Mr Green has also undertaken 
non-executive roles with companies engaged in property
development, business support and training, media and marketing,
online retailing and alternative energy. He is resident in the Isle 
of Man.
Save as disclosed above and in note 6 of the consolidated financial
statements, none of the Directors had any interest during the
period in any material contract for the provision of services which
was significant to the business of the Company.
Share capital
As at 31 December 2009 (the last business day of the reporting
period), the Company had 40 million Ordinary Shares in issue. 
On 31 December 2009, the middle market quotation per 1 pence
Ordinary Share was 27p. The comparable figure at 30 December
2008 was 32p.
Significant shareholders
As at the date of this report, the Company had been notified of the
following interests of 3% and over in the Company’s issued share
capital:
No. of shares % holding
Museion Förvaltning AB 19,084,778 47.71%
AG Capital Management Limited 10,654,988 26.64%
Funds under the discretionary
management of Laxey Partners Limited 6,115,246 15.29%
Independent Auditors
During the year BDO Stoy Hayward LLP changed its name to 
BDO LLP. BDO LLP has expressed a willingness to continue in office
in accordance with Section 12(1) of the Isle of Man Companies Act,
1982. 
Corporate Governance
As an AIM quoted company, the Company is not required to follow
the provisions of The Combined Code on Corporate Governance as
issued by the Financial Reporting Council. However, the Board is
committed to high standards of corporate governance and a
summary of the main elements of corporate governance are
described below:
Board of Directors
The composition of the Board is set out above. The Board currently
comprises a Non Executive Chairman and three other Non
Executive Directors in addition to the three Executive Directors.
The Board meets regularly and is provided with relevant information
on financial, business and corporate matters prior to meetings. 
Audit Committee
The members of the Audit Committee consist of three Non
Executive Directors. The Audit Committee is chaired by Per Sjöberg
and the other members are Henry Klotz and James Green. 
The committee is responsible for ensuring that the Group’s financial
performance is properly monitored, controlled and reported. 
It provides a forum through which the Company’s external auditors
report to the Company. It meets at least twice a year.
Remuneration Committee
The members of the Remuneration Committee consist of three 
Non Executive Directors. The Remuneration Committee is chaired 
by Henry Klotz and the other members are Per Sjöberg and 
James Green.
The committee is responsible for reviewing the scale and structure
of the Executive Directors’ remuneration packages and the terms of
their service contracts. The remuneration and the terms and
conditions of the Non Executive Directors is determined by the
Board with due regard to the interests of the shareholders and the
performance of the Group.
Nomination Committee
The members of the Nomination Committee consist of three Non
Executive Directors. The Nomination Committee is chaired by James
Green and the other members are Per Sjöberg and Henry Klotz.
The committee is responsible for proposing to the Board any new
appointments or replacement appointments of both Executive and
Non Executive Directors and makes recommendations to the Board
on composition and balance. The Chairman will not chair the
committee when dealing with the appointment of his successor. 12
Report of the Directors continued
Bulgarian Land Development Plc Annual Report 2009
Internal Control
The Directors are responsible for establishing and maintaining the
Company’s system of internal control. This system of internal
control is designed to safeguard the Company’s assets and to
ensure that proper accounting records are maintained and that
financial information produced by the Company is reliable. There
are inherent limitations in any system of internal control and such
a system can provide only reasonable, but not absolute, assurances
against material misstatement or loss. The Directors, through the
Audit Committee, have reviewed the effectiveness of the
Company’s system of internal controls.
Statement of Directors’ Responsibilities in respect of the
Directors’ Report and the Financial Statements
The Directors are responsible for keeping proper accounting records,
which disclose with reasonable accuracy at any time the financial
position of the Group and the Company, for safeguarding the assets
of the Group and the Company and for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
The Directors are also responsible for the preparation of financial
statements and a directors’ report in accordance with the Isle of
Man Companies Acts 1931 to 2004 (as amended). The Directors
have chosen to prepare financial statements for the Group and the
Company in accordance with International Financial Reporting
Standards as adopted by the European Union (“IFRS”) and the rules
of the London Stock Exchange for companies trading securities on
AIM.
International Accounting Standard 1 requires that financial
statements present fairly for each financial year the Group’s and the
Company’s financial position, financial performance and cash flows.
This requires the faithful representation of the effects of
transactions, other events and conditions in accordance with the
definitions and recognition criteria for assets, liabilities, income and
expenses set out in the International Accounting Standards Board’s
‘Framework for the preparation and presentation of financial
statements’ . In virtually all circumstances, a fair presentation will be
achieved by compliance with applicable IFRS. A fair presentation
also requires the Directors to:
• consistently select and apply appropriate accounting policies;
• present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable
information; and
• provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users to
understand the impact of particular transactions, other events
and conditions on the entity’s financial position and financial
performance.
The financial statements are published on the Group’s website in
accordance with the AIM Rules. The maintenance and integrity 
of the Group’s website is the responsibility of the Directors. 
The Directors’ responsibility also extends to the ongoing integrity of
the financial statements contained therein. 
By Order of the Board
Anne Couper Woods
Assistant Company Secretary 
22 March 2010 13 Bulgarian Land Development Plc Annual Report 2009
Report of the Independent Auditors
to the members of Bulgarian Land Development Plc
We have audited the group and individual company financial
statements (the “financial statements”) of Bulgarian Land
Development Plc for the year ended 31 December 2009 which
comprise the Consolidated Statement of Comprehensive Income,
the Consolidated and Company Statement of Financial Position, the
Consolidated and Company Statement of Cash Flow, the
Consolidated and Company Statement of Changes in Equity and
the related notes. These financial statements have been prepared
under the accounting policies set out therein.
Respective responsibilities of Directors and Auditors
As described in the Statement of Directors’ Responsibilities
contained herein, the Company’s Directors are responsible for the
preparation of the financial statements in accordance with
applicable Isle of Man company law and International Financial
Reporting Standards, as adopted by the EU (IFRS).
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 Isle of Man
Companies Acts 1931 to 2004. We also report to you whether in our
opinion the information given in the Directors’ Report is consistent
with the financial statements. We also 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’ transactions with the Company 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 Report of
the Directors, the Chairman’s Statement, the Chief Executive
Officer’s Review and the Finance Director’s Review. 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.
This report is made solely to the Company’s members, as a body, in
accordance with section 15 of the Companies Act 1982. 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.
Basis of opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the UK 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 judgments made by the Directors in the preparation
of the financial statements, and of whether the accounting policies
are appropriate to the Group’s and 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 group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the European Union, of
the state of the group’s affairs as at 31 December 2009 and of
its loss for the year then ended;
• the parent company financial statements give a true and fair
view, in accordance with IFRSs as applied in accordance with the
provisions of the Isle of Man Companies Acts 1931 to 2004, of
the state of the parent company’s affairs as at 31 December
2009;
• the financial statements have been properly prepared in
accordance with the Isle of Man Companies Acts 1931 to 2004;
and
• the information given in the Directors’ Report is consistent with
the financial statements.
BDO LLP
Chartered Accountants
London
22 March 2010 14
Consolidated Statement of Comprehensive Income 
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
Year ended
Year ended 31 December
31 December 2008
2009 (as restated)
Notes €’000 €’000
Revenue 4,961 7,992
Cost of sales
Before impairment of inventory (4,711) (3,164)
Impairment of inventory (5,039) (20,205)
(9,750) (23,369)
Gross loss (4,789) (15,377)
Administrative expenses (1,935) (2,475)
Operating loss (6,724) (17,852)
Finance income, being:
Bank and other interest 459 1,063
Gain on exchange 528 1,836
Imputed interest on deferred land payables (1,331) (2,819)
Change in carrying value of financial liability in respect of deferred land payables (1,334) 17,634
Finance (cost)/income 4 (1,678) 17,714
Loss before tax (8,402) (138)
Income tax expense 19 (199) (323)
Loss for the period attributable to shareholders of the parent company (8,601) (461)
Other comprehensive income for the period (net of tax) – –
Total comprehensive income for the period attributable to shareholders 
of the parent company (8,601) (461)
Basic and diluted loss per share attributable to the equity holders during the period 
(expressed as cents per share)
Basic and diluted loss per share 15 (21.50) (1.15) Consolidated Statement of Financial Position
As at 31 December 2009
2008 2007
2009 (as restated) (as restated)
Notes €’000 €’000 €’000
Assets
Property, plant and equipment 10 126 201 175
Amount due from joint venture 3,250 3,372 –
Total non-current assets 3,376 3,573 175
Inventories 11 49,119 51,702 45,751
Trade and other receivables 12 2,795 2,168 2,401
Cash and cash equivalents 13 9,300 10,512 31,637
Total current assets 61,214 64,382 79,789
Total assets 64,590 67,955 79,964
Equity
Issued share capital 14 470 470 470
Share premium reserve 41,560 41,560 41,467
Retained earnings (10,276) (1,675) (1,214)
Total equity attributable to shareholders of the parent company 31,754 40,355 40,723
Non-current liabilities
Deferred tax liabilities – –28
Deferred land payables 16 14,786 12,124 33,335
Amount due to joint venture 3,681 3,346 –
Bank loans 16 9,352 6,109 –
Total non-current liabilities 27,819 21,579 33,363
Current liabilities
Trade and other payables 17 4,638 5,703 2,967
Bank loans 16 288 – 2,792
Taxation 91 318 1 19
Total current liabilities 5,017 6,021 5,878
Total liabilities 32,836 27,600 39,241
Total equity & liabilities attributable to shareholders 
of the parent company 64,590 67,955 79,964
The financial statements were approved and authorised for issue by the Board of Directors on 22 March 2010
Christo Iliev Andrew Daw
Director Director
15 Bulgarian Land Development Plc Annual Report 2009 16
Company Statement of Financial Position
As at 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
2008 2007
2009 (as restated) (as restated)
Notes €’000 €’000 €’000
Assets
Investment in subsidiaries 9 215 206 206
Property, plant and equipment 10 3 ––
Total non-current assets 218 206 206
Intra group receivables 29,373 38,960 22,517
Trade and other receivables 12 38 91 17
Cash and cash equivalents 13 7,765 9,282 28,303
Total current assets 37,176 48,333 50,837
Total assets 37,394 48,539 51,043
Equity
Issued share capital 14 470 470 470
Share premium reserve 41,560 41,560 41,467
Retained earnings (4,755) 6,420 8,568
Total equity 37,275 48,450 50,505
Liabilities – current liabilities
Trade and other payables 17 119 89 415
Taxation – – 123
Total current liabilities 119 89 538
Total liabilities 119 89 538
Total equity & liabilities 37,394 48,539 51,043
The financial statements were approved and authorised for issue by the Board of Directors on 22 March 2010
Christo Iliev Andrew Daw
Director Director Statements of Changes in Equity
For the year ended 31 December 2009
Share Share Retained 
capital premium earnings Total
€’000 €’000 €’000 €’000
GROUP
Balance at 1 January 2008 (as restated) 470 41,467 (1,214) 40,723
Total comprehensive income for the period – – (461) (461)
Share issue expenses recovered – 93 – 93
Balance at 1 January 2009 (as restated) 470 41,560 (1,675) 40,355
Total comprehensive income for the period – – (8,601) (8,601)
Balance as at 31 December 2009 470 41,560 (10,276) 31,754
Share Share Retained 
capital premium earnings Total
€’000 €’000 €’000 €’000
COMPANY
Balance at 1 January 2008 (as restated) 470 41,467 8,568 50,505
Total comprehensive income for the period – – (2,148) (2,148)
Share issue expenses recovered – 93 – 93
Balance at 1 January 2009 (as restated) 470 41,560 6,420 48,450
Total comprehensive income for the period – – (11,175) (11,175)
Balance as at 31 December 2009 470 41,560 (4,755) 37,275
Share capital – Amount subscribed for share capital at nominal value.
Share premium – Amount subscribed for share capital in excess of nominal value.
Retained earnings – Cumulative net gains and losses recognised in the consolidated statement of comprehensive income.
17 Bulgarian Land Development Plc Annual Report 2009 18
Statements of Cash Flows 
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
Year ended 31 December 2008
Year ended 31 December 2009 (as restated)
Group Company Group Company 
Notes €’000 €’000 €’000 €’000
Cash flow from operating activities
(Loss)/profit for the year (8,601) (11,175) (461) 2,703
Adjustments for:
Net financing (income)/expense 1,678 (625) (17,714) (3,029)
Taxation 199 113 323 163
Depreciation 10 62 – 64 –
Impairment loss in respect of inventories 5,039 – 20,205 –
Impairment of loan to joint venture 494 – ––
Write down of inter-company loans – 12,796 ––
Operating profit/(loss) before changes in working capital (1,129) 1,109 2,417 (163)
(Increase) in intra group balances – (3,209) – (14,651) 
(Increase)/decrease in trade and other receivables (899) 53 (3,139) (73)
Increase/(decrease) in trade and other payables (730) 30 6,084 (326)
(Increase) in inventories (1,825) – (31,622) –
Settlement of deferred land payable –– (552) –
Cash used in operations (4,583) (2,017) (26,812) (15,213)
Tax paid (530) (113) (152) (102)
Net cash flows used in operating activities (5,113) (2,130) (26,964) (15,315)
Cash flows from investing activities
Acquisition of subsidiary undertakings – (9) ––
Acquisition of plant and equipment 10 (9) (3) (125) –
Proceeds from sale of plant and equipment 23 – 33 –
Interest received 459 42 1,063 731 
Interest paid (631) – (378) –
Cash flows (used in)/from investing activities (158) 30 593 731
Financing activities
Share issue expenses –– 93 93
Receipt from new bank loans 3,531 – 6,109 –
Repayment of bank loans –– (2,792) –
Cash flows generated from financing activities 3,531 – 3,410 93
Net decrease in cash and cash equivalents (1,740) (2,100) (22,961) (14,491)
Effect of exchange fluctuations on cash held 528 583 1,836 (4,530)
Cash and cash equivalents at 1 January 10,512 9,282 31,637 28,303
Cash and cash equivalents at 31 December 9,300 7,765 10,512 9,282 Notes to the Consolidated Financial Statements
For the year ended 31 December 2009
1. GENERAL INFORMATION
Bulgarian Land Development Plc (“the Company”) and its subsidiaries (together “the Group”) is a property development group
operating in Bulgaria, principally involved in the development of residential and commercial property. The Group’s head office is in the
Isle of Man and the main operating office is in Sofia, Bulgaria.
The Company is registered in the Isle of Man, registration number 115921C and its registered office is 3rd Floor, 14 Athol Street,
Douglas, Isle of Man, IM1 1JA. The Company’s shares are traded on the Alternative Investment Market of the London Stock Exchange.
2. SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) as
adopted for use in the European Union in accordance with Article 3 of the IAS Regulations (EC) no 1606/2000. The principal
accounting policies adopted in the preparation of the consolidated financial statements are set out below.
With effect from 1 July 2009 the functional currency of the Company changed from sterling to Euro. The functional currency of the
Dutch subsidiary is Euros and that of the Bulgarian subsidiaries is Bulgarian Lev (a currency pegged to the Euro) as this is the primary
currency in which the subsidiaries operate. During May and June 2009 the Company’s loans to its subsidiaries were repaid and new
loans made by the Dutch subsidiary. Hence, from 1 July 2009 virtually all income, expenditure, assets and liabilities of the Company
and its subsidiaries have been denominated in Euros.
Monetary assets and liabilities denominated in foreign currencies as at 1 July 2009 were translated at the following rates:
€1 = £ 0.90027 
€1 = Lev 1.95583
As the Company’s functional currency changed from sterling to Euro, the Directors decided to change the presentational currency of 
the Group’s and the Company’s financial statements from sterling to Euro. The statements of financial position at 31 December 2008
and 31 December 2007 and the statement of comprehensive income for the year ended 31 December 2008 have been restated in
Euros at the following exchange rates:
Statement of Financial Position Statement of Comprehensive Income
31 December 2008 31 December 2007 Year ended 31 December 2008
£ sterling 0.97576 0.73480 0.80123
Bulgarian Lev 1.95583 1.95583 1.95583
No other changes have been made to prior year statements other than for the restatement for the change in presentational currency.
New standards and interpretations
The following new standards, interpretations and amendments, applied for the first time from 1 January 2009, have had an effect on
the financial statements:
– Amendment to IAS 1 ‘Presentation of Financial Statements: A Revised Presentation: As a result of the application of this Amendment
the Group has elected to present a single statement of comprehensive income; previously it presented an income statement and
the statement of recognised income and expense. In addition, a statement of changes in equity is now presented as a primary
statement where previously the information was included in a note. The Amendment does not change the recognition or
measurement of transactions and balances in the financial statements.
The following new standards, interpretations and amendments, also effective for the first time from 1 January 2009, have not had a
material effect on the financial statements:
– Amendment to IAS 23 ‘Borrowing Costs’
– Amendment to IFRS 2 ‘Share-based Payment’ Vesting Conditions and Cancellations
– Improvements to IFRSs (2009)
IFRS 8 ‘Operating Segments’ is also mandatory for periods beginning on or after 1 January 2009, however the Group elected to apply
the standard early in its financial statements for the year ended 31 December 2008.
19 Bulgarian Land Development Plc Annual Report 2009 20 Bulgarian Land Development Plc Annual Report 2009
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
New standards and interpretations continued
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:
– Revision to IFRS 3 ‘Business Combinations’
– Amendments to IAS 27 ‘Consolidated and Separate Financial Statements’
– Amendments to IAS 39 ‘Financial Instruments: Recognition and Measurement: Eligible Hedged Items’
– IFRC 17 ‘Distributions of Non-cash Assets to Owners’
– IFRC 18 ‘Transfer of Assets from Customers’
– Amendments to IAS 2 ‘Group Cash-settled Share-based Payment Transactions’
– Amendments to IAS 32 ‘Classification of Rights Issues’
– IFRC 19 ‘Extinguishing Financial Liabilities with Equity Instruments’
– Revision to IAS 24 ‘Related Party Disclosures’
– IFRS 9 ‘Financial Instruments’
The Directors are of the opinion that the adoption in future periods of the other Standards and Interpretations noted above will have
no material impact on the financial statements of the Group.
2.1
(a) Basis of presentation
The Group financial statements have been prepared on the historical cost basis and in accordance with the requirements set out in
the Isle of Man Companies Acts 1931 to 2004.
The accounting policies have been consistently applied to the results, gains and losses, assets, liabilities and cash flows of entities
included in the financial statements.
The preparation of financial statements in conformity with IFRS requires the Directors to make judgments, estimates and assumptions
that affect the application of policies and the reported amounts of assets, 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 judgments 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 ongoing 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.
(b) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the
Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the
financial and operating policies of an investee entity so as to obtain benefits from its activities.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with
those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009 2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(c) Business combinations
The consolidated financial statements include the acquisition of the Company’s subsidiaries in 2006 and 2009 (see note 9).
The Directors do not believe that the 2006 business combination met the definitions of IFRS3 (as the Company did not constitute a
business, as defined in IFRS3). The Directors have considered the guidance included in paragraphs 10 to 12 of International Accounting
Standard (‘IAS’) 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ . This requires, inter alia, that where IFRS do not
include guidance for a particular issue, the Directors should consider the economic substance of the transaction in developing the
accounting policy. 
The Directors have therefore incorporated the assets and liabilities of the subsidiary at the amounts originally recorded in its books from
the date that the Company gained control. As economically there was no change in the business or its prospects as a result of the
combination, the Directors do not believe that it was appropriate to recognise the significant amount of goodwill that would have arisen.
2.2 Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies as at the date of these financial statements are translated to Euros
at exchange rates prevailing on that date. Realised and unrealised gains and losses on foreign currency transactions are charged or
credited to the statement of comprehensive income as foreign currency gains and losses. Expenses are translated into Euros based on
exchange rates on the date of the transaction. 
Exchange differences arising on the settlement of monetary items are included in profit or loss for the period. 
2.3 Cash and cash equivalents
Cash and cash equivalents comprise cash deposited with banks for periods of up to one month.
2.4 Revenue recognition
(a) Revenue
Revenue comprises the fair value of the consideration received or receivable, net of value added tax, rebates and discounts.
Revenue from property development and off-plan trading sales is recognised in the statement of comprehensive income when the
significant risks and rewards of ownership have been transferred to the purchaser. Revenue in respect of the sale of residential
properties is recognised at the fair value of the consideration received or receivable on legal completion. Provision is made for costs
to be incurred post completion in accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ .
(b) Customer deposits
Customer deposits are recorded as a liability within “payments on account by apartment buyers” on receipt and are released to the
statement of comprehensive income as revenue upon legal completion.
2.5 Property, plant and equipment
Motor vehicles, plant and equipment are stated at cost less subsequent depreciation. Depreciation is calculated using the straight-line
method as follows:
Motor vehicles 4 years
Office equipment 4 years
Computers 4 years
Other 4 years
The estimated useful economic lives are reassessed at each balance sheet date as are changes in current residual values. The effects
of these changes in estimates are accounted for prospectively.
2.6 Inventories
Land and properties held for development are carried at the lowest of cost and net realisable value. Cost includes all costs of purchase
and development (including interest) incurred in bringing the inventories to their condition at the balance sheet date. Net realisable
value is the estimated selling price in the ordinary course of business less costs to complete the development and selling costs.
Where the Group acquires land and buildings subject to deferred payments due after more than one year, it is initially recognised at
cost, being the fair value of the future estimate contractual obligation. Where, through these deferred purchase terms, the cost differs
from the nominal amount that will actually be paid in settling the liability, no adjustment is made to the cost of the land, the
difference being charged as a finance cost.
21 Bulgarian Land Development Plc Annual Report 2009 22
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.7 Trade payables
Trade payables on normal terms do not bear interest and are carried at their nominal value.
Trade payables in respect of deferred land payables contractual payments are recorded at their fair value at the date of acquisition of
the asset to which they relate. The discount to the nominal value which will be paid in settling the deferred payment terms is
amortised over the credit term and charged to finance costs using the effective interest method.
Where changes in estimates relating to either the future amount to be paid or the timing of payments arise, the difference in 
re-measuring the opening carrying value at the original effective interest rate is recognised in profit or loss during the year. The Group
classifies these amounts as a component of finance income or expense.
2.8 Taxation
The charge for current taxation is based on the results for the period as adjusted for those items which are non-taxable or disallowed,
using the rates relevant for the period.
Deferred taxation is the tax expected to be payable or receivable 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 assets and liabilities
in a transaction that affects neither the tax profit nor the accounting profit. Deferred tax is not provided on the initial recognition of
assets or liabilities that affect neither taxable nor accounting profit, other than in business combinations and differences relating to
investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
Deferred taxation is measured based upon tax rates that are expected to apply in the period to which the temporary differences are
expected to reverse using tax rates that have been substantively enacted by the balance sheet date.
2.9 Share-based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the statement of
comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of
equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting
period is based upon the number of options that eventually vest. Market vesting conditions are factored into fair value of the options
granted, as long as all other vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market
vesting condition.
Where equity instruments are granted to persons other than employees, the statement of comprehensive income is charged.
2.10 Joint ventures
Joint ventures are entities in which the Group holds an interest on a long-term basis and which are jointly controlled by the Group
and other venturers under a contractual agreement. Jointly controlled entities are included in the financial statements using
proportionate consolidation. The share of each of the jointly controlled entity’s assets, liabilities, income and expenses are combined
on a line-by-line basis with those of the group.
Profits and losses arising on transactions arising between the Group and the jointly controlled entities are recognised only to the
extent of unrelated investors’ interests in the entity. The Group’s share in the jointly controlled entity’s profits and losses resulting from
these transactions is eliminated against the asset or liability of the jointly controlled entity arising on the transaction.
2.11 Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker,
identified as Dimitar B Savov, who is responsible for allocating resources and assessing performance of the operating segments. 3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the process of applying the Group’s accounting policies, which are described in note 2, the Directors have made the following judgments
that have the most significant effect on the amounts recognised in the financial statements.
Basis of consolidation
Following a detailed review of the documentation and facts surrounding the Group reorganisation and purchase of the entire share capital
of the Company’s subsidiary immediately before the IPO in March 2006, the Directors believe that the purchase method of accounting
(without fair valuing the assets and liabilities of the subsidiary on acquisition) most fairly reflects the substance of the transaction.
Recoverability of amounts included in inventories
The Directors have carried out a detailed review of all the properties held by the Group. In addition, the Directors have commissioned Jones
Lang LaSalle Services SRL to carry out a valuation of each of the incomplete projects. Based on this work, the Directors have made significant
judgments concerning the success, cash flows, timing and resulting profitability of these projects and have recognised impairment provisions
against certain of the developments accordingly.
BLD Office Park AD
During the year the terms of bank finance for the development of the Printing House project by BLD Office Park AD, a joint venture company
in which the Company has a 50% interest, were progressively and unilaterally amended by the bank. The directors of BLD Office Park AD are
negotiating with that company’s bank to continue to make funds available for the development on commercially acceptable terms. 
The directors of BLD Office Park expect a satisfactory conclusion to the negotiations with the bank to be reached. However should that not
happen and if the Directors of the Company choose to complete the development without further third-party financing, the Group has
sufficient cash resources. The Directors therefore consider that it is appropriate to account for BLD Office Park AD as a going concern. Due
to the level of uncertainty regarding the ultimate outcome of the development the Directors have provided in full against the net amount
due to the Group from BLD Office Park AD.
Deferred land payables
Where the Group has acquired sites with deferred payments due to the vendors based on a percentage of the final sales value, the discounted
value of those deferred payables are subject to estimate by the Directors. The variables considered by the Directors in making the estimate
are the ultimate sales value achievable, the completion date for the development concerned and the discount rate to be used. Following a
detailed review of the Sofia Tower development, the only project where a deferred payable will become due, the Directors believe that the
assumptions that they have made in assessing the timing and amount of the financial liability are appropriate. 
4. FINANCE (COSTS)/INCOME
2008
2009 (as restated)
Group Group
€’000 €’000
Bank and other interest income 459 1,063
Gain on exchange 528 1,836
Imputed interest on deferred land payables (1,331) (2,819)
Change in carrying value of financial liability in respect of deferred land payables (1,334) 17,634
Total finance (costs)/income (1,678) 17,714
All external bank interest payable of €631,000 (2008: €378,000) has been capitalised in inventories.
23 Bulgarian Land Development Plc Annual Report 2009 24
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
5. SEGMENT INFORMATION
The Group’s developments are managed and reported on an individual basis. Developments have been aggregated into reportable segments
where they have similar economic characteristics, products and customers. The reportable segments are:
(i) Commercial property
(ii) City centre, premium residential
(iii) Suburban residential
(iv) Ski resort second/holiday home
(v) Coastal resort second/holiday home
There are no transactions between the segments. The unallocated segment relates to central overheads in the Isle of Man and Bulgaria,
taxation, cash holdings not allocated to developments and other assets and liabilities related to central overheads.
Segment assets include primarily developments in progress, trade and other receivables, cash and cash equivalents. Segment liabilities
comprise borrowings, other operating liabilities and deferred land payables, where relevant.
All revenues are derived in Bulgaria and all non-current assets are located in Bulgaria.
The segment results for the year ended 31 December 2009 are as follows:
City Ski Coastal
Commercial centre Suburban resort resort OtherUnallocated Total
€’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
Revenue 583 – – 131 4,178 – 69 4,961
Operating profit/(loss) (4,821) 3,604 (378) (3,266) (871) – (992) (6,724)
Finance income 5––––– 454 459
Net imputed interest on 
land payables – (2,665) ––––– (2,665)
Exchange gain (2) ––––– 530 528
Profit/(loss) before taxation (4,818) 939 (378) (3,266) (871) – (8) (8,402)
Taxation –––––– (199) (199)
Retained profit/(loss) (4,818) 939 (378) (3,266) (871) – (207) (8,601)
Other information at 31 December 2009:
City Ski Coastal
Commercial centre Suburban resort resort OtherUnallocated Total
€’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
Assets 3,250 18,429 5,558 6,198 8,344 – 10,848 52,627
Jointly controlled entity 11,963 ––––––11,963
Total assets 15,213 18,429 5,558 6,198 8,344 – 10,848 64,590
Liabilities – 14,838 4 1 2,003 – 777 17,623
Jointly controlled entity 15,213––––––15,213
Total liabilities 15,213 14,838 4 1 2,003 – 777 32,836 5. SEGMENT INFORMATION CONTINUED
The segment results for the year ended 31 December 2008 (as restated) are as follows:
City Ski Coastal
Commercial centre Suburban resort resort OtherUnallocated Total
€’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
Revenue 471––– 7,499 22 – 7,992
Operating profit/(loss) 328 (17,370) (413) (2,440) 4,331 (15) (2,273) (17,852)
Finance income 272––––– 791 1,063
Net imputed interest on land payables – 16,340 – (1,525) – – – 14,815
Exchange gain –––––– 1,836 1,836
Profit/(loss) before taxation 600 (1,030) (413) (3,965) 4,331 (15) 354 (138)
Taxation –––––– (323) (323)
Retained profit/(loss) 600 (1,030) (413) (3,965) 4,331 (15) 31 (461)
In the year ended 31 December 2008 sales to one client represented 26% of revenue.
Other information at 31 December 2008 (as restated):
City Ski Coastal
Commercial centre Suburban resort resort OtherUnallocated Total
€’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
Assets 3,419 14,510 6,007 8,299 12,639 494 10,553 55,921
Jointly controlled entity 12,034–––––– 12,034
Total assets 15,453 14,510 6,007 8,299 12,639 494 10,553 67,955
Liabilities – 12,127 5 27 4,767 – 1,141 18,067
Jointly controlled entity 9,533–––––– 9,533
Total liabilities 9,533 12,127 5 27 4,767 – 1,141 27,600
6. RELATED PARTY TRANSACTIONS
Brokers’ fees and consulting services fees of €72,785 (2008: €625,534) were paid to members of the AG Capital Group in Bulgaria of which
Christo Iliev is the chairman.
As at the balance sheet date, there were intra-group balances of €42,168,541, against which an impairment of €12,796,000 has been made
(2008: €38,960,277, impairment nil) between the Company and its subsidiaries. These amounts are eliminated on consolidation. These sums
were lent to provide the subsidiaries with working capital. The amount of interest charged (at 3-month Euribor plus 3.5%) in the year was
€1,820,722 (2008: €1,915,803).
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out in note 8 in aggregate for each of the
categories specified in IAS 24 Related Party Disclosures.
25 Bulgarian Land Development Plc Annual Report 2009 26
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
7. EXPENSES BY NATURE
2008
2009 (as restated)
Group Group
€’000 €’000
Within cost of sales
Cost of developments sold in the year 4,217 3,164
Impairment of loan to joint venture 482 –
Write-down of inventory to net realisable value 5,039 20,205
Within administrative expenses
Auditors’ fees for audit services 71 93
Depreciation 62 64
Employee costs (see note 8) 495 509
Directors’ costs (see note 8) 487 628
Included within audit fees above is an amount of €21,000 (2008: €25,000), relating to fees payable to BDO Bulgaria Ltd., an affiliate of the
Group’s auditors, for the audit of the Bulgarian subsidiaries.
8. EMPLOYEE COSTS
2008
2009 (as restated)
Group Group
€’000 €’000
Wages and salaries (excluding Directors) 444 452
Social security costs 51 57
The monthly average number of employees in the Group was 32 (2008:33), including executive directors. The executive directors are
considered to be the key management.
Details of the Directors’ remuneration are as follows:
2008
2008 (as restated) 2008
2009 (as restated) Compensation (as restated)
Basic salary Basic  salary for loss of office Total
€’000 €’000 €’000 €’000
P Sjöberg* 35 55 – 55
C Iliev 187 208 – 208
D Savov 113 124 – 124
A Daw* 89 29 – 29
D Popov 22 38 – 38
H Klotz 15 25 – 25
J Green* 26 7–7
J Dodwell* – 37 51 88
I McArdle – 28 9 37
V N Vassilev – 17 – 17
Total 487 568 60 628
* Payments were made to companies connected with them 9. INVESTMENT IN SUBSIDIARIES
2008 2007
2009 (as restated) (as restated)
Company Company Company
€’000 €’000 €’000
Shares in group undertakings
At 1 January 206 206 206
Additions in year 9 ––
At 31 December 215 206 206
In May 2009 the Company and its subsidiary BLD (1) Limited incorporated Coöperatieve BLD UA, of which the Company became the member
and which acquired the entire issued share capital of Mercatorius Holding BV for €7,500. The Company also acquired the entire issued share
capital of Perla Group Investments Limited for €1,000. 
10. PROPERTY, PLANT AND EQUIPMENT
Motor Office 
vehicles equipment Computers Other Total
GROUP €’000 €’000 €’000 €’000 €’000
At cost
1 January 2007 (as restated) 108 25 9 12 154
Acquired in year 42 15 20 17 94
1 January 2008 (as restated) 150 40 29 29 248
Acquired in year 89 3 17 16 125
Disposed of in year (73) – (2) – (75)
1 January 2009 (as restated) 166 43 44 45 298
Acquired in year – 4 2 3 9
Disposed of in year (30) – – – (30)
Total 31 December 2009 136 47 46 48 277
Depreciation
1 January 2007 (as restated) (15) (2) (1) (2) (20)
Charge for year (35) (5) (12) (1) (53)
1 January 2008 (as restated) (50) (7) (13) (3) (73)
Charge for year (38) (6) (15) (5) (64)
Disposed of in year 40 – – – 40
At 1 January 2009 (as restated) (48) (13) (28) (8) (97)
Charge for year (35) (7) (13) (7) (62)
Disposed of in year 8 – – – 8
Total 31 December 2009 (75) (20) (41) (15) (151)
Net book value – 31 December 2009 61 27 5 33 126
Net book value – 31 December 2008 (as restated) 118 30 16 37 201
Net book value – 31 December 2007 (as restated) 100 33 16 26 175
27 Bulgarian Land Development Plc Annual Report 2009 28
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
10. PROPERTY, PLANT AND EQUIPMENT CONTINUED
Motor Office 
vehicles equipment Computers Other Total
COMPANY €’000 €’000 €’000 €’000 €’000
At cost
1 January 2009 – – – – –
Acquired in year – 3 – – 3
Total 31 December 2009 – 3 – – 3
Depreciation
At 1 January 2009 – – – – –
Charge for year – – – – –
Total 31 December 2009 – – – – –
Net book value – 31 December 2009 – 3 – – 3
The Company held no property, plant and equipment in the years ended 31 December 2007 or 31 December 2008.
11. INVENTORIES 
2008 2007
2009 (as restated) (as restated)
Group Group Group
€’000 €’000 €’000
Inventories consist of:
Interests in land held for development 29,027 48,683 41,769
Developments in progress 20,092 3,019 3,982
Total inventories 49,119 51,702 45,751
Included in inventories is €1,009,000 (2008: €378,000) of bank interest.
Included in developments in progress is €12,113,000 (2008: €12,562,000, 2007: nil) held as collateral against the bank loan of €9,640,000
(2008: €6,109,000, 2007: nil)), see note 16.
€44,000,000 (2008: €48,800,000, 2007: €44,200,000) of inventories is expected to be recovered in over one year.
12. TRADE AND OTHER RECEIVABLES
2008 2008 2007 2007
2009 2009 (as restated) (as restated) (as restated) (as restated)
Group Company Group Company Group Company
€’000 €’000 €’000 €’000 €’000 €’000
Prepayments 141 19 62 18 629 17
Trade and other receivables 1,570 – 1,366 – 1,772 –
Due from joint venture 370 – –– ––
Other taxes recoverable 614 19 740 73 – –
Prepaid corporation tax 100 – –– ––
Total 2,79538 2,168 91 2,401 17 13. CASH AND CASH EQUIVALENTS
2008 2008 2007 2007
2009 2009 (as restated) (as restated) (as restated) (as restated)
Group Company Group Company Group Company
€’000 €’000 €’000 €’000 €’000 €’000
Bank balances 
– in Euros 1,997 1,315 1,103 – 16,018 12,312
– in Sterling 6,450 6,450 9,282 9,282 15,467 15,991
– in Bulgarian Lev 853 – 127 – 152 –
Cash and cash equivalents 9,300 7,765 10,512 9,282 31,637 28,303
14. SHARE CAPITAL AND SHARE PREMIUM
Number of ordinary shares 
of £0.01p each £’000 €’000
Authorised at 31 December 2009, 2008 and 2007 100,000,000 1,000 1,175
Issued at 31 December 2009, 2008 and 2007 40,000,000 400 470
Under a management incentive arrangement, the Company has entered into an agreement with Real Estate International Solutions LLC
(‘REIS’) (a company controlled by Christo Iliev) whereby REIS is paid a performance fee calculated by reference to shareholder total return in
each of the five years following the March 2006 flotation. The total return is calculated by reference to the increase in the share price (above
the 100p placing prices) during the twelve month period ending on 27 March in each year plus any dividends paid in the period. 
A performance fee becomes payable only once the total return for the year exceeds 10%, with REIS being entitled to a fee equal to 20% of
the excess. The performance fee would be settled up to 50% in cash (the amount to be determined by REIS, subject to the Directors’ approval
in the light of the cash resources and needs of the Group) with the balance payable by the issue of shares (valued by reference to the average
closing mid-market price over the preceding 20 business days). No performance fee arose in the year ended 31 December 2009 (2008: nil).
15. BASIC LOSS AND DILUTED LOSS PER SHARE
2008
2009 (as restated)
Group loss attributable to equity holders of the Company (€’000) (8,601) (461)
Weighted number of ordinary shares in issue (thousands) 40,000 40,000
Basic (loss) per share (c per share) (21.50) (1.15)
Diluted (loss) per share (c per share) (21.50) (1.15) 
29 Bulgarian Land Development Plc Annual Report 2009 30
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
16. NON CURRENT LIABILITIES
2008 2008 2007 2007
2009 2009 (as restated) (as restated) (as restated) (as restated)
Group Company Group Company Group Company
€’000 €’000 €’000 €’000 €’000 €’000
Deferred land payable 14,786 – 12,124 – 33,335 –
The deferred payment is to be settled out of the proceeds of the sales of apartments to be built on the land. The Directors’ estimates of the
amounts payable (before discounting to fair value) are €19.4m (2008: €15.9m, 2007: €41.5m).
2008 2008 2007 2007
2009 2009 (as restated) (as restated) (as restated) (as restated)
Group Company Group Company Group Company
€’000 €’000 €’000 €’000 €’000 €’000
Bank loan
– repayable within one year 288 – – – 2,792 –
– repayable beyond one year 9,352 – 6,109– ––
Total 9,640 – 6,109 – 2,792 –
The bank loan is secured on the buildings and land at Printing House held by BLD Office Park AD. It is repayable in instalments between 
1 November 2010 and 28 March 2013, interest is charged at a rate of 3 month Euribor plus 3.5%. These terms are subject to renegotiation.
17. TRADE AND OTHER PAYABLES
2008 2008 2007 2007
2009 2009 (as restated) (as restated) (as restated) (as restated)
Group Company Group Company Group Company
€’000 €’000 €’000 €’000 €’000 €’000
Social security and other taxes 5– 386 – – –
Trade payables 2,468 23 610 18 507 28
Accruals 176 96 201 71 – 387
Payments on account by 
apartment buyers – refundable 865 – 787 – – –
Payments on account by 
apartment buyers – non-refundable 1,124 – 3,719 – 2,460 –
Total 4,638 119 5,703 89 2,967 415
18. EXCHANGE RATES
The following exchange rates were used to translate assets and liabilities into the reporting currency at 31 December 2009.
Bulgarian Lev 0.4989
Sterling 1.1 1078 31 Bulgarian Land Development Plc Annual Report 2009
19. TAXATION
Isle of Man
There is no taxation payable on the Company’s results as it is based in the Isle of Man where, since 6 April 2006, the Corporate Income Tax
rate for Isle of Man resident companies has been zero percent. Additionally, the Isle of Man does not levy tax on capital gains.
Shareholders resident outside the Isle of Man will not suffer any income tax in the Isle of Man on any distributions made to them.
Bulgaria
Subsidiaries of the Company incorporated in Bulgaria are taxed in accordance with the applicable tax laws of Bulgaria. Bulgarian corporate
tax for the year was 10% (2008:10%) 
Withholding tax is levied on interest on inter-company loans and management charges payable by the Bulgarian subsidiaries to the
Company. The applicable rate in the year was 10% (2008:10%). As withholding tax cannot be utilised by the Company it has been charged
to the profit and loss account.
2008
2009 (as restated)
Group Group
€’000 €’000
Income tax expense
Recognised in the statement of comprehensive income
Current tax expense:
– Bulgarian corporation tax on profits of the period 70 234
– Adjustment in respect of prior year – Bulgarian corporation tax – (48)
– Current year – withholding tax 118 229
– Adjustment in respect of prior year – withholding tax – (113)
188 302
Deferred tax expense:
– Origination of temporary difference 11 21
Total income tax expense in the statement of comprehensive income 199 323
Analysis of current tax expense
(Loss) before tax (11,648) (1,656)
Bulgarian corporation tax
Tax calculated at blended rates (261) 58
Income not taxable – (23)
Expenses not deductible for tax purposes 361 248
Accelerated capital allowances – 1
Other timing differences (5) 10
Items in statement of comprehensive income subjected to withholding tax (25) (39)
Prior period losses utilised – (21)
Adjustment in respect of prior year – (48)
Withholding tax not recoverable – current year 118 229
Adjustment in respect of prior year – withholding tax – (113)
Current tax charge for the period 188 302 32
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
20. FINANCIAL INSTRUMENTS
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and price risk), credit risk, liquidity risk and
cash flow interest rate risk. The Directors regularly review the recoverability of amounts owing to the Company and the Group. Following
these reviews intra group receivables in the Company have been impaired by €12,796,000 (2008: nil) and the Group’s share of amounts owed
by the joint venture has been impaired by €482,000 (2008: nil).
Categories of financial assets and financial liabilities
2008 2008 2007 2007
2009 2009 (as restated) (as restated) (as restated) (as restated)
Group Company Group Company Group Company
€’000 €’000 €’000 €’000 €’000 €’000
Loans and receivables:
Intra group receivables – 29,373 – 38,960 – 22,517
Trade and other receivables 1,940 – 1,366 – 1,772 –
Cash and cash equivalents 9,300 7,765 10,512 9,282 31,637 28,303
Total current financial assets 11,240 37,138 11,878 48,242 33,409 50,820
Total financial assets 11,240 37,138 11,878 48,242 33,409 50,820
Other financial liabilities 
Current financial liabilities:
Trade and other payables 4,633 119 5,317 89 2,967 415
Bank loans 288 – – – 2,792 –
Total current financial liabilities 4,921 119 5,317 89 5,759 415
Non-current financial liabilities:
Deferred land payables 14,786 – 12,124 – 33,335 –
Bank loans 9,352 – 6,109– ––
Total non-current financial liabilities 24,138 – 18,233 – 33,335 –
Total financial liabilities 29,059 119 23,550 89 39,094 415
Market risk
Property and property related assets are inherently difficult to value due to the individual nature of each property. The current property
market recession could materially adversely affect the value of properties being developed by the Group and, by inference, the estimate
relating to the liability for deferred land payables. Agreements which include a deferred land payable are drafted so that in the event of a
fall in property values the deferred liability would also fall, albeit by a lower amount. A 5% change in the selling price of the developed
property would result in approximately a 6% change in the deferred land payable.
Foreign exchange risk
Group 
The Group’s head office operation is conducted in the Isle of Man, which generates certain revenue, expenses, assets and liabilities in sterling.
As a result, the Group is subject to the effects of exchange rate fluctuations with respect to sterling.
Surplus funds are held in Euros if additional funding for developments is anticipated in the following twelve months. Remaining surplus
funds are held in sterling.
The Board’s strategy on foreign exchange risk is as follows. The Board considers that shareholders are aware that the Group’s principal
activities take place in Bulgaria and thus shareholders are aware that they are investing in a group whose property assets are denominated
in Euros. As the Group increases its activities, more of its assets will be in Euro denominated assets. The Board does not consider it appropriate
to enter into Euro/Sterling hedging arrangements, considering that this is a matter for shareholders to undertake if they do not wish to have
a currency rate exposure to the Euro. 33 Bulgarian Land Development Plc Annual Report 2009
20. FINANCIAL INSTRUMENTS CONTINUED
Price risk
The Group’s policy on mitigating risk on property prices is explained in “market risk” above.
Credit risk
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.
Management does not expect any counterparty to fail to meet its obligations although it constantly reviews this risk in the ongoing market
conditions. The Board has chosen to deposit surplus funds in UK banking groups throughout the year.
The Group does not provide credit to apartment purchasers after legal title has passed. In the event of a forward purchaser of an apartment
failing to meet its contractual commitments the Group would retain the deposit (if a loss was expected from a subsequent sale) and be able
to place the apartment back on the market. If the Group does not complete a development any initial deposit made by a prospective
purchaser would be refundable. The Group does not let any properties and so has no credit risk exposure to tenants.
Liquidity risk
The Company maintains sufficient cash balances for working capital and obtains secured bank loans to fund the development of properties.
The Board regularly reviews long term cash flow projections and is thus able to consider if the Group has adequate cash resources for its
proposed activities, taking into account expected outgoings and expected receipts; in doing so, the Board takes into account the need to pay
overheads during development periods. In undertaking these reviews the Board also considers the ability of its bankers to continue to provide
funding on the terms agreed as well as the financial security of those banks holding its deposits.
At 31 December 2009, the Group’s share of the joint venture’s bank loan amounted to €9,640,000, relating to and secured on its Printing
House project (2008:€6,109,000). The loan is repayable between 1 November 2010 and 28 March 2013.
Loan and deferred land payables maturity
2008 2007
2009 (as restated) (as restated)
€’000 €’000 €’000
Less than one year 288 – 2,792
1-2 years 4,848 4,213 –
2-5 years 19,290 14,020 33,335
Total 24,426 18,233 36,127
Interest rate risk
The Company is exposed to risks associated with the effects of fluctuations in prevailing market interest rates on its cash balances and
borrowings. Cash is invested at short-term market interest rates.
The Group has an interest bearing development loan repayable out of sale proceeds. The Group does not at present expect to have any long
term investment loans. The Group has decided at present not to cap interest rates or otherwise seek to limit the adverse impact of an increase
in interest rates. This strategy will be kept under review. 
If interest rates in the period under review had been 10% higher or lower, then the effect on interest receivable would have been plus or
minus €45,000.
Fair values
The carrying values of all financial assets and liabilities are not considered to be materially different to their fair values.
Capital management
The Group manages its capital to ensure that the entities in the Group will be able to continue as a going concern whilst seeking to maximise
shareholder value.
The capital structure of the Group at 31 December 2009 consists of cash and cash equivalents and equity attributable to equity holders of
the parent, comprising issued share capital, reserves and retained earnings. 34
Notes to the Consolidated Financial Statements continued
For the year ended 31 December 2009
Bulgarian Land Development Plc Annual Report 2009
21. SUBSIDIARIES
At 31 December 2009, the Company had the following subsidiaries, all of which are incorporated in Bulgaria, unless stated:
Name of company Holding Proportion held Nature of business
Bulgarian Land Development EAD Ordinary Shares 100% Residential property development
BLD Sofia Tower AD Ordinary Shares 99.8% Residential property development
BLD Borovets EAD Ordinary Shares 100% Residential property development
BLD Kavarna EAD Ordinary Shares 100% Residential property development
BLD Vladaya EAD Ordinary Shares 100% Residential property development
Iamiste Eko Selena EOOD Ordinary Shares 100% Residential property development
Palakaria Fauna EOOD Ordinary shares 100% Residential property development
Kalna Bara EOOD Ordinary shares 100% Residential property development
Redako Agro EOOD Ordinary shares 100% Residential property development
Mogilite Bio EOOD Ordinary shares 100% Residential property development
BLD (1) Limited
(incorporated in Isle of Man) Ordinary shares 100% Dormant
Coöperatieve BLD UA
(partnership registered in Netherlands) Partnership interest 100% Intermediate shareholding entity
Mercatorius Holding BV
(incorporated in Netherlands) Ordinary shares 100% Development financing
Perla Group Investments Limited
(incorporated in British Virgin Islands) Ordinary shares 100% Development financing 35 Bulgarian Land Development Plc Annual Report 2009
22. JOINT VENTURE
During 2008 the Group took a 50% interest in a jointly controlled entity, BLD Office Park AD, which has been accounted for by proportional
consolidation. The following amounts have been recognised in the Group’s consolidated statement of comprehensive income and its
consolidated statement of financial position relating to this jointly controlled entity:
2008
2009 (as restated)
€’000 €’000
Revenue 40 –
Cost of sales (5,625) –
Gross loss (5,585) –
Administrative expenses (368) (143)
Operating loss (5,953) (143)
Finance income 3 2
Loss before and after taxation (5,950) (141)
Current assets 13,251 12,778
Current liabilities 10,019 6,797
Non-current liabilities 9,310 6,109
Total liabilities 19,329 12,906
Net liabilities (6,078) (128)
23. STATEMENT OF COMPREHENSIVE INCOME OF THE PARENT COMPANY
In accordance with Section 3(5) (b) (ii) of the Companies Act 1982, the Company is exempt from the requirement to present its own
statement of comprehensive income. The retained loss for the parent company for the year was €11,175,000 (2008: €2,148,000 loss). 36 Bulgarian Land Development Plc Annual Report 2009
Notice of the Annual General Meeting
NOTICE IS HEREBY GIVEN that the fourth Annual General Meeting of the Company will be held at 3rd Floor, 14 Athol Street, Douglas, 
Isle of Man IM1 1JA on 5 May 2010 at 12 noon for the following purposes:-
ORDINARY BUSINESS
Resolution 1
To receive and consider the Annual Report and Accounts for the year ended 31 December 2009 together with reports of the Directors and
Auditor therein;
Resolution 2
To re-elect Per H Sjöberg as a Director of the Company;
Resolution 3
To re-elect Christo T Iliev as a Director of the Company;
Resolution 4
To re-appoint BDO LLP as Auditor and to authorise the Directors to determine the Auditor’s remuneration.
SPECIAL BUSINESS 
Resolution 5
To consider and, if thought fit, pass the following as an ordinary resolution: 
“In substitution for all existing authorities and pursuant to article 10.1 of the articles of association of the Company, the Directors are
authorised to exercise all powers of the Company to allot Ordinary Shares up to a maximum aggregate nominal amount of £20,000 provided
that the authority shall expire on the date of the Annual General Meeting of the Company to be held in 201 1. The Company may, before this
authority expires, make an offer or agreement which will or might require equity securities to be allotted after such expiry and the Directors
may allot relevant securities pursuant to such offer or agreement as if the authority had not expired” .
Resolution 6 
To consider and, if thought fit, pass the following resolution as a special resolution: 
“Subject to the passing of Resolution 5, the Directors are, in substitution for all existing authorities, given the power to allot Ordinary Shares
as if the pre-emption rights in the articles of association did not apply to the allotment provided that such power shall be limited to:
i) the allotment of Ordinary Shares up to an aggregate nominal amount of £20,000 in connection with an offer of shares open for acceptance
for a period fixed by the Board to holders of shares on the register of members of the Company on a date fixed by the Board in proportion
(as nearly as may be) to their respective holdings of such shares or in accordance with the rights attached thereto but subject to such
exclusions or other arrangements as the Board may deem necessary or expedient to deal with:
(a) fractional entitlements; or
(b) directions from any holders of shares to deal in some other manner with their respective entitlements; or 
(c) legal or practical problems arising in any overseas territory; or
(d) the requirements of any regulatory body or stock exchange; and
ii) the allotment (otherwise than pursuant to sub-paragraph (i) above of Ordinary Shares up to an aggregate nominal value of £20,000 (being
5% of the issued share capital of the Company at the date of this notice);
and hereby conferred shall expire on the date of the Annual General Meeting of the Company to be held in 2011 and so that the Company
may before such expiry make an offer or agreement which will or might require equity securities to be allotted after such expiry and the
Directors may allot equity securities in pursuance of any such offer or agreement as if such power had not expired.”
Resolution 7
To consider and, if thought fit, pass the following resolution as an ordinary resolution: 
“That the Directors be authorised on behalf of the Company to make market purchases (within the meaning of Section 13 of the Isle of Man
Companies Act 1992) of Ordinary Shares provided that: 
i) the maximum number of Ordinary Shares authorised to be acquired shall not exceed 5 per cent of the issued Ordinary Shares at the date
of the Director’s Report; Resolution 7 continued
ii) the minimum price which may be paid for any Ordinary Share is 1p;
iii) the maximum price which may be paid for any such Ordinary Share is the amount equal to 105 per cent of the arithmetical average of
the middle market quotations for an Ordinary Share (as derived from the AIM appendix of the Daily Official List of the London Stock Exchange
plc) for the five business days immediately preceding the day on which the Ordinary Share is purchased;
iv) the authority shall expire on the date of the Annual General Meeting of the Company to be held in 2011” . 
Resolution 8
To consider and, if thought fit, pass the following resolution as a special resolution: 
“That, in order to reflect current market practice for non UK incorporated AIM companies, the articles of association of the Company
be altered by the deletion of Article 174 and the substitution therefor of the following new article:
“174 Obligation to disclose interests in the voting rights attaching to shares and remedies for failure to disclose such interests
174.1 Each holder of shares of the Company shall be under an obligation to make certain notifications in accordance with the provisions of
this article.
174.2 If at any time the Company shall have a class of stock admitted to trading on AIM, the provisions of Chapter 5 of the Disclosure and
Transparency Rules (as amended from time to time) (“DTR 5”) of the UK Financial Services Authority Handbook (the “FSA Handbook”)
shall be deemed to be incorporated by reference into these Articles and accordingly the vote holder and issuer notification rules set
out in DTR 5 shall apply to the Company and each holder of shares of the Company. Notwithstanding the time limits for disclosure
set out in DTR 5, the Company is required by Rule 17 of the AIM Rules for Companies to announce via a Regulatory Information
Service, all the information contained in any vote holder notification “without delay” .
174.3 For the purposes of the incorporation by reference of DTR 5 into these Articles and the application of DTR 5 to the Company and each
holder of shares of the Company, the Company shall (for the purposes of this article 174 only) be deemed to be an “issuer”, as such
term is defined in DTR 5 (and not, for the avoidance of doubt, a “non-UK issuer”, as such term in defined in DTR 5).
174.4 For the purposes of this article 174 only, defined terms in DTR 5 shall bear the meaning set out in DTR 5, and if the meaning of a
defined term is not set out in DTR 5, the defined term shall bear the meaning set out in the Glossary to the FSA Handbook (in such
case, read as the definition applicable to DTR 5).
174.5 If the Company determines that a holder of shares of the Company has not complied with the provisions of DTR 5 as set forth above
(a “Defaulting Holder”) with respect to some or all of such shares held by such holder (“Default Shares”), the Company shall have the
right by delivery of notice to the Defaulting Holder (a “Default Notice”) to:
(a) suspend the right of such Defaulting Holder to vote the Default Shares in person or by representative or by proxy at any general
meeting of the Company or at any separate meeting of the holders of any class of shares of the Company. Such a suspension shall
have effect from the date on which the Default Notice is delivered by the Company to the Defaulting Holder until a date that is
not more than seven (7) days after the Company has determined in its sole discretion that the Defaulting Holder has cured the
non-compliance with the provisions of DTR 5; provided however that the Company may at any time by subsequent written notice
cancel or suspend the operation of a Default Notice; and/or
(b) to (i) withhold, without any obligation to pay interest thereon, any dividend or other amount payable with respect to the Default
Shares with such amount to be payable only after the Default Notice ceases to have effect with respect to the Default Shares, 
(ii) render ineffective any election to receive shares of the Company instead of cash in respect of any dividend or part thereof, or
(iii) prohibit transfer of any shares of the Company held by the Defaulting Holder except with the consent of the Company or if
the Defaulting Holder can provide satisfactory evidence to the Company to the effect that, after due inquiry, such stockholder has
determined that the shares to be transferred are not Default Shares.”
BY ORDER OF THE BOARD
Anne Couper Woods Registered Office:
Assistant Company Secretary 3rd Floor, 14 Athol Street
Douglas, Isle of Man
Dated this 22nd day of March 2010 IM1 1JA
37 Bulgarian Land Development Plc Annual Report 2009 Explanatory Notes to the Resolutions contained in the
Notice of the Annual General Meeting
38 Bulgarian Land Development Plc Annual Report 2009
Resolution 1:
Approval of the Accounts
The Company is required by law to put the Company’s Annual Report and Accounts for 2009 before the meeting. Shareholders are invited
to vote to receive and adopt the Annual Report and Accounts for 2009.
Resolution 2:
Re-election of Per H Sjöberg as a Director of the Company
Mr Sjöberg is retiring in accordance with article 99 of the articles of association and is offering himself for re-election by the shareholders.
Information about Mr Sjöberg is given in the Directors’ Report. 
Resolution 3:
Re-election of Christo T Iliev as a Director of the Company
Mr Iliev is retiring in accordance with article 99 of the articles of association and is offering himself for re-election by the shareholders.
Information about Mr Iliev is given in the Directors’ Report. 
Resolution 4:
Re-appointment of BDO LLP as Auditor
The Company is required by law to re-appoint the Auditor at each Annual General Meeting. BDO LLP has expressed its willingness to continue
in office. The resolution also authorises the Board to agree the Auditor’s remuneration.
Resolution 5:
Authority to allot shares
Shareholders are being asked to pass the necessary resolution to grant the Directors authority to allot Ordinary Shares up to a maximum
aggregate nominal amount of £20,000. This authority will lapse at the conclusion of the Annual General Meeting to be held in 201 1. 
This type of resolution is commonly put before shareholders. The Directors have no present intention of exercising this authority.
Resolution 6:
Disapplication of pre-emption rights
Shareholders are being asked to pass a resolution to empower the Directors to allot Ordinary Shares as if the pre-emption rights in the articles
of association did not apply to the allotment. This allows, among other things, the allotment of shares for cash to be limited to shares having
an aggregate nominal value of £20,000 (being 5% of the issued share capital of the Company at the date of this notice). This authority will
lapse at the conclusion of the Annual General Meeting to be held in 2011. This type of resolution is commonly put before shareholders.
Resolution 6 will be proposed as a special resolution.
Resolution 7:
Purchase of own shares
Shareholders are being asked to pass a resolution to grant the Directors general authority for the Company to make market purchases of its
own shares. The maximum number of Ordinary Shares authorised to be acquired shall not exceed 5 per cent of the issued Ordinary Shares
at the date of the Directors’ Report. This authority will lapse at the conclusion of the Annual General Meeting to be held in 2011. This type
of resolution is commonly put before shareholders. There is no present intention to purchase shares and, if granted, the authority would only
be exercised if an improvement in earnings per share was expected to result and if the purchase was then considered to be in the best interest
of the shareholders generally. If a tender offer is made for more than 5 per cent of the issued Ordinary Shares the Directors will seek
shareholder authority at that time. 
Resolution 8:
Amendment to the articles of association
This relates to the proposed amendment to the articles of association of the Company as set out in the Notice of the Meeting.
Anne Couper Woods Registered Office:
Assistant Company Secretary 3rd Floor, 14 Athol Street
Douglas, Isle of Man
Dated this 22nd day of March 2010 IM1 1JA  39 Bulgarian Land Development Plc Annual Report 2009
Form of Proxy
ANNUAL GENERAL MEETING OF BULGARIAN LAND DEVELOPMENT PLC (THE “COMPANY”)
I/we, the undersigned, being a member(s) of the Company 
Name(s) in Full
(BLOCK LETTERS PLEASE) 
hereby appoint the Chairman of the Meeting 
or (see note 3)
as my/our proxy for the purposes of considering and, if thought fit, to vote for me/us on my/our behalf at the Extraordinary General Meeting
of the Company to be held on 5 May 2010 and at any adjournment thereof, in the following manner: 
RESOLUTIONS:
For* Against* Withheld*
1 The ordinary resolution to receive the financial statements for the year 
ended 31 December 2009 together with reports of the Directors and Auditors
2 The ordinary resolution to re-elect Per H Sjöberg as a Director of the Company 
3 The ordinary resolution to re-elect Christo T Iliev as a Director of the Company 
4 The ordinary resolution to re-appoint BDO LLP as Auditor and to 
authorise the Directors to determine their remuneration 
5 The ordinary resolution to authorise the Directors to allot Ordinary Shares 
to a maximum aggregate nominal amount of £20,000
6 The special resolution to grant the Directors authority to disapply pre-emption rights
7 The ordinary resolution to grant the Company authority to make 
market purchases of up to 2,000,000 Ordinary Shares
8 The special resolution to amend the Company’s articles of association
* Please indicate by marking ‘X’ in the appropriate space how you wish your vote to be cast 
As WITNESS my/our hands this day of 
Signature
NOTES: 
1. If this form is returned without any indication as to how the person appointed as proxy shall vote, he will exercise his discretion as to how he votes or whether he
abstains from voting.
2. This form of proxy, duly signed, and any power of attorney under which it is executed must be deposited at the offices of the Company’s Registrars (Capita Registrars,
PXS, 34 Beckenham Road, Beckenham, BR3 4TU) not less than 48 hours before the time fixed for holding the meeting or an adjourned meeting.
3. A member may appoint a proxy of his own choice. If such an appointment is made, delete the words ‘the Chairman of the Meeting or’ and insert the name of the
person appointed proxy in the space provided. A proxy need not be a member of the Company but must attend the meeting in person to represent the member.
4. A member may appoint more than one proxy in relation to the Meeting, provided that each proxy is appointed to exercise the rights attached to a different share
or shares held by him/her. To appoint more than one proxy please photocopy the Form of Proxy. If you do so please indicate the name of the proxy and the number
of shares in relation to which they are authorised to act as your proxy. All proxy forms must be returned in the same envelope.
5. The appointment of a proxy will note preclude a member from attending and voting at the meeting in person should they subsequently decide to do so. 
6. A corporation should complete this form under its common seal or under the hand of a duly authorised officer or attorney.
7. In the case of joint holders, the vote of the senior shareholder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the other joint
holder(s) and for this purpose seniority will be determined by the order in which the names stand in the register of members of the Company in respect of the joint holding. 
8. A vote withheld is not a vote in law and will not be counted in the calculation of the proportion of votes for and against the resolution.
9. Pursuant to Regulation 22 of the Uncertificated Securities Regulations 2005 of the Isle of Man, the Company specifies that only those shareholders of the Company on
the register at 6:00pm on Monday 3 May 2010 shall be entitled to attend or vote at the Annual General Meeting in respect of the number of shares registered in their
name at the time. Changes to the register of members after that time will be disregarded in determining the rights of any person to attend and vote at the meeting. PXS
34 Beckenham Road
BECKENHAM
BR3 4TU
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