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DOLPHIN CAPITAL INVESTORS LIMITED NEX:DCI.GB NEX Ordinary Share VGG2803G1028
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Dolphin Capital Investors Limited Half-year Report

26/09/2019 7:01am

UK Regulatory (RNS & others)


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TIDMDCI

RNS Number : 6999N

Dolphin Capital Investors Limited

26 September 2019

26 September 2019

DOLPHIN CAPITAL INVESTORS LIMITED

("DCI" or "Dolphin" or the "Company"

and together with its subsidiaries the "Group")

Half Year Results for the six months ended 30 June 2019 and

Trading Update

Summary

-- Total Group Net Asset Value ("NAV") of EUR171 million (17p) and EUR160 million (16p) before and after Deferred Tax Liabilities ("DTL"), a 3.8% and 2.8% decrease before and after DTL respectively, compared to 31 December 2018.

-- Total Debt stood at EUR22.8 million with a Group total debt to gross asset ratio of 10% as at 30 June 2019 (31 December 2018: 10%). On 25 September 2019, the Group completed the discounted pre-payment of the Apollo Heights loan for EUR6.15 million against a nominal value of EUR15.7 million, resulting in a EUR9.5 million gain.

-- On 27 May 2019, the formal completion of the joint venture agreement with One&Only for the Kea Island resort ("One&Only at Kea Island" or "OOKI") took place. The contractor has mobilised on site and commenced construction, with a target completion date in time for the resort to open for the 2021 season.

-- The final construction permit for the development of the Kilada Hills Golf Resort ("Kilada") is expected to be issued shortly and DCI is in final discussions with a major local bank for a EUR10 million senior loan facility (plus a VAT bridge) which, together with the EUR10 million commitment from Grivalia Hospitality to acquire 20 founder lots in Kilada, will be sufficient to fully finance the Kilada development.

-- Gross sales of Aristo Developers Ltd ("Aristo"), a 47.9% DCI affiliate, during the six months to June 2019 increased by 63% compared to the 2018 corresponding period. On 23 August 2019, DCI agreed to sell its share of c. 37 hectares owned by an Aristo subsidiary for EUR9 million in cash, of which EUR2.5 million was collected upon closing, while the remainder will be paid in three instalments by 30 June 2020.

-- On 2 May 2019 shareholders approved a two year extension of the Company's divestment period to 31 December 2021 and reduced the fixed management fees to EUR3.6 million per annum while further aligning variable fees by linking them to actual shareholder distributions. Since the adoption of the initial disposal strategy in 2016, DCI has been able to execute six significant asset disposals at an aggregate enterprise value of c. EUR344 million, reduce the Group debt by more than EUR210 million and achieve important permitting and entitlements decisions for its remaining asset portfolio.

Commenting, Andrew Coppel, Chairman of Dolphin's Board of Directors said:

"The commencement of construction at the One&Only at Kea Resort and the expected commencement of development of the Kilada Hills Golf Resort are key steps towards the successful implementation of the Company's divestment strategy, as these two maturing projects, together with the Company's strategic shareholding in Aristo Developers, are fundamental to the realization of tangible value for our shareholders in the medium term.

We are also encouraged by the further reduction of the Group's overall loan liabilities through the discounted settlement of the Apollo Heights loan. The total debt reduction is in excess of EUR210 million since June 2016, which together with the restructuring of the fixed IMA costs, has further reduced our cost base."

Miltos Kambourides, Founder of Dolphin and Managing Partner of Dolphin Capital Partners, said:

"We are working closely with the Board to devise and implement a realistic exit strategy for each remaining asset. We expect that the development of the One&Only at Kea Resort and Kilada Hills Golf Resort will unlock their intrinsic value."

For further information, please contact:

 
 
   Dolphin Capital Investors 
   Andrew M Coppel, CBE                           +44 (0) 7785 577023 
 
   Dolphin Capital Partners 
   Miltos E Kambourides                           miltos@dolphincp.com 
 
   Panmure Gordon (Broker) 
   Fabien Holler                                  +44 (0) 20 7886 2500 
 
   Grant Thornton UK LLP (Nominated Adviser) 
   Philip Secrett                                 +44 (0) 20 7383 5100 
 
   Instinctif (PR Communications Adviser) 
   Mark Garraway                                  +44 (0) 20 7457 2007 
 

A. Chairman's Statement

I am pleased to report Dolphin's interim financial results for the six months ended 30 June 2019, and to provide a trading update.

Loss after tax for the period ended 30 June 2019 attributable to owners of the Company amounted to EUR4.8 million compared to EUR14.1 million for the period ended 30 June 2018.

During the first half year, the Board and the Investment Manager have focused their efforts on meeting the conditions precedent for the completion of our JV agreement with One&Only for OOKI. These included the completion of the permitting process, the final arrangement of senior loan financing and the completion of the tendering process for the selection of a reputable construction company, which would be able to undertake the full construction of the project on a turn-key basis. All these conditions were duly met during Q2 2019 and the formal completion of the JV took place on 27 May 2019. As planned, the contractor has already mobilised on site following the ground breaking ceremony, which was held on 8 July 2019, and is currently working in line with the project development timeline, which calls for the completion of the resort within Q2 2021.

In addition, significant progress has been made in the development of the Kilada project with the issuance of the final construction permit, for the first phase of the project, expected shortly. This will be the first construction permit to be issued in Greece for a real estate project falling within the ambit of the Strategic Development legislation. This paves the way to securing senior development financing for this project, so that we can move ahead with the construction works by early 2020.

The Company is also taking steps to extract value from its significant shareholding position in Aristo and has been able to structure, negotiate and implement a transaction, which enables it to receive EUR9 million from the transfer of preferred shares, granting beneficial ownership over certain Aristo owned land plots to Mr. Aristodemou (chairman of Aristo), without diluting in any way its core shareholding and voting rights in Aristo. Aristo's sales performance during the first eight months of the year has been 87% higher compared to the corresponding period in 2018. We believe that this sustained growth and Aristo's ability to maintain a quality land bank, commensurate with its leading industry position in Cyprus, significantly enhances its core value and renders our strategic 47.9% shareholding more appealing to both local and international investors.

In parallel, our continued efforts to reduce the Group's overall leverage and financing expenses have resulted in the NAV accretive full and final settlement of DCI's Apollo Heights EUR15.7 million loan liabilities against a cash payment of EUR6.15 million.

The Board welcomes the shareholders' approval of its recommendation to extend DCI's divestment period to 31 December 2021, so that meaningful distributions for shareholders can be achieved, predominantly from the sale of the Company's three major projects. Kilada and OOKI require significant development to maximize sale proceeds to facilitate material distributions to shareholders, whilst the Company's divestment from Aristo requires the ability to structure and implement an exit transaction for a minority shareholding. The Board intends to make distributions on the receipt of the net proceeds of sale of each of these three major assets.

Although the economies in Greece, Cyprus, Croatia and Turkey have continued to recover, the market for undeveloped real estate in those countries has yet to make a significant recovery. We will continue our efforts to address the inherent challenges that the asset class presents and will work with the Investment Manager and the Company's advisers to explore, on an asset by asset basis, the best manner in which to achieve divestment results in the light of prevailing market conditions.

Andrew M Coppel CBE

Chairman

Dolphin Capital Investors

26 September 2019

B. Investment Manager's Report

   B.1.         Business Overview 

During the first nine months of 2019 we focused on making progress on certain key portfolio assets, namely:

   --      the completion of the JV and commencement of construction at One&Only at Kea Island; 
   --      the structuring and implementation of the EUR9 million transaction at Aristo; and, 

-- the discounted final settlement of the Group's EUR15.7 million outstanding loan facility at Apollo Heights.

We are expecting shortly the issuance of the Kilada construction permits and we have proceeded with a number of initiatives aimed at finalizing the zoning entitlements across our portfolio and rationalizing its capital structure and carrying costs, so as to facilitate further asset disposals.

We continue to focus on the implementation of the Company's strategy to realise the value of our diverse asset portfolio in order to maximise cash returns for our shareholders. The extension of the Company's divestment period, up to 31 December 2021, is expected to allow us time to advance the construction of our two major development projects and extract further value from our Aristo position. We believe that these efforts should result in the conclusion of further transactions in the near term.

   B.2.         Portfolio Review 
   --      One&Only at Kea Island, Greece 

o Works commenced for the construction of the OOKI. The project is designed by the architect John Heah. Scheduled to open in summer of 2021, the ultra-luxury project will consist of 75 standalone hotel guest rooms with private pools, two restaurants, an extensive beach club, spa facilities and boat pier as well as a number of villas, which will be sold on an off-plan basis.

o The Company met the conditions precedent under the joint venture agreement with One&Only, including the redesign of the resort to meet the One&Only brand standards, the finalization of the project senior loan facility and the signing of the turn-key construction contract. The formal completion of the JV agreement took place on 27 May 2019 and the equity amount of EUR20 million has been committed by our JV partners to the project.

o A turn-key construction contract was signed on 9 August 2019 with REDEX SA (www.redex.gr) which was selected from seven competitive bids. REDEX has already mobilised on site and commenced with infrastructure works.

o On 9 August 2019 the project company entered into a senior construction loan facility for EUR30 million, together with a EUR12.5 million VAT bridge and a EUR4.9 million subsidy bridge facility, all with a major regional bank. The senior loan has a 9-year term, will be fully used to fund the construction progress and will be amortized both through proceeds from OOKI Villa sales as well as from the One&Only resort net operating cashflow. The draw-down on the senior loan remains conditional pending the sale of the first 3 OOKI Villas in the project. In the interim, and until this condition is met, the construction costs will be financed through the EUR20 million equity contributed by DCI's JV partners in the project.

o We have also formally started, in close co-operation with the One&Only sales and marketing teams, the project's PR, sales and marketing campaign, aiming to both create awareness of the project and, most importantly, generate Villa sales.

   --      Kilada Hills Golf Resort, Greece 

o Kilada, which will include the highly respected Jack Nicklaus Signature Golf Course, is moving closer to commencement as the issuance of the final construction permit for the first phase of the project, including the golf course and infrastructure for the first residential lots, is expected shortly. The issuance of the construction permit will enable us to start the pre-sale process of the residential lots, which at full development will comprise c. 230 units. Together with the golf course, a luxury Club House, with amenities to cater for the entire family, such as restaurants, a gym, spa and swimming pool, will be built and an exclusive Beach Club will also be available for the lot owners of the golf community.

o Following the advancement of the permitting process, DCI has entered into final discussions with a major local bank for a EUR10 million senior loan facility, and a EUR4 million VAT bridge, which, together with the EUR10 million commitment from Grivalia Hospitality to acquire 20 founder lots in Kilada (as further described in the Company's 2 August 2018 announcement), will be adequate to fully finance the Kilada development.

o The project tendering process is underway so that construction works can commence within the year, targeting initiation of operations during 2021. Formal commencement of the project's PR, sales and marketing activities will start once financing is in place.

   --      La Vanta, Turkey 

o One residence was sold during the first half of 2019, and one more in August 2019, for a total gross consideration of EUR0.5 million.

   --      Aristo (a 47.9% affiliate) 

o Operating Performance

- 74 homes and plots were sold during the first six months of 2019, representing total sales of EUR39 million, up 63% compared to EUR24 million for the same period in 2018.

- 96 homes and plots were sold in total up to the end of August 2019, representing total sales of EUR51 million, up 87% compared to EUR28 million for the same period in 2018.

- Strong sales momentum continued from China during the first half of 2019, representing more than 55% of sales.

 
                       Six months    Six months    Eight months    Eight months 
                        to 30 June    to 30 June    to 31 August    to 31 August 
                           2019          2018           2019            2018 
 RETAIL SALES 
--------------------  ------------  ------------  --------------  -------------- 
 New sales booked       EUR38.8m      EUR23.9m       EUR51.5m        EUR27.5m 
 % change                  63%                          87% 
 Units sold                74            41             96              50 
 % change                  80%                          92% 
 CLIENT ORIGIN 
--------------------  ------------  ------------  --------------  -------------- 
 China & Other Asia        72%           67%            77%             70% 
 MENA                      19%           3%             16%             2% 
 Russia                    --            8%             --              7% 
 UK                        --            1%             --              2% 
 Cyprus & Other EU         5%            13%            4%              12% 
 Other                     4%            8%             3%              7% 
 

- The substantial majority of Aristo's sales continue to be under the Cyprus citizenship investment programme, which offers Cypriot citizenship to foreign nationals investing at least EUR2 million into real estate. Consequently, the bulk of the relevant sales proceeds remains in escrow until the citizenship is awarded to the applying customer and the construction of the relevant property progresses (for off-plan sales); the full sales proceeds release typically ranges between 8 to 20 months from the signing of each sale transaction. Aristo had a total of EUR21.5 million in blocked/escrowed funds as at 30 June 2019 (EUR21.5 million at YE 2018). As the relevant applications mature and properties are being delivered, its available cash balances are expected to increase significantly.

o Sale of land adjacent to Venus Rock

- DCI has negotiated and structured a preferred share transaction whereby DCI granted the beneficial ownership and control over its 47.9% share of 37 hectares in the area referred to as "Atlantis", in the north of the Venus Rock project which was formerly owned by Aristo, to Aristo Ktimatiki (an entity controlled by Theodore Aristodemou, chairman of Aristo).

- The agreement was executed on 23 August 2019 and the agreed transaction price reflects a discount of 30% to the underlying land value as recorded in Aristo's financial statements on 31 December 2018.

- Pursuant to the terms of the transaction, DCI is entitled to a EUR9 million cash consideration from Aristo Ktimatiki, which corresponds to its 47.9% ownership of Aristo. EUR2.5 million of the transaction consideration was paid upon closing, while the remainder will be paid in 3 instalments; EUR2.5 million will be paid by 15 December 2019, EUR2 million by 31 March 2020 and the EUR2 million balance by 30 June 2020. The corresponding preferred shares will be transferred by DCI to the acquirer on a prorated basis in line with the receipt of the commensurate instalment.

- Following the execution of this transaction DCI fully retains its 47.9% strategic shareholding and respective voting rights in the Aristo group.

C. Group Assets

A summary of Dolphin's current investments is presented below.

 
     PROJECT                      Land       DCI's       Debt       Real       Loan 
                                   site       stake    (EURm)(a)    estate    to real 
                                (hectares)                          value     estate 
                                                                    (EURm)     asset 
                                                                               value 
                                                                                (%) 
    ------------------------  ------------  -------  -----------  --------  --------- 
     One&Only at Kea 
 1    Island                       65         33%         - 
     Kilada Hills Golf 
 2    Resort                       235        100%        - 
 3   Scorpio Bay Resort            172        100%        - 
 5   Lavender Bay Resort           310        100%        - 
 6   Plaka Bay Resort              442        100%        - 
     Apollo Heights 
 6    Resort                       461        100%     15.7(b) 
 7   Livka Bay Resort              63         100%       7.1 
 8   La Vanta                       8         100%        - 
     TOTAL                        1,756                  22.8        182       13% 
    ------------------------  ------------  -------  -----------  --------  --------- 
     Aristo Cyprus                 481       47.9%        -          43 
     Itacaré Investment       n/a        13%         -           - 
    ------------------------  ------------  -------  -----------  --------  --------- 
     GRAND TOTAL                  2,237                  22.8        225       10% 
    ------------------------  ------------  -------  -----------  --------  --------- 
 
 

(a) Further details on debt maturities are set out under note 22 of the financial statements.

(b) The Apollo Heights debt was fully repaid on 25 September 2019.

A breakdown of Dolphin's portfolio, as at 30 June 2019, for certain key metrics is provided below:

 
     COUNTRY        Land size      Debt      Real Estate    % Loan    Net Asset 
                    (hectares)      (EUR        Value       to real     Value 
                                  million)       (EUR       estate 
                                               million)      asset 
                                                             value 
    ------------  ------------  ----------  ------------  ---------  ---------- 
 1   Greece           1,224          -           125          0%         53% 
 2   Cyprus(a)         942        15.7(b)        66          24%         31% 
 3   Other             71           7.1          34          21%         16% 
     Grand Total      2,237        22.8          225         10%        100% 
    ------------  ------------  ----------  ------------  ---------  ---------- 
 

(a) DCI's portfolio in Cyprus includes its equity investment in Aristo Developers Ltd, which owns assets in Cyprus that are subject to Aristo's debt and other obligations.

(b) The Apollo Heights debt was fully repaid on 25 September 2019.

D. Market Dynamics

   --      Greece 

Following the completion of the country's 3(rd) bailout program in August 2018 and the formation of a stable single-party government as a result of the general elections held on 7 July, Greece appears to be back on track to recover from a prolonged financial crisis. Although the country still needs to continue adopting measures to address the sources or potential sources of economic and financial difficulties and implement structural reforms to support robust and sustainable economic growth, the first signs of a stabilized economy are now clearly visible.

The Greek economy expanded by 1.9% year-on-year in Q2 2019, driven by a positive trade balance contribution with exports growing by 5.4% over for the same period last year and yet another strong tourism season. During the first six months of 2019 travel receipts were up 15.3%, while a 15.9% rise in average expenditure per trip was registered, according to the provisional data released by the Bank of Greece.

    --      Cyprus 

According to the European Commission's projections, GDP growth of 2.9% is expected for the Cypriot economy in 2019. Foreign direct investment has also increased during the first six months and bank lending was steady. Notwithstanding the above, tourism revenues are expected to be marginally lower on a year-on-year basis. After three record years, tourist arrivals in Cyprus for the first seven months of 2019 totalled 2.2 million recording a decrease of 0.1% for the same period last year, due to Brexit uncertainty and the re-emergence of competitive neighbouring markets.

Despite the slow-down of tourism growth, the real estate industry is showing robust activity and enjoys strong demand from foreign buyers, predominantly due to the country's visa and citizenship incentive programmes. During the first half of 2019 property sales rose by 24.4% and building permits were up by 6.4% compared to the same period of 2018.

   --      Croatia 

In the first half of 2019, 6.9 million tourists visited Croatia, an increase of 6% compared to the same period last year. These translated into 26.3 million overnight stays, up 3% on the year, according to the Ministry of Tourism. Focusing on the coastal regions, Istria recorded the maximum overnight stays (7.6 million) followed by Split-Dalmatia County (4.7 million), where the Company's Livka Bay project is located.

   --      Turkey 

Following a major economic crisis, tourism revenue has become significant for Turkey as it seeks to enhance the returns from tourism to help offset an economic downturn. Tourism has experienced a record year with numbers up by 13% in the first six months and tourism income increased by 10% according to the Turkish Statistical Institute. The number of real estate properties sold in Turkey decreased by 21.7% year-on-year in the first half of 2019 with around 500,000 properties sold in the first six months.

E. Outlook

The Company's main objectives for the remainder of 2019 remain to:

   1.    Execute further asset disposals; 
   2.    Progress construction at the One&Only Kea Island and achieve villa sales; 

3. Complete the funding package to enable construction commencement at Kilada Hills Golf Resort; and,

4. Progress planning and permitting selectively for the remaining portfolio to maximize sales proceeds and expedite divestments.

 
 Miltos Kambourides          Pierre Charalambides 
  Managing Partner            Founding Partner 
  Dolphin Capital Partners    Dolphin Capital Partners 
  26 September 2019           26 September 2019 
 

F. Financial results for the first half of 2019

Financial Results

Loss after tax for the period ended 30 June 2019 attributable to owners of the Company, amounted to EUR4.8 million compared to EUR14.1 million for the period ended 30 June 2018. Loss per share was EUR0.005 compared to EUR0.015 in the same period last year.

Condensed consolidated interim statement of profit or loss and other comprehensive income

For the six-month period ended 30 June 2019

 
                                                    From 1 January   From 1 January 
                                                              2019             2018 
                                                        to 30 June       to 30 June 
                                                              2019             2018 
------------------------------------------  -----  ---------------  --------------- 
                                             NOTE          EUR'000          EUR'000 
------------------------------------------  -----  ---------------  --------------- 
 Continuing operations 
------------------------------------------  -----  ---------------  --------------- 
 Revenue                                                       382            1,551 
------------------------------------------  -----  ---------------  --------------- 
 Cost of sales                                               (165)          (1,572) 
------------------------------------------  -----  ---------------  --------------- 
 Gross profit/(loss)                                           217             (21) 
------------------------------------------  -----  ---------------  --------------- 
 Disposal of investments in subsidiaries                       630          (2,688) 
------------------------------------------  -----  ---------------  --------------- 
 Change in valuations                                           90            1,277 
------------------------------------------  -----  ---------------  --------------- 
 Investment Manager remuneration                           (2,000)          (2,500) 
------------------------------------------  -----  ---------------  --------------- 
 Directors' remuneration                                     (246)            (318) 
------------------------------------------  -----  ---------------  --------------- 
 Depreciation charge                                          (19)             (15) 
------------------------------------------  -----  ---------------  --------------- 
 Professional fees                                         (1,542)          (2,317) 
------------------------------------------  -----  ---------------  --------------- 
 Administrative and other expenses                           (381)            (817) 
------------------------------------------  -----  ---------------  --------------- 
 Total operating and other expenses                        (3,468)          (7,378) 
------------------------------------------  -----  ---------------  --------------- 
 Results from operating activities                         (3,251)          (7,399) 
------------------------------------------  -----  ---------------  --------------- 
 Finance income                                                  -               19 
------------------------------------------  -----  ---------------  --------------- 
 Finance costs                                               (789)          (4,870) 
------------------------------------------  -----  ---------------  --------------- 
 Net finance costs                                           (789)          (4,851) 
------------------------------------------  -----  ---------------  --------------- 
 Share of losses of equity-accounted                         (751)                - 
  investees, net of tax 
------------------------------------------  -----  ---------------  --------------- 
 Loss before taxation                                      (4,791)         (12,250) 
------------------------------------------  -----  ---------------  --------------- 
 Taxation                                                      (2)            (674) 
------------------------------------------  -----  ---------------  --------------- 
 Loss from continuing operations                           (4,793)         (12,924) 
------------------------------------------  -----  ---------------  --------------- 
 DISContinuED operation 
------------------------------------------  -----  ---------------  --------------- 
 Loss from discontinued operation, 
  net of tax                                                     -          (1,213) 
------------------------------------------  -----  ---------------  --------------- 
 Loss                                                      (4,793)         (14,137) 
------------------------------------------  -----  ---------------  --------------- 
 Other comprehensive income 
------------------------------------------  -----  ---------------  --------------- 
 Items that will not be reclassified 
  to profit or loss 
------------------------------------------  -----  ---------------  --------------- 
 Revaluation of property, plant and 
  equipment                                                      -           11,943 
------------------------------------------  -----  ---------------  --------------- 
 Related tax                                                     -          (3,463) 
------------------------------------------  -----  ---------------  --------------- 
                                                                 -            8,480 
------------------------------------------  -----  ---------------  --------------- 
 Items that are or may be reclassified 
  subsequently to profit or loss 
------------------------------------------  -----  ---------------  --------------- 
 Foreign currency translation differences                      364            1,194 
------------------------------------------  -----  ---------------  --------------- 
                                                               364            1,194 
------------------------------------------  -----  ---------------  --------------- 
 Other comprehensive income, net 
  of tax                                                       364            9,674 
------------------------------------------  -----  ---------------  --------------- 
 Total comprehensive income                                (4,429)          (4,463) 
------------------------------------------  -----  ---------------  --------------- 
 Loss attributable to: 
------------------------------------------  -----  ---------------  --------------- 
 Owners of the Company                                     (4,940)         (13,729) 
------------------------------------------  -----  ---------------  --------------- 
 Non-controlling interests                                     147            (408) 
------------------------------------------  -----  ---------------  --------------- 
                                                           (4,793)         (14,137) 
==========================================  =====  ===============  =============== 
 Total comprehensive income attributable 
  to: 
------------------------------------------  -----  ---------------  --------------- 
 Owners of the Company                                     (4,576)          (4,055) 
------------------------------------------  -----  ---------------  --------------- 
 Non-controlling interests                                     147            (408) 
==========================================  =====  ===============  =============== 
                                                           (4,429)          (4,463) 
==========================================  =====  ===============  =============== 
 Loss per share 
------------------------------------------  -----  ---------------  --------------- 
 Basic and diluted loss per share 
  (EUR)                                        14          (0.005)          (0.015) 
------------------------------------------  -----  ---------------  --------------- 
 Basic and diluted loss per share 
  - Continuing operations (EUR)                14          (0.005)          (0.014) 
------------------------------------------  -----  ---------------  --------------- 
 Basic and diluted loss per share 
  - Discontinued operation (EUR)               14                -          (0.001) 
------------------------------------------  -----  ---------------  --------------- 
 

Further analysis of individual revenue and expense items is provided below.

Revenue

Revenue from continuing operations of EUR0.4 million (H1 2018: EUR1.6 million), was derived from the following sources:

 
                                                   H1 2019          H1 2018 
                                             (EUR million)    (EUR million) 
-----------------------------------------  ---------------  --------------- 
 Sale of trading & investment properties               0.0              1.5 
 Other income                                          0.4              0.1 
 TOTAL                                                 0.4              1.6 
 

The decrease in the sale of trading and investment properties relates to the fact that last year's figures include Amanzoe Villa sales revenue; this project was sold in August 2018.

Cost of sales

Cost of sales from continuing operations comprises the following basic categories:

 
                                            H1 2019          H1 2018 
                                      (EUR million)    (EUR million) 
----------------------------------  ---------------  --------------- 
 Cost of sales related to: 
  Sales of trading and investment 
   properties                                   0.0              1.1 
 Personnel expenses                             0.2              0.4 
 Other operating expenses                       0.0              0.1 
 TOTAL                                          0.2              1.6 
 

The charge of cost of sales from continuing operations for the period amounted to EUR0.2 million (H1 2018: EUR1.6 million).

Professional Fees

The charge for the period from continuing operations was EUR1.6 million (H1 2018: EUR2.3 million) and comprises the following:

 
                                          H1 2019          H1 2018 
                                    (EUR million)    (EUR million) 
--------------------------------  ---------------  --------------- 
 Legal fees                                   0.3              0.4 
 Auditors' remuneration                       0.1              0.2 
 Accounting expenses                          0.1              0.1 
 Project design and development 
  fees                                        0.8              1.3 
 Consultancy fees                             0.1              0.1 
 Other professional fees                      0.2              0.2 
--------------------------------  ---------------  --------------- 
 TOTAL                                        1.6              2.3 
 

Administrative and other expenses

The administrative and other expenses from continuing operations amounted to EUR0.4 million (H1 2018: EUR0.8 million) and are analysed as follows:

 
                                              H1 2019          H1 2018 
                                        (EUR million)    (EUR million) 
------------------------------------  ---------------  --------------- 
 Travelling and accommodation                     0.1              0.1 
 Repairs and maintenance                          0.0              0.1 
 Marketing and advertising expenses               0.1              0.1 
 Rents                                            0.0              0.1 
 Other                                            0.2              0.4 
------------------------------------  ---------------  --------------- 
 TOTAL                                            0.4              0.8 
 

Net Finance costs

The charge for the period from continuing operations was EUR0.8million (H1 2018: EUR4.9 million income) and comprises the following:

 
                          H1 2019         H1 2018 
                    (EUR million)   (EUR million) 
----------------  ---------------  -------------- 
 Finance income               0.0             0.0 
 Finance costs              (0.8)           (4.9) 
 TOTAL                      (0.8)           (4.9) 
 

Condensed consolidated interim statement of financial position

As at 30 June 2019

 
                                                  30 June    30 June 
                                                     2019       2018 
                                                  EUR'000    EUR'000 
 ---------------------------------------------  ---------  --------- 
Assets 
---------------------------------------------   ---------  --------- 
Property, plant and equipment                      12,336     12,273 
----------------------------------------------  ---------  --------- 
Investment property                               116,391    116,391 
----------------------------------------------  ---------  --------- 
Equity-accounted investees                         17,904          - 
----------------------------------------------  ---------  --------- 
Non-current assets                                146,631    128,664 
----------------------------------------------  ---------  --------- 
Trading properties                                  4,710      4,699 
----------------------------------------------  ---------  --------- 
Receivables and other assets                        1,251      2,837 
----------------------------------------------  ---------  --------- 
Cash and cash equivalents                           7,582      8,076 
----------------------------------------------  ---------  --------- 
Assets held for sale                               74,183     99,783 
----------------------------------------------  ---------  --------- 
Current assets                                     87,726    115,395 
----------------------------------------------  ---------  --------- 
Total assets                                      234,357    244,059 
==============================================  =========  ========= 
Equity 
---------------------------------------------   ---------  --------- 
Share capital                                       9,046      9,046 
----------------------------------------------  ---------  --------- 
Share premium                                     569,847    569,847 
----------------------------------------------  ---------  --------- 
Retained deficit                                (427,162)  (422,222) 
==============================================  =========  ========= 
Other reserves                                      8,209      7,845 
==============================================  =========  ========= 
Equity attributable to owners of the Company      159,940    164,516 
----------------------------------------------  ---------  --------- 
Non-controlling interests                           5,899      5,752 
----------------------------------------------  ---------  --------- 
Total equity                                      165,839    170,268 
----------------------------------------------  ---------  --------- 
Liabilities 
---------------------------------------------   ---------  --------- 
Lease liabilities                                   3,012      3,005 
----------------------------------------------  ---------  --------- 
Deferred tax liabilities                            8,444      8,444 
----------------------------------------------  ---------  --------- 
Trade and other payables                           20,840     20,647 
----------------------------------------------  ---------  --------- 
Non-current liabilities                            32,296     32,096 
----------------------------------------------  ---------  --------- 
Loans and borrowings                               15,726     17,326 
----------------------------------------------  ---------  --------- 
Lease liabilities                                       8          8 
----------------------------------------------  ---------  --------- 
Trade and other payables                            6,268      6,484 
----------------------------------------------  ---------  --------- 
Liabilities held for sale                          14,220     17,877 
----------------------------------------------  ---------  --------- 
Current liabilities                                36,222     41,695 
----------------------------------------------  ---------  --------- 
Total liabilities                                  68,518     73,791 
----------------------------------------------  ---------  --------- 
Total equity and liabilities                      234,357    244,059 
----------------------------------------------  ---------  --------- 
Net asset value ('NAV') per share (EUR)              0.18       0.18 
----------------------------------------------  ---------  --------- 
 

The reported NAV as at 30 June 2019 is presented below:

 
                                        As at              As at            Variation since 
                                     30 June 2019     31 December 2018      31 December 2018 
                                    EUR      GBP       EUR       GBP        EUR        GBP 
--------------------------------  -------  -------  ---------  --------  ---------  --------- 
 Total NAV before DTL (million)     171      153       178       160       (3.8%)     (4.4%) 
--------------------------------  -------  -------  ---------  --------  ---------  --------- 
 Total NAV after DTL (million)      160      143       165       148       (2.8%)     (3.4%) 
--------------------------------  -------  -------  ---------  --------  ---------  --------- 
 NAV per share before DTL           0.19     0.17     0.20       0.18      (3.8%)     (4.4%) 
--------------------------------  -------  -------  ---------  --------  ---------  --------- 
 NAV per share after DTL            0.18     0.16     0.18       0.16      (2.8%)     (3.4%) 
 

___________

Notes:

   1.   Euro/GBP rate 0.89477 as at 30 June 2019 and 0.90053 as at 31 December 2018. 

2. NAV per share has been calculated on the basis of 904,626,856 issued shares as at 30 June 2019 and as at 31 December 2018.

Total Group NAV as at 30 June 2019 was EUR171 million and EUR160 million before and after DTL respectively. This represents a decrease of EUR6.7 million (3.8%) and EUR4.6 million (2.8%), respectively, from the 31 December 2018 figures. Given that no valuation of the Company's portfolio took place as at 30 June 2019, the NAV reduction is mainly due to Dolphin's regular operational, corporate, finance and management expenses. Sterling NAV per share as at 30 June 2019 was 17p before DTL and 16p after DTL versus 18p and 16p, a 4.4% and 3.4% decrease before and after DTL respectively, compared to 31 December 2018. The decrease, mainly reflects the factors mentioned above, as well as a 0.6% appreciation of Sterling versus the Euro during the period.

The Company's consolidated assets of EUR234 million include EUR133 million of real estate assets, EUR74 million of assets held for sale, EUR1 million of trade and other receivables, EUR18 million of investment in equity accounted investees (the Company's 33.3% interest in OOKI) and EUR8 million in cash.

The balance of EUR133 million of real estate assets (property, plant and equipment, investment property and trading properties) represents the fair market valuation for both freehold and long leasehold interests.

The EUR74 million of assets held for sale includes EUR30 million of real estate assets, EUR43 million of investment in equity accounted investees (the Company's 47.9% interest in Aristo as at 30 June 2019) and EUR1 million of available-for-sale financial assets which represents the Company's investment in Itacare. The EUR30 million figure mainly comprises the aggregate total appraised value of the Company's Livka Bay project.

The Company's consolidated liabilities (excluding DTL) total EUR57 million and mainly comprise EUR26 million of interest bearing loans and finance lease obligations(of which EUR7 million are classified as liabilities held for sale). All loans are held by Group subsidiaries and are non-recourse to Dolphin. The pro-forma Group total debt following the discounted pre-payment of the Apollo Heights loan which completed on 25 September 2019, amounts to 7.1 million, resulting in a pro-forma gearing ratio for the Group of 3.1%.

The EUR31 million of trade and other payables (including EUR4 million of trade and other payables held for sale) comprise mainly EUR21 million of option contracts to acquire land in the Company's Lavender Bay project.

Condensed consolidated interim statement of profit or loss and other comprehensive income

For the six-month period ended 30 June 2019

 
                                                                             From 1 January 2019   From 1 January 2018 
                                                                                 to 30 June 2019       to 30 June 2018 
 
                                                                      Note               EUR'000               EUR'000 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Continuing operations 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Revenue                                                                 6                   382                 1,551 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Cost of sales                                                           7                 (165)               (1,572) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Gross profit/(loss)                                                                         217                  (21) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Disposal of investments in subsidiaries                                8A                   630               (2,688) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Change in valuations                                                   8B                    90                 1,277 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Investment Manager remuneration                                      28.2               (2,000)               (2,500) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Directors' remuneration                                              28.1                 (246)                 (318) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Depreciation charge                                                                        (19)                  (15) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Professional fees                                                      11               (1,542)               (2,317) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Administrative and other expenses                                      12                 (381)                 (817) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Total operating and other expenses                                                      (3,468)               (7,378) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Results from operating activities                                                       (3,251)               (7,399) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Finance income                                                                                -                    19 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Finance costs                                                                             (789)               (4,870) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Net finance costs                                                                         (789)               (4,851) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Share of losses of equity-accounted investees, net of tax              25                 (751)                     - 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Loss before taxation                                                                    (4,791)              (12,250) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Taxation                                                               13                   (2)                 (674) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Loss from continuing operations                                                         (4,793)              (12,924) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 DISContinuED operation 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Loss from discontinued operation, net of tax                           10                     -               (1,213) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Loss                                                                                    (4,793)              (14,137) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Other comprehensive income 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Items that will not be reclassified to profit or loss 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Revaluation of property, plant and equipment                           15                     -                11,943 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Related tax                                                            13                     -               (3,463) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
                                                                                               -                 8,480 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Items that are or may be reclassified subsequently to profit or 
 loss 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Foreign currency translation differences                                                    364                 1,194 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
                                                                                             364                 1,194 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Other comprehensive income, net of tax                                                      364                 9,674 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Total comprehensive income                                                              (4,429)               (4,463) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Loss attributable to: 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Owners of the Company                                                                   (4,940)              (13,729) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Non-controlling interests                                                                   147                 (408) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
                                                                                         (4,793)              (14,137) 
===================================================================  =====  ====================  ==================== 
 Total comprehensive income attributable to: 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Owners of the Company                                                                   (4,576)               (4,055) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Non-controlling interests                                                                   147                 (408) 
===================================================================  =====  ====================  ==================== 
                                                                                         (4,429)               (4,463) 
===================================================================  =====  ====================  ==================== 
 Loss per share 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Basic and diluted loss per share (EUR)                                 14               (0.005)               (0.015) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Basic and diluted loss per share - Continuing operations (EUR)         14               (0.005)               (0.014) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 Basic and diluted loss per share - Discontinued operation (EUR)        14                     -               (0.001) 
-------------------------------------------------------------------  -----  --------------------  -------------------- 
 

Condensed consolidated interim statement of financial position

As at 30 June 2019

 
                                                                   31 December 2018 
                                                     30 June 2019        (Restated) 
                                               Note       EUR'000           EUR'000 
---------------------------------------------  ----  ------------  ---------------- 
Assets 
---------------------------------------------  ----  ------------  ---------------- 
Property, plant and equipment                    15        12,336            12,273 
---------------------------------------------  ----  ------------  ---------------- 
Investment property                              16       116,391           116,391 
---------------------------------------------  ----  ------------  ---------------- 
Equity-accounted investees                       25        17,904                 - 
---------------------------------------------  ----  ------------  ---------------- 
Non-current assets                                        146,631           128,664 
---------------------------------------------  ----  ------------  ---------------- 
Trading properties                               18         4,710             4,699 
---------------------------------------------  ----  ------------  ---------------- 
Receivables and other assets                     19         1,251             2,837 
---------------------------------------------  ----  ------------  ---------------- 
Cash and cash equivalents                        20         7,582             8,076 
---------------------------------------------  ----  ------------  ---------------- 
Assets held for sale                             17        74,183            99,783 
---------------------------------------------  ----  ------------  ---------------- 
Current assets                                             87,726           115,395 
---------------------------------------------  ----  ------------  ---------------- 
Total assets                                              234,357           244,059 
=============================================  ====  ============  ================ 
Equity 
---------------------------------------------  ----  ------------  ---------------- 
Share capital                                    21         9,046             9,046 
---------------------------------------------  ----  ------------  ---------------- 
Share premium                                    21       569,847           569,847 
---------------------------------------------  ----  ------------  ---------------- 
Retained deficit                                        (427,162)         (422,222) 
=============================================  ====  ============  ================ 
Other reserves                                              8,209             7,845 
=============================================  ====  ============  ================ 
Equity attributable to owners of the Company              159,940           164,516 
---------------------------------------------  ----  ------------  ---------------- 
Non-controlling interests                                   5,899             5,752 
---------------------------------------------  ----  ------------  ---------------- 
Total equity                                              165,839           170,268 
---------------------------------------------  ----  ------------  ---------------- 
Liabilities 
---------------------------------------------  ----  ------------  ---------------- 
Lease liabilities                                23         3,012             3,005 
---------------------------------------------  ----  ------------  ---------------- 
Deferred tax liabilities                         24         8,444             8,444 
---------------------------------------------  ----  ------------  ---------------- 
Trade and other payables                         26        20,840            20,647 
---------------------------------------------  ----  ------------  ---------------- 
Non-current liabilities                                    32,296            32,096 
---------------------------------------------  ----  ------------  ---------------- 
Loans and borrowings                             22        15,726            17,326 
---------------------------------------------  ----  ------------  ---------------- 
Lease liabilities                                23             8                 8 
---------------------------------------------  ----  ------------  ---------------- 
Trade and other payables                         26         6,268             6,484 
---------------------------------------------  ----  ------------  ---------------- 
Liabilities held for sale                        17        14,220            17,877 
---------------------------------------------  ----  ------------  ---------------- 
Current liabilities                                        36,222            41,695 
---------------------------------------------  ----  ------------  ---------------- 
Total liabilities                                          68,518            73,791 
---------------------------------------------  ----  ------------  ---------------- 
Total equity and liabilities                              234,357           244,059 
---------------------------------------------  ----  ------------  ---------------- 
Net asset value ('NAV') per share (EUR)          27          0.18              0.18 
---------------------------------------------  ----  ------------  ---------------- 
 

Condensed consolidated interim statement of changes in equity

For the six-month period ended 30 June 2019

 
                                         Attributable to owners of the Company 
                            --------------------------------------------------------------- 
                              Share    Share  Translation  Revaluation   Retained            Non-controlling     Total 
                            capital  premium      reserve      reserve    deficit     Total        interests    equity 
                            EUR'000  EUR'000      EUR'000      EUR'000    EUR'000   EUR'000          EUR'000   EUR'000 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Balance at 1 January 2018     9,046  569,847        5,368        7,544  (397,746)   194,059            4,769   198,828 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
TOTAL COMPREHENSIVE INCOME 
Loss                              -        -            -            -   (13,729)  (13,729)            (408)  (14,137) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Other comprehensive income 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Foreign currency 
  translation differences         -        -        1,194            -          -     1,194                -     1,194 
==========================  =======  =======  ===========  ===========  =========  ========  ===============  ======== 
 Revaluation of property, 
  plant and equipment, net 
  of tax                          -        -            -        8,480          -     8,480                -     8,480 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Transfer of revaluation 
  reserve to retained 
  earnings due to disposal        -        -            -        (182)        182     -                    -     - 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total other comprehensive 
 income                           -        -        1,194        8,298        182     9,674                -     9,674 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total comprehensive income        -        -        1,194        8,298   (13,547)   (4,055)            (408)   (4,463) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
TRANSACTIONS WITH OWNERS 
OF THE COMPANY 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Contributions and 
distributions 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Equity-settled 
  share-based payment 
  arrangements                    -        -            -            -          8         8                -         8 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total contribution and 
 distributions                    -        -            -            -          8         8                -         8 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Changes in ownership 
interests 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Disposal of subsidiary 
  with non-controlling 
  interests                       -        -            -            -          -         -          (3,995)   (3,995) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total changes in ownership 
 interests                        -        -            -            -          -         -          (3,995)   (3,995) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total transactions with 
 owners of the Company            -        -            -            -          8         8          (3,995)   (3,987) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Balance at 30 June 2018       9,046  569,847        6,562       15,842  (411,285)   190,012              366   190,378 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Balance at 1 January 2019     9,046  569,847        7,566          279  (422,222)   164,516            5,752   170,268 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
TOTAL COMPREHENSIVE INCOME 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
(Loss)/profit                     -        -            -            -    (4,940)   (4,940)              147   (4,793) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Other comprehensive income 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Foreign currency 
  translation differences         -        -          364            -          -       364                -       364 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Revaluation of property, 
 plant and equipment, net 
 of tax                           -        -            -            -          -         -                -         - 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 Transfer of revaluation 
 reserve to retained 
 earnings due to disposal         -        -            -            -          -         -                -         - 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total other comprehensive 
 income                           -        -          364            -          -       364                -       364 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Total comprehensive income        -        -          364            -    (4,940)   (4,576)              147   (4,429) 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
Balance at 30 June 2019       9,046  569,847        7,930          279  (427,162)   159,940            5,899   165,839 
--------------------------  -------  -------  -----------  -----------  ---------  --------  ---------------  -------- 
 

Condensed consolidated interim statement of cash flows

For the six-month period ended 30 June 2019

 
                                                                            From 1 January 2019  From 1 January 2018 
                                                                                to 30 June 2019      to 30 June 2018 
                                                                                        EUR'000              EUR'000 
 -------------------------------------------------------------------------  -------------------  ------------------- 
Cash flows from operating activities 
-------------------------------------------------------------------------   -------------------  ------------------- 
Loss                                                                                    (4,793)             (14,137) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net change in fair value of investment property                                               -              (1,277) 
--------------------------------------------------------------------------  -------------------  ------------------- 
(Gain)/loss on disposal of investment in subsidiaries                                     (630)                1,182 
--------------------------------------------------------------------------  -------------------  ------------------- 
Share of losses in equity-accounted investees                                               751                    - 
--------------------------------------------------------------------------  -------------------  ------------------- 
Other adjustments                                                                           625                7,302 
--------------------------------------------------------------------------  -------------------  ------------------- 
                                                                                        (4,047)              (6,930) 
 -------------------------------------------------------------------------  -------------------  ------------------- 
Changes in: 
-------------------------------------------------------------------------   -------------------  ------------------- 
Receivables                                                                               1,586                3,210 
--------------------------------------------------------------------------  -------------------  ------------------- 
Payables                                                                                   (93)                2,005 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash used in operating activities                                                       (2,554)              (1,715) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Tax (paid)/received                                                                        (17)                   99 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net cash used in operating activities                                                   (2,571)              (1,616) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash flows from investing activities 
-------------------------------------------------------------------------   -------------------  ------------------- 
Proceeds from disposal of subsidiaries, net of cash disposed of                           3,577               16,933 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net acquisitions of investment property                                                       -                 (15) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net acquisitions of property, plant and equipment                                          (82)                (106) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net change in trading properties                                                           (11)                   42 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net change in net assets held for sale                                                      341                  105 
==========================================================================  ===================  =================== 
Net cash from investing activities                                                        3,825               16,959 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash flows from financing activities 
-------------------------------------------------------------------------   -------------------  ------------------- 
Change in loans and borrowings                                                          (1,600)                    - 
==========================================================================  ===================  =================== 
Change in lease liabilities                                                                   7                    7 
==========================================================================  ===================  =================== 
Interest paid                                                                             (155)              (2,703) 
==========================================================================  ===================  =================== 
Net cash used in financing activities                                                   (1,748)              (2,696) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Net (decrease)/increase in cash and cash equivalents                                      (494)               12,647 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash and cash equivalents at the beginning of the period                                  8,076                2,444 
--------------------------------------------------------------------------  -------------------  ------------------- 
Effect of movement in exchange rates on cash held                                             -                  (2) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash and cash equivalents reclassified to assets held for sale                                -              (2,350) 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash and cash equivalents at the end of the period                                        7,582               12,739 
--------------------------------------------------------------------------  -------------------  ------------------- 
For the purpose of the condensed consolidated interim statement of cash 
flows, cash and cash 
equivalents consist of the following: 
-------------------------------------------------------------------------   -------------------  ------------------- 
Cash in hand and at bank (see note 20)                                                    7,582               12,739 
--------------------------------------------------------------------------  -------------------  ------------------- 
Cash and cash equivalents at the end of the period                                        7,582               12,739 
--------------------------------------------------------------------------  -------------------  ------------------- 
 

Notes to the condensed consolidated interim financial statements

For the six-month period ended 30 June 2019

1. REPORTING ENTITY

Dolphin Capital Investors Limited (the 'Company') was incorporated and registered in the British Virgin Islands ('BVIs') on 7 June 2005. The Company is a real estate investment company focused on the early-stage, large-scale leisure-integrated residential resorts in south-east Europe and managed by Dolphin Capital Partners Limited (the 'Investment Manager'), an independent private equity management firm that specialises in real estate investments, primarily in south-east Europe. The shares of the Company were admitted to trading on the AIM market of the London Stock Exchange ('AIM') on 8 December 2005.

The condensed consolidated interim financial statements of the Company as at and for the six-month period ended 30 June 2019 comprise the financial statements of the Company and its subsidiaries (together referred to as the 'Group') and the Group's interests in associates.

2. Basis of preparation

(a) Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2018. They are presented in euro (EUR), rounded to the nearest thousand.

This is the first set of the Group's financial statements in which IFRS 16 'Leases' has been applied. Changes to significant accounting policies are described in note 3.

These condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 25 September 2019.

(b) Basis of preparation

The condensed consolidated interim financial statements of the Company for the six-month period ended 30 June 2019 have been prepared taking into account the Company's intention to dispose of all of its assets by 31 December 2021, as further explained below. The basis of preparation used continues to be in accordance with IAS 34.

Based on the Company's asset strategy, the Company's objective is to dispose of all of the Company's assets by 31 December 2021. The allocation of any additional capital investment into any of the Company's projects will be substantially sourced from third party capital providers and with the sole objective of enhancing the respective asset's realisation potential until 31 December 2021. The Board expects to return the proceeds from asset disposals to shareholders, as the orderly realisation of the Company's assets progresses after taking into account the Company's liquidity position and working capital requirements. In the event that any assets are still held by the Company shortly before 31 December 2021, the Board will convene a shareholders' meeting at which appropriate resolutions for the future of the Company will be proposed.

3. SIGNIFICANT ACCOUNTING POLICIES

Except as described below, the accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2018.

The changes in accounting policies are also expected to be reflected in the Group's consolidated financial statements as at and for the year ending 31 December 2019.

The Group has initially adopted IFRS 16 from 1 January 2019. IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Group, as a lessee, recognises at the lease commencement date the right-of-use assets representing its rights to use the underlying assets and lease liabilities representing its obligation to make lease payments. However, the Group has elected not to recognise right-of-use assets and lease liabilities for some leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

The Group has applied IFRS 16 using the modified retrospective approach, under which any cumulative effect of initial application is recognised in retained earnings at the current period. Accordingly, the comparative information presented for 2018 has not been restated - i.e. it is presented, as previously reported, under IAS 17 'Leases' and related interpretations. There was no effect from the initial application of IFRS 16.

The Group has applied judgement to determine the lease term for some lease contracts, in which it is a lessee that include renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.

Comparatives

Comparative figures have been reclassified to reflect the required changes in presentation in relation to the reclassification of Kalkan out of disposal groups held for sale (see note 17).

4. USE OF JUDGEMENTS AND ESTIMATES

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation and uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2018, except for the new significant judgements related to lessee accounting under IFRS 16 (see note 3).

Going concern assumptions

The Group's cash flow forecasts for the foreseeable future involve uncertainties related primarily to the exact disposal proceeds and timing of disposals of the assets expected to be disposed of. Management believes that the proceeds from forecast asset sales will be sufficient to maintain the Group's cash flow at a positive level. Should the need arise, management is confident that it can secure additional banking facilities and/or obtain waivers on existing ones, until planned asset sales are realised and proceeds received. If for any reason the Group is unable to continue as a going concern, then this could have an impact on the Group's ability to realise assets at their recognised values and to extinguish liabilities in the normal course of business at the amounts stated in the condensed consolidated interim financial statements.

5. PRINCIPAL SUBSIDIARIES

As at 30 June 2019, the Group's most significant subsidiaries were the following:

 
                                                                                        Country of   Shareholding 
 Name                                                                     Project    incorporation       interest 
-----------------------------------------------------  --------------------------  ---------------  ------------- 
 Scorpio Bay Holdings Limited                                  Scorpio Bay Resort           Cyprus           100% 
=====================================================  ==========================  ===============  ============= 
 Scorpio Bay Resorts S.A.                                      Scorpio Bay Resort           Greece           100% 
=====================================================  ==========================  ===============  ============= 
 Xscape Limited                                               Lavender Bay Resort           Cyprus           100% 
=====================================================  ==========================  ===============  ============= 
 Golfing Developments S.A.                                    Lavender Bay Resort           Greece           100% 
=====================================================  ==========================  ===============  ============= 
 MindCompass Overseas S.A.                               Kilada Hills Golf Resort           Greece           100% 
=====================================================  ==========================  ===============  ============= 
 MindCompass Overseas Two S.A.                           Kilada Hills Golf Resort           Greece           100% 
=====================================================  ==========================  ===============  ============= 
 MindCompass Parks S.A.                                  Kilada Hills Golf Resort           Greece           100% 
=====================================================  ==========================  ===============  ============= 
 Dolphin Capital Greek Collection Limited                Kilada Hills Golf Resort           Cyprus           100% 
=====================================================  ==========================  ===============  ============= 
 DCI Holdings One Limited ('DCI H1')                            Aristo Developers             BVIs           100% 
=====================================================  ==========================  ===============  ============= 
 D.C. Apollo Heights Polo and Country Resort Limited        Apollo Heights Resort           Cyprus           100% 
=====================================================  ==========================  ===============  ============= 
 Symboula Estates Limited ('Symboula')                      Apollo Heights Resort           Cyprus           100% 
=====================================================  ==========================  ===============  ============= 
 Azurna Uvala D.o.o. ('Azurna')                                  Livka Bay Resort          Croatia           100% 
=====================================================  ==========================  ===============  ============= 
 Eastern Crete Development Company S.A.                          Plaka Bay Resort           Greece           100% 
=====================================================  ==========================  ===============  ============= 
 DolphinLux 2 S.a.r.l.                                                   La Vanta       Luxembourg           100% 
=====================================================  ==========================  ===============  ============= 
 Kalkan Yapi ve Turizm A.S. ('Kalkan')                                   La Vanta           Turkey           100% 
=====================================================  ==========================  ===============  ============= 
 Single Purpose Vehicle Ten Limited ('SPV 10')                         Kea Resort           Cyprus            67% 
=====================================================  ==========================  ===============  ============= 
 

The above shareholding interest percentages are rounded to the nearest integer.

6. revenue

 
                                       From 1 January 2019 to 30 June 2019       From 1 January 2018 to 30 June 2018 
                                       Continuing    Discontinued                Continuing    Discontinued 
                                       operations       operation      Total     operations       operation      Total 
                                          EUR'000         EUR'000    EUR'000        EUR'000         EUR'000    EUR'000 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Income from hotel operations                   -               -          -              -           6,507      6,507 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Sale of trading and investment 
  properties                                    -               -          -          1,473               -      1,473 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Rental income                                  6               -          6              5               -          5 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Other income                                 376               -        376             73               -         73 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Total                                        382               -        382          1,551           6,507      8,058 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 

7. COST OF SALES

 
                                       From 1 January 2019 to 30 June 2019       From 1 January 2018 to 30 June 2018 
                                       Continuing    Discontinued                Continuing    Discontinued 
                                       operations       operation      Total     operations       operation      Total 
                                          EUR'000         EUR'000    EUR'000        EUR'000         EUR'000    EUR'000 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Cost of sales related to: 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
  Hotel operations                              -               -          -              -           2,824      2,824 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
  Sales of trading and investment 
   properties                                   -               -          -          1,117               -      1,117 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Personnel expenses (see below)               151               -        151            388           2,298      2,686 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Branding management fees                       -               -          -             30             268        298 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Other operating expenses                      14               -         14             37              51         88 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Total                                        165               -        165          1,572           5,441      7,013 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 

Personnel expenses

 
                                       From 1 January 2019 to 30 June 2019       From 1 January 2018 to 30 June 2018 
                                       Continuing    Discontinued                Continuing    Discontinued 
                                       operations       operation      Total     operations       operation      Total 
                                          EUR'000         EUR'000    EUR'000        EUR'000         EUR'000    EUR'000 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Wages and salaries                           131               -        131            302           1,812      2,114 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Compulsory social security 
  contributions                                15               -         15             74             452        526 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Other personnel costs                          5               -          5             12              34         46 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Total                                        151               -        151            388           2,298      2,686 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 The average number of employees 
  during the period was                         5               -          5             26             186        212 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 

8. INCOME AND EXPENSES

. Disposal of investments in subsidiaries

 
                                       From 1 January 2019 to 30 June 2019       From 1 January 2018 to 30 June 2018 
                                    ========================================  ======================================== 
                                       Continuing    Discontinued                Continuing    Discontinued 
                              Note     operations       operation      Total     operations       operation      Total 
                                          EUR'000         EUR'000    EUR'000        EUR'000         EUR'000    EUR'000 
---------------------------  -----  -------------  --------------  ---------  -------------  --------------  --------- 
 Gain/(loss) on disposal of 
  investment in 
  subsidiaries                  29            630               -        630        (2,688)               -    (2,688) 
---------------------------  -----  -------------  --------------  ---------  -------------  --------------  --------- 
 Total                                        630               -        630        (2,688)               -    (2,688) 
---------------------------  -----  -------------  --------------  ---------  -------------  --------------  --------- 
 

. Change in valuations

 
                                       From 1 January 2019 to 30 June 2019       From 1 January 2018 to 30 June 2018 
                                    ========================================  ======================================== 
                                       Continuing    Discontinued                Continuing    Discontinued 
                                       operations       operation      Total     operations       operation      Total 
                                          EUR'000         EUR'000    EUR'000        EUR'000         EUR'000    EUR'000 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Net change in fair value of 
  investment property                           -               -          -          1,277               -      1,277 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Reversal of impairment loss on 
  re-measurement of disposal 
  groups                                       90               -         90              -               -          - 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 Total                                         90               -         90          1,277               -      1,277 
----------------------------------  -------------  --------------  ---------  -------------  --------------  --------- 
 

9. SEGMENT REPORTING

Operating segments

As at 30 June 2019, due to the latest disposals that took place in its asset portfolio, the Group is not considered to have reportable operating segments that require disclosure.

As at 30 June 2018, the Group had two reportable operating segments, the 'Hotel & leisure operations' and 'Construction & development' segments. Information related to each operational reportable segment is set out below. Segment loss before tax is used to measure performance as management believes such information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.

 
                             Hotel & leisure              Construction &                       Other        Reportable segments' 
                                  operations                 development                                                  totals 
                  --------------------------  --------------------------  --------------------------  -------------------------- 
                   Continuing   Discontinued   Continuing   Discontinued   Continuing   Discontinued   Continuing   Discontinued 
                   operations      operation   operations      operation   operations      operation   operations      operation 
                      EUR'000        EUR'000      EUR'000        EUR'000      EUR'000        EUR'000      EUR'000        EUR'000 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 30 June 2018 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Revenue                    -          6,507        1,478              -           73              -        1,551          6,507 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Cost of sales              -        (5,441)      (1,421)              -        (151)              -      (1,572)        (5,441) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Investment 
  Manager 
  remuneration              -              -            -              -      (2,500)              -      (2,500)              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Directors' 
  remuneration              -              -            -              -        (318)              -        (318)              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Depreciation 
  charge                    -        (1,096)            -              -         (15)              -         (15)        (1,096) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Professional 
  fees                      -              -        (277)              -      (2,040)              -      (2,317)              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Administrative 
  and other 
  expenses                  -              -         (68)              -        (749)              -        (817)              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Loss on 
  disposal of 
  investment in 
  subsidiaries              -              -            -              -      (2,688)              -      (2,688)              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Net change in 
  fair value of 
  investment 
  property                  -              -            -              -        1,277              -        1,277              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Results from 
  operating 
  activities                -           (30)        (288)              -      (7,111)              -      (7,399)           (30) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Finance income             -              -          105              -         (86)              -           19              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Finance costs              -        (1,183)      (2,242)              -      (2,628)              -      (4,870)        (1,183) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Net finance 
  costs                     -        (1,183)      (2,137)              -      (2,714)              -      (4,851)        (1,183) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Loss before 
  taxation                  -        (1,213)      (2,425)              -      (9,825)              -     (12,250)        (1,213) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Taxation                   -              -          (8)              -        (666)              -        (674)              - 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 Loss                       -        (1,213)      (2,433)              -     (10,491)              -     (12,924)        (1,213) 
----------------  -----------  -------------  -----------  -------------  -----------  -------------  -----------  ------------- 
 

Country risk developments

The general economic environment prevailing in the south-east Europe area and internationally may affect the Group's operations. Factors such as inflation, unemployment, public health crises, international trade and development of the gross domestic product directly impact the economy of each country. Variations in those factors and the economic environment in general affect the Group's performance to a certain extent.

The global fundamentals of the hospitality sector remained strong during 2018 and 2019, with both international tourism and wealth continuing to grow, even though economic activity in two of the Group's primary markets, Greece and Cyprus, continued to face significant challenges.

Greece

Gross Domestic Product ('GDP') of Greece grew 1.9% in 2018 compared to 2017. The country also realized a 1.9% year-on-year GDP increase in the second quarter of 2019. In addition, macroeconomic indicators have been quite encouraging about the country's economic perspectives. S&P, Fitch and Moody's upgraded the country's credit rating in 2018 and made very favourable assessments of the Greek economy's progress. In April 2019 R&I upgraded Greece's rating by one notch to 'B+' and revised the outlook to positive from stable. In August 2018 Greece successfully exited its final, three-year bailout program that had been agreed in August 2015 to help it cope with the continued fallout from its debt crisis.

The tourism sector is expected to have a significant impact on the recovery of the country's economy and on curbing the external trade deficit. According to the data issued by the Bank of Greece, a total of 30 million tourists arrived in Greece in 2018, recording a rise of 10.8%, while travel revenues exceeded 16 billion euros for the year, up 10% compared to 2017, posting a new record. During the first six months of 2019 travel receipts are up 15.3%, while a 15.9% rise in average expenditure per trip was registered, according to the provisional data released by the Bank of Greece.

Cyprus

GDP of Cyprus grew 3.9% in 2018 compared to 2017. The country also realized a 3.0% year-on-year GDP increase in the second quarter of 2019.

In addition, according to 'Cyprus Real Estate Market Report - The Insights' (KPMG, December 2018), the Cypriot economy continued its positive growth in 2018 and the positive economic performance over the past years has led to a series of upgrades of Cyprus' sovereign rating by various international credit rating agencies. In the latest update by S&P, Fitch and DBRS, Cyprus sovereign rating was upgraded to 'Investment Grade' with stable outlook, signifying the strong performance and improvement of the Cypriot economy.

The available data for the tourism industry highlighted, once again, that tourism was amongst one of the key catalysts for the country's 2018 economic performance. In 2018 Cyprus welcomed 3.93 million tourists, an increase of 7.8% compared to 2017. UK and Russia constitute the main sources of tourism for Cyprus, with visitor proportions at 33.7% and 19.9%, respectively.

After three record years, tourist arrivals in Cyprus for 2019 are expected to remain around the same levels as last year. This is due to Brexit uncertainty and the re-emergence of competitive neighbouring markets.

Real Estate activity continued its upward trend in 2018, with Contracts of Sale exhibiting an increase of 21%, while non-nationals in 2018 bought 103% more properties compared with Q1-Q3 2017, reaching a 48% share of the overall market. Sales transactions and construction activity are indicating a strong demand during the first half of 2019. Property sales rose by 24.4% and building permits were up to 6.4% compared to the same period of 2018.

The acceleration was due to established incentives such as the scheme for naturalisation of investors in Cyprus by exception, which has attracted mainly non-EU buyers, as well as transactions recorded by local banks in the context of implementing Debt-for-Asset swaps for the restructuring of their Non-Performing Exposures. Recognising the growing interest, Cyprus has focused on modernising legislation, introducing tax incentives and speeding up licensing procedures.

10. DISCONTINUED OPERATION

During the period ended 30 June 2018, the Group entered into an agreement for the disposal of DCI 14 (owner of 'Amanzoe' project in Greece). Part of Amanzoe constituted the 'Hotel and Leisure' operations of the Group, which as at 30 June 2018, was presented as a discontinued operation.

Results of discontinued operation

 
                                             From 1 January   From 1 January 
                                                       2019             2018 
                                                 to 30 June       to 30 June 
                                                       2019             2018 
                                      Note          EUR'000          EUR'000 
-----------------------------------  -----  ---------------  --------------- 
 Revenue                                 6                -            6,507 
-----------------------------------  -----  ---------------  --------------- 
 Expenses 
-----------------------------------  -----  ---------------  --------------- 
  Cost of sales                          7                -          (5,441) 
-----------------------------------  -----  ---------------  --------------- 
  Depreciation charge                                     -          (1,096) 
-----------------------------------  -----  ---------------  --------------- 
  Net finance costs                                       -          (1,183) 
-----------------------------------  -----  ---------------  --------------- 
 Loss from discontinued operation, 
  net of tax                                              -          (1,213) 
-----------------------------------  -----  ---------------  --------------- 
 

Cash flows used in discontinued operation

 
                                           From 1 January   From 1 January 
                                                     2019             2018 
                                               to 30 June       to 30 June 
                                                     2019             2018 
                                                  EUR'000          EUR'000 
 ---------------------------------------  ---------------  --------------- 
 Net cash from operating activities                     -            2,674 
----------------------------------------  ---------------  --------------- 
 Net cash used in investing activities                  -            (102) 
----------------------------------------  ---------------  --------------- 
 Net cash used in financing activities                  -          (1,043) 
----------------------------------------  ---------------  --------------- 
 Net cash flows for the period                          -            1,529 
----------------------------------------  ---------------  --------------- 
 

11. PROFESSIONAL FEES

 
                                   From 1 January 2019                   From 1 January 2018 
                                     to 30 June 2019                       to 30 June 2018 
                           Continuing   Discontinued             Continuing   Discontinued 
                           operations      operation     Total   operations     operations     Total 
                              EUR'000        EUR'000   EUR'000      EUR'000        EUR'000   EUR'000 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Legal fees                       281              -       281          333              -       333 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Auditors' remuneration 
  (see below)                     113              -       113          194              -       194 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Accounting expenses              109              -       109          127              -       127 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Project design and 
  development fees                756              -       756        1,343              -     1,343 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Consultancy fees                  91              -        91           76              -        76 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Administrator fees                28              -        28           25              -        25 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Other professional 
  fees                            164              -       164          219              -       219 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Total                          1,542              -     1,542        2,317              -     2,317 
------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 
 
                                     From 1 January 2019                   From 1 January 2018 
                                       to 30 June 2019                       to 30 June 2018 
                             Continuing   Discontinued             Continuing   Discontinued 
                             operations      operation     Total   operations     operations     Total 
                                EUR'000        EUR'000   EUR'000      EUR'000        EUR'000   EUR'000 
--------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Auditors' remuneration 
  comprises the following 
  fees: 
--------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Audit and other audit 
  related services                  113              -       113          194              -       194 
--------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Tax and advisory                     -              -         -            -              -         - 
--------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Total                              113              -       113          194              -       194 
--------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 

12. ADMINISTRATIVE AND OTHER EXPENSES

 
                                         From 1 January 2019                   From 1 January 2018 
                                           to 30 June 2019                       to 30 June 2018 
                                 Continuing   Discontinued             Continuing   Discontinued 
                                 operations      operation     Total   operations     operations     Total 
                                    EUR'000        EUR'000   EUR'000      EUR'000        EUR'000   EUR'000 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Travelling and accommodation            45              -        45           67              -        67 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Insurance                               19              -        19           23              -        23 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Repairs and maintenance                  5              -         5          124              -       124 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Marketing and advertising 
  expenses                               44              -        44           73              -        73 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Rents                                   30              -        30           63              -        63 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Other                                  238              -       238          467              -       467 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 Total                                  381              -       381          817              -       817 
------------------------------  -----------  -------------  --------  -----------  -------------  -------- 
 

13. Taxation

 
                                                 From 1 January   From 1 January 
                                                           2019             2018 
                                                     to 30 June       to 30 June 
                                                           2019             2018 
                                                        EUR'000          EUR'000 
 RECOGNISED IN PROFIT OR LOSS 
 Income tax                                                   2                1 
----------------------------------------------  ---------------  --------------- 
 Net deferred tax                                             -              673 
==============================================  ===============  =============== 
 Total                                                        2              674 
----------------------------------------------  ---------------  --------------- 
 RECOGNISED IN OTHER COMPREHENSIVE INCOME 
----------------------------------------------  ---------------  --------------- 
 Revaluation of property, plant and equipment                 -            3,463 
----------------------------------------------  ---------------  --------------- 
 Total                                                        -            3,463 
----------------------------------------------  ---------------  --------------- 
 

14. LOSS per share

Basic loss per share

Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of common shares outstanding during the period.

 
                                          From 1 January                      From 1 January 2018 
                                          2019 to 30 June                        to 30 June 2018 
                                                2019 
                               ------------------------------------  ------------------------------------- 
                                Continuing   Discontinued             Continuing   Discontinued 
                                operations      operation     Total   operations      operation      Total 
                                      '000           '000      '000         '000           '000       '000 
-----------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 Loss attributable to owners 
  of the Company (EUR)             (4,940)              -   (4,940)     (12,561)        (1,168)   (13,729) 
-----------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 Number of weighted average 
  common shares outstanding        904,627              -   904,627      904,627        904,627    904,627 
-----------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 Basic loss per share (EUR)        (0.005)              -   (0.005)      (0.014)        (0.001)    (0.015) 
-----------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 

Loss attributable to owners of the Company

 
                                            From 1 January                      From 1 January 2018 
                                            2019 to 30 June                        to 30 June 2018 
                                                  2019 
                                 ------------------------------------  ------------------------------------- 
                                  Continuing   Discontinued             Continuing   Discontinued 
                                  operations      operation     Total   operations     operations      Total 
                                     EUR'000        EUR'000   EUR'000      EUR'000        EUR'000    EUR'000 
-------------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 Loss attributable to owners 
  of the Company                     (4,940)              -   (4,940)     (12,561)        (1,168)   (13,729) 
-------------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 Gain/(loss) attributable 
  to non-controlling interests           147              -       147        (363)           (45)      (408) 
-------------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 Total                               (4,793)              -   (4,793)     (12,924)        (1,213)   (14,137) 
-------------------------------  -----------  -------------  --------  -----------  -------------  --------- 
 

Weighted average number of common shares outstanding

 
                                               From 1 January   From 1 January 
                                                         2019             2018 
                                                   to 30 June       to 30 June 
                                                         2019             2018 
                                                         '000             '000 
--------------------------------------------  ---------------  --------------- 
 Outstanding common shares at the beginning 
  and end of the period                               904,627          904,627 
--------------------------------------------  ---------------  --------------- 
 

Diluted loss per share

Diluted loss per share is calculated by adjusting the loss attributable to owners and the number of common shares outstanding to assume conversion of all dilutive potential shares. As of 30 June 2019 and 30 June 2018, the diluted loss per share is the same as the basic loss per share, due to the fact that no dilutive potential ordinary shares were outstanding during these periods.

15. Property, plant and equipment

 
                                       Land and buildings 
                                                  EUR'000       Other       Total 
                                                              EUR'000     EUR'000 
 30 June 2019 
------------------------------------  -------------------  ----------  ---------- 
 Cost or revalued amount 
------------------------------------  -------------------  ----------  ---------- 
 At beginning of period                            19,975         384      20,359 
------------------------------------  -------------------  ----------  ---------- 
 Direct acquisitions                                   82           -          82 
------------------------------------  -------------------  ----------  ---------- 
 At end of period                                  20,057         384      20,441 
------------------------------------  -------------------  ----------  ---------- 
 
 Depreciation and impairment losses 
------------------------------------  -------------------  ----------  ---------- 
 At beginning of period                             7,720         366       8,086 
------------------------------------  -------------------  ----------  ---------- 
 Depreciation charge for the period                    16           3          19 
====================================  ===================  ==========  ========== 
 At end of period                                   7,736         369       8,105 
------------------------------------  -------------------  ----------  ---------- 
 
 Carrying amounts                                  12,321          15      12,336 
------------------------------------  -------------------  ----------  ---------- 
 
 
                                                                  Land &         Other         Total 
                                                               buildings    (Restated)    (Restated) 
                                                                 EUR'000       EUR'000       EUR'000 
===========================================================  ===========  ============  ============ 
 31 December 2018 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Cost or revalued amount 
-----------------------------------------------------------  -----------  ------------  ------------ 
 At beginning of year                                            104,136         5,489       109,625 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Direct acquisitions                                                  25            93           118 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Disposal through disposal of subsidiary companies              (88,627)       (5,198)      (93,825) 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Revaluation adjustment                                            4,441             -         4,441 
-----------------------------------------------------------  -----------  ------------  ------------ 
 At end of year                                                   19,975           384        20,359 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Depreciation and impairment losses 
-----------------------------------------------------------  -----------  ------------  ------------ 
 At beginning of year                                             18,608         3,460        22,068 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Depreciation charge for the year - continuing operations             30            15            45 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Depreciation charge for the year - discontinued operation           859           237         1,096 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Revaluation adjustment                                          (7,502)             -       (7,502) 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Disposals through disposal of subsidiary companies              (3,534)       (3,346)       (6,880) 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Impairment loss                                                     167             -           167 
-----------------------------------------------------------  -----------  ------------  ------------ 
 Reversal of impairment loss                                       (908)             -         (908) 
-----------------------------------------------------------  -----------  ------------  ------------ 
 At end of year                                                    7,720           366         8,086 
===========================================================  ===========  ============  ============ 
 Carrying amounts                                                 12,255            18        12,273 
===========================================================  ===========  ============  ============ 
 

Fair value hierarchy

The fair value of land and buildings has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used.

Valuation techniques and significant unobservable inputs

The valuation techniques used in measuring the fair value of land and buildings, as well as the significant unobservable inputs used, are the same as those used as at 31 December 2018.

16. Investment property

 
                                        30 June   31 December 
                                           2019          2018 
                                        EUR'000       EUR'000 
 ------------------------------------  --------  ------------ 
 At beginning of period/year            116,391       138,672 
-------------------------------------  --------  ------------ 
 Direct acquisitions                          -            51 
-------------------------------------  --------  ------------ 
 Disposals through disposal of 
  subsidiary companies                        -       (9,293) 
-------------------------------------  --------  ------------ 
 Fair value adjustment - continuing 
  operations                                  -      (13,039) 
-------------------------------------  --------  ------------ 
 At end of period/year                  116,391       116,391 
-------------------------------------  --------  ------------ 
 

Fair value hierarchy

The fair value of investment property has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used.

Valuation techniques and significant unobservable inputs

The valuation techniques used in measuring the fair value of investment property, as well as the significant unobservable inputs used, are the same as those used as at 31 December 2018.

17. DISPOSAL GROUPS HELD FOR SALE

As shown in note 29, the Group completed the sale of six out of seven remaining Seafront Villas in Greece (owned by the Collection Group) and is in the process of finalising the sale of the one remaining Villa. Accordingly, the remaining assets and liabilities of the Collection Group are presented as a disposal group held for sale.

The Company also remains committed to its plan to sell two disposal groups which are presented as held for sale in 2018. These disposal groups are: Azurna (owner of 'Livka Bay') in Croatia and DCI Holdings Two Limited ('DCI H2') (owner of Aristo Developers Limited ('Aristo') in Cyprus.

As at 31 December 2018, Kalkan (owner of 'La Vanta') in Turkey was also presented as held for sale, but as the disposal did not materialise, it was classified out of held for sale as of 30 June 2019. Moreover, as stated in note 29, the Group entered into a joint venture agreement pursuant to which its shareholding interest in the Kea project (owner of 'Kea Resort') was decreased from 67% to 33%. The remaining 33% interest has been treated as an equity-accounted investee (see note 25).

Impairment losses relating to the disposal group

No impairment losses have been recognised during the period ended 30 June 2019 and 30 June 2018 for write-downs of the disposal groups to the lower of their carrying amount and their fair value less costs to sell.

Assets and liabilities of disposal groups held for sale

As at 30 June 2019, the disposal groups comprised the following assets and liabilities:

 
                                    Azurna   Collection      DCI H2     Total 
                                  disposal     disposal    disposal 
                                     group        group       group 
                                   EUR'000      EUR'000     EUR'000   EUR'000 
 -----------------------------  ----------  -----------  ----------  -------- 
 Investment property                29,067            -           -    29,067 
------------------------------  ----------  -----------  ----------  -------- 
 Equity-accounted investees              -            -      42,694    42,694 
------------------------------  ----------  -----------  ----------  -------- 
 Trading properties                      -        1,148           -     1,148 
------------------------------  ----------  -----------  ----------  -------- 
 Trade and other receivables            13           93           -       106 
------------------------------  ----------  -----------  ----------  -------- 
 Cash and cash equivalents             212           58           -       270 
------------------------------  ----------  -----------  ----------  -------- 
                                    29,292        1,299      42,694    73,285 
 -----------------------------  ----------  -----------  ----------  -------- 
 Other investments                       -            -           -       898 
------------------------------  ----------  -----------  ----------  -------- 
 Assets held for sale                                                  74,183 
------------------------------  ----------  -----------  ----------  -------- 
 Loans and borrowings                7,135            -           -     7,135 
------------------------------  ----------  -----------  ----------  -------- 
 Deferred tax liabilities            2,892            -           -     2,892 
------------------------------  ----------  -----------  ----------  -------- 
 Trade and other payables              957        3,236           -     4,193 
------------------------------  ----------  -----------  ----------  -------- 
 Liabilities held for sale          10,984        3,236           -    14,220 
------------------------------  ----------  -----------  ----------  -------- 
 

Other investments

Other investments consists of the valuation of the Company's holding of 9.6 million shares, equivalent to 13% of Itacare's share capital. Itacare is a real estate investment company formerly listed on AIM. Itacare's shareholders have decided to dispose of all its assets and after a series of asset sales/swaps, Itacare now owns two development sites with the Company's shareholding being 13%.

DCI H2 disposal group

As at 30 June 2019 and as at 31 December 2018, the Company's holding of 47.9% has been classified as an asset held for sale. The Company received within 2018 a total net distribution of EUR2 million from DCI H2, the owner of Aristo. The Board remains committed to dispose of its holding in Aristo and realise value from this investment as well as maximize its distributions potential from DCI H2.

As at 31 December 2018, the disposal groups comprised the following assets and liabilities:

 
                                        Kea      Azurna   Collection            DCI     Total 
                                   disposal    disposal     disposal    H2 disposal 
                                      group       group        group          group 
                                    EUR'000     EUR'000      EUR'000        EUR'000   EUR'000 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Property, plant and equipment       10,437           -            -              -    10,437 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Investment property                 10,360      28,965            -              -    39,325 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Equity-accounted investees               -           -            -         42,694    42,694 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Trading properties                       -           -        5,638              -     5,638 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Trade and other receivables            128           7           85              -       220 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Cash and cash equivalents              336         218           14              -       568 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
                                     21,261      29,190        5,737         42,694    98,882 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Other investments                        -           -            -              -       901 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Assets held for sale                                                                  99,783 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Loans and borrowings                     -       7,149            -              -     7,149 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Deferred tax liabilities             2,132       2,870            -              -     5,002 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Trade and other payables             1,514         969        3,243              -     5,726 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 Liabilities held for 
  sale                                3,646      10,988        3,243              -    17,877 
-------------------------------  ----------  ----------  -----------  -------------  -------- 
 

Cumulative income or expenses included in other comprehensive income

No cumulative income or expenses relating to the disposal groups is included in other comprehensive income (30 June 2018: il).

Measurement of fair values

i. Fair value hierarchy

The fair value measurement for the disposal groups before costs to sell has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used.

ii. Valuation techniques and significant unobservable inputs

The fair value of each disposal group is significantly based on the valuation of the immovable property in each group. The valuation techniques and significant unobservable inputs used in measuring the fair values of these properties are the same as those used as at 31 December 2018.

18. Trading properties

 
                                                                        31 December 2018 
                                                          30 June 2019        (Restated) 
                                                               EUR'000           EUR'000 
 -------------------------------------------------------  ------------  ---------------- 
At beginning of period/year                                      4,699            36,187 
--------------------------------------------------------  ------------  ---------------- 
Net direct acquisitions/(disposals)                                216             (191) 
--------------------------------------------------------  ------------  ---------------- 
Disposals through disposal of subsidiary companies                   -          (21,129) 
--------------------------------------------------------  ------------  ---------------- 
Reclassification to assets held for sale                             -           (5,638) 
--------------------------------------------------------  ------------  ---------------- 
Exchange difference                                              (205)                 - 
--------------------------------------------------------  ------------  ---------------- 
Impairment loss                                                      -           (4,530) 
--------------------------------------------------------  ------------  ---------------- 
At end of period/year                                            4,710             4,699 
--------------------------------------------------------  ------------  ---------------- 
 

19. RECEIVABLES AND OTHER ASSETS

 
                                                    31 December 
                                                           2018 
                                      30 June 2019   (Restated) 
                                           EUR'000      EUR'000 
------------------------------------  ------------  ----------- 
  Trade receivables                             80          151 
------------------------------------  ------------  ----------- 
  VAT receivables                              737          676 
------------------------------------  ------------  ----------- 
  Other receivables                            365          342 
------------------------------------  ------------  ----------- 
  Total trade and other receivables          1,182        1,169 
------------------------------------  ------------  ----------- 
  Prepayments and other assets                  69        1,668 
------------------------------------  ------------  ----------- 
  Total                                      1,251        2,837 
------------------------------------  ------------  ----------- 
 

20. Cash and cash equivalents

 
                                31 December 2018 
                  30 June 2019        (Restated) 
                       EUR'000           EUR'000 
----------------  ------------  ---------------- 
  Bank balances          7,573             8,068 
----------------  ------------  ---------------- 
  Cash in hand               9                 8 
----------------  ------------  ---------------- 
  Total                  7,582             8,076 
----------------  ------------  ---------------- 
 

During the period, the Group had no fixed deposits.

21. CAPITAL AND RESERVES

Capital

Authorised share capital

 
                                 30 June 2019    31 December 2018 
                           ------------------  ------------------ 
                             '000 of             '000 of 
                              shares  EUR'000     shares  EUR'000 
-------------------------  ---------  -------  ---------  ------- 
Common shares of EUR0.01 
 each                      2,000,000   20,000  2,000,000   20,000 
-------------------------  ---------  -------  ---------  ------- 
 

Movement in share capital and premium

 
                                  Shares in      Share   Share premium 
                                               capital 
                                       '000    EUR'000         EUR'000 
-------------------------------  ----------  ---------  -------------- 
 Capital at 1 January 2018 and 
  30 June 2019                      904,627      9,046         569,847 
-------------------------------  ----------  ---------  -------------- 
 

Reserves

Translation reserve

Translation reserve comprises all foreign currency differences arising from the translation of the interim financial statements of foreign operations.

Revaluation reserve

Revaluation reserve relates to the revaluation of property, plant and equipment from both subsidiaries and equity-accounted investees, net of any deferred tax.

22. LOANS AND BORROWINGS

 
                                                       Within one            Within two             More than 
                                      Total                  year         to five years            five years 
                       --------------------  --------------------  --------------------  -------------------- 
                       30 June  31 December  30 June  31 December  30 June  31 December  30 June  31 December 
                          2019         2018     2019         2018     2019         2018     2019         2018 
                       EUR'000      EUR'000  EUR'000      EUR'000  EUR'000      EUR'000  EUR'000      EUR'000 
---------------------  -------  -----------  -------  -----------  -------  -----------  -------  ----------- 
Loans in Euro           15,726       17,326   15,726       17,326        -            -        -            - 
---------------------  -------  -----------  -------  -----------  -------  -----------  -------  ----------- 
Loans in Euro within 
 disposal groups 
 held for sale           7,135        7,149    7,135        7,149        -            -        -            - 
---------------------  -------  -----------  -------  -----------  -------  -----------  -------  ----------- 
Total                   22,861       24,475   22,861       24,475        -            -        -            - 
---------------------  -------  -----------  -------  -----------  -------  -----------  -------  ----------- 
 

As of 30 June 2019, there were no significant changes in terms and conditions of the outstanding loans, compared to 31 December 2018.

 
                          1 January       New       Capital   Interest        Other   30 June 
                               2019    issues    repayments       paid    movements      2019 
                            EUR'000   EUR'000       EUR'000    EUR'000      EUR'000   EUR'000 
-----------------------  ----------  --------  ------------  ---------  -----------  -------- 
 Loans in Euro               17,326         -       (1,600)          -            -    15,726 
-----------------------  ----------  --------  ------------  ---------  -----------  -------- 
 Loans in Euro within 
  disposal groups held 
  for sale                    7,149         -             -      (155)          141     7,135 
-----------------------  ----------  --------  ------------  ---------  -----------  -------- 
 Total                       24,475         -       (1,600)      (155)          141    22,861 
-----------------------  ----------  --------  ------------  ---------  -----------  -------- 
 

Securities

During the period, the Symboula loan of EUR15,726 thousand was sold by the previous banking lender to a third party as part of a larger package transaction of loan liabilities sold. As of 30 June 2019, there were no significant changes in the Group's loan securities compared to 31 December 2018. The securities include mortgages against immovable property, pledge of shares, fixed and floating charges over assets and corporate guarantees.

23. lease LIABILITIES

 
                                       30 June 2019                    31 December 2018 
                             --------------------------------  --------------------------------- 
                                                      Present                            Present 
                                Future                  value     Future                   value 
                               minimum             of minimum    minimum              of minimum 
                                 lease                  lease      lease                   lease 
                              payments  Interest     payments   payments  Interest      payments 
                               EUR'000   EUR'000      EUR'000    EUR'000   EUR'000       EUR'000 
---------------------------  ---------  --------  -----------  ---------  --------  ------------ 
Less than one year                  28        20            8          8         -             8 
---------------------------  ---------  --------  -----------  ---------  --------  ------------ 
Between two and five years         246       118          128        244        12           232 
---------------------------  ---------  --------  -----------  ---------  --------  ------------ 
More than five years             3,913     1,029        2,884      4,061     1,288         2,773 
---------------------------  ---------  --------  -----------  ---------  --------  ------------ 
Total                            4,187     1,167        3,020      4,313     1,300         3,013 
---------------------------  ---------  --------  -----------  ---------  --------  ------------ 
 

The major lease liabilities comprise leases in Greece with 99-year lease terms.

24. Deferred tax assets and liabilities

 
                                                                                     31 December 
                                                       30 June 2019                         2018 
                                        ---------------------------  --------------------------- 
                                          Deferred         Deferred    Deferred         Deferred 
                                        tax assets  tax liabilities  tax assets  tax liabilities 
                                           EUR'000          EUR'000     EUR'000          EUR'000 
--------------------------------------  ----------  ---------------  ----------  --------------- 
Balance at the beginning of the 
 period/year                                     -          (8,444)         994         (19,561) 
--------------------------------------  ----------  ---------------  ----------  --------------- 
Recognised in profit or loss - 
 continuing operations                           -                -         (1)            1,642 
--------------------------------------  ----------  ---------------  ----------  --------------- 
Recognised in other comprehensive 
 income                                          -                -           -          (2,985) 
======================================  ==========  ===============  ==========  =============== 
Disposal of subsidiary companies                 -                -       (993)           12,460 
======================================  ==========  ===============  ==========  =============== 
Balance at the end of the period/year            -          (8,444)           -          (8,444) 
--------------------------------------  ----------  ---------------  ----------  --------------- 
 

Deferred tax assets and liabilities are attributable to the following:

 
                                                                                  31 December 
                                                    30 June 2019                         2018 
                                       Deferred         Deferred    Deferred         Deferred 
                                     tax assets  tax liabilities  tax assets  tax liabilities 
                                        EUR'000          EUR'000     EUR'000          EUR'000 
-----------------------------------  ----------  ---------------  ----------  --------------- 
Revaluation of investment property            -          (7,243)           -          (7,243) 
-----------------------------------  ----------  ---------------  ----------  --------------- 
Revaluation of property, plant 
 and equipment                                -          (1,201)           -          (1,201) 
===================================  ==========  ===============  ==========  =============== 
Total                                         -          (8,444)           -          (8,444) 
-----------------------------------  ----------  ---------------  ----------  --------------- 
 

25. equity-accounted investees

 
 
                                   Single 
                                  Purpose 
                                  Vehicle 
                                 Fourteen 
                                  Limited 
                                    ('SPV 
                                     14')    Total 
                                  EUR'000  EUR'000 
   ---------------------------  ---------  ------- 
Balance as at 1 January                 - 
 2019                                            - 
---------------------------     ---------  ------- 
Additions                          18,655   18,655 
------------------------------  ---------  ------- 
Share of losses, net of 
 tax                                (751)    (751) 
------------------------------  ---------  ------- 
Balance as at 30 June 2019         17,904   17,904 
------------------------------  ---------  ------- 
 

As already stated in note 17, SPV 10 entered into a joint venture agreement, pursuant to which the Group's shareholding interest in SPV 14 ("the KEA Project") was decreased from 67% to 33%, as a result of dilution. The Group accounted for the remaining 33% interest as an equity-accounted investee.

The details of the above investment are as follows:

 
           Principal 
            place 
           of business/Country                                Shareholding 
            of                                                   interest 
 Name      incorporation          Principal activities    30 June   31 December 
                                                           2019      2018 
--------  ---------------------  ----------------------  --------  ------------ 
                                  Development of 
 SPV 14    Cyprus                  Kea Resort                 33%           67% 
--------  ---------------------  ----------------------  --------  ------------ 
 

The above shareholding interest percentages are rounded to the nearest integer.

Summary of financial information for equity accounted investees as at 30 June 2019, not adjusted for the percentage of ownership held by the Group:

 
                                    SPV 14     Total 
                                   EUR'000   EUR'000 
   -----------------------------  --------  -------- 
 30 June 2019 
-----------------------------     --------  -------- 
 Current assets                     17,909    17,909 
--------------------------------  --------  -------- 
 Non-current assets                 21,097    21,097 
--------------------------------  --------  -------- 
 Total assets                       39,006    39,006 
--------------------------------  --------  -------- 
 
 Current liabilities                 1,066     1,066 
--------------------------------  --------  -------- 
 Non-current liabilities             2,132     2,132 
--------------------------------  --------  -------- 
 Total liabilities                   3,198     3,198 
--------------------------------  --------  -------- 
 Net assets                         35,808    35,808 
--------------------------------  --------  -------- 
 
 Carrying amount of interest 
  in investee                       17,904    17,904 
================================  ========  ======== 
 
 Revenues                                -         - 
-----------------------------     --------  -------- 
 Loss                              (1,468)   (1,468) 
--------------------------------  --------  -------- 
 Other comprehensive                     -         - 
  income 
=============================     ========  ======== 
 Total comprehensive 
  income                           (1,468)   (1,468) 
================================  ========  ======== 
 Group's share of loss 
  and total comprehensive 
  income                             (751)     (751) 
================================  ========  ======== 
 

26. Trade and other payables

 
                                               31 December 
                                                      2018 
                                      30 June 
                                         2019   (Restated) 
                                      EUR'000      EUR'000 
------------------------------------  -------  ----------- 
Land creditors                         20,770       20,843 
====================================  =======  =========== 
Investment Manager fees                 1,938        2,118 
====================================  =======  =========== 
Other payables and accrued expenses     4,400        4,170 
------------------------------------  -------  ----------- 
Total                                  27,108       27,131 
------------------------------------  -------  ----------- 
 
 
                30 June   31 December 
                   2019          2018 
                EUR'000       EUR'000 
-------------  --------  ------------ 
 Non-current     20,840        20,647 
-------------  --------  ------------ 
 Current          6,268         6,484 
=============  ========  ============ 
 Total           27,108        27,131 
-------------  --------  ------------ 
 

During 2017, the Company entered into new contracts in connection with the deferred purchase of land at Lavender Bay. The amount outstanding as at 30 June 2019 was EUR20,770 thousand (31 December 2018: EUR20,843 thousand) and payment will be made on 31 December 2025.

27. NAV per share

 
                                      30 June  31 December 
                                         2019         2018 
                                         '000         '000 
------------------------------------  -------  ----------- 
Total equity attributable to owners 
 of the Company (EUR)                 159,940      164,516 
------------------------------------  -------  ----------- 
Number of common shares outstanding 
 at end of period/year                904,627      904,627 
------------------------------------  -------  ----------- 
NAV per share (EUR)                      0.18         0.18 
------------------------------------  -------  ----------- 
 

28. Related party transactions

   28.1   Directors' interest and remuneration 

Directors' interest

Miltos Kambourides is the founder and managing partner of the Investment Manager.

The interests of the Directors as at 30 June 2019, all of which are beneficial, in the issued share capital of the Company as at this date were as follows:

 
                                          Shares 
                                            '000 
---------------------------------------  ------- 
 Miltos Kambourides (indirect holding)    66,019 
---------------------------------------  ------- 
 Mark Townsend                             1,532 
---------------------------------------  ------- 
 Andrew Coppel                               942 
---------------------------------------  ------- 
 

Save as disclosed, none of the Directors had any interest during the period in any material contract for the provision of services, which was significant to the business of the Group.

 
                                       From 1 January   From 1 January 
                                                 2019             2018 
                                           to 30 June       to 30 June 
                                                 2019             2018 
                                              EUR'000          EUR'000 
------------------------------------  ---------------  --------------- 
 Remuneration                                     246              310 
------------------------------------  ---------------  --------------- 
 Equity-settled share-based payment 
  arrangements                                      -                8 
------------------------------------  ---------------  --------------- 
 Total remuneration                               246              318 
------------------------------------  ---------------  --------------- 
 

The Directors' remuneration details for the six-month periods ended 30 June 2019 and 30 June 2018 were as follows:

 
                  From 1 January   From 1 January 
                            2019             2018 
                      to 30 June       to 30 June 
                            2019             2018 
                         EUR'000          EUR'000 
---------------  ---------------  --------------- 
 Andrew Coppel               117              115 
---------------  ---------------  --------------- 
 Graham Warner                87               85 
---------------  ---------------  --------------- 
 Robert Heller                 -               30 
---------------  ---------------  --------------- 
 Mark Townsend                42               40 
---------------  ---------------  --------------- 
 Sue Farr                      -               40 
---------------  ---------------  --------------- 
 Total                       246              310 
---------------  ---------------  --------------- 
 

Mr. Miltos Kambourides has waived his fees.

On 25 January 2018, Robert Heller and Sue Farr resigned from the Company's Board. Robert Heller no longer retains an interest in the stock options issued pursuant to the Company's Stock Option Programme.

   28.2   Investment Manager remuneration 
 
                             From 1 January   From 1 January 
                                       2019             2018 
                                 to 30 June       to 30 June 
                                       2019             2018 
                                    EUR'000          EUR'000 
--------------------------  ---------------  --------------- 
 Fixed management fee                 2,000            2,500 
--------------------------  ---------------  --------------- 
 Variable management fees                 -            1,506 
--------------------------  ---------------  --------------- 
 Total remuneration                   2,000            4,006 
--------------------------  ---------------  --------------- 
 

On 9 April 2019, the Company signed an Amended and Restated Investment Management Agreement ('IMA'), effective from 1 January 2019, as follows:

i. Fixed management fee

The annual management fees for the period from 1 January 2019 to 31 December 2019 shall be EUR4 million per annum and have been further reduced to EUR3.6 million per annum for 2020 and 2021.

Additionally, the IMA will expire at the earlier of 31 December 2021 or the sale of all of the Company's assets. There will be no fixed management fee due after 31 December 2021.

Previous arrangements, in force until 31 December 2018:

In line with the Amended and Restated IMA, signed in December 2016, with retroactive effect from 1 July 2016 the annual management fees for the second half of 2016 were retrospectively reduced from EUR8.5 million to EUR6.5 million per annum and were set to a fixed declining annual amount equal to EUR6 million for 2017, EUR5 million for 2018 and EUR4 million for 2019.

ii. Variable management fee

A variable management fee for the period from 2 May 2019 to 31 December 2019 will become payable solely upon the execution of each asset divestment by the Company. The variable management fee will be equal to a percentage of the enterprise value (i.e. the equity value of the asset plus any loans or other liabilities assumed by its purchaser) of any asset disposed by the Company during the Divestment Period at a valuation at or in excess of 50% of its latest reported NAV.

The variable management fee percentage will be equal to 1.3% for divestments concluded in 2019 at 50% of relevant latest reported NAV and progressively increases to 4.5% for divestments concluded above 100% of latest reported NAV.

The variable management fee will become payable to the Investment Manager three months from the completion of the respective disposal.

The variable management fee for the period from 1 January 2020 to 31 December 2021 shall be equal to a percentage of the actual distribution made by the Company to its shareholders, as shown below:

 
 Aggregate Shareholder Distributions             % applied 
                                          on Distributions 
 Up to but excluding EUR30 million                     Nil 
-------------------------------------   ------------------ 
 EUR30 million up to but excluding 
  EUR50 million                                       2.0% 
--------------------------------------  ------------------ 
 EUR50 million up to but excluding 
  EUR75 million                                       3.0% 
--------------------------------------  ------------------ 
 EUR75 million up to but excluding 
  EUR100 million                                      4.0% 
--------------------------------------  ------------------ 
 EUR100 million up to but excluding 
  EUR125 million                                      5.0% 
--------------------------------------  ------------------ 
 EUR125 million or more                               6.0% 
--------------------------------------  ------------------ 
 

The Investment Manager was entitled to a performance fee payable under the terms of the previous IMA. There is no change to this entitlement. However, any performance fees earned under this arrangement will be fully deducted from any future annual management fees and variable management fees payable over the term of the IMA.

Previous arrangements, in force until 31 December 2018

In line with the Amended and Restated IMA, signed in December 2016, with retroactive effect from 1 July 2016 a variable management fee was introduced which would become payable solely upon the execution of each asset divestment by the Company. The variable management fee would be equal to a percentage of the enterprise value (i.e. the equity value of the asset plus any loans or other liabilities assumed by its purchaser) of any asset disposed by the Company during the Divestment Period at a valuation at or in excess of 50% of its latest reported NAV.

The variable management fee percentage would be equal to 3% for divestments executed within the second half 2016 and then reduced to 2.5%, 2.0% and 1.3% for those concluded in 2017, 2018 and 2019 respectively, to the extent these were completed at 50% of relevant latest reported NAV. The variable management fee would increase in respect of transactions executed at sales prices exceeding 50% of their NAV.

The variable management fee would become payable to the Investment Manager three months from the completion of the respective disposal.

   28.3   Other related parties 

During the period ended 30 June 2019 and 30 June 2018, the Group did not enter into any related party transactions.

29. Business combinations

On 11 December 2018, the Company entered into a binding agreement for the sale of its interest in five Seafront Villas (owned by the Collection group) for a gross consideration of EUR4.05 million. The Group has received EUR3.4 million on 2 January 2019 whilst the balance will be retained in escrow to cover any potential and contingent liabilities of the respective companies. During 2019, the Group also completed the sale of another Seafront Villa for a cash consideration of EUR0.4 million.

In May 2019, following the satisfaction of all relevant conditions precedent included in the One&Only at Kea Island ('OOKI') Subscription Agreement, the Group signed the completion documents with Kerzner International Management FZ LLC (current owner of 40% of the project) and Kea Assets Limited (current owner of 10% of the project). As a result, the Company's percentage holding in the project fell from 67% to 33%, which is retained as an equity-accounted investee (see note 25). The turn-key construction contract for the development of OOKI was executed on 9 August 2019.

 
                                    Collection        Kea 
                                                               Total 
                                       EUR'000    EUR'000    EUR'000 
                                   -----------  ---------  --------- 
 Investment property                         -   (10,361)   (10,361) 
---------------------------------  -----------  ---------  --------- 
 Property, plant and equipment               -   (10,737)   (10,737) 
---------------------------------  -----------  ---------  --------- 
 Trading properties                    (4,489)          -    (4,489) 
---------------------------------  -----------  ---------  --------- 
 Receivables and other assets                -       (28)       (28) 
---------------------------------  -----------  ---------  --------- 
 Cash and cash equivalents                (11)      (181)      (192) 
---------------------------------  -----------  ---------  --------- 
 Deferred tax liabilities                    -      2,132      2,132 
---------------------------------  -----------  ---------  --------- 
 Trade and other payables                   15      1,866      1,881 
---------------------------------  -----------  ---------  --------- 
 Net assets                            (4,485)   (17,309)   (21,794) 
---------------------------------  -----------  ---------  --------- 
 Net assets disposed of - 
  100%                                 (4,485)   (17,309)   (21,794) 
---------------------------------  -----------  ---------  --------- 
 Net proceeds on disposal                3,769          -      3,769 
---------------------------------  -----------  ---------  --------- 
 Investment in equity-accounted 
  investee (note 25)                         -     18,655     18,655 
---------------------------------  -----------  ---------  --------- 
 Gain/(loss) on disposal 
  recognised in profit or 
  loss                                   (716)      1,346        630 
---------------------------------  -----------  ---------  --------- 
 Cash effect on disposal: 
--------------------------------   -----------  ---------  --------- 
 Net proceeds on disposal                3,769          -      3,769 
---------------------------------  -----------  ---------  --------- 
 Cash and cash equivalents                (11)      (181)      (192) 
---------------------------------  -----------  ---------  --------- 
 Net cash inflow on disposal             3,758      (181)      3,577 
---------------------------------  -----------  ---------  --------- 
 

On 18 January 2018, the Group entered into an agreement for the disposal of its entire interest of 77.8% in the Sitia Bay Golf Resort ('Project') to its minority partner in the Project, Iktinos Hellas S.A., for a consideration of EUR14 million. The first instalment of EUR1.4 million was received on 22 January 2018 while the remaining EUR12.6 million was received on 3 April 2018.

On 5 February 2018, the Group entered into an agreement for the disposal of its entire interest of 100% in the Triopetra project to Deniage Ltd ('Deniage'). Deniage purchased the Group's entire shareholding interest for a total cash consideration of EUR4.1 million. The amount of EUR4 million was received on 5 February 2018 while the remaining EUR100 thousand was received in July 2019.

 
                                       Sitia   Triopetra      Total 
                                         Bay 
                                     EUR'000     EUR'000    EUR'000 
  -------------------------------  ---------  ----------  --------- 
 Property, plant and equipment       (6,698)           -    (6,698) 
---------------------------------  ---------  ----------  --------- 
 Investment property                (14,544)     (4,436)   (18,980) 
---------------------------------  ---------  ----------  --------- 
 Receivables and other 
  assets                               (138)        (36)      (174) 
---------------------------------  ---------  ----------  --------- 
 Cash and cash equivalents               (4)           -        (4) 
---------------------------------  ---------  ----------  --------- 
 Deferred tax liabilities              3,062         359      3,421 
---------------------------------  ---------  ----------  --------- 
 Trade and other payables                310          12        322 
---------------------------------  ---------  ----------  --------- 
 Net assets                         (18,012)     (4,101)   (22,113) 
---------------------------------  ---------  ----------  --------- 
 Net assets disposed of             (14,018)     (4,101)   (18,119) 
---------------------------------  ---------  ----------  --------- 
 Net proceeds on disposal             13,440       3,497     16,937 
---------------------------------  ---------  ----------  --------- 
 Variable management fees                                   (1,506) 
=================================  =========  ==========  ========= 
 Loss on disposal recognised 
  in profit or loss                                         (2,688) 
---------------------------------  ---------  ----------  --------- 
 

30. FINANCIAL RISK MANAGEMENT

The Group's financial risks and risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2018.

Fair values

The fair values of the Group's financial assets and liabilities approximate their carrying amounts at the statement of financial position date.

31. Commitments

As of 30 June 2019, the Group had a total of EUR319 thousand contractual capital commitments on property, plant and equipment (31 December 2018: EUR544 thousand).

32. Contingent liabilities

Companies of the Group are involved in pending litigation. Such litigation principally relates to day-to-day operations as a developer of second-home residences and largely derives from certain clients and suppliers. Based on advice from the Group's legal advisors, the Investment Manager believes that there is sufficient defence against any claim and does not expect that the Group will suffer any material loss. All provisions in relation to these matters which are considered necessary have been recorded in these condensed consolidated interim financial statements.

In addition to the tax liabilities that have already been provided for in the condensed consolidated interim financial statements based on existing evidence, there is a possibility that additional tax liabilities may arise after the examination of the tax and other matters of the companies of the Group in the relevant tax jurisdictions.

The Group, under its normal course of business, guaranteed the development of properties in line with agreed specifications and time limits in favour of other parties.

33. SUBSEQUENT EVENTS

On 1 July 2019, Symboula (owner of Apollo Heights in Cyprus) entered into an agreement for the full settlement of its loan amounting to EUR15,726 thousand with the loan acquirer (see note 22) for a total consideration of EUR6,150 thousand. As of the date of the approval of these condensed consolidated interim financial statements, this transaction has been finalised, creating a gain of EUR9,576 thousand, which will be recorded in the second half of the year ending 31 December 2019.

On 23 August 2019, the Group entered into a sale of shares agreement with Mr. Theodoros Aristodemou (majority shareholder in Aristo Developers Limited) for the transfer of a total of 719 Class A preferred shares in DCI H2 from DCI H1 to Mr. Aristodemou, for a total consideration of EUR9 million without diluting in any way its core shareholding and voting rights in Aristo. Class A preferred shares represent the beneficial ownership over certain plots of land adjacent to the, formerly owned by Aristo, Venus Rock project. The agreement includes clauses that allow for the consideration to reduce, in the case that the zoning of the underlying land is unfavourably changed. The shares will be transferred on a prorated basis, following the staged receipt of the consideration by DCI H1 (i.e. EUR5 million in 2019 and EUR4 million in 2020). At the date of approval of these financial statements, the consideration received in cash by DCI H1 amounted to EUR2.5 million.

There were no other material events after the reporting period which have a bearing on the understanding of the condensed consolidated interim financial statements as at 30 June 2019.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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