Page 40 - CODIC Rapport Annuel 2014/2015

5. Comments on the consolidated financial statements

as at 30 April 2015

From this financial year onwards, in accordance with ′IFRS 11 Joint Arrangements′,
joint ventures are being consolidated using the equity method. They were previously
consolidated using the proportional method.

I. INCOME STATEMENT

Net result (€17.6m)
As a result of the various sales carried out during the financial year, the Group recorded a
net profit of €17.6m.

Gross margin (€36.0m)
The gross margin stands at €36.0m and is broken down as follows:

In Belgium, the gross margin was mainly achieved as a result of the sale of the Gateway
project (€7.4m).

In Luxembourg, the partial disposals of the shares and the loss of control over the com-
panies Royal Hamilius-Commerces SA, Royal Hamilius-Bureaux SA and Royal Hamilius-Par-
kings SA, generated a gross margin of €29.9m.

The costs incurred in relation to the Hungarian and Romanian projects were not capitalised,
but recognised directly in the income statement (€0.6m). Furthermore, a write-down of
€1m was posted in relation to the Margit Corner project held by Pro Due in Hungary.

Joint ventures (€-5.3m)
This item mainly reflects the disposal of the White Park project and the sale of the securities
in the Espace Plus real estate company.

Administrative expenses (€-6.5m)
Administrative expenses totalled €-6.5m over the financial year.
The Group allocates some of the administrative expenses to the projects.

Financial results (€-2.9m)
Interest and borrowing costs are borne entirely by the projects, except where a decision
to the contrary is proposed by the Executive Committee and approved by the Board of
Directors.

Re-evaluations of interest rate hedging instruments (SWAP and CAP) generated a loss of
€0.1m over the period.

Tax on income (€-4.3m)
The tax expense for the financial year is the result of the various sales carried out and
deferred tax movements.

38 Codic Annual Report 2014/2015