REPORT AND 
ACCOUNTS 
2009
LANDKOM INTERNATIONAL PLC LANDKOM
To read more on Landkom and 
what we do, or check up on our 
recent developments
VISIT US ONLINE AT WWW.LANDKOM.COM
Landkom is a scale producer 
of agricultural crops for supply 
to the global food and biodiesel 
markets. We intend to proﬁtably 
use western farming techniques 
and technologies in the fertile 
land of Ukraine and deliver 
returns to shareholders whilst 
adhering to the highest standards 
of corporate governance.
01 Highlights
02 Where we operate
04 Our business
05 Current milestones
06 Chairman’s statement
10 Chief Executive Officer’s review
14 Chief Financial Officer’s review
16 Board of Directors and Advisers
18 Directors’ report
20 Corporate governance statement
21 Remuneration report 
24 Statement of directors’ responsibilities
25 Independent auditor’s report
26  Consolidated statement 
of comprehensive income
27  Consolidated statement 
of financial position
28  Consolidated cash flow statement
29  Consolidated statement of changes 
in equity
30  Notes to the consolidated 
financial statements 01
Report and Accounts 2009 LANDKOM International PLC
HIGHLIGHTS
  Group management in Ukraine replaced by team 
led by new Chief Executive Officer, Vitaliy Skotsyk.
  Comprehensive review of business completed, operating 
restructuring initiated and new budget implemented.
  Harvested land up 65% for 2009, expected 36% rise 
for 2010 harvest to over 39,000 hectares.
  Administrative costs reduced by 65% to $4.6 million, 
operating costs per hectare reduced by 19%.
  Land bank restructured and optimised to approximately 
74,000 hectares with ability to increase in the short term.
  Sufficient equipment to farm close to 50,000 hectares.
  Placing of $16.1 million in November 2009 solidified 
financial position.
$14.6m
+37%
REVENUE
07 08 09
74,220
-35%
LAND LEASED (HA)
07 08 09
$42.8m
-44%
NET ASSETS
07 08 09
15.8
-34%
ARABLE EMPLOYEES (PER 1,000 HA)
08 09
LANDKOM IS NOW AT A TURNING POINT...
29,062
+65%
LAND HARVESTED (HA)
08 09
$1,017
-19%
AVERAGE OPERATING COSTS (PER HA)
08 09
1.6
10.6
14.6
113.1
76.1
42.8
29,062
17,582
50,000
115,000
74,220
24.1
15.8
1,257
1,017 LANDKOM International PLC
02
Report and Accounts 2009
WHERE WE OPERATE
Ukraine has long been a major supplier 
of agricultural produce owing to its deep, 
fertile, well drained “black earth” soil.
The climate in Ukraine offers excellent temperature 
and rainfall characteristics with a typically continental 
climate of long cold winters followed by short springs 
and hot summers with regular rainfall.
74,220
hectares
TOTAL LAND AREA CONTROLLED BY LANDKOM
TOTAL LAND PLANTED WITH CROP
39,500*
hectares
* Following spring planting 2010. 03
Report and Accounts 2009 LANDKOM International PLC
Western region – covering the oblasts of 
Lviv, Ternopil, Ivano-frankivsk, Zakarpattya 
and Khmelnytskyi.
The western region is centred around the Group’s former 
headquarters in Lviv. This region typically has high levels of 
precipitation which reduces the risk of winter kill over the cold 
winter months through regular snow cover, and provides excellent 
growing conditions in the summer especially for oil seeds through 
rainfall combined with high temperatures. The majority of the 
Group’s cultivated land is located in this region together with 
the majority of its assets and infrastructure.
Southern region – currently covering farmland 
located in Crimea.
Very high levels of sunshine in the growing season mean crops 
such as soya and sunflower are well suited. There is a long history 
of irrigation in Crimea and the Group intends to utilise canal 
access and refurbish existing frigate irrigation equipment before 
committing to the investment of modern irrigation systems. 
Landkom’s operations are located in two sites focused around 
two operating former collective farms. This means that from a 
logistical perspective operations are efficient with fields only a few 
kilometres from the farm base and storage facilities. Owing to dry 
weather at the time of harvest, drying is not required which adds 
to the cost savings compared to other regions.
Central region – currently covering the 
Oblasts of Zhytomyr, Chernihiv and Sumy.
Vast expanses of land are available for profitable crop raising. 
Field sizes are larger than in western Ukraine giving potential for 
increased efficiencies. Rainfall is less than western Ukraine but soil 
quality is excellent. The Group intends to focus maize production 
in this area. Despite a large area under lease, the central region 
has the lowest level of cultivated land of Landkom’s regions, which 
will change over time.
1
3
Climate varies across Ukraine with higher precipitation in the west due 
to the proximity to the Carpathian mountains, which suits cultivation of 
oil seed crops such as rapeseed. Increased snow cover in the west helps 
protect less hardy crops such as rapeseed over the long cold winter 
reducing the risk of winter kill. Areas further east and south are drier which 
eases weather risk in the harvest period and reduces harvesting costs.
Operations are split into three regions: western, southern and central. 
This operating structure will facilitate bolt on acquisitions and assist 
efficient integration.
Western region
2
Southern region
Central region LANDKOM International PLC
04
Report and Accounts 2009
OUR BUSINESS
Landkom intends to become one of 
Europe’s leading feedstock suppliers to 
the biofuels industry through rapeseed 
production and a signiﬁcant producer 
of cereal crops for the food industry.
In order to achieve these objectives, Landkom 
has implemented a number of defined strategies:
  Create the optimally structured 
and operated farming business 
in eastern Europe 
Over time Landkom seeks to act as a significant consolidation 
platform for agriculture activities across Ukraine. In order 
to achieve this, best in class teams from land, legal, finance, 
IT and security need to be in place to ensure efficient integration 
of future acquisitions. Through the experience of the new 
management team, best practices have been assessed 
and are being implemented.
BUSINESS TARGETS
  Maximise profit from land 
under cultivation
The Group’s goal is to maximise profitability of the land bank rather 
than to simply plant land. Although the Group seeks to cultivate 
its entire land bank as soon as possible, careful planning will be 
needed to ensure that crop rotations are managed to ensure the 
most profitable crops have their areas maximised. Operations will 
remain flexible to changes in crop and input prices to properly 
reflect market conditions. 05
Report and Accounts 2009 LANDKOM International PLC
  Conduct sustainable farming 
practices to preserve and 
conserve the environment
Landkom looks at its land bank as a long-term investment. Much of its 
land previously lay derelict and Landkom has restored it to agricultural 
production. The Group seeks to improve the quality of the land, year 
on year, to ensure that yields continue to improve thus increasing 
returns to shareholders. Many of our lease holders are also our 
neighbours and staff, their wellbeing and the wellbeing of their 
environment is of utmost importance.
  Actively manage risk
Given fundamental weather risk inherent in agriculture, the active 
management of other risks is vital to long-term success. The Group will 
be spreading operations across Ukraine and planting spring crops to 
attempt to mitigate weather risk. A wide spread of crops will decrease 
the dependence on any single commodity price. Proactive use of 
derivative instruments will assist in ensuring production costs are met 
and volatility in markets is used to the benefit of shareholders.
39,500
hectares
74,000
hectares
40,000
tonnes
54% of the 2010 harvest drilled 
prior to winter – predominantly 
wheat and rapeseed. Spring 
cropping prepared to cover 
maize, soybean, sunflower, 
spring wheat and mustard. 
Drilling will represent rise of 
36% on 2009 and represents 
53% of land bank.
73% of land bank is registered in 
legally binding lease contracts. 
Priority is to register remaining 
leases and secure the land 
for cultivation. In addition the 
Group has 16,733 hectares of 
“Joint Co-operation Agreements” 
which give land farming rights. 
Land bank can be increased at 
short notice, improving farming 
efficiency being the rationale 
for any such increases.
20,000 tonnes of the 
Group’s storage equipment 
is constructed and operating 
in Lviv. The remaining 20,000 
has been earmarked for Ternopil 
and will be constructed as part 
of the medium storage plan 
to have five state of the art 
storage facilities which will 
decrease costs and permit 
more flexibility over the 
crop selling process.
Secure farm bases are the 
core of the modular structure. 
Each farm module of 
approximately 10,000 hectares 
is centered on a farm base 
equipped with security, diesel 
storage, service facility and 
input storage. The Group’s 
extensive equipment fleet is 
distributed across farm bases.
Planting Land bank Storage Bases/
Equipment
18
TOTAL LAND PLANNED FOR
CULTIVATION FOR HARVEST
IN 2010
TOTAL CURRENT LAND BANK
OF LEASES IN THE NAME OF
LANDKOM GROUP SUBSIDIARIES
TOTAL STORAGE INFRASTRUCTURE
PURCHASED
NUMBER OF FARM BASES
ACROSS OPERATIONS
CURRENT MILESTONES LANDKOM International PLC
06
Report and Accounts 2009
CHAIRMAN’S STATEMENT
I am pleased to present the Group’s 
third Annual Report.
STRATEGY OVERVIEW
The Group’s long term objective remains 
unchanged: to become a profitable major 
agricultural commodity producer for the 
global foodstuff and biofuel markets 
by developing a substantial enterprise, 
using western farming techniques and 
technologies in an underdeveloped part 
of Europe and with the highest standards 
of corporate governance. 
Landkom operates in attractive growth 
markets whilst also providing a positive 
contribution to world food issues. 
The fundamentals remain the same: 
the world’s population continues to grow 
and food and energy security issues are 
key business drivers.
Ukrainian black earth soil is amongst the 
best in the world for arable farming, costs 
remain lower than EU counterparts and 
demand for agricultural produce shows no 
indication of decreasing. The Group has a 
valuable land bank of over 74,000 hectares 
with the potential to increase this to over 
100,000 hectares in the short term. This land 
is now benefiting from being farmed for a 
number of years after an extended period 
of lying fallow, which will further enhance 
yields and returns. Together with the 
new management team which has 
an excellent track record in Ukraine, 
the Board is confident that the Group 
is well positioned to grow strongly and 
to take advantage of the opportunities 
in the Ukrainian agricultural market.
Landkom now has the land, the 
management team, the assets and 
the operational experience to carry 
out efficient arable farming in Ukraine. 
In addition to the strategic fundamentals, 
Landkom combines high operational 
gearing with a now competitive cost 
of production which means any rise 
in crop prices will be directly reflected 
in the bottom line.
OPERATIONAL HIGHLIGHTS
The harvest of 2009 demonstrated the 
operational progress made by the Group, 
particularly as yields were comparable to 
2008 despite the prolonged country-wide 
drought. Harvested land was up significantly 
to 29,062 hectares. At the same time, direct 
operating costs per hectare, on a like for 
like basis, were down approximately 19%. 
Despite widespread financial constraints 
within the market, 21,383 hectares of winter 
crop were drilled into moist seedbeds which 
avoided the pre-winter drought-related 
NEIL BALFOUR CHAIRMAN 07
Report and Accounts 2009 LANDKOM International PLC
crop losses incurred by many other farming 
groups located further to the east of Ukraine. 
Winter crops were heavily concentrated on 
rapeseed with the balance being wheat 
and barley. Rapeseed has been the best 
performing crop in the Group’s operations 
to date.
Due to the increased efficiencies which 
have been achieved during the last five 
months, the Group intends to increase its 
spring planting target from 8,000 hectares 
to approximately 18,000 hectares. This will 
bring the total hectarage available for 
harvest up to approximately 39,500 hectares, 
which would represent an increase of 36% 
on 2009. Landkom is also increasing the 
variety of crops being cultivated to de-risk 
the Group’s cash flows to movements in 
price of any one crop as well as to extend 
the use of existing machinery through a 
longer, more diversified farming season.
FUNDRAISING
In March 2009, the Group completed 
an equity fundraise of $6.6 million for 
working capital purposes. Since the 
period end, the Group raised an additional 
$16.1 million. In addition to providing funds 
for crop management and 2010 spring 
planting, it has put the Group on a firmer 
financial footing.
FINANCIAL RESULTS
Landkom has continued to report 
significant losses, which is disappointing. 
Losses in 2009 were driven by the failure 
to achieve good sales prices together 
with the direct operating expenses which 
were still above industry best practice. 
Good progress has been made curtailing 
expenditure which is not directly attributed 
to the growing of crops. Administrative 
expenses, excluding share option plan 
charges, fell by 62%, well ahead of the
targeted one-third reduction. Any form 
of discretionary investment expenditure 
has been put on hold and will continue 
to remain on hold until the Group begins 
to generate cash internally.
Reducing costs will continue to be a 
key focus in order to reduce the Group’s 
breakeven point. Costs have continued 
to fall since the period end and operating 
costs per hectare are expected to be 
reduced by 35% in 2010 operations.
OPTIMISING LAND 
RESOURCES
The Group has been disposing of or swapping 
out small portions of logistically inefficient or 
marginal quality land to focus on quality 
land close to main operational hubs.
Management’s immediate task is to proﬁtably maximise the planting of this land 
in the shortest possible time. The quality of the farmed land will continue to improve 
through continuous sustainable farming and improving yields, year on year, 
increasing the value of the land to the Group. Neither the value of land leases, 
nor investment committed to the land is reﬂected on the balance sheet. The
moratorium on purchase of freehold land is expected to continue for the next year.


 LAND UPDATE
  Quality and efficiency of land is central 
to land policy and is strictly monitored 
when new land is taken.
  Over time dependence on western 
regions is to be decreased to spread 
weather risk across wider operations.
  Securing registration of current signed 
leases is an immediate priority to ensure 
Group has right to farm all land in 
land bank.
  Land bank currently includes 
74,220 hectares of signed land 
of which 53,948 is registered.
  Expectation is that the commercial value 
of leases is likely to rise as the economic 
situation improves in Ukraine. LANDKOM International PLC
08
Report and Accounts 2009
CHAIRMAN’S STATEMENT CONTINUED
BOARD AND MANAGEMENT
There has been considerable 
management change during the 
period. At the beginning of the year 
Ben Adams was appointed to the Board 
as Farming Director. In August 2009, 
Richard Spinks departed from the Group 
as Chief Executive Officer and was replaced 
on an interim basis by Stephen Pickup until 
the appointment in November 2009 of 
Vitaliy Skotsyk as Chief Executive. Since 
his appointment Vitaliy has extensively 
replaced the key Ukrainian management 
team. This swift introduction of the
new team has permitted a speedy 
implementation of management and 
operational restructuring. Vitaliy and a 
number of the new management team 
previously worked at Amaco, one of the 
largest suppliers of agricultural machinery 
and inputs in the CIS. Vitaliy has retained 
a non-executive board position with 
Amaco which secures a strong, important 
business relationship for Landkom. Since 
the period end, Ben Adams and Laurence 
Holyoake resigned from the Board and 
were replaced on the Board by new 
Non-Executive Directors John Mapplebeck 
and Tom Morrison.
Although middle management has 
been improved with the new local 
Ukrainian team, care has been taken 
to ensure the infield knowledge has been 
maintained. Local farm managers have 
remained in place and the experiences of 
the past years will continue to be built upon. 
Use of western farming techniques continues.
OUTLOOK
The Group has restructured and significantly 
enhanced its management team which 
has completed a thorough review of all 
aspects of the business and its operations. 
Further significant steps have been made 
to reduce operating costs and to achieve 
lower breakeven production levels whilst 
land quality and productivity is improving 
as the Group completes each crop cycle.
‘The Group’s 
management in 
Ukraine has been 
replaced by the
appointment of 
Vitaliy Skotsyk as 
Chief Executive Officer 
together with a 
number of other key 
appointments from 
within Ukraine and the 
agriculture industry.’ 09
Report and Accounts 2009 LANDKOM International PLC
Landkom has its own storage capability 
for 20,000 tonnes of grain in Lviv with 
equipment for a further 20,000 tonnes 
purchased and earmarked for 
construction in Ternopil region.
Own storage is key to minimising costs and controlling the crop sales 
process especially when considering the wetter environment of 
western Ukraine or crops such as Maize which are high yielding 
and have signiﬁcant drying requirements.
STORAGE UPDATE
  Western Ukraine suffers from a lack of 
modern grain silos with fast drying facilities 
required during the intensive harvest 
period. Outdated silos with slow intake 
rates cause backlogs at peak times.
  During 2009, construction of the first phase 
of the 40,000 tonne storage project 
completed. Final certification is required 
for it to become fully operational and 
able to store third party grains and 
become revenue generating.
 The Board is considering financing 
options for the medium term storage 
strategy to include owned storage 
in every operational region.
The goal now is to plant an ever increasing 
proportion of the valuable land bank on 
a profitable basis. Despite the uncertainties 
of the ongoing Ukrainian economic 
environment, the Board believes EBITDA 
profitability is an attainable target for the 
current financial year, assuming the input 
plans deliver the expected results and the 
crops harvested can be successfully sold.
The Board believes that the right team 
is in place, farming the right crops on 
the right land to deliver positive returns 
to shareholders and looks forward to 
delivering this over the next few years.
NEIL BALFOUR
CHAIRMAN
26 FEBRUARY 2010


 STORAGE IS STRATEGIC FOR 
MEDIUM-TERM GROWTH LANDKOM International PLC
10
Report and Accounts 2009
BUSINESS REVIEW
Chief Executive Officer’s review
Welcome to the third Annual Report of 
Landkom, which describes how the business 
has changed during 2009. Since joining the 
Group in September 2009, and taking the 
Chief Executive Officer role in November 2009, 
my focus has been to carry out a full 
appraisal of the business and its potential. 
At the same time my new management 
team has examined all of our resources 
so that we can plan and best position 
the business in the shortest possible time.
With this process completed, a clear 
budget has been set and is being 
implemented with a view to increasing the 
land under cultivation on a profitable basis 
and reducing operational and overhead 
costs. Valuable assets of land, equipment 
and know-how exist within the Group and 
with changes to efficiencies, procedures, 
company structure and farming methods 
performance will improve and the business 
will transform to a leading, model 
agricultural business in Ukraine.
LAND
Land is the key asset within the business. 
In order to ensure that Landkom is taking 
advantage of fertile land across the whole 
of Ukraine, a new management structure 
is being set up which focuses central 
management in Kiev. 
The famous “black earth” soil which runs 
through the heart of Ukraine is core to 
our operations. Having remained derelict 
for much of the last 20 years, groups like 
Landkom are in the process of revitalising 
it to its former prominence. Productivity 
will increase year on year as soil structure 
improves and nutrients are replaced 
through sustainable applications of inputs 
and informed crop rotation. The benefits 
of this will soon become visible.
Given the current moratorium within Ukraine 
on the purchase of agricultural land, the 
Group acquires leasehold interests in the 
land it controls. As land is held through 
lease agreements, no value is attributed 
on the balance sheet to the value of the 
lease or the value of investment in the land 
through land preparation. Typical new 
leases with individuals have a 15-year term 
and have “right to buy” provisions in the 
event of a change of regulation regarding 
the sale of agricultural land. The Group 
also has leases with local authorities which 
assist to fill in gaps in land areas to ensure 
specific areas are economically viable. 
These leases typically are for a shorter term. 
At end of December 2009 Landkom had 
a land bank of 74,220 hectares of which 
20,272 hectares were awaiting registration. 
The immediate focus is to ensure all Group 
land is properly registered, the Group will 
also look opportunistically expanding and 
optimising the land bank in areas which will 
increase the efficiency of current operations. 
Under the new operating structure the land 
falls under: western region; central region; 
and southern region.
Each region has a regional Director who 
oversees all farming modules within his region.
Currently the Group has seven operating 
modules: five in the western region and one 
in each of the central and southern regions.
VITALIY SKOTSYK CHIEF EXECUTIVE OFFICER
SUMMARY OF 
CHIEF EXECUTIVE OFFICER’S REVIEW
  Since taking the Chief Executive Officer 
role, focus has been to conduct a 
comprehensive review of the business 
and its potential.
  V aluable assets of land, equipment 
and knowhow exist within the Group and 
with changes to efficiencies, procedures, 
company structure and farming methods 
performance will improve and the 
business will transform to a leading, 
model agricultural business in Ukraine.
  A new management structure is being set 
up which focuses central management in 
Kiev. Over time this will spread operations 
more equally across Ukraine away from 
the current strong focus on the west. 11
Report and Accounts 2009 LANDKOM International PLC
ASSETS
In the first 12 months after initial funding 
in April 2007, the Group made significant 
investments in assets. Our goal is to integrate 
these assets into the current vision for the 
business and if necessary take the decision 
to swap assets in order to ensure operations 
are efficient in the medium term.
STORAGE
The construction of the first phase of 
storage was completed in 2009 and 
the facility has accepted Landkom 
grains for drying and storage for testing 
purposes. In order to become a certified 
grain handling silo which will permit third 
party grain handling revenues and allow 
the Group to sell to traders from the silo, 
a number of permissions need to be 
achieved and applications are in process. 
The Group’s medium term strategy is 
to have up to five silo facilities across the 
Group’s main areas of operations. This will 
decrease costs and permit more flexibility 
and control over the crop selling process.
The business has been set up to efficiently 
facilitate bolt on acquisitions in the future 
which will drive growth beyond the current 
land bank.
Until the medium-term strategy is executed, 
the Group will continue to use good 
relationships developed with local silo 
owners to ensure its harvest is carefully 
handled post harvest and pre sale.
FARM BASES
Regional farm bases are as important as 
storage since they provide secure areas 
to store and monitor crop inputs close to 
where they are required. Equally they are 
used to carry out repairs on agricultural 
equipment and to store water and diesel. 
The Group has 18 bases around the 
country in regions where it leases land. 
Under the new Company structure farming 
operations will be concentrated around 
seven main bases: five in the West, one in 
the Central region and one in the South. 
FARM EQUIPMENT
The Group is looking over time to realign 
the agricultural equipment base to fewer but 
larger machines which will lead to cost savings
in personnel, fuel and spares. In some cases 
this realignment will take place immediately 
to ensure correct equipment is on site 
to ensure the cultivation of new crops is 
possible. Over time the realignment will 
continue as part of a distinct equipment 
replacement programme. In order to 
ensure that operators take responsibility for 
the Group’s machinery under their control, 
machinery will be under the responsibility 
of a named operator based on one 
operational module and their incentive 
payments will be received based on 
the condition of their equipment. 
LOGISTICS
Distances from farm base to field and from 
field to silo can be considerable. Landkom 
has invested in a fleet of logistics vehicles 
centred around 25 Freightliner trucks 
complemented by outsourced transport 
companies during peak harvest times. 
Revised modular units will seek to ensure 
that logistics are kept as simple as possible 
with minimal distances driven. 
HARVEST 2009
Significant progress was made in the 2009 
harvest, although in terms of profitability 
this was outweighed by a poor crop sales 
process. In the time critical rapeseed harvest 
2.75 times more hectares were harvested 
in 2009 and the harvest was completed 
two weeks earlier than the previous year. 
All Landkom tonnages relating to harvest 
are clean and dry ready for sale weights 
as certified by silos.
Yields across Ukraine were down compared 
to 2008 owing to the particularly dry spring 
growing season. Landkom achieved a 
rapeseed yield of 2.7 tonnes per hectare 
(2008: 2.8 tonnes per hectare). The wheat 
harvest achieved an average yield across 
high input crops in the west and low input 
crops in central and southern areas of 
3.3 tonnes per hectares (2008: 2.6 tonnes 
per hectare). Western wheat achieved 
yields averaging 4.1 tonnes per hectare. 
Other crops harvested included smaller 
amounts of winter barley yielding 3.6 tonnes 
per hectare, oil radish (0.5 tonnes per hectare),
mustard and other forage crops. The Group 
targets to at least maintain yields for 2010. 
All Group yields are significantly above 
the Ukrainian average.
Future harvests will be spread over a longer 
period of time given the broader range 
of crops planted. This will provide higher 
utility for the Group’s harvest equipment. 
For crops whose harvest is time critical, 
such as rapeseed, additional harvesting 
capability is contracted in at market rates. 
Landkom currently owns 19 combines.
The business is now managed and run 
by experienced Ukrainians from within 
the local agricultural sector.
Local operations are now run exclusively by Ukrainians with strong track 
records of performance within the Ukrainian business environment. Financial 
control is maintained from an international ﬁnance team. The PLC Board 
is made up of Ukrainian and international members.
MANAGEMENT UPDATE
  As part of the new management team, 
appointments have been or will be made 
for heads of land, legal, finance, IT , 
security, machinery and agronomy.
  With the exclusive employment of 
Ukrainian managers, management 
costs continue to be reduced without 
a drop in expertise.
  Innovative employee incentivisation 
policies are being implemented to ensure 
that staff are empowered and feel 
responsible for corporate assets and 
corporate results.
  Although employee numbers continue 
to drop, the Group has ensured those 
employees remaining are skilled 
and motivated.
LOCAL MANAGEMENT 
TEAM REPLACED LANDKOM International PLC
12
Report and Accounts 2009
BUSINESS REVIEW CONTINUED
Chief Executive Officer’s review
PLANTING
WINTER PLANTING 2009
Planting operations commenced in 
August 2009 with 15,136 hectares of 
rapeseed being planted in the western 
regions. Additionally 4,005 hectares of 
winter wheat was planted by the end of 
September, also in the west. When added 
to 2,242 hectares of predominantly wheat 
and barley which was planted in Crimea, 
the Group had 21,383 hectares of crop in 
the ground over the winter. The crop survived 
the dry autumn conditions due to inherent 
moisture in the soil in the western region 
where winter sowing was focused.
Land for an additional 10,000 hectares 
had been prepared for spring planting by 
the end of December 2009. The remaining 
approximately 8,000 hectares of land 
preparation will be completed in 
February and March 2010. 
SPRING PLANTING 2010
Total spring planting will now be increased 
and amount to approximately 18,000 hectares
made up of maize (41%), spring wheat (20%), 
soya (17%), sunflower (17%) and others 
(5%). The new management team has 
extensive experience in these additional 
crops. With the addition of the spring crops, 
total harvest for 2010 will increase to 
approximately 39,500 hectares which 
amounts to an increase of approximately 
36% on 2009.
An increased capacity in spring planting 
will allow mitigation of any reduction in yield 
of winter crops due for example to winter 
kill or to reduced autumn planting. It also 
facilitates Landkom’s strategy to reduce 
risk by increasing the type of crops in the 
rotation, as well as aiding working capital 
management and increasing fixed asset 
utilisation through the extension of seeding 
and harvesting windows.
LIVESTOCK
As a legacy of the land acquisition 
programme, the Group currently has 
a small number of dairy, beef, sheep 
and pig farms. These business are non-core 
and are in the process of being restructured. 
Two of the livestock farms are breeding 
specialists and are registered in stud books. 
SECURITY
Given the widespread nature of operations 
and assets, strong independent security is 
vital to the integrity of the business. In addition 
to a small head office based security team, 
outsourced security contractors are used. 
Experience shows that outsourced security 
works best as it alleviates the opportunity for 
employees to become too close with security 
thereby reducing the risk of conflicts.
IT
As part of the process to incorporate 
all businesses under the leadership of a 
Kiev central office, new IT systems are being 
‘An increased capacity 
in spring planting will 
allow mitigation of any 
reduction in yield of 
winter crops, due for 
example, to winter kill 
or to reduced autumn 
planting. It also facilitates 
Landkom’s strategy to 
reduce risk by increasing 
the variety of crops in 
the rotation, as well as 
aiding working capital 
management and 
increasing fixed 
asset utilisation…’ 13
Report and Accounts 2009 LANDKOM International PLC
A MORE SOPHISTICATED APPROACH
TO PLANNING OPERATIONS
Moving to a multi-crop model, with winter 
and spring cropping equally split, de-risks 
the business model significantly as well 
as helping working capital financing, 
providing more operational flexibility 
and increasing the utilisation of the 
fixed asset base.
FARMING AND PLANTING UPDATE
  For the 2010 harvest, the Group will 
harvest rapeseed, wheat, maize, 
barley, soybean and sunflower.
  Increase in farming expertise and 
experience on the land will lead 
to increased use of precision based 
farming techniques.
  The farming team envisages considerable 
savings of operating costs with no yield 
reduction through better mix of Ukrainian 
and international techniques.
  2010 spring planting operations will take 
place during April and May 2010.
incorporated to improve regional reporting 
and to ensure that operational reporting 
and financial reporting are maintained 
on online bases and can be properly 
monitored at all times by key management.
EMPLOYEES
At the period end the Group had 
624 employees. Of the 624 employees 
89 were employed in administration, 
492 were in employed in crop raising 
operations and 43 were employed in 
livestock. The Group exclusively employs 
Ukrainians in its Ukrainian operations. 
Employees should be incentivised and 
responsible for their part of the business. 
Great care has been taken to give budgetary 
responsibility to all areas of the business 
and to ensure that all employees are 
incentivised to perform. Equity ownership 
through the share option programme is 
likely to be expanded through the business 
over the coming years.
VITALIY SKOTSYK
CHIEF EXECUTIVE OFFICER
26 FEBRUARY 2010

 LANDKOM International PLC
14
Report and Accounts 2009
BUSINESS REVIEW CONTINUED
Chief Financial Officer’s review
As announced in May 2009, the financial 
reporting date was brought forward to 
31 October from 31 December in order 
to better match the cropping cycle with
the financial reporting cycle. The financial 
results for 2009 are therefore based on 
a ten month period. The impact on the 
reported profit or loss for the ten months to 
31 October 2009, as a result of this change 
in reporting date, is principally limited to 
a reduction in administrative costs and 
depreciation charges. This is because the 
Group matches operating costs to revenues.
The income statement has been presented 
before and after the biological asset fair 
value adjustment, to show the impact 
of these adjustments separately from 
direct farming costs.
Revenues for the ten month period 
to 31 October 2009 were $14.6 million 
(twelve months to 31 December 2008: 
$10.6 million). This was lower than expected 
due to the lack of success in timing the 
2009 crop sales. On a per hectare basis 
revenue was down from $605 per hectare 
to $501 per hectare due in part to low 
selling prices achieved. Direct costs were 
$30.3 million (2008: $37.7 million). On a like 
for like per hectare basis, operating costs 
fell 19% to $1,017 per hectare. 
In addition, at the period end, the Group 
had harvested crop held for sale worth 
approximately $1.5 million which is 
recognised as inventory on the balance 
sheet. Most has now been sold for 
approximately the carrying value.
Due to market conditions and realised 
yields, the fair value of biological assets 
at the point of harvest fell below the 
production cost resulting in a negative 
fair value adjustment. Biological assets in 
the ground at 31 October 2009 have been 
recognised at cost on the balance sheet 
with no fair value gain or loss recognised 
in the income statement. 
Depreciation and amortisation was 
$6.4 million (2008: $4.9 million) for the 
ten month period, with the increase 
reflecting the depreciation of assets 
purchased in the first half of 2008. EBITDA 
losses, before exceptional items, were 
reduced to $21.1 million from $52.4 million.
Administrative expenses, including share 
option plan charges, fell significantly 
to $4.6 million from $15.8 million, which 
on a ten month pro rata basis reflects 
a reduction of 65%. Excluding share 
options, administrative expenses fell to 
$4.2 million from $13.3 million. This equates 
to a ten month pro rata fall of 62%; well 
ahead of the targeted one-third reduction.
The table opposite shows the costs for the 
2009 and 2008 harvests. Landkom expects 
to reduce operating costs per hectare 
by a further 35% in the 2010 harvest for 
comparable crops (rapeseed and winter 
wheat) in the current year. In this period 
and subsequently, the Group will report 
costs on a crop by crop basis reflecting the 
increased mix of crops and the balance 
between spring and winter cropping.
STEPHEN PICKUP CHIEF FINANCIAL OFFICER
SUMMARY OF 
CHIEF FINANCIAL OFFICER’S REVIEW
 The financial reporting date was brought 
forward to 31 October from 31 December 
in order to better match the cropping cycle 
with the financial reporting cycle. 
  On a per hectare basis revenue was 
down from $605 per hectare to $501 
per hectare due in part to low selling 
prices achieved.
 On a like for like per hectare basis, 
operating costs fell 19% to $1,017 per 
hectare and administrative expenses 
(excluding share option charges) fell 
to $4.2 million from $13.3 million a 
reduction of 62%.
 Exceptional items relate principally to a 
$10.2 million write-down of the Ukrainian V A T
receivable, although the Group intends to 
continue to seek reimbursement of the V AT. 15
Report and Accounts 2009 LANDKOM International PLC
Total staff costs, which are allocated 
to both direct costs and administrative 
expenses, excluding non-cash 
share-based payments, totalled 
$5.9 million (2008: $9.8 million), 
a reduction of 40%.
Reducing costs has continued to be a 
key focus in order to reduce the Group’s 
breakeven point. Costs have continued 
to fall since the period end. 
At the period end, within the arable side 
of the business following the assumed 
spring planting, Landkom had 15.8 employees
per thousand hectares. This is down from 
25.5 in 2008. From November 2009 to 
January 2010 this number was further 
reduced to 10.4 employees per thousand 
hectares demonstrating that the cost 
structure of the business is now in line 
with other scale arable operations 
within Ukraine.
Exceptional items relate principally to a 
$10.2 million write-down of the Ukrainian VAT 
receivable which the Group had held on its 
balance since the importation of the majority 
of its property, plant and equipment in the 
investment phase of the business in late 
2007 and early 2008. Although the Group 
intends to continue to seek reimbursement 
of the VAT, given the financial and political 
situation in the country, prudence dictates 
that there is a write-down of this receivable. 
The Group’s main Ukrainian subsidiary is now 
on a special agricultural VAT scheme which 
allows it to recognise the net of purchase 
and sales VAT in the profit or loss. $1.2 million 
of other income relates to this scheme.
Before the exceptional items, pre-tax losses 
(excluding share option charges) were 
$27.2 million (2008: loss $53.3 million).
During the period, the Group carried 
out a placing of new shares for cash 
which raised $6.6 million for working 
capital purposes. Since the period end, 
the Group completed an additional 
placing of new shares for cash which 
raised $16.1 million. 
Discretionary expenditure was stopped during 
2009 and cash spent on the purchase 
of property plant and equipment was 
less than $1 million. Biological assets are 
reduced compared to 2008 in part due 
to the small reduction in winter cropping 
but also due to reduced investment thanks 
to lower operating costs and the earlier 
period end. Inventories have been 
reduced, with non-crop inventory 
such as spare parts and surplus fertiliser 
and chemicals reduced to $3.7 million 
(2008: $5.6 million). 
The Group will continue to seek to monetise 
capital tied up in inventory to assist working 
capital and expand the area of land 
under cultivation. In contrast to 2008, 
net $9.1 million was spent on operations 
(2008: $64.5 million).
At the period end, the Group had 
$0.9 million of finance lease liabilities, 
most of which have subsequently been 
paid down. Trade payables were largely 
paid down following the placing in 
November 2009.
As and when appropriate, the Board 
uses financial instruments such as forward 
off-take contracts or financial derivatives 
to hedge commodity prices. The purpose 
of the Group’s hedging strategy is to 
hedge and reduce business risk rather 
than to speculate. Due to local legislation, 
the Group continues to be unable 
to hedge against the Ukrainian Hryvnya 
although over the period stability returned 
to the US$/UAH exchange rate stabilising 
at around UAH 8 to 1 US$.
STEPHEN PICKUP 
CHIEF FINANCIAL OFFICER
26 FEBRUARY 2010
LIKE FOR LIKE COST PER HECTARE COMPARISONS
Harvest Harvest Harvest Harvest
average average rapeseed winter wheat
2008 2009 Saving 2009 2009
Number of hectares 11,430 26,074 14,630 11,444
Seed chemical and fertiliser 434 539 (24%) 621 435
Fuel 206 82 60% 91 70
Labour 219 148 32% 169 120
Harvest/logistics 154 64 58% 65 62
Maintenance 187 117 37% 134 95
Land 26 26 0% 26 26
Other 31 41 (32%) 47 34
Total 1,257 1,017 19% 1,153 842

 LANDKOM International PLC
16
Report and Accounts 2009
BOARD OF DIRECTORS AND ADVISERS
REGISTERED OFFICE UK ADMIN OFFICE BROKER LEGAL ADVISERS
Landkom International PLC 81 Rivington Street Liberum Capital Limited DLA Piper UK LLP
11 Hope Street Shoreditch 10th Floor Citypoint 2 Noble Street
Douglas IM1 1AQ London EC2A 3AY 1 Ropemaker Street London EC2V 7EE
Isle of Man United Kingdom London EC2Y 9HT United Kingdom
United Kingdom Tel: +44 (0)20 3170 5681 United Kingdom
UKRAINIAN MANAGEMENT OFFICE NOMINATED ADVISER AUDITORS PUBLIC RELATIONS ADVISERS
2 Brovarska Str. Liberum Capital Limited Baker Tilly UK Audit LLP College Hill
Prolisky Vil. 10th Floor Citypoint Chartered Accountants The Registry
Borispol district 1 Ropemaker Street 2 Bloomsbury Street Royal Mint Court
Kiev region London EC2Y 9HT London WC1B 3ST London EC3N 4QN
Ukraine 08322 United Kingdom United Kingdom United Kingdom
1 2
4
3
5 6 17
Report and Accounts 2009 LANDKOM International PLC
6. JOHN MAPPLEBECK
NON-EXECUTIVE DIRECTOR, AGED 66
Mr Mapplebeck has extensive financial 
and banking experience, both in the 
UK and internationally. He was previously 
Global Head of Project Finance at 
Natwest Group and was also non-executive 
director of JKX Oil & Gas Plc (with principal 
assets in Ukraine), as well as Chairman 
of two private energy companies.
2. VITALIY SKOTSYK
CHIEF EXECUTIVE OFFICER, AGED 37
Mr Skotsyk, a Ukrainian citizen, has valuable 
local and international experience in the 
agricultural sector, having built up and 
led AMACO, one of the largest agricultural 
equipment and input suppliers in the 
CIS over the past twelve years. He has a 
PhD in Agriculture from the Ukraine State 
Agriculture University, a Doctorate of 
Economics in Strategic Management from 
the International Management University, 
Kiev, and has worked in key positions in 
agricultural businesses in the UK and USA.
3. STEPHEN PICKUP
CHIEF FINANCIAL OFFICER, AGED 34
Mr Pickup has ten years of experience 
in investment banking and company 
management, including five years in mergers 
and acquisitions at Deutsche Bank in London 
and Hong Kong. He has lived and worked 
in emerging markets for much of the last 
15 years and splits his time between the UK 
and Ukraine. Mr. Pickup holds an MBA from 
INSEAD and speaks Russian, Chinese and 
French. He was appointed to the Board 
in September 2008.
5. TOM MORRISON
NON-EXECUTIVE DIRECTOR, AGED 63
Mr Morrison holds an MA in Agriculture 
from Cambridge University, and has over 
35 years’ experience working in agriculture, 
food security and rural development 
economics. He also has significant 
investment experience in Eastern 
European farming.
1. NEIL BALFOUR
NON-EXECUTIVE CHAIRMAN, AGED 65
Mr Balfour is an Oxford MA, Barrister at Law 
and a former member of the European 
Parliament (1979–84). His early career 
was in merchant banking at Baring Brothers 
& Co. (1969–74) and European Banking 
Company Ltd (1974–83) where his 
responsibilities were in international corporate 
governance. Since 1990 Mr Balfour has 
concentrated his activities in central Europe 
particularly in Poland, having created a 
number of funds in the fields of private equity, 
privatisation and property. He created and 
served as Chairman of KP Konsorcjum, 
the manager of one of the most successful 
of Poland’s 15 National Investment Funds. 
4. GERALD HOWARTH
NON-EXECUTIVE DIRECTOR, AGED 62
After graduating from Southampton 
University (BA, English), Mr Howarth worked 
in international banking in the City of London,
latterly for Standard Chartered Bank, where 
he was responsible for syndicated lending, 
before being elected to Parliament as the 
MP for Cannock & Burntwood, Staffordshire, 
in 1983. He was Parliamentary Private 
Secretary to the Energy Minister in 1987–1989 
and to The Rt Hon Margaret Thatcher MP
in 1991–1992. In 1992 he lost his seat and 
established a public affairs company 
with Lord Parkinson before returning to 
Parliament as the MP for Aldershot in 1997.  LANDKOM International PLC
18
Report and Accounts 2009
The Directors submit their report and the consolidated financial statements of Landkom International PLC for the ten month period from 
1 January 2009 to 31 October 2009. 
Landkom International PLC is a public listed company, incorporated and domiciled in the Isle of Man and quoted on AIM. 
PRINCIPAL ACTIVITIES
The principal activity during the period was the cultivation and distribution of arable crops for the biofuel and food markets. 
RESULTS
The Group’s loss for the period after taxation was $42,126,000 (2008: $55,976,000).
DIVIDEND
The Directors do not recommend payment of a dividend.
BUSINESS REVIEW AND FUTURE DEVELOPMENTS
This is discussed in the Chairman’s statement and Chief Executive Officer’s review.
DIRECTORS
The following Directors have held office since 1 January 2009:
Date of appointment
Vitaliy Skotsyk 28 September 2009
Stephen Pickup
Neil Balfour
Gerald Howarth
John Mapplebeck 6 January 2010
Tom Morrison 6 January 2010
Ben Adams (resigned 6 January 2010) 10 February 2009
Konrad Nowicki (resigned 2 June 2009)
Richard Spinks (resigned 28 August 2009)
Laurence Holyoake (resigned 6 January 2010)
David Mackie (resigned 10 February 2009)
SHARE CAPITAL
Full details of the authorised and issued share capital of the Company, including movements in the period, are set out in note 22 to the 
financial statements. 
The ordinary issued shares of Landkom International PLC were increased by 195,000,000 ordinary shares in November 2009. The additional 
shares were issued by way of a placing at 5 pence per ordinary share.
SUBSTANTIAL SHAREHOLDINGS
At 16 February 2010 the Company had been notified of the following interests amounting to 3% or more of the Company’s issued 
share capital:
Hunter Hall Investment Management Ltd 18.3%
Invesco Asset Management 13.7%
JP Morgan Asset Management 11.5%
Odey Asset Management LLP 11.0%*
Kairos Investment Management 6.9%
Octopus Investments 6.0%
Spearpoint 3.8%
* Including CFDs.
EMPLOYEES
The Group’s employees are its most important asset. Our policy is to employ the best people, irrespective of race, gender, nationality, 
disability or sexual preferences. Consultation with employees or their representatives occurs at all levels, with the aim of ensuring their 
views are taken into account when decisions are made that are likely to affect their interests. 
DIRECTORS’ REPORT 19
Report and Accounts 2009 LANDKOM International PLC
FINANCIAL RISK MANAGEMENT
Information in respect of the financial risk management objectives and policies of the Group and the exposure of the Group to market 
risk, credit risk, liquidity risk and cash flow risk is contained in note 3 to the financial statements. 
In preparing the financial statements the Directors have assessed the political and economic risk of operating within Ukraine and 
its possible impact on the operations and financial position of the Group. 
DISABLED EMPLOYEES
Applications for employment by disabled persons are given full and fair consideration for all vacancies, having regard to their particular 
aptitudes and abilities. In the event that an employee becomes disabled, every effort is made to retrain them in order that their 
employment with the Group may continue. Landkom employs a number of disabled persons in Ukraine in compliance with Ukrainian 
employment regulations. On 31 October 2009 the Group employed 25 disabled persons (2008: 11 disabled persons). 
ENVIRONMENTAL POLICY
Maintaining and improving the quality of the environment in which we live is an important concern for the Group, our staff, customers, 
suppliers, sub-contractors and communities in which we operate. We have adopted high standards of environmental practices and 
aim to minimise our impact on the environment wherever possible. 
HEALTH AND SAFETY
The Group recognises the importance of maintaining high standards of health and safety for everyone working within our business and 
also for anyone who may be affected by our businesses. Health and safety is of particular importance to our employees. Consequently, 
each of our farm managers has appointed health and safety workers. 
EVENTS AFTER THE REPORTING DATE
Events after the reporting date are described in note 35 to the financial statements.
THIRD PARTY INDEMNITY PROVISION FOR DIRECTORS
Qualifying third party indemnity provision was in place for the benefit of all Directors of the Company for the period. 
AUDITOR
The Directors have resolved that Baker Tilly UK Audit LLP be re-appointed auditor. Baker Tilly UK Audit LLP has indicated its willingness 
to continue in office. 
STATEMENT OF DISCLOSURE OF INFORMATION TO THE AUDITOR
The Directors who were in office on the date of approval of the financial statements have confirmed that, as far as they are aware, there 
is no relevant audit information of which the auditor is unaware. Each of the Directors have confirmed that they have taken all steps that 
they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that it has 
been communicated to the auditor. 
ELECTRONIC COMMUNICATION
The maintenance and integrity of the Landkom International PLC website is the responsibility of the Directors; the work carried out by 
the auditor does not involve consideration of these matters and accordingly, the auditor accepts no responsibility for any changes 
that may have occurred to the financial statements since they were initially presented on the website. 
The Company’s website is maintained in compliance with AIM Rule 26.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation 
in other jurisdictions. 
By order of the Board
STEPHEN PICKUP
CHIEF FINANCIAL OFFICER
26 FEBRUARY 2010  LANDKOM International PLC
20
Report and Accounts 2009
CORPORATE GOVERNANCE STATEMENT
The Company is committed to applying the principles of the Combined Code on Corporate Governance. This statement describes how 
the best practice principles of corporate governance are applied to the Group given the Group’s size and the stage of development 
of the Group and its listing on AIM. 
THE BOARD OF DIRECTORS
The Board, which is responsible for leading, developing and protecting the interests of the Group, comprises of four Non-Executive 
Directors and two Executive Directors. The Non-Executive Directors are of varied backgrounds and experience and the Board considers 
them to exercise independent and objective judgement.
There is a clear division of responsibilities at the head of the Group between the Board and the Executive management. Board meetings 
are held on a regular basis. The Board sets strategy, reviews business plans, trading performance and costs, approves major capital 
investments and disposals, considers all significant operational and financial issues and approves the Group’s financial statements, 
control procedures and risk management policies.
The Board receives timely information on all material aspects about the Group to enable it to discharge its duties. 
All Directors submit themselves for re-election at the Annual General Meeting. 
DIRECTORS’ REMUNERATION
The Company has established a Remuneration Committee the members and activities of which are detailed in the Remuneration report. 
Details of the remuneration of each Director are set out in the Remuneration report. 
ACCOUNTABILITY AND AUDIT
The Company has established an Audit Committee which comprises of the four Non-Executive Directors. The Audit Committee is chaired 
by John Mapplebeck who as a former bank executive possesses both recent and relevant financial experience.
The Audit Committee, which has Terms of Reference agreed by the Board, is responsible for reviewing the Group’s accounting 
policies, monitoring the integrity of the Group’s financial statements and announcements and reviewing the internal control and 
risk management systems and compliance procedures. It is also responsible for reviewing the scope and results of the audit, 
its cost-effectiveness and the independence and objectivity of the auditor. A formal Statement of Independence is received 
from the external auditor each period.
INTERNAL CONTROLS
The Board acknowledges its responsibility for establishing and monitoring the Group’s systems of internal control. The process and 
systems of internal control are designed to manage rather than eliminate the risk of failure to achieve business objectives and can 
only provide reasonable and not absolute assurance against material misstatement or loss.
The key procedures that have been established and which are designed to provide effective control are as follows:
 management structure – the Board meets regularly to discuss all issues affecting the Group; and
  investment appraisal – the Group has a clearly defined framework for investment appraisal and approval is required by the Board, 
where appropriate.
The Board regularly reviews the effectiveness of the systems of internal control and considers the major business, operational and 
financial risks and the control environment and compliance matters. No significant control deficiencies have come to light during the 
period and no weaknesses in internal financial control have resulted in any material losses, contingencies or uncertainties, which would 
require disclosure as recommended by the guidance for Directors on reporting on internal financial control. 
The Audit Committee has recommended to the Board that, taking into account the scale of the Group’s operating interests and 
activities and in light of the control environment described above, there is no current requirement for a separate internal audit function. 
On a regular basis the Audit Committee will continue to review the need to put in place an internal audit function.
RELATIONS WITH SHAREHOLDERS 
The Chairman is the Company’s principal spokesperson with investors, fund managers, the press and other interested parties. 
At the Annual General Meeting, private investors are given the opportunity to question the Board.
GOING CONCERN
Having made appropriate enquiries and having examined the major areas which could affect the Group’s financial position, the Directors 
are satisfied that the Group has adequate resources to continue in operation until forecasted harvest revenues are generated in 
the summer of 2010. Subsequent continued operations are reliant upon the harvest of biological assets which could be damaged 
or destroyed by unforeseen circumstances such as adverse weather conditions. The Directors are satisfied that the condition of the 
biological asset at the date of signing of these financial statements is sufficient to adopt the Going Concern basis in the preparation 
of the financial statements.  21
Report and Accounts 2009 LANDKOM International PLC
REMUNERATION REPORT
The Group has a Remuneration Committee, chaired by Gerald Howarth and consisting of the Chairman and the Non-Executive Directors. 
The Chairman and Non-Executive Directors are responsible for the consideration and approval of the terms of service, remuneration, 
bonuses, share options and other benefits of the other Directors. All decisions are made after giving due consideration to the size and 
nature of the business and the importance of retaining and motivating management. 
The Committee will meet at least once a year and at other times as appropriate. 
DIRECTORS’ CONTRACTS AND LETTERS OF APPOINTMENT
  Date of contract Notice period
Executive Directors
Vitaliy Skotsyk  25 February 2010* 2 weeks**
Stephen Pickup  1 June 2008 6 months
Ben Adams (resigned 6 January 2010) 16 May 2008 6 months
Konrad Nowicki (resigned 2 June 2009) 1 September 2007 6 months
Richard Spinks (resigned 28 August 2009) 1 September 2007 12 months
  Date of contract Notice period
Non-Executive Directors
Neil Balfour 15 October 2007 3 months
Gerald Howarth  15 October 2007 3 months
John Mapplebeck  5 January 2010 3 months
Tom Morrison  5 January 2010 3 months
Laurence Holyoake (resigned 6 January 2010) 8 February 2008 3 months
David Mackie (resigned 10 February 2009) 15 October 2007 3 months
*  A letter of appointment was signed on 25 September 2009 in advance of signing a formal employment contract which was completed once the 
appropriate corporate structure was formed in February 2010. 
** The maximum employee notice period under Ukrainian legislation is two weeks. 
DIRECTORS’ EMOLUMENTS
The aggregate emoluments of the Directors of the Group whilst serving as a Director during the period, were as follows:
2009
Salaries Bonuses Benefits Total
$000 $000 $000 $000
Executive Directors     
Vitaliy Skotsyk* 10—— 10
Stephen Pickup 129 — 2 131
Ben Adams (resigned 6 January 2010) 112 — 2 114
Konrad Nowicki (resigned 2 June 2009) 82 — — 82
Richard Spinks (resigned 28 August 2009) 167 — 2 169
  500 — 6 506
Non-Executive Directors     
Neil Balfour 58—— 58
Gerald Howarth 39—— 39
John Mapplebeck ————
Tom Morrison ————
Laurence Holyoake (resigned 6 January 2010)  39 — 20 59
David Mackie (resigned 10 February 2009) 5 — — 5
    141 — 20 161
Total Directors’ emoluments 641 — 26 667
* Emoluments for Vitaliy Skotsyk are accrued and will only be paid after the appropriate Ukrainian subsidiary has been formed.  LANDKOM International PLC
22
Report and Accounts 2009
REMUNERATION REPORT CONTINUED
DIRECTORS’ EMOLUMENTS CONTINUED
The aggregate emoluments of the Directors of the Group, whilst serving as a Director during the year ended 31 December 2008, 
were as follows:
2008
Salaries Bonuses Benefits Total
$000 $000 $000 $000
Executive Directors     
Stephen Pickup 89 — 1 90
Konrad Nowicki 239 — — 239
Richard Spinks 286 — 5 291
Keith Dawson (resigned 28 April 2008) 49 — — 49
Warwick Smith (resigned 3 September 2008) 82 — — 82
  745 — 6 751
Non-Executive Directors     
Neil Balfour 78—— 78
Gerald Howarth 56—— 56
Laurence Holyoake 46 — 9 55
David Mackie 56—— 56
    236 — 9 245
Total Directors’ emoluments 981 — 15 996
DIRECTORS’ INTERESTS IN SHARE OPTIONS
Directors’ interests in share options of the Company as at 31 October 2009 were as follows:
  Balance at Granted Lapsed/ Balance at Date from
  31 December during cancelled 31 October Date of which
Name of participant 2008 period during period 2009 grant exercisable Expiry date Exercise price
Stephen Pickup 666,667 — — 666,667 29/09/08 29/09/09 29/09/14 30p
  666,667 — — 666,667 29/09/08 29/09/10 29/09/15 30p
  666,667 — — 666,667 29/09/08 29/09/11 29/09/16 30p
  — 166,666 — 166,666 05/05/09 05/05/10 05/05/15 17p
  — 166,667 — 166,667 05/05/09 05/05/11 05/05/16 17p
  — 166,667 — 166,667 05/05/09 05/05/12 05/05/17 17p
Neil Balfour 567,625 — — 567,625 22/11/07 22/11/08 22/11/12 52p
  567,625 — 567,625 — 22/11/07 22/11/09 22/11/13 65p
  567,625 — 567,625 — 22/11/07 22/11/10 22/11/14 78p
Gerald Howarth 409,952 — — 409,952 22/11/07 22/11/08 22/11/12 52p
  409,952 — 409,952 — 22/11/07 22/11/09 22/11/13 65p
  409,952 — 409,952 — 22/11/07 22/11/10 22/11/14 78p
Ben Adams 133,333 — — 133,333 29/09/08 29/09/09 29/09/14 30p
  133,333 — — 133,333 29/09/08 29/09/10 29/09/15 30p
  133,334 — — 133,334 29/09/08 29/09/11 29/09/16 30p
  — 166,666 — 166,666 05/05/09 06/02/10 06/02/15 17p
  — 166,667 — 166,667 05/05/09 06/02/11 06/02/16 17p
  — 166,667 — 166,667 05/05/09 06/02/12 06/02/17 17p
  — 75,000 — 75,000 05/05/09 05/05/10 05/05/15 17p
  — 75,000 — 75,000 05/05/09 05/05/11 05/05/16 17p
  — 75,000 — 75,000 05/05/09 05/05/12 05/05/17 17p
Konrad Nowicki 250,000 — — 250,000 29/09/08 29/09/09 29/09/14 30p
  250,000 — 250,000 — 29/09/08 29/09/10 29/09/15 30p
  250,000 — 250,000 — 29/09/08 29/09/11 29/09/16 30p
  — 62,500 62,500 — 05/05/09 05/05/10 05/05/15 17p
  — 62,500 62,500 — 05/05/09 05/05/11 05/05/16 17p
  — 62,500 62,500 — 05/05/09 05/05/12 05/05/17 17p
Richard Spinks 333,333 — — 333,333 29/09/08 29/09/09 29/09/14 30p
  333,333 — 333,333 — 29/09/08 29/09/10 29/09/15 30p
  333,333 — 333,333 — 29/09/08 29/09/11 29/09/16 30p
Laurence Holyoake 409,952 — — 409,952 10/06/08 10/06/09 10/06/14 86p
  409,952 — 409,952 — 10/06/08 10/06/10 10/06/15 108p
  409,952 — 409,952 — 10/06/08 10/06/11 10/06/16 129p
David Mackie 409,952 — — 409,952 22/11/07 22/11/08 22/11/12 52p
  409,952 — 409,952 — 22/11/07 22/11/09 22/11/13 65p
  409,952 — 409,952 — 22/11/07 22/11/10 22/11/14 78p
9,542,443 1,412,500 4,949,128 6,005,815
The closing price of Landkom International PLC shares at 30 October 2009 was 5.63 pence. During the period the market price of the 
Company’s ordinary shares ranged from 5.63 pence to 17.75 pence.  23
Report and Accounts 2009 LANDKOM International PLC
In addition to the share options granted to the Directors the following have been granted to other employees within the Group:
  Balance at Granted Lapsed/ Balance at Date from
  31 December during cancelled 31 October Date of which
   2008 period during period 2009 grant exercisable Expiry date Exercise price
  2,195,964 — 1,691,408 504,556 22/11/07 22/11/08 22/11/12 52p
  1,135,253 — 630,697 504,556 22/11/07 22/11/09 22/11/13 65p
  1,135,253 — 630,697 504,556 22/11/07 22/11/10 22/11/14 78p
  315,348 — 315,348 — 08/02/08 08/02/09 08/02/14 80p
  315,348 — 315,348 — 08/02/08 08/02/10 08/02/15 100p
  315,348 — 315,348 — 08/02/08 08/02/11 08/02/16 120p
  1,266,667 — 800,000 466,667 29/09/08 29/09/09 29/09/14 30p
  1,266,667 — 1,066,667 200,000 29/09/08 29/09/10 29/09/15 30p
  1,266,667 — 1,066,667 200,000 29/09/08 29/09/11 29/09/16 30p
  — 300,000 — 300,000 05/05/09 15/12/09 15/12/14 17p
  — 300,000 150,000 150,000 05/05/09 15/12/10 15/12/15 17p
  — 300,000 150,000 150,000 05/05/09 15/12/11 15/12/16 17p
  — 189,870 33,334 156,536 05/05/09 05/05/10 05/05/15 17p
  — 189,868 70,833 119,035 05/05/09 05/05/11 05/05/16 17p
  — 189,866 70,833 119,033 05/05/09 05/05/12 05/05/17 17p
9,212,515 1,469,604 7,307,180 3,374,939
The Company’s Remuneration Committee is responsible for the administration of the share option scheme. The rules of the scheme are 
the same for both Directors and employees. Unless otherwise approved by the Remuneration Committee, the share options granted will 
vest in three tranches on the anniversary of the grant for each of the three years after the date of the grant.
The total share options in issue of 9,380,754 represented 3.9% of the issued share capital of 240,008,935 shares at 31 October 2009. 
On behalf of the Board
GERALD HOWARTH
CHAIRMAN OF THE REMUNERATION COMMITTEE
26 FEBRUARY 2010  LANDKOM International PLC
24
Report and Accounts 2009
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and financial statements in accordance with applicable laws 
and regulations.
The Directors are required to prepare Group financial statements in accordance with International Financial Reporting Standards 
(“IFRSs”) as adopted by the European Union.
The Group financial statements are required by IFRSs, as adopted by the European Union, to present fairly the financial position and 
performance of the Group; applicable law provides in relation to the financial statements that references to the financial statements 
giving a true and fair view are references to their achieving a fair presentation. 
The Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the 
affairs of the Group. 
In preparing the Group financial statements, the Directors are required to:
a. select suitable accounting policies and then apply them consistently;
b. make judgements and estimates that are reasonable and prudent;
c.  state whether they have been prepared in accordance with IFRSs adopted by the European Union subject to any material 
departures disclosed and explained in the Group financial statements; and
d.  prepare the Group financial statements on the Going Concern basis unless it is inappropriate to presume that the Group will 
continue in business.
The Directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial 
position of the Group. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors are also responsible for the maintenance and integrity of the corporate and financial information included on the 
Group’s website.  25
Report and Accounts 2009 LANDKOM International PLC
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF LANDKOM INTERNATIONAL PLC
We have audited the Group non-statutory financial statements (“the financial statements”) on pages 26 to 52. The financial 
reporting framework that has been applied in their preparation is International Financial Reporting Standards (IFRSs) as adopted 
by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with our engagement letter with the Company 
dated 20 January 2010. Our audit work has been undertaken so that we might state to the Company’s members those matters we 
are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept 
or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed. 
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
As more fully explained in the Statement of Directors’ Responsibilities on page 24, the Directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements 
in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply 
with the Auditing Practices Board’s (APB’s) Ethical Standards for auditor.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP.
OPINION ON THE FINANCIAL STATEMENTS
In our opinion:
  the financial statements give a true and fair view of the state of the Group’s affairs as at 31 October 2009 and of the Group’s loss 
for the period then ended; and
 the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union.
OPINION ON OTHER MATTER
In our opinion the information given in the Directors’ Report for the financial period for which the financial statements are prepared 
is consistent with the financial statements.
EMPHASIS OF MATTER – GOING CONCERN
In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosures made 
in note 2.1 to the non-statutory financial statements relating to the Group’s ability to continue as a Going Concern. The Group incurred 
a net loss of $42,126,000 during the ten month period ended 31 October 2009 and recorded net cash outflows of $3,858,000. 
As explained in note 2.1, there is uncertainty regarding the cash flows that will arise from the 2010 harvest. This condition indicates the 
existence of a material uncertainty which casts significant doubt over the Group’s ability to continue as a Going Concern. The financial 
statements do not include adjustments that would result if the Group was unable to continue as a Going Concern.
BAKER TILLY UK AUDIT LLP 
REGISTERED AUDITOR
2 BLOOMSBURY STREET
LONDON WC1B 3ST
26 FEBRUARY 2010 LANDKOM International PLC
26
Report and Accounts 2009
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 OCTOBER 2009
Ten month period ended 31 October 2009 Year ended 31 December 2008
Result before Biological Result before Biological
biological asset biological asset
assets adjustment Total assets adjustment Total
note $000 $000 $000 $000 $000 $000
Continuing operations
Revenue 5 14,553 — 14,553 10,645 — 10,645
Losses arising from changes in value of biological assets 18 — (8,509) (8,509) — (11,036) (11,036)
Direct costs 6 (30,332) 8,441 (21,891) (37,680) 6,041 (31,639)
Depreciation on farming property, plant and equipment  (6,213) — (6,213) (4,679) — (4,679)
Gross loss (21,992) (68) (22,060) (31,714) (4,995) (36,709)
Distribution costs (6) — (6) (34) — (34)
Administrative expenses 7 (4,590) — (4,590) (15,750) — (15,750)
Other operating income 8 1,237 — 1,237 ———
Net foreign exchange losses (2,026) — (2,026) (4,578) — (4,578)
Operating loss 8 (27,377) (68) (27,445) (52,076) (4,995) (57,071)
Exceptional items 9 (14,505) — (14,505) ———
Finance income 10 8— 8 1,875 — 1,875
Finance costs 11 (66) — (66) (347) — (347)
Share of loss from associate 16 (98) — (98) (197) — (197)
Loss before income tax (42,038) (68) (42,106) (50,745) (4,995) (55,740)
Income tax expense 12 (20) — (20) (236) — (236)
Loss for the period (42,058) (68) (42,126) (50,981) (4,995) (55,976)
Other comprehensive income, net of tax        
Currency translation difference 1,718 — 1,718 (4,579) — (4,579)
Total comprehensive loss for the period   (40,340) (68) (40,408) (55,560) (4,995) (60,555)
Loss for the period attributable to:        
Equity holders of the Company (41,986) (68) (42,054) (50,753) (4,995) (55,748)
Non-controlling interests (72) — (72) (228) — (228)
Total comprehensive loss for the period attributable to:
Equity holders of the Company (40,268) (68) (40,336) (55,332) (4,995) (60,327)
Non-controlling interests (72) — (72) (228) — (228)
Loss per share (expressed in cents per share)        
Basic loss per ordinary share 13 (18.2)c  (28.2)c
Restated in pence per share (11.0)p  (19.5)p
Fully diluted loss per ordinary share 13 (18.2)c  (28.2)c
Restated in pence per share (11.0)p  (19.5)p 27
Report and Accounts 2009 LANDKOM International PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2009
31 October 31 December
2009 2008
note $000 $000
Assets
Non-current assets
Property, plant and equipment 14 40,519 48,337
Intangible assets 15 27 280
Investment in associates 16 — 95
Available for sale investments 17 — 117
40,546 48,829
Current assets
Biological assets 18 4,098 13,358
Inventories 19 5,166 7,267
Trade and other receivables 20 685 11,124
Cash and cash equivalents 21 222 4,230
10,171 35,979
Total assets 50,717 84,808
Capital and reserves attributable to equity holders of the Company      
Share capital 22 466 411
Share premium 23 144,349 137,814
Retained loss (97,754) (57,072)
Share-based payments reserve 24 1,776 2,754
Foreign exchange reserve 25 (6,176) (7,894)
Total equity attributable to equity holders 42,661 76,013
Equity attributable to non-controlling interests  169 77
Total equity 42,830 76,090
Liabilities
Non-current liabilities
Non-current payables 284 —
Other financial liabilities 26 66 156
350 156
Current liabilities
Trade and other payables 27 6,665 7,716
Other financial liabilities 26 872 846
7,537 8,562
Total liabilities 7,887 8,718
Total liabilities and shareholders’ equity       50,717 84,808
The financial statements on pages 26 to 52 were approved by the Board of Directors and authorised for issue on 26 February 2010 and 
signed on its behalf by:
STEPHEN PICKUP NEIL BALFOUR
CHIEF FINANCIAL OFFICER CHAIRMAN LANDKOM International PLC
28
Report and Accounts 2009
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 31 OCTOBER 2009
        Ten month
        period Year
        ended ended
        31 October 31 December
        2009 2008
  note $000 $000
Cash ﬂows from operating activities      
Loss before tax (42,106) (55,740)
Adjustment for:     
– depreciation and amortisation 6,428 4,916
– impairment of property, plant and equipment  2,117 —
– impairment of intangible assets 202 —
– loss on disposal of property, plant and equipment  126 127
– share-based payment charge 24 394 2,419
– impairment of VAT receivable 10,179 —
– provision on receivable 309 153
– impairment of goodwill and investments 647 —
– impairment of associate loan 649 —
– impairment of biological asset 519 —
– share of loss in associate 98 197
– effect of foreign exchange variances — (2,916)
Fair value adjustment recognised in the statement of comprehensive income:
– biological asset 8,509 11,036
– commodity derivatives — 34
Non-operating activity income/expense in the statement of comprehensive income:     
– finance income 10 (8) (1,875)
– finance costs 921 176
– loss on realisation of currency options — 42
Movements in working capital:       
– decrease/(increase) in inventories 2,101 (5,996)
– decrease/(increase) in trade and other receivables  357 (3,856)
– (decrease)/increase in trade and other payables  (797) 4,148
Income tax expense (20) (236)
Net additions to biological assets 233 (17,094)
Net cash used in operations      (9,142) (64,465)
Cash ﬂows from investing activities        
Purchase of property, plant and equipment (967) (39,227)
Purchase of intangible assets — (201)
Proceeds from disposal of property, plant and equipment  527 —
Interest received 8 1,875
Cost of currency options — (42)
Loans to associated companies (261) (172)
Investment in associated companies — (293)
Purchase of available for sale investments — (117)
Net cash used in investing activities       (693) (38,177)
Cash ﬂows from ﬁnancing activities        
Proceeds from issue of ordinary shares 6,630 21,698
Payment of transaction costs (40) (860)
Finance costs (921) (176)
Non-controlling interest investment into Group  308 127
Net cash received from ﬁnancing activities       5,977 20,789
Net decrease in cash and cash equivalents       (3,858) (81,853)
Cash and cash equivalents at beginning of period  4,230 87,646
Effect of foreign exchange variances (150) (1,563)
Cash and cash equivalents at end of period  21 222 4,230 29
Report and Accounts 2009 LANDKOM International PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2009
Total equity
Foreign Share-based attributable to
Share Share exchange payments Retained shareholders Non-controlling Total
capital premium reserve reserve earnings of the parent interest equity
Balance at 1 January 2008 389 116,998 (3,315) 335 (1,324) 113,083 — 113,083
Loss for the period ———— (55,748) (55,748) (228) (55,976)
Currency translation differences — — (4,579) — — (4,579) — (4,579)
Total recognised income and expense — — (4,579) — (55,748) (60,327) (228) (60,555)
Non-controlling interest on asset acquisition —————— 25 25
Non-controlling interest share of shares issued 
in subsidiary —————— 280 280
Proceeds from shares issued 22———— 22 — 22
Premium from shares issued — 21,676——— 21,676 — 21,676
Share-based payments charge — — — 2,419 — 2,419 — 2,419
Share issue costs — (860) — — — (860) — (860)
Balance at 31 December 2008 411 137,814 (7,894) 2,754 (57,072) 76,013 77 76,090
Loss for the period ———— (42,054) (42,054) (72) (42,126)
Currency translation differences — — 1,718 — — 1,718 — 1,718
Total recognised income and expense — — 1,718 — (42,054) (40,336) (72) (40,408)
Non-controlling interest on business acquisition —————— (143) (143)
Non-controlling interest share of shares issued 
in subsidiary —————— 307 307
Proceeds from shares issued 55———— 55 — 55
Premium from shares issued — 6,575——— 6,575 — 6,575
Share-based payments charge — — — 394 — 394 — 394
Cancellation of share options — — — (1,372) 1,372———
Share issue costs — (40) — — — (40) — (40)
Balance at 31 October 2009 466 144,349 (6,176) 1,776 (97,754) 42,661 169 42,830 LANDKOM International PLC
30
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
1.1 ORGANISATION AND OPERATIONS
Landkom International PLC (“the Company”) is a public limited liability company and was incorporated in the Isle of Man on 10 April 2007. 
Its registered office is at 11 Hope Street, Douglas and its principal place of business is 45 Promyslovo, Lviv, Ukraine. The principal activity 
of the Company and its subsidiaries (together “the Group”) is the cultivation and distribution of arable crops for the biofuel and 
food markets. 
1.2 UKRAINIAN BUSINESS ENVIRONMENT
Ukraine is experiencing political and economic change with the consequence that operations in Ukraine involve risks that are common 
in emerging markets. These consolidated financial statements reflect management’s current assessment of the possible impact on the 
operations and the financial position of the Group.
2. SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies 
have been consistently applied unless otherwise stated.
2.1 BASIS OF PREPARATION
The consolidated financial statements of Landkom International PLC have been prepared in accordance with International Financial 
Reporting Standards (“IFRSs”) as adopted by the European Union. The consolidated financial statements have been prepared on the 
historical cost basis except for derivative financial instruments measured at fair value and biological assets measured at fair value less 
point of sale costs. 
The financial statements have been prepared on the Going Concern basis. Management has carried out a detailed analysis of the 
Group’s cash requirements until the point at which harvest revenues are expected to be realised. Management considers that the 
working capital resources available at the reporting date combined with the $16.1 million gross proceeds from the share placing 
in November 2009, are sufficient to allow the Group to continue as a Going Concern until harvest 2010. Management has a full 
expectation that revenues from crops harvested during 2010 will be sufficient to allow the Group to continue as a Going Concern for 
the foreseeable future. Should the Group be affected by destruction or severe damage to the crop through adverse weather, natural 
disaster or any other means, then the Going Concern basis may not be appropriate. 
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires 
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree 
of judgement of complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are 
disclosed in note 4. 
The following new and revised Standards and Interpretations have been adopted in the current period and have affected the amounts 
reported in these financial statements. 
IAS 1 (revised), “Presentation of financial statements”. The revised standard has introduced terminology changes (including revised 
titles for the financial statements) and changes in the format and content of the financial statements. In addition, the revised standard 
prohibits the presentation of items of income and expenses (that is “non-owner changes in equity”) in the statement of changes 
in equity, requiring “non-owner changes in equity” to be presented separately from owner changes in equity. All “non-owner changes 
in equity” are required to be shown in a performance statement. 
Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements 
(the income statement and statement of other comprehensive income). The Group has elected to present one statement: a statement 
of comprehensive income. 
IFRS 8 “Operating segments”. The Group has adopted IFRS 8 “Operating segments” during the period. The standard supersedes IAS 14 
“Segment reporting” and is effective for the period ended 31 October 2009. IFRS 8 provides segmental information for the Group on the 
basis of information reported internally to the chief operating decision-maker for decision-making purposes. The Group considers that 
the role of chief operating decision-maker is performed by the Group Board of Directors. IAS 14 required segmental information to be 
reported for business segments and geographical segments based on assets and operations that provided products or services 
subject to different risks and returns. The adoption of IFRS 8 has not had any impact on the performance or position of the Group 
or on the presentation of these financial statements as internal reporting is based upon one geographical and operating segment.  31
Report and Accounts 2009 LANDKOM International PLC
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.1 BASIS OF PREPARATION CONTINUED
At the date of authorisation of these financial statements, the following Standards and Interpretations that have not been applied 
in these financial statements were in issue but not yet effective or endorsed (unless otherwise stated):
IFRS 1: Revised IFRS 1 First-time Adoption of IFRS (endorsed)
IFRS 1: First time adoption of IFRS – Amendment; Additional exemptions for first time adopters 
IFRS 2: Share-based payments – Amendment; Cash-settled Share-based payment transactions 
IFRS 3: Business Combinations – Comprehensive revision on applying the acquisition method (endorsed)
IFRS 5: Non-current assets held for sale and discontinued operations: Improvement to Standard
IFRS 6: Exploration for and Evaluation of Mineral Resources: Improvement to Standard
IFRS 9: Financial Instruments
IAS 7: Statement of Cash Flows: Improvement to Standard
IAS 17: Leases: Improvement to Standard
IAS 24: Revised IAS 24 – Related party disclosures
IAS 27: Consolidated and Separate financial statements – Amendments arising from IFRS 3 (endorsed)
IAS 28: Investments in Associates – Consequential amendments arising from IFRS 3 (endorsed)
IAS 31: Investments in Joint Ventures – Consequential amendments arising from IFRS 3 (endorsed)
IAS 32: Financial Instruments: Presentation – amendment; Classification of Rights Issues (endorsed)
IAS 36: Impairment of assets: Improvement to Standard
IAS 38: Intangible assets: Improvement to Standard
IAS 39: Financial Instruments: Recognition and Measurement – Amendment; Eligible hedged items (endorsed)
IFRIC 9: Reassessment of Embedded Derivatives: Improvement to Standard
IFRIC 14: Amendment – Prepayments of a minimum funding requirement
IFRIC 16: Hedges of net investment in a foreign operation: Improvement to Standard
IFRIC 17: Distributions of Non-cash Assets to Owners (endorsed)
IFRIC 18: Transfers of Assets from Customers (endorsed)
IFRIC 19: Extinguishing Financial Liabilities with Equity Instruments 
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact 
on the financial statements of the Group.
2.2 CONSOLIDATION
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company 
(its subsidiaries) for the ten month period ended 31 October 2009 with comparative information for the year ended 31 December 2008. 
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.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive 
income from the effective date of acquisition or up to the effective date of disposal, as appropriate. 
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.
Where subsidiaries have been acquired in order to gain control of assets, the transaction is considered to have been entered into 
at the fair value of the consideration paid and is accounted for as an asset purchase. Any excess cost over the book value of assets 
acquired is considered a fair value adjustment to the assets acquired. Where the cost of acquisition is below the book value of the 
assets acquired, the excess is accounted for as a provision against the relevant assets.  LANDKOM International PLC
32
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.3 ASSOCIATES
Associates are entities over which the Group has significant influence. Significant influence is the power to participate in the financial 
and operating policies of an entity, but is not control or joint control over those policies. 
An investment in an associate is accounted for in the financial statements by the equity method of accounting and is initially 
recognised at cost. Identifiable assets, liabilities and contingent liabilities of the associate in an acquisition are measured at their 
fair values at the acquisition date. 
The Group’s share of its associates’ post-acquisition profits or losses is recognised in the statement of comprehensive income, and its 
share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted 
against the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured 
receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of 
the associate.
2.4 SEGMENT REPORTING
The Group produces arable crops in Ukraine with all customers based in Ukraine. Financial information is reported to the Board 
in IFRSs accounting format with profit, assets and liabilities as one agricultural operating segment. 
2.5 FOREIGN CURRENCY TRANSLATION
(A) FUNCTIONAL AND PRESENTATION CURRENCY
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic 
environment in which the entity operates (“the functional currency”). The parent entity’s functional currency is Pound Sterling. 
The functional currency of the Group’s main operating subsidiary is US Dollars. The consolidated financial statements are presented 
in US Dollars. 
The Group has determined that the main underlying currency of agricultural crop inputs and outputs is US Dollars. As such it has 
selected US Dollars as its presentational currency. 
(B) TRANSACTIONS AND BALANCES
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period 
end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss, except 
when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.
Translation differences on non-monetary financial assets and liabilities are reported as part of the fair value gain or loss. Translation 
differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised 
in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets such as equities classified 
as available for sale are included in the fair value reserve in equity and are recognised in other comprehensive income. 
(C) GROUP COMPANIES
The results and financial position of all the Group companies (none of which has a currency of a hyperinflationary economy) that have 
a functional currency different from the presentation currency are translated into the presentation currency as follows:
 assets and liabilities for each statement of financial position are translated at the closing rate at the reporting date;
  income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this average 
is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income 
and expenses are translated at the rate on the dates of the transactions); and
 all resulting exchange differences are recognised as a separate component of equity. 
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to shareholders’ 
equity. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognised in 
the profit or loss as part of the gain or loss on sale. 
The principal exchange rates used in the preparation of the consolidated financial statements are as follows:
       31 October 31 December
       2009 2008
Pound Sterling 0.62 to US$1  0.69 to US$1
Ukrainian Hryvnya 8.13 to US$1  8.20 to US$1 33
Report and Accounts 2009 LANDKOM International PLC
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.6 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at historical cost, less accumulated depreciation and accumulated impairment losses. 
Depreciation is provided on all property, plant and equipment, except freehold land, and is calculated using the straight-line method 
to allocate their cost or revalued amounts to their residual values over their estimated useful lives as follows:
Buildings 3–50 years
Machinery 5–10 years
Furniture, fittings and equipment 3–5 years
Vehicles 3–10 years
The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at each reporting date. An asset’s carrying 
amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable 
amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised 
within administrative expenses in the statement of comprehensive income.
Assets under construction are stated at cost less impairment losses. The cost of completed construction work is transferred to the 
appropriate category of property, plant and equipment. Depreciation commences when the relevant assets are available for use.
2.7 LEASING
Leases of property, plant and equipment which transfer substantially all the risks and rewards of ownership to the Group are classified 
as finance leases. Finance leases are classified as a financial liability and measured at amortised cost. Finance leases are capitalised 
at the inception of the lease at the lower of the fair value of the leased property, plant and equipment and the present value of the 
minimum lease payments and depreciated over the period of the lease. The resulting lease obligations are included in liabilities. Lease 
payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest 
on the remaining balance of the liability.
All other leases are classified as operating leases. Rentals payable under operating leases, net of lease incentives, are charged to the 
consolidated statement of comprehensive income on a straight-line basis over the period of the lease. Where property lease contracts 
contain guaranteed minimum incremental rental payments, the total committed cost is determined and is amortised on a straight-line 
basis over the life of the lease.
2.8 INTANGIBLE ASSETS
Intangible assets are recognised when they are controlled through contractual or other legal rights, or are separable from the rest 
of the business, and the fair value can be reliably measured.
APPLICATIONS AND IT SOFTWARE
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific 
software. These costs are amortised over their estimated useful lives (three to five years). Amortisation of intangible assets is charged 
to the statement of comprehensive income under the heading of administrative expenses. 
2.9 BUSINESS COMBINATIONS AND GOODWILL
The Group has adopted IFRS 3 (revised) which is effective for accounting periods commencing on or after 1 July 2009 early. 
No adjustments for prior years are required as a result of this. 
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration for each acquisition 
is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity 
instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss 
as incurred. 
Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration 
arrangement, measured at its acquisition-date fair value. Subsequent changes in such fair values are adjusted against the cost of 
acquisition where they qualify as measurement period adjustments (see below). All other subsequent changes in the fair value of 
contingent consideration classified as an asset or liability are accounted for in accordance with relevant IFRSs. Changes in the fair 
value of contingent consideration classified as equity are not recognised.
Where a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are re-measured 
to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in 
profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other 
comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 (2008) are 
recognised at their fair value at the acquisition date.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, 
the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted 
during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information obtained 
about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised 
as of that date.
The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts 
and circumstances that existed as of the acquisition date, and is subject to a maximum of one year.  LANDKOM International PLC
34
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.10 GOODWILL
Goodwill arising in a business combination is recognised as an asset at the date that control is acquired (the acquisition date). 
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the 
acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date 
amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the Group’s interest in the fair value of the 
acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the 
acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognised immediately 
in profit or loss as a bargain purchase gain.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated 
to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to 
which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit 
may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated 
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis 
of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. 
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
2.11 IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
At each reporting date, the Group reviews the carrying amounts of its property, plant and equipment and intangible assets 
to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, 
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where the asset does 
not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating 
unit to which the asset belongs. An intangible asset with an indefinite useful life is tested for impairment annually and whenever there 
is an indication that the asset may be impaired. 
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash 
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value 
of money and the risks specific to the asset for which the estimates of future cash flows have been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount 
of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, 
unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised 
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would 
have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of 
an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case 
the reversal of the impairment loss is treated as a revaluation increase.
2.12 INVENTORIES
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first in first out (FIFO) method. The cost 
of work in progress includes costs of preparing agricultural land, raw materials, direct labour, other direct costs and related production 
overheads (based on normal operating capacity). It excludes borrowing costs. Net realisable value is the estimated selling price in the 
ordinary course of business, less applicable variable selling expenses.
2.13 BIOLOGICAL ASSETS
The Group classifies crops as biological assets. Biological assets are stated at their fair value, based on their current condition, less 
estimated point-of-sale costs. The fair value of biological assets is based on market selling price and direct costs required to bring the 
assets to saleable condition, discounted at an appropriate discount rate at the reporting date. Biological assets that are physically 
attached to land are recognised and measured at their fair value separately from the land.
The Group classifies livestock as biological assets. Livestock are accounted for at fair value less estimated point of sale costs. The fair 
value of cattle is determined by the size of the herd and market prices at the reporting date.
Where there is no reliable measure of the fair value of biological assets at the point of initial recognition, they are measured at cost less 
any impairment losses.
2.14 TRADE RECEIVABLES
Trade receivables, defined as loans and receivables in accordance with IAS 39 “Financial Instruments: Recognition and Measurement”, 
are recorded initially at fair value and subsequently measured at amortised cost. A provision for impairment of trade receivables 
is established when there is evidence that the Group will not be able to collect all amounts due according to the original terms 
of the receivables. The amount of the provision is the difference between the assets’ carrying amount and the present value of future 
cash flows discounted at the effective interest rate. The movement in the provision is recognised in the consolidated statement 
of comprehensive income. Any other trade receivables are recognised at their original amount less an allowance for any doubtful 
amounts. An allowance is made when collection of the full amount is no longer considered probable.
2.15 CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with 
original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities 
on the statement of financial position. 35
Report and Accounts 2009 LANDKOM International PLC
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.16 FINANCIAL LIABILITIES AND EQUITY
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. 
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
2.17 SHARE CAPITAL
Ordinary shares are classified as equity. Equity instruments issued by the Company are recorded at the proceeds received, 
net of direct issue costs.
2.18 TRADE PAYABLES
Trade payables, defined as financial liabilities in accordance with IAS 39, are recognised initially at fair value and subsequently 
measured at amortised cost using the effective interest method. All of the trade payables are non-interest bearing.
2.19 BORROWINGS
Borrowings are recorded at the fair value of the consideration received, net of issue costs. Finance charges are accounted for on 
an accrual basis in the profit or loss using the effective interest rate method and are added to the carrying amount of the instrument 
to the extent that they are not settled in the period in which they arise.
2.20 TAXATION
The tax expense represents the sum of the tax currently payable and deferred tax. 
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the profit or loss, 
because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are 
never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively 
enacted by the reporting date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount 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 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 the initial recognition of goodwill or from the 
initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax profit 
nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, 
and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable 
that the temporary difference will not reverse in the foreseeable future. 
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. 
Deferred tax is charged or credited in the profit or loss, except when it relates to items credited or charged in other comprehensive 
income directly to equity, in which case the deferred tax is also dealt with in other comprehensive income.
2.21 EMPLOYEE BENEFITS
(A) PENSION OBLIGATIONS
Group companies do not operate private pension schemes. The Group makes contributions for the benefit of employees to Ukraine’s 
state pension fund, social security fund, security against injury fund and unemployment fund. These amounts are expensed as incurred.
(B) TERMINATION BENEFITS
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever 
an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is 
demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without 
possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy.
2.22 SHARE-BASED PAYMENTS
The Group has applied the requirements of IFRS 2 “Share-based payment”. The Group issues equity-settled share-based payments 
to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined 
at the grant date of equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the 
Group’s estimate of shares that will eventually vest. Fair value is measured by the use of the binomial option pricing model. The expected 
life used in the model has been adjusted, based on management’s best estimate of the effect of non-transferability, exercise restrictions 
and behavioural considerations. Further details of share options are included in note 24.
2.23 PROVISIONS
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an 
outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. If the effect is material, 
provisions are determined by discounting the expected future cash flows at an appropriate pre-tax discount rate. LANDKOM International PLC
36
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.24 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised on the Group’s statement of financial position when the Group has become 
party to the contractual provisions of the instrument. When considered appropriate the Group uses derivative financial instruments such 
as commodity options to hedge its risks associated with commodity prices. Such derivative financial instruments are initially recognised 
at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are 
carried as assets when the fair value is positive and as liabilities when the fair value is negative.
Any gains or losses arising from changes in fair value on derivatives during the period that do not qualify for hedge accounting are 
taken directly to profit or loss. 
For the purpose of hedge accounting, hedges are classified as fair value hedges when hedging the exposure to changes in the fair 
value of a recognised asset or liability or an unrecognised firm commitment; or cash flow hedges when hedging exposure to variability 
in cash flows that is attributable to a particular risk associated with either a recognised asset or liability. 
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group 
wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation 
includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the 
entity will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows 
attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash 
flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial 
reporting periods for which they were designated.
2.25 AVAILABLE FOR SALE INVESTMENTS
Available for sale investments are non-derivatives that are either designated in this category or not classified in any of the other 
categories. They are included in non-current assets unless management intends to dispose of the assets within twelve months 
of the reporting date. 
Regular purchases and sales of investments are recognised on trade date, the date on which the Group commits to purchase or sell 
the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through 
profit and loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs 
are expensed in the statement of comprehensive income. Investments are derecognised when the rights to receive cash flows from 
investments have expired or have been transferred and the Group had transferred substantially all risks and rewards of ownership. 
Available for sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans 
and receivables are carried at amortised cost using the effective interest method. 
When securities classified as available for sale are sold or impaired the accumulated fair value adjustments recognised in equity 
are included in the statement of comprehensive income as gains and losses from investment securities. Interest on available for 
sale securities calculated using the effective interest method is recognised in the statement of comprehensive income. Dividends 
on available for sale equity instruments are recognised in the statement of comprehensive income when the Group’s right to receive 
payments is established. 
The fair values of quoted investments are based on current bid prices. If the market for the financial investment is not active 
(and for unlisted securities) the Group establishes fair value using valuation techniques. These include the use of recent arm’s length 
transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models 
making maximum use of market inputs and relying as little as possible on entity specific inputs. 
The Group assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is 
impaired. In the case of equity securities classified as available for sale a significant or prolonged decline in the fair value in the security 
below its cost is considered an indicator that the securities are impaired. If any such evidence exists for available for sale financial assets, 
the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment cost on 
the financial asset previously recognised in profit or loss, is removed from equity and recognised in the statement of comprehensive 
income. Impairment losses recognised in the statement of comprehensive income on equity instruments are not reversed through 
the statement of comprehensive income. 
2.26 REVENUE RECOGNITION
Revenue comprises the fair value of the consideration received or receivable for the sale of goods or services in the ordinary course 
of the Group’s activity. Revenue is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the 
Group. The Group recognises revenue when the amount of the revenue can be readily measured, it is probable that future economic 
benefits will flow to the entity and when specific criteria have been met for the Group’s activity as described below. The amount 
of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group 
bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics 
of each arrangement.
(A) SALES OF GOODS
The Group produces and sells a range of arable crops. Sales of goods are recognised when a Group entity has delivered products to 
the purchaser, the purchaser has full discretion over the channel and price to sell the products, and there are no unfulfilled obligations 
that could affect the purchaser’s acceptance of the products. Delivery does not occur until the produce has been delivered to the 
specified location, the risks of obsolescence and loss have been transferred to the purchaser, and either the purchaser has accepted 
the produce in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that 
all criteria for acceptance have been satisfied. 37
Report and Accounts 2009 LANDKOM International PLC
2. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
2.26 REVENUE RECOGNITION CONTINUED
(B) SALES OF SERVICES
Revenue from time and materials contracts is recognised at the contractual rates as labour hours are delivered and direct expenses 
incurred. Revenue from fixed price contracts is recognised under the percentage of completion method and is based on the services 
performed to date as a percentage of the total services to be performed.
If circumstances arise that may change the original estimates of revenues, costs or extent of progress towards completion, estimates 
are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected in income in the period 
in which the circumstances that give rise to the revision become known to management.
(C) INTEREST INCOME
Interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable, 
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s 
net carrying amount.
2.27 COMPARATIVES
The comparative period represents the year from 1 January 2008 to 31 December 2008 and is therefore not directly comparable to 
the ten month period ended 31 October 2009 which is being reported on in these financial statements. The Group changed its 
reporting date to better match the agricultural crop cycle and year end.
3. FINANCIAL RISK MANAGEMENT
3.1 FINANCIAL RISK FACTORS
The Group’s activities expose it to a variety of financial risks: market risk including foreign exchange risk, interest rate risk and price risk; 
credit risk; and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and 
seeks to minimise potential adverse effects on the Group’s financial performance.
Risk management is carried out by a central treasury department under policies approved by the Board. Group treasury identifies, 
evaluates and hedges financial risks in close co-operation with operational management. The Board provides written principles for 
overall risk management, as well as written policies covering specific areas such as foreign exchange risk, interest rate risk and credit risk.
(A) FOREIGN EXCHANGE RISK
The Group operates internationally and is exposed to foreign exchange risks arising from various currency exposures, primarily with 
respect to the Ukrainian Hryvnya and Pound Sterling. Foreign exchange risk arises from future commercial transactions, recognised 
assets and liabilities and net investment in foreign operations. Ukrainian legislation restricts the Group’s ability to hedge its exposure 
to Hryvnya currency exposure and accordingly the Group does not hedge its exposure to this foreign currency risk. 
With the above exception, management has set-up a policy to require Group treasury to manage the foreign exchange risk of Group 
companies against their functional currency. The Group has certain investments in foreign operations, whose net assets are exposed 
to foreign translation risk. 
Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that 
is not the functional currency.
The exposure to foreign exchange risk at the reporting date is:
UK Euro Ukraine Total
2009 2008 2009 2008 2009 2008 2009 2008
$000 $000 $000 $000 $000 $000 $000 $000
Trade receivables — 152 — — 401 238 401 390
Other receivables 132 404 — — 152 10,330 284 10,734
Trade payables (468) (629) (7) (8) (3,109) (5,775) (3,584) (6,412)
Accruals and other payables (710) (347) (12) (6) (2,572) (787) (3,294) (1,140)
Other financial liabilities — — (825) (795) (113) (207) (938) (1,002)
Cash and cash equivalents 13 3,411 — — 209 809 222 4,220
Total (1,033) 2,991 (844) (809) (5,032) 4,608 (6,909) 6,790
During the ten month period to 31 October 2009, the Ukrainian Hryvnya/US Dollar exchange rate fluctuated between a maximum and 
minimum of 9.38 and 7.56 Hryvnya to US$1. During 2008 the peg between the Ukrainian Hryvnya and US Dollar was removed. As a result 
the Ukrainian Hryvnya/US Dollar exchange rate fluctuated between a maximum and minimum of 9.20 and 4.58 Hryvnya to US$1. 
During the ten month period to 31 October 2009 the Pound Sterling/US Dollar exchange rate has fluctuated between a maximum 
and minimum of 0.73 and 0.59 Pound Sterling to US$1 (2008: 0.69 to 0.49).
(B) PRICE RISK
The Group is exposed to the commodity price risk of the arable crops that it produces. To manage its price risk arising from fluctuations 
in crop prices, the Group may enter into forward off-take contracts or commodity options.  LANDKOM International PLC
38
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
3. FINANCIAL RISK MANAGEMENT CONTINUED
3.1 FINANCIAL RISK FACTORS CONTINUED
(C) CASH FLOW AND FAIR VALUE INTEREST RATE RISK
At certain points in time the Group has significant interest-bearing assets and the Group’s income and operating cash flows are partially 
dependent on changes in market interest rates. 
The Group’s interest rate risk arises from short-term deposits, the maximum balance of such deposits during the period amounted 
to $7.5 million. 
The Group’s trade receivable and payable balances are non interest-bearing and are not guaranteed or underwritten. These amounts 
are presented in notes 20 and 27 respectively.
The Group has finance lease agreements which bear interest as detailed in note 26.
(D) CREDIT RISK
Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents and deposits with banks, as well as credit 
exposures to customers including outstanding receivables and committed transactions. 
For term deposits with banks and financial institutions, only independently rated parties with a minimum rating of “A” are accepted. 
The table below shows the major counterparties at the reporting date:
       Balance at Balance at
       31 October 31 December
       2009 2008
   Rating $000 Rating $000
Barclays Private Clients Bank International AA- 10 AA- 3,416
Laiki Popular Bank Cyprus BBB+ 2 BBB 5
Ukraine Export Import Bank — 210 — 809
       222 4,230
Balances held with Laiki Popular Bank Cyprus or Ukraine Export Import Bank were for operational purposes only with no term deposits 
being placed. 
For customers, an assessment of the credit quality of the customer is made, taking into account its financial position, past experience 
and other factors. Individual risk limits are set by the Board. The utilisation of credit limits are regularly monitored. No credit limits were 
exceeded during the reporting period and management does not expect losses from non-payment.
Trade receivables at the reporting date amounted to $401,000 (2008: $390,000).
(E) LIQUIDITY RISK
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding. 
Management monitors the Group’s rolling forecasts of the Group’s liquidity reserve on the basis of expected cash flow. 
The table below analyses the Group’s financial liabilities on a contractual gross undiscounted cash flow basis into maturity groupings 
based on period outstanding at the reporting date up to the contractual maturity date:
  Between
  Less than 6 months Between
  6 months and 1 year 1 and 5 years
31 October 2009
Finance leases 858 14 66
Trade and other payables 6,306 359 284
  7,164 373 350
31 December 2008
Finance leases 25 821 156
Trade and other payables 5,387 1,648 —
  5,412 2,469 156
Sufficient cash is expected to be generated through the Group’s operating cycle, share issuance schemes, and effective cash 
management to meet the contractual cash flows disclosed above. 
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations 
of future events that are believed to be reasonable under the circumstances.
4.1 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
In preparing the financial statements the Group must select and apply various accounting policies which are described in note 2. 
In order to apply its accounting policies the Group makes estimates and judgements concerning the future. The resulting accounting 
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing 
a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed on the following page. 39
Report and Accounts 2009 LANDKOM International PLC
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS CONTINUED
4.1 CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS CONTINUED
(A) BIOLOGICAL ASSETS
Biological assets (living crops) are measured at their fair value at each reporting date. The fair value of biological assets is determined 
based among other estimates on weather conditions, growth potential, harvesting, price development and discount rate. Changes 
in any estimates could lead to recognition of significant fair value changes in the statement of comprehensive income. Where little 
biological transformation has taken place the Group uses cost as an approximation for fair value.
(B) DEFERRED INCOME TAX ASSETS
Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income. No deferred tax 
asset is recognised when management believes that it is more likely than not that a deferred asset will not be realised.
(C) PROVISION FOR IMPAIRMENT OF TRADE RECEIVABLES
An allowance is made for doubtful trade receivables. This allowance represents management’s estimate of accounts receivable that, 
subsequent to the time of sale, may be of doubtful collectability because customers may not be able to pay.
(D) AGRICULTURAL RISK
Agricultural risk arises from the unpredictable nature of the weather, pollution and risks in the performance of crops. The Group’s principal 
operations are located in the prime, fertile lands of western Ukraine and it adopts a portfolio approach to balance its rapeseed production 
with other arable crops.
(E) SHARE-BASED PAYMENTS
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments 
at the date at which they are granted. Estimating fair value requires determining the most appropriate valuation model for a grant of 
equity instruments, which is dependent on the terms and conditions of the grant. This also requires determining the most appropriate 
inputs to the valuation model including the expected life of the option, volatility and dividend yield and making assumptions about 
them. The assumptions and model used are disclosed in note 24.
5. REVENUE
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Rapeseed sales 10,854 8,868
Wheat sales 2,962 1,120
Barley sales 159 35
Chemical and fertiliser sales 314 —
Other income 264 622
        14,553 10,645
Revenues earned from individual customers which represents more than 10% of total sales amounts to $7,457,000 (2008: $8,178,000). 
6. DIRECT COSTS
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Number of hectares of land harvested       29,062 16,689
Direct crop inputs (seed, fertiliser and chemicals)  14,483 13,683
Agricultural produce purchased for resale 339 941
Fuel 2,274 3,028
Staff costs 3,988 5,520
Harvest, drying and storage 1,424 1,662
Maintenance 3,243 4,157
Land rental on cultivated land 756 434
Other land costs 2,210 2,024
Transportation 765 2,671
Agronomy 188 371
Security 226 68
Other direct costs 603 4,801
Movement in inventory (167) (1,680)
        30,332 37,680
Biological asset adjustment (see note 18) (8,441) (6,041)
        21,891 31,639 LANDKOM International PLC
40
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
7. ADMINISTRATIVE EXPENSES
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Staff costs:
– wages, salaries and fees 1,675 4,087
– severance — 495
– social security 202 950
– share-based payments 394 2,419
– other staff costs 78 142
– travel and entertainment 325 1,597
Advertising and public relations 170 862
Communication 99 345
Office costs 209 1,524
Depreciation 135 187
Amortisation 80 50
IT  1 271
Legal 165 367
Auditor’s remuneration – see below 252 331
Other professional 350 371
Bank charges 87 340
Unrecoverable VAT 107 1,195
Loss/(gain) on disposal of assets 126 (3)
Fines and penalties (61) 170
Loss/(gain) on realisation of commodity put option  43 (223)
Other administrative expenses 153 231
Loss on currency option — 42
        4,590 15,750
Amounts payable to Baker Tilly UK Audit LLP and its associates in respect of both audit and non-audit services:
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Audit of consolidated financial statements 185 270
Audit of subsidiary undertakings 51 43
Review of interim results 16 18
        252 331
8. OPERATING LOSS
Operating loss has been derived after charging/(crediting) the following:
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Loss arising from changes in value of Biological asset (see note 18)  8,509 11,036
Direct costs       
Operating leases – land 1,747 1,931
Administrative expenses       
Operating leases – buildings 70 164
Other operating income       
Income from Ukrainian special agricultural VAT scheme  (1,237) — 41
Report and Accounts 2009 LANDKOM International PLC
9. EXCEPTIONAL ITEMS
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Impairment of Ukrainian VAT receivable 10,179 —
Impairment of Podilia Kolodno (see note 16) 530 —
Provision against receivable from non-controlling interest  309 —
Provision against receivable from associate 649 —
Impairment of biological asset (see note 18)  519 —
Impairment of software intangibles (see note 15)  202 —
Impairment of property, plant and equipment (see note 14)  2,117 —
        14,505 —
An impairment charge against Ukrainian VAT receivable has been recognised due to the challenges the Group is encountering 
in recovering this amount from the Ukrainian authorities over the near term. The Group’s efforts to recover the funds continue. 
However due to the economic situation in Ukraine, there can be no certainty over the timing and extent of reimbursement. 
10. FINANCE INCOME
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Bank interest income on short-term deposits 8 1,875
        8 1,875
11. FINANCE COSTS
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Interest expense on finance lease obligations  159 176
Interest expense on payables — 171
Over accrual of interest on payables (93) —
        66 347
12. TAXATION
From incorporation on 10 April 2007 the Company has been resident in the Isle of Man, and is subject to a nil tax rate. The tax charge 
for the period represents a payment on account of Ukraine tax liabilities, which the Group does not believe are recoverable in the 
foreseeable future. There is no tax charge in the prior period due to trading losses incurred. 
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Deferred tax expense relating to the origination and reversal of temporary differences  — —
The tax charge for the period can be reconciled to the loss per the statement of 
comprehensive income as follows:
– loss before tax (42,106) (55,740)
Tax at the Ukrainian corporate income tax rate of 25%  (10,527) (13,935)
Non deductible expenses 10,527 10,232
Loss carried forward — 3,703
Irrecoverable payment on account 20 236
Tax expense for the period      20 236
See note 29 for deferred tax balances. LANDKOM International PLC
42
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
13. EARNINGS PER ORDINARY SHARE
Basic and fully diluted loss per share have been calculated on the loss after taxation for the period and the weighted average number 
of ordinary shares in issue during the period. 
Adjusted loss per share before amortisation of software intangible assets and share-based payments charge has been presented 
in addition to the basic earnings per share since, in the opinion of the Directors, this provides shareholders with a more appropriate 
representation of the underlying earnings derived from the Group’s businesses.
       2009 2008
       Number Number
       of shares of shares
Weighted average number of shares in issue  230,798,412 197,736,743
       Ten months
       ended Year ended
       31 October 31 December
       2009 2008
       $000 $000
Loss after tax (42,054)  (55,748)
Adjustments:
– amortisation of software intangible assets 80 50
– share-based payments charge 394 2,419
Adjusted loss     (41,580)  (53,279)
Basic and fully diluted loss per ordinary share (US$)      (0.182)  (0.282)
Adjusted basic loss per ordinary share (US$)      (0.180)  (0.269)
14. PROPERTY, PLANT AND EQUIPMENT
  Furniture, 
  Vehicles and Assets under fittings and
  Land Buildings machinery construction equipment Total
  $000 $000 $000 $000 $000 $000
Cost
At 1 January 2008 — 67 12,945 707 114 13,833
Corporate asset acquisitions — 454 420 — 1 875
Effect of exchange rate movements — — (32) — (2) (34)
Additions 79 2,823 27,075 8,777 412 39,166
Transfers —1,248—(1,248)——
Disposals — (80) (124) — (4) (208)
At 31 December 2008 79 4,512 40,284 8,236 521 53,632
Assets acquired through business acquisition  — — 22 — 2 24
Effect of exchange rate movements — 17 114 1 1 133
Additions — 124 39 1,106 35 1,304
Transfers —37033(403)——
Disposals — (48) (829) — (1) (878)
At 31 October 2009 79 4,975 39,663 8,940 558 54,215
Accumulated depreciation     
At 1 January 2008 — 3 395 — 89 487
Effect of exchange rate movements — — 26 — — 26
Depreciation charge — 133 4,626 — 107 4,866
Disposals — (36) (45) — (3) (84)
At 31 December 2008 — 100 5,002 — 193 5,295
Effect of exchange rate movements — — 162 — — 162
Depreciation charge — 351 5,890 — 107 6,348
Impairment charge — — 2,117 — — 2,117
Disposals — — (225) — (1) (226)
At 31 October 2009 — 451 12,946 — 299 13,696
Net book value     
31 October 2009 79 4,524 26,717 8,940 259 40,519
31 December 2008 79 4,412 35,282 8,236 328 48,337
Depreciation expense of $135,000 has been charged to administrative expenses (2008: $187,000), and $6,213,000 to cost of sales 
(2008: $4,679,000). 
During 2008 the Group acquired four entities for the purpose of gaining control over the assets within those entities. The property, plant 
and equipment acquired have been accounted for at the consideration paid representing the fair value of the assets acquired. 
Included within assets under construction is a silo complex which has been partly pledged to Eridon LLC as security against trade 
payables due at the reporting date. The total value of the pledge was $2,664,000. The trade payables were settled after the reporting 
date and the pledge removed.  43
Report and Accounts 2009 LANDKOM International PLC
14. PROPERTY, PLANT AND EQUIPMENT CONTINUED
Management has identified a group of farming equipment assets which it intends to sell in future periods. The carrying value of these 
assets was assessed as significantly above the fair value less cost to sell. These assets have therefore been written down to fair value less 
cost to sell resulting in an impairment charge of $1,919,000 which is included within exceptional items. 
Several items of farming equipment could not be located when an asset count was carried out after the 2009 harvest. These assets 
were therefore written down to nil value in use resulting in an impairment charge of $198,000 which is included within exceptional items. 
Assets under construction are comprised of a silo complex, flat storage site and farm bases. The silo complex is expected to enter 
use during the course of the next financial year. The completion of construction on farm bases and flat storage sites is dependent 
upon the availability of financial resources. 
Included in the net book value amount in respect of assets held under finance leases and similar hire purchase contracts are 
the following.
VEHICLES AND MACHINERY $000
Net book value
31 October 2009 1,007
31 December 2008 1,388
Depreciation charge in the period for these assets were:
31 October 2009 188
31 December 2008 130
15. INTANGIBLE ASSETS
SOFTWARE $000
Cost at 1 January 2008 170
Effect of exchange rate movement (40)
Additions 201
Cost at 31 December 2008 331
Effect of exchange rate movement 38
Additions —
Cost at 31 October 2009 369
Accumulated amortisation
At 1 January 2008 1
Amortisation charge 50
At 31 December 2008 51
Effect of exchange rate movement 9
Amortisation charge 80
Impairment charge 202
At 31 October 2009 342
Net book value
31 October 2009 27
31 December 2008 280
Two software programs have been identified as obsolete and are no longer in use. These assets have been written down to nil value 
in use, resulting in an impairment charge of $202,000 which is included within exceptional items. 
16. INVESTMENT IN ASSOCIATES
        2009 2008
        $000 $000
Aggregate amounts relating to associates
Total assets 1,464 927
Total liabilities 1,127 1,103
Revenue 576 1,098
Total loss in year (242) (631)
Cumulative losses since acquisition (494) (252)
Carrying value of investment brought forward      95 —
Investment in period 307 293
Impairment (307) —
Effect of exchange rate movement 3 —
Share of loss (98) (198)
Carrying value at end of period      — 95
Losses in excess of the carrying value of associates are not recognised in the profit or loss. Total unrecognised losses during the period 
amounted to $235,000 (2008: $26,000). Cumulative unrecognised losses at the reporting date amount to $260,000 (2008: $26,000).  LANDKOM International PLC
44
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
16. INVESTMENT IN ASSOCIATES CONTINUED
Details of associates at 31 October 2009 are as follows:
  Proportion of Proportion of
  Place of ownership voting power Principal
Name of associate incorporation interest held activity
Dokychaevskyy Cooperative Ukraine 89% 0% Farm activities
The Group does not have voting control over Dokychaevskyy Cooperative and therefore does not account for it as a subsidiary. 
During the period the Group made an investment in Podilia Kolodno, a company which holds land leases within Ukraine. The underlying 
value of those leases does not support the carrying value of the investment therefore an impairment charge of $307,000 is included 
within exceptional items. 
17. AVAILABLE FOR SALE INVESTMENTS
        2009 2008
        $000 $000
Available for sale investments:
At start of period 117 —
Impairment charge (117) —
Additions — 117
At period end      — 117
Investments represent the Group’s 46% holding in Nadbuganskyy JSC. The investment is held at historic cost less impairment charge as 
there is no quoted market price or active market to measure fair value. The Board has assessed the asset for impairment and considers 
that a full impairment charge should be made on the grounds that positive cash flows are never expected to be received from the 
entity, or disposal of the entity. An impairment charge of $117,000 is included in direct costs. 
Management does not class the investment as an associate as they are not able to exert significant influence over the Company. 
18. BIOLOGICAL ASSETS
The Group’s interests in biological assets are held in its Ukraine subsidiaries. 
The majority of the Group’s biological assets are consumable winter crops that have been planted during the autumn and will be 
harvested during the following summer. Crops are accounted for at fair value less estimated point of sale costs. 
The fair value of biological assets at each reporting date is determined based on the area planted and market prices at the reporting 
date, and based on the crops’ location and condition, which includes estimates of biological transformation and yield potential. 
Where little biological transformation has taken place the Group uses cost as an approximation for fair value. 
Fair value is estimated on the basis of the present value of expected net cash flows, discounted at an appropriate risk adjusted pre-tax 
discount rate. Changes in any estimates could lead to recognition of significant fair value changes in the profit or loss.
The Group’s livestock biological assets, which were acquired through asset acquisitions, mainly consist of beef cattle and dairy cows. 
Livestock are accounted for at fair value less estimated point of sale costs. The fair value of cattle is determined by the size of the herd 
and market prices at the reporting date. Where little biological transformation has taken place the Group uses cost as an approximation 
for fair value. 45
Report and Accounts 2009 LANDKOM International PLC
18. BIOLOGICAL ASSETS CONTINUED
  Livestock Crops Total
  $000 $000 $000
Carrying value at 1 January 2008 — 7,302 7,302
Biological assets acquired through asset acquisitions  12 — 12
Other biological asset additions 37 — 37
Cultivation costs relating to 2007/2008 crops   — 17,644 17,644
Net change in fair value due to price, yield, maturity and cost changes  — (11,104) (11,104)
Total 2007/2008 crop biological asset 49 13,842 13,891
Harvest of biological assets and transfer to inventory  — (13,842) (13,842)
Cultivation costs relating to 2008/2009 crops — 13,241 13,241
Fair value adjustment —6868
Carrying value at 31 December 2008 49 13,309 13,358
Other biological asset additions 85 — 85
Cultivation costs relating to 2008/2009 crops   — 13,693 13,693
Net change in fair value due to price, yield, maturity and cost changes  — (8,509) (8,509)
Total 2008/2009 crop biological asset 134 18,493 18,627
Harvest of biological assets and transfer to inventory  — (18,493) (18,493)
Cultivation costs relating to 2009/2010 crops — 4,483 4,483
Impairment charge — (519) (519)
Fair value adjustment ———
Carrying value at 31 October 2009 134 3,964 4,098
Net change in fair value of biological assets for the period ended
– 31 October 2009 — (8,509) (8,509)
– 31 December 2008 — (11,036) (11,036)
Fair value adjustments recognised for each harvested crop:
        Crop Crop
        harvested harvested
        during during
   ten months year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Fair value adjustment recognised in prior period  68 5,063
Fair value adjustment recognised in current period  (8,509) (11,104)
Total fair value adjustment relating to harvested crop       (8,441) (6,041)
The Group harvested the following produce:
TEN MONTHS ENDED 31 OCTOBER 2009
  Winter wheat Rapeseed Barley
Saleable quantity of produce/MT 37,736 39,437 2,160
Area of land harvested (hectares) 11,445 14,630 600
Yield – MT/hectare 3.3 2.7 3.6
12 MONTHS ENDING 31 DECEMBER 2008
  Winter wheat Rapeseed Spring wheat
Saleable quantity of produce/MT 16,575 15,185 5,974
Area of land harvested (hectares) 6,335 5,354 5,893
Yield – MT/hectare 2.6 2.8 1.0
During 2009, the Group planted 3,053 hectares of land which it subsequently established it does not have a legal right to cultivate. 
Due to the uncertainty over the ownership of this biological asset an impairment charge of $519,000 has been included within 
exceptional items. Whilst the impairment charge writes the disputed biological asset to nil carrying value, the Group is continuing 
to work with the lease holder to agree cultivation rights and normalise the relationship.  LANDKOM International PLC
46
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
19. INVENTORIES
        2009 2008
        $000 $000
Raw materials 3,528 5,579
Work in progress 130 —
Finished goods 1,508 1,688
        5,166 7,267
Raw materials consist of spare parts for property, plant and equipment, agricultural chemicals and fertilisers. 
Finished goods consist of harvested agricultural produce. 
The value of inventory charged to the statement of comprehensive income amounts to $18,673,000 (2008: $17,369,000).
20. TRADE AND OTHER RECEIVABLES
        2009 2008
        $000 $000
Trade receivables 401 390
Prepayments 191 850
VAT recoverable 19 8,951
Other receivables 74 933
        685 11,124
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
        2009 2008
        $000 $000
Pound Sterling 132 556
Ukrainian Hryvnya 553 10,568
        685 11,124
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Group 
does not hold any collateral as security. 
The Directors consider that the carrying amount of trade receivables approximates to their fair values and no provision for trade 
receivables has been made at either year end. Trade receivables at 31 October 2009 and 31 December 2008 are mainly aged 
less than 90 days. 
21. CASH AND CASH EQUIVALENTS
        2009 2008
        $000 $000
Cash at bank and on hand 222 1,045
Short-term deposits — 3,185
        222 4,230
Cash and cash equivalents include the following for the purposes of the cash flow statement:
        2009 2008
        $000 $000
Cash and cash equivalents 222 4,230
22. CALLED UP SHARE CAPITAL
The total authorised share capital of the Company as at the reporting date is as follows:
       2009 2008
       Ordinary shares Ordinary shares
Number of shares of £0.001 each:   
Authorised 500,000,000 500,000,000
Allotted and fully paid 240,008,935 200,008,935
       $000 $000
Allotted and fully paid ordinary shares of £0.001 each     466 411
The issued share capital has been increased as follows:
  Share
  Number capital
Date  of shares Issue price $000
At 1 January 2008 189,208,629 389
18 March 2008 10,800,306 100.0p 22
At 31 December 2008 200,008,935 411
11 March 2009 40,000,000 12.0p 55
At 31 October 2009 240,008,935 466
Details of post year end share issues are in note 35.  47
Report and Accounts 2009 LANDKOM International PLC
23. SHARE PREMIUM ACCOUNT
        2009 2008
        $000 $000
At start of period      137,814 116,998
Premium on shares issued during the period  6,575 21,676
Share issue costs (40) (860)
        144,349 137,814
24. SHARE-BASED PAYMENTS
UNAPPROVED COMPANY SHARE OPTION PLAN (“THE PLAN”)
The only share option scheme operated by the Company during the period was the Unapproved Share Option Plan established on 
22 November 2007. Options granted under the Plan become exercisable following the first, second or third anniversary of the date of 
the grant, and once vested may be exercised up to the fifth anniversary of the date of vesting. There are no performance conditions 
attaching to the awards. Further details are provided in the Remuneration report. 
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options under 
the Plan during the period:
   2009 2008
   2009 WAEP 2008 WAEP
   $000 (pence) $000 (pence)
Outstanding at start of period    18,754,958 52 11,541,728 65
Granted 2,882,104 17 10,125,898 46
Exercised —— ——
Surrendered (2,775,059) 85 ——
Forfeited (9,481,249) 49 (2,912,668) 70
Outstanding at end of period    9,380,754 38 18,754,958 54
Exercisable at end of period    4,152,038 45 3,583,494 52
No options were exercised during the ten month period to 31 October 2009 (2008: nil).
Options outstanding at 31 October 2009 had exercise prices of 17 pence to 86 pence (2008: 30 pence to 129 pence) and average 
contractual life of 5.44 years (2008: 6.25 years).
Options were valued using the binomial option pricing model, but adjusted to model the particular features of the options. The principal 
inputs to the valuation model for the awards were:
        Awards Awards
  during during
        ten months year
        ended ended
        31 October 31 December
        2009 2008
Risk free interest rate 2.1–3.4% pa 3.9–4.3%
Expected volatility 70% pa 50% pa
Dividend yield 0% pa 0% pa
Employee turnover 0% pa 0% pa
The fair value incorporates a number of factors, including the expected effects of early exercise due to employees leaving service after 
the awards have vested or simply wishing to cash in their options.
Expected volatility was determined by calculating the historical volatility of share prices for a group of comparable companies over 
a period commensurate with the expected lifetime of the awards.
The weighted average fair value of the options awarded in 2009 valued in accordance with IFRS 2 was 9.38 pence and the weighted 
average expected life from grant date was 6.5 years. The Group recognised a total expense of $394,000 (2008: $2,419,000) in respect 
of the Plan. Included within the charge of $394,000 is a credit of $569,000 relating to options which were forfeited during the period, 
and a credit of $382,000 relating to options forfeited during the prior period but where the circumstances were only clarified during 
the current period. 
SHARE-BASED PAYMENT RESERVE
        2009 2008
        $000 $000
At start of period      2,754 335
Transfer to retained earnings (1,372) —
Charged to statement of comprehensive income  394 2,419
At end of period      1,776 2,754 LANDKOM International PLC
48
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
25. FOREIGN EXCHANGE RESERVE
        2009 2008
        $000 $000
At start of period      (7,894) (3,315)
Currency translation differences 1,718 (4,579)
At end of period      (6,176) (7,894)
26. OTHER FINANCIAL LIABILITIES
        2009 2008
        $000 $000
Present value of ﬁnance lease liabilities   
Within one year 872 846
Between two and five years 66 156
        938 1,002
The Group’s finance leases bear fixed interest rates set at between 5% and 51% and are denominated in the following currencies:
        2009 2008
        $000 $000
Euro 825 795
Ukrainian Hryvnya 113 207
        938 1,002
Finance leases are secured against those assets to which the finance leases relate.
27. TRADE AND OTHER PAYABLES
        2009 2008
        $000 $000
Trade payables 3,308 6,412
Trade payables due to related parties 346 —
Employee liabilities 847 258
Social security and other taxes 170 169
Accrued expenses and deferred income 1,618 761
Other payables 376 116
        6,665 7,716
The Directors consider that the carrying amount of trade payables approximates to their fair value.
Trade payables become due as follows:
        2009 2008
        $000 $000
1–3 months 2,949 4,764
3–6 months — 993
Over 6 months 359 655
        3,308 6,412 49
Report and Accounts 2009 LANDKOM International PLC
28. FINANCIAL INSTRUMENTS RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION
(A) AT 31 OCTOBER 2009
  Loans and
  other
  Held for Available receivables/
  trading for sale payables Total
  $000 $000 $000 $000
Non-current ﬁnancial assets   
Financial asset investments ————
Current ﬁnancial assets   
Trade and other receivables — — 401 401
Cash and cash equivalents — — 222 222
Total ﬁnancial assets — — 623 623
Current ﬁnancial liabilities   
Trade and other payables — — 5,034 5,034
Obligations under finance leases — — 872 872
Non-current ﬁnancial liabilities   
Obligations under finance leases — — 66 66
Total ﬁnancial liabilities — — 5,972 5,972
(B) AT 31 DECEMBER 2008
  Loans and
  other
  Held for Available receivables/
  trading for sale payables Total
  $000 $000 $000 $000
Non-current ﬁnancial assets       
Financial asset investments — 117 — 117
Current ﬁnancial assets   
Trade and other receivables — — 1,114 1,114
Cash and cash equivalents — — 4,230 4,230
Total ﬁnancial assets — 117 5,344 5,461
Current ﬁnancial liabilities   
Trade and other payables — — 7,035 7,035
Obligations under finance leases — — 846 846
Non-current ﬁnancial liabilities   
Obligations under finance leases — — 156 156
Total ﬁnancial liabilities — — 8,037 8,037
29. DEFERRED INCOME TAX
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset the current tax assets against 
current tax liabilities and when the deferred income taxes relate to the same fiscal authority. 
As at 31 October 2009 the Group had a potential deferred tax asset of $3,681,000 (2008: $3,703,000) relating to trading losses available 
to carry forward. Due to political conditions in Ukraine, the Directors’ view is that this asset will not be realised and is therefore not 
recognised in these financial statements. 
As at 31 October 2009 and 31 December 2008 the Group had no deferred tax liabilities. 
30. RETIREMENT BENEFIT OBLIGATIONS
The Group did not have any retirement benefit obligations as at 31 October 2009 (2008: nil). LANDKOM International PLC
50
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
31. DIRECTORS AND EMPLOYEES
        Ten months Year
        ended ended
        31 October 31 December
        2009 2008
        $000 $000
Staff costs during the period were as follows:
Wages, salaries and fees 5,027 7,798
Social security costs 838 1,523
Termination benefits — 495
Share-based payments 394 2,419
        6,259 12,235
The average number of employees during the period was:
Directors 6 7
Administration 84 123
Operatives 658 652
        748 782
Total number of employees at period end        624 740
Total amount for Directors’ remuneration and other beneﬁts was as follows:
Emoluments for Directors’ services – fees and salaries  667 996
The emoluments of the highest paid Director were $169,000 (2008: $291,000).
32. LEASING COMMITMENTS
OPERATING LEASE COMMITMENTS – GROUP AS A LESSEE
The Group leases parcels of land under non-cancellable operating leases. The lease expenditure charged to the statement 
of comprehensive income during the period is disclosed in note 8. 
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
        2009 2008
        $000 $000
Registered land leases:
No later than 1 year 725 752
Later than 1 year and no later than 5 years 2,901 2,709
Later than 5 years 5,449 4,850
        9,075 8,311
Other operating leases – buildings:
No later than 1 year 26 20
Later than 1 year and no later than 5 years 2 15
        28 35 51
Report and Accounts 2009 LANDKOM International PLC
33. CORPORATE ASSET ACQUISITIONS
The subsidiaries included in these financial statements are as follows:
Country of incorporation Activity Percentage of ownership
Held at 31 December 2008
Charmaine Investments Ltd Cyprus Holding company 100.00%
LK Ukraine Group Ltd Ukraine Farm operations 99.99%
Landkom UA Ltd Ukraine Land ownership 100.00%
Landkom Services Ltd England and Wales Admin services 100.00%
Bio Invest LLC Ukraine Farm operations 90.00%
Radalan land LLC Ukraine Farm operations 90.00%
Velych LLC Ukraine Farm operations 80.00%
Kozatskyi Kurin’ LK LLC Ukraine Farm operations 80.00%
Druzbha LLC Ukraine Farm operations 99.60%
Landkom Krym Ukraine Holding company 100.00%
Yasnaya Polyana Ukraine Farm operations 88.77%
Romaniv Agro LLC Ukraine Farm operations 100.00%
Dobrosyn LLC Ukraine Farm operations 100.00%
Nazalezhnist PP Ukraine Farm operations 100.00%
Landkom Ukraine PP Ukraine Land ownership 100.00%
Acquired or formed during the year
Podilia Kolodno Ukraine Farm operations 61.00%
The Group acquired the net assets of Landkom Ukraine PP on 11 January 2008 (an entity previously under the control of key 
management personnel – Richard Spinks) for nominal consideration of UAH 1. 
The Group made a number of acquisitions during 2008. In the view of the Directors, the entities acquired do not satisfy the definition 
of a business as defined by IFRS 3 (revised) and consequently these acquisitions have been treated as asset purchases (see note 14) 
and are included in property, plant and equipment at cost to the Group. 
34. RELATED PARTY TRANSACTIONS
(a)  The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each 
of the categories specified in IAS 24 “Related Party Disclosures”. Further information about the remuneration of individual Directors 
is provided in the Remuneration report on pages 21 to 23. 
        2009 2008
        $000 $000
Short-term employee benefits 667 996
Termination benefits — 273
Share-based payment charge 718 1,657
        1,385 2,926
(b)  During the period goods were purchased from an entity in which key management personnel had significant influence (Vitaliy Skotsyk 
as a Director of Amaco Ukraine). The following transactions were carried out after the related party relationship was formed:
        2009 2008
        $000 $000
Purchase of crop inputs and machinery parts  311 N/A
At the end of the period the following amounts were payable to Amaco Ukraine:
        2009 2008
        $000 $000
Payable 346 N/A
Internal controls are in place to ensure that transactions with Amaco Ukraine are at arm’s length. These procedures involve the 
requirement for a full tender for any material purchase or sale. In addition the Group requires that more than one Executive Director 
approve transactions with Amaco Ukraine. The Board is informed of all commercial transactions with Amaco Ukraine on a monthly basis. 
(c) The Group made loans and sold goods and services to an associate company (Dokychaevskyy Cooperative) during the period:
        2009 2008
        $000 $000
Total value of sales to Dokychaevskyy Cooperative during the period  21 150
Trade receivable at reporting date 133 107
Loan receivable at reporting date 516 226
Provision against trade receivable and loan receivable  (649) —
Net receivable from Dokychaevskyy Cooperative   — 333 LANDKOM International PLC
52
Report and Accounts 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
35. EVENTS AFTER THE REPORTING DATE
In November 2009, Landkom International PLC placed 195,000,000 new ordinary shares of 0.1 pence each at 5 pence per share to raise 
gross proceeds of $16.1 million. The proceeds of the placing are to be used for working capital purposes. 
36. MANAGEMENT OF CAPITAL
The Group’s objectives when managing capital is:
 to maintain the entity’s ability to continue as a Going Concern, so that it can provide a return for shareholders. 
The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments to it 
in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the 
capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, 
obtain or increase debt, or sell assets to reduce debt. Management considers capital to be net assets. 
37. NON-CASH ITEMS
During the period the Group entered into the following non-cash transactions:
        2009 2008
        $000 $000
Purchase of assets under finance lease — 814 Fully recyclable and 
biodegradable
Fully recyclable and
biodegradable
ISO 14001 
Produced at a mill that hold
ISO14001 certification
ISO 14001
Produced at a mill that holds
ISO 14001 certification
Printed on Revive 50:50, which contains at least 50% recovered 
fibre and is produced at a mill that holds the ISO 14001 certificate 
for environmental management. The pulp is bleached using 
a combination of Elemental Chlorine Free (ECF) and 
Totally Chlorine Free (TCF) methods. REGISTERED OFFICE
Landkom International PLC
11 Hope Street
Douglas IM1 1AQ
Isle of Man
Tel: +44 (0)20 3170 5681
Email: info@landkom.com
investors@landkom.com
Web: www.landkom.com