We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Dci Advisors Ltd | LSE:DCI | London | Ordinary Share | VGG2803G1028 | COM SHS EUR0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 4.75 | 4.50 | 5.00 | 4.87 | 4.75 | 4.75 | 0.00 | 08:00:10 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Agents & Mgrs | 318k | -6.92M | -0.0077 | -6.17 | 42.97M |
From May 2019 to May 2024
TIDMDCI
RNS Number : 3541A
Dolphin Capital Investors Limited
29 September 2020
29 September 2020
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 2020 and
Trading Update
Summary
-- Total Group Net Asset Value ("NAV") of EUR174 million and EUR164 million before and after Deferred Tax Liabilities ("DTL"). This represents a decrease of EUR6.3 million and EUR5.6 million (3.5% and 3.3%) respectively compared to 31 December 2019. NAV reduction principally due to operational, finance, corporate and management expenses, together with a EUR2.1 million reduction in the value of investment property.
-- Sterling NAV per share as at 30 June 2020 stood at 18p before DTL and 17p after DTL, versus 17p and 16p, a 3.1% and 3.3% increase before and after DTL respectively, compared to 31 December 2019. The increase in Sterling NAV has resulted from the 6.9% depreciation of Sterling versus the Euro during the period that has fully offset the decrease in Euro NAV.
-- Total Debt of EUR6.6 million with a Group total debt to gross asset ratio of 3% as at 30 June 2020 (31 December 2019: 3%). DCI itself does not have any borrowings. Operating expenses for the period have declined by EUR0.7 million (17%) compared for the same period of 2019.
-- The COVID-19 pandemic impact is ongoing across all our business activities, restricting our ability to market and sell plots and villas in our development projects, and Aristo. It has also dampened investor interest in the acquisition of large-scale greenfield development projects in the residential/hospitality sector, consequently pushing back potential portfolio asset disposals. Nevertheless, we have engaged advisers to identify potential purchasers of the Company's key projects.
-- After a pause due to lock-down measures imposed in mid-March 2020, construction works at One&Only at Kea Island ("OOKI") resumed on 25 May. To date, all internal roads have been constructed, site infrastructure has advanced, and approximately 25% of the concrete works is complete. In addition, the resort mock-up room is progressing at an accelerated pace to be completed within Q4 2020. Following discussions with our partners at One&Only, we have decided, in light of both the construction delays and the expected time lag before hospitality market conditions return to normal, to target the commencement of resort operations for the 2022 season. Meanwhile, through dedicated social media campaigns and related PR activities in co-operation with One&Only, demand for the Private Homes is very encouraging. We have already signed two sales reservations on an off-plan basis and we are in advanced discussions with several other potential purchasers.
-- Following the Kilada ground-breaking ceremony which was held on-site on 19 June 2020, earthworks continue as scheduled. A tender process is under way to select contractors to progress to the next phase of the works, which includes site and residential infrastructure works, golf course and country club construction. A full rebranding of the project was completed during Q2 2020. Following the project's website ( www.mykilada.com ) going live, selective advertising was conducted in the UK and Greece. This resulted in a number of enquiries for homes and plots at Kilada. Additionally, on 11 June 2020, we executed the sale of a land plot which fell outside the project development perimeter at a price of EUR1.5 million.
-- On 9 June 2020 an agreement was announced between the governments of the United Kingdom and Cyprus regulating development in the non-military Sovereign Base Areas ("SBA"), which includes the largest part of Apollo Heights. The period for the filing of environmental related objections in the public consultation process has now expired. During Q4 2020, the Company will be lodging its formal comments and proposals for the improvement of the provisional zoning granted and will seek to increase the overall buildable capacity of the project. The final SBA zoning is expected to be published, after consideration of comments filed by land owners within the area, in early 2021.
-- On 3 September 2020, the Company realized the sale a c. 11,000 m(2) land plot in the northern border of the LaVanta project to a local investor for EUR0.8 million.
-- Gross sales of Aristo Developers Ltd ("Aristo"), a 47.9% DCI affiliate, d uring the six months to June 2020 declined by 69% compared to the 2019 corresponding period, primarily due to the worldwide travel restrictions imposed following the COVID-19 pandemic which made it impossible for Chinese and other Asian purchasers (Aristo's core client market) to travel to Cyprus . Since July, we have seen an improvement in the situation with some international flights resuming.
Andrew Coppel CBE, Chairman of Dolphin Capital Investors, commented:
" The travel restrictions and border closures put in place due to the COVID-19 pandemic, have had an adverse impact on our ability to achieve all our business goals within the first six months of the year. In particular, this affected our sales efforts both on a project and on a retail basis at Aristo and hindered our development works in OOKI and Kilada. We are delighted that there has since been a full resumption of works at OOKI as well as that construction has commenced at Kilada. In parallel we have continued working towards the implementation of the Company's divestment strategy and have engaged advisors to assist us in this process on an asset by asset basis. "
Miltos Kambourides, Founder of Dolphin and Managing Partner of Dolphin Capital Partners, commented:
"Our ability to execute two off-plan residential sales at OOKI despite adverse market conditions validates both the potential of the project as well as the resilience of our integrated hospitality and residential project portfolio composition. In the new social-distancing and remote working landscape that prevails after the COVID-19 outbreak, we have witnessed that the demand for quality second-homes remains healthy, as affluent and increasingly mobile individuals are looking for fully serviced properties, offering privacy and longer term use potential. We believe that this trend will continue and enable us to monetize our project portfolio in accordance with our divestment strategy."
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) Dominic Morley +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 2020, and to provide a trading update.
During the first half year, the Board and the Investment Manager have focused their efforts on resuming and progressing construction at OOKI, commencing works at Kilada and dealing with the effects of the COVID-19 outbreak in our business. This resulted in deferment of ongoing asset-disposal discussions, delays across all our permitting activities, weaker Aristo sales, as well as the need to redefine our sales and marketing strategy in view of the lock-down measures and travel restrictions.
The loss after tax for the period ended 30 June 2020, attributable to owners of the Company, amounted to EUR5.4 million, of which EUR2.1 million was due to the write down in value of property, compared to a loss of EUR4.9 million for the period ended 30 June 2019.
Despite the adverse market conditions, we were able to execute two off-plan residential sales reservations at OOKI on an off-plan basis and advance several other discussions.
Furthermore, we achieved to sell two land plots outside the project perimeters at Kilada and LaVanta for an aggregate consideration of EUR2.3 million.
Aristo's new sales in 2020 have been significantly impacted by COVID-19. As its main market is China, it has felt the impact of the pandemic from the beginning of the year due to travel restrictions imposed on Chinese residents which further culminated in the global inbound travel ban enacted by the Cyprus government from March onwards. This resulted into a 69% drop in sales revenue on a year-on-year basis. Since July, we have seen an improvement in the situation with some international flights resuming. The 3-month lockdown also caused delays in construction. However from May onwards, Aristo has been able to complete and deliver a number of already sold units thus becoming entitled to the corresponding delivery payments from purchasers. We are monitoring the Aristo financial and cashflow situation closely and working with Aristo management to ensure that we take advantage to the fullest extent possible of the policy measures introduced by the Cyprus government and meet the operational challenges faced by the business on a day-to-day basis.
We are encouraged by the agreement of the governments of the United Kingdom and Cyprus on regulating development in the non-military SBAs on the island, which has already resulted in provisional zoning permissions granted to our Apollo Heights project. We will be filing our formal comments, seeking to improve these provisional zoning entitlements, by the end of the year. In all cases the final zoning permissions, which are expected to be granted to the project in early 2021 following the conclusion of the consultation period, would increase both its value as well as its short-term sale potential.
COVID-19 added a material headwind to the already challenging markets for greenfield real estate developments in Greece, Cyprus, Croatia and Turkey. We have been able to address the fundamental operational challenges that the pandemic caused to our developments in OOKI and Kilada as well as generate actionable sales leads during the lockdown period by refocusing our sales and marketing strategy. Importantly, we are now, in parallel, actively exploring available options to achieve the disposal of our portfolio assets to both real estate and private equity investors and have engaged advisers to assist us throughout the process on a project by project basis. We are acutely aware of the time limitations set in our disposal strategy and are working with the Investment Manager and the Company's advisers to achieve tangible divestment results.
Andrew M Coppel CBE
Chairman
Dolphin Capital Investors
29 September 2020
B. Investment Manager's Report
B.1. Business Overview
During the first nine months of 2020 we focused on enhancing the value of our portfolio assets, while addressing the day-to-day challenges of COVID-19 :
-- progressing construction works at OOKI and Kilada;
-- refocusing our sales and marketing strategy at a time of travel restrictions and social distancing measures;
-- making permitting advances across our asset portfolio, including the improvement of zoning conditions at Apollo Heights;
-- monitoring our operational budgets and reducing overhead costs where possible; and,
-- re-activating divestment discussions which were deferred due to COVID-19 and engaging advisers to generate new leads for the sale of our portfolio assets.
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.
B.2. Portfolio Review -- One&Only at Kea Island, Greece
o Following the COVID-19 outbreak, the Greek government enforced drastic measures to mitigate the virus risk on all island destinations, which included the complete lockdown of all island hotels and restaurants as well as restrictions on inbound and outbound transportation to islands, which was limited to permanent residents only. These measures were lifted on 25 May 2020, at which point we were able to resume the project construction.
o Due to the pandemic related construction delays as well as the uncertainty over the hospitality industry performance in 2021, the project shareholders decided to postpone the OOKI resort opening until the 2022 season.
o The OOKI project will comprise 75 standalone hotel guest rooms with private pools, two restaurants, an extensive beach club, spa facilities, a yacht pier as well as a number of private homes, which will be sold on an off-plan basis.
o During the lockdown period we created dedicated social media campaigns, alongside PR activities, and undertook online actions jointly with the One&Only marketing teams to generate awareness of the residential offering of the project. Leveraging on these initiatives, and in spite of the practical travelling difficulties caused by the COVID-19 measures, we have been able to close during this summer two off-plan villa sales at OOKI with an aggregate value in line with the project sales budget.
-- Kilada, Greece ( www.mykilada.com )
o Following the issuance on 1 November 2019 of the final construction permit for the first phase of this project in the Porto Heli area, which includes the 18-hole Jack Nicklaus Signature Golf Course, the Kilada country club and infrastructure for the first 90 residential lots, earthworks have commenced on-site.
o A tendering process is underway for the other key components of the project which include site and residential infrastructure works as well as the golf course and country club construction which are scheduled to commence once the earthworks have advanced. The finalization of the tenders through the award of these construction contracts to individual contractors is expected within Q4 2020, while the completion of the first phase of Kilada is expected in the second half of 2022.
o To mark the progress in development a ground-breaking ceremony was held on-site on 19 June 2020, which was attended by a number of senior government and municipal officials due to the project's Strategic Investment status.
o In parallel we have completed the full rebranding of the project and, following the launch of a dedicated website ( www.mykilada.com ), we have conducted a marketing campaign in the UK and Greece through a number of media outlets which resulted to a significant number of sales leads.
o On 11 June 2020, we achieved the sale of a 49,682 m(2) land site, located outside the project perimeter for EUR1.5 million which was fully paid in cash on closing.
-- La Vanta, Turkey
o A c. 11,000 m(2) land plot on the northern part of LaVanta was sold on 3 September 2020, for EUR0.8 million which was fully paid in cash on closing.
-- Aristo (a 47.9% affiliate)
o The travel restrictions imposed in both China and Cyprus in the aftermath of the COVID-19 breakout created a major obstacle to Aristo's sales efforts and resulted in a drastic reduction of its 2020 sales.
o 34 homes and plots were sold during the first six months of 2020, representing total sales of EUR10.5 million, down 69.38% compared to EUR34 million for the same period in 2019.
o 43 homes and plots were sold in total up to the end of August 2020, representing total sales of EUR14 million, down 67% compared to EUR42.5 million for the same period in 2019.
Hot Features
Premium
Six months Six months Eight months Eight months
to 30 June to 30 June to 31 August to 31 August
2020 2019 2020 2019
RETAIL SALES
-------------------- ------------ ------------ -------------- --------------
EUR 10.5
New sales booked m EUR34.2m EUR13.9m EUR42.5m
% change (69) % (67)%
Units sold 34 62 43 76
% change (45)% (43) %
CLIENT ORIGIN
-------------------- ------------ ------------ -------------- --------------
China & Other Asia 76% 7 2 % 82 % 74 %
MENA 17 % 26 % 12 % 22%
Russia 7 % -- 5 % --
Cyprus & Other EU -- 4% -- 4%
o 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 in real estate. Consequently, the bulk of the relevant sales proceeds remains in blocked or escrow accounts until the citizenship is awarded to the applying customer and /or the construction of the relevant property progresses (for off-plan sales). Aristo had a total of EUR15 million in blocked/escrowed funds as at 30 June 2020 (EUR18.8 million at YE 2019). As the relevant applications mature and properties are delivered, its available cash balances are expected to increase. However, both Aristo's capacity to complete and deliver homes and the purchasers' ability to travel to Cyprus and take delivery of their properties have been materially impaired due to the COVID-19 related lockdowns, travel bans and quarantine measures imposed both in Cyprus and in Aristo's key markets. As such, the timely release of escrowed funds, which was key to the company's cashflow generation, was also adversely impacted. As the travel restrictions began to ease from July onwards, the Aristo management expects that the orderly completion of sold properties and cash collection will progressively ensue.
o DCI has received during the period EUR0.5 million from the deferred consideration due to it, from the sale of its Venus Rock related preferred shares to Aristo Ktimatiki (an entity controlled by Theodore Aristodemou, Chairman of Aristo) which was executed on 23 August 2019. The pending consideration of EUR3.5 million is expected to be settled within Q4 2020.
C. Group Assets
A summary of Dolphin's current investments is presented below.
PROJECT Land site DCI's Debt Real estate Loan to real
(hectares) stake (EURm) value estate
* (EURm) asset value
(%)
--------------- ------------ ------- -------- ------------ -------------
1 OOKI 65 33% --
2 Kilada 230 97% --
3 Scorpio Bay 172 100% --
4 Lavender Bay 310 100% --
5 Plaka Bay 442 100% --
6 Apollo Heights 447 100% --
7 Livka Bay 63 100% 6.6
8 LaVanta 7 100% --
TOTAL 1,736 6.6 172 4%
--------------- ------------ ------- -------- ------------ -------------
Aristo 473 47.9% -- 43
Itacaré n/a 13% -- 1
--------------- ------------ ------- -------- ------------ -------------
GRAND TOTAL 2,209 6.6 216** 3%
--------------- ------------ ------- -------- ------------ -------------
*Further information on debt maturities are set out under note 22 of the financial statements.
**Total real estate value includes equity investment in OOKI, Aristo and Itacare.
A breakdown of Dolphin's portfolio, as at 30 June 2020, for certain key metrics is provided below:
COUNTRY Land size Debt Real Estate % Loan to Net Asset
(hectares) (EUR Value real estate Value
million) (EUR million) asset value
------------ ------------ ---------- --------------- ------------- ----------
1 Greece 1,2 19 -- 124 -- 52%
2 Cyprus*** 920 -- 63 -- 36%
3 Other 70 6.6 29 23% 12%
Grand Total 2,2 09 6.6 216 3% 100%
------------ ------------ ---------- --------------- ------------- ----------
*** 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.
D. Market Dynamics
The COVID-19 has had a major impact on the travel, real estate and hospitality industries. We have witnessed a significant reduction in international travel, governmental lock-down measures imposed on hotels and resorts in Greece and Cyprus and supply chain delays which impacted our ongoing development activities as well as our portfolio divestment initiatives.
We have tried to tackle these operational challenges in all the countries where the DCI group operates. We are working closely with our partners, contractors and key stakeholders to find actionable ways enabling us to push forward the development of our ongoing projects, enhance the digitization of our sales and marketing efforts which was needed to remain relevant in a social distancing environment, and engage key advisers whom we expect to source new leads for the disposal of our asset portfolio.
However, beyond the immediate challenges, the pandemic is likely to create transformative and lasting changes in our industry. The hospitality and real estate sectors were already materially impacted during 2020 and the persistence of travel restrictions may permanently affect demand for hospitality assets going forward. On the other hand, we have seen that the affluent investors' demand for quality second homes during this crisis has remained resilient, if not enhanced, helped by remote-working arrangements and social distancing considerations.
Notwithstanding the above, the uncertainty created by the COVID-19 outbreak has not as yet faded and the disruption that it will cause to our disposal efforts and our development, permitting and sales activities cannot be quantified at this juncture. We are constantly reviewing our actions and strategies to adapt to this new landscape and attain the divestment strategy objectives for the benefit of our shareholders.
E. Outlook
The Company's main objectives for the remainder of 2020 remain to:
1. Execute portfolio asset disposals; 2. Progress construction at OOKI and achieve more residential sales; 3. Progress construction at Kilada and generate plot / villa sales;
4. Progress planning and permitting selectively for the remaining portfolio to maximize sales proceeds and expedite divestments; and
5. Effectively manage COVID-19 related challenges. Miltos Kambourides Pierre Charalambides Managing Partner Founding Partner Dolphin Capital Partners Dolphin Capital Partners 29 September 2020 29 September 2020
F. Financial results for the first half of 2020
F.1. Consolidated statement of profit or loss for the first half of 2020
Financial Results
Loss after tax for the period ended 30 June 2020 attributable to owners of the Company amounted to EUR5.4 million (H1 2019: loss of EUR4.9 million). Loss per share was EUR0.006 compared to EUR0.005 in the same period last year.
Consolidated statement of profit or loss and other comprehensive income
For the six-month period ended 30 June 2020
From 1 January 2020 From 1 January 2019
to 30 June 2020 to 30 June 2019
EUR'000 EUR'000
---------------------------------------------------------------------- -------------------- --------------------
CONTINUING OPERATIONS
---------------------------------------------------------------------- -------------------- --------------------
Continuing operations
---------------------------------------------------------------------- -------------------- --------------------
Revenue 2,007 382
----------------------------------------------------------------------- -------------------- --------------------
Cost of sales (1,697) (14)
----------------------------------------------------------------------- -------------------- --------------------
Gross profit 310 368
----------------------------------------------------------------------- -------------------- --------------------
Disposal of investments in subsidiaries 336 630
----------------------------------------------------------------------- -------------------- --------------------
Change in valuations (2,144) 90
----------------------------------------------------------------------- -------------------- --------------------
Investment Manager remuneration (1,800) (2,000)
----------------------------------------------------------------------- -------------------- --------------------
Directors' remuneration (205) (246)
----------------------------------------------------------------------- -------------------- --------------------
Depreciation charge (19) (19)
----------------------------------------------------------------------- -------------------- --------------------
Professional fees (1,061) (1,542)
----------------------------------------------------------------------- -------------------- --------------------
Administrative and other expenses (505) (532)
----------------------------------------------------------------------- -------------------- --------------------
Total operating and other expenses (5,398) (3,619)
----------------------------------------------------------------------- -------------------- --------------------
Results from operating activities (5,088) (3,251)
----------------------------------------------------------------------- -------------------- --------------------
Finance costs (623) (789)
----------------------------------------------------------------------- -------------------- --------------------
Share of losses of equity-accounted investees, net of tax (515) (751)
----------------------------------------------------------------------- -------------------- --------------------
Loss before taxation (6,226) (4,791)
----------------------------------------------------------------------- -------------------- --------------------
Taxation 641 (2)
----------------------------------------------------------------------- -------------------- --------------------
Loss (5,585) (4,793)
----------------------------------------------------------------------- -------------------- --------------------
Other comprehensive income
---------------------------------------------------------------------- -------------------- --------------------
Items that are or may be reclassified subsequently to profit or loss
---------------------------------------------------------------------- -------------------- --------------------
Foreign currency translation differences (271) 364
----------------------------------------------------------------------- -------------------- --------------------
Other comprehensive income, net of tax (271) 364
----------------------------------------------------------------------- -------------------- --------------------
Total comprehensive income (5,856) (4,429)
----------------------------------------------------------------------- -------------------- --------------------
Loss attributable to:
---------------------------------------------------------------------- -------------------- --------------------
Owners of the Company (5,375) (4,940)
----------------------------------------------------------------------- -------------------- --------------------
Non-controlling interests (210) 147
----------------------------------------------------------------------- -------------------- --------------------
(5,585) (4,793)
---------------------------------------------------------------------- -------------------- --------------------
Total comprehensive income attributable to:
---------------------------------------------------------------------- -------------------- --------------------
Owners of the Company (5,646) (4,576)
----------------------------------------------------------------------- -------------------- --------------------
Non-controlling interests (210) 147
----------------------------------------------------------------------- -------------------- --------------------
(5,856) (4,429)
---------------------------------------------------------------------- -------------------- --------------------
Loss per share
---------------------------------------------------------------------- -------------------- --------------------
Basic and diluted loss per share (EUR) (0.006) (0.005)
----------------------------------------------------------------------- -------------------- --------------------
Further analysis of individual revenue and expense items is provided below.
Revenue
Revenues of EUR2.0 million (31 June 2019: EUR0.4 million), were derived from the following sources:
H1 2020 H1 2019
EUR million EUR million
----------------------------------------- ------------- -------------
Sale of trading & investment properties 1.5 --
Other income 0.5 0.4
TOTAL 2.0 0.4
Sale of trading & investment properties is attributable to a sale of a land plot located outside the Kilada development perimeter at a price of EUR1.5 million.
Other income in H1 2020 consists of EUR0.5 million proceeds from the sale of Venus Rock related preferred shares to Aristo Ktimatiki .
Cost of sales
Cost of sales comprises the following:
H1 2020 H1 2019
EUR million EUR million
--------------------------------------------- ------------- -------------
Cost of sales related to:
Sales of trading and investment properties 1.7 0.0
TOTAL 1.7 0.0
Professional Fees
The charge for the period was EUR1.1 million (H1 2019: EUR1.6million) and comprises the following:
H1 2020 H1 2019
EUR million EUR million
------------------------------------- ------------- -------------
Legal & Administrator fees 0.3 0.3
Auditors' remuneration 0.1 0.1
Accounting expenses 0.1 0.1
Project design and development fees 0.4 0.8
Consultancy fees 0.1 0.1
Other professional fees 0.1 0.2
------------------------------------- ------------- -------------
TOTAL 1.1 1.6
Administrative and other expenses
The administrative and other expenses amounted to EUR0.5 million (H1 2019: EUR0.5 million) and are analysed as follows:
H1 2020 H1 2019
EUR million EUR million
------------------------------------ -------------- --------------
Marketing and advertising expenses 0.1 --
Personnel expenses 0.2 0.2
Other 0.2 0.3
------------------------------------ -------------- --------------
TOTAL 0.5 0.5
F.2. Consolidated statement of financial position as at 30 June 2020
30 June 2020 30 June 2019
--------------------------------------------- ------------- ------------
EUR'000 EUR'000
--------------------------------------------- ------------- ------------
Assets
--------------------------------------------- ------------- ------------
Property, plant and equipment 3, 351 2,647
---------------------------------------------- ------------- ------------
Investment property 92,3 92 96,601
---------------------------------------------- ------------- ------------
Equity-accounted investees 59,428 59,943
---------------------------------------------- ------------- ------------
Other investments 913 -
---------------------------------------------- ------------- ------------
Non-current assets 156, 084 159,191
---------------------------------------------- ------------- ------------
Trading properties 60,826 60,826
---------------------------------------------- ------------- ------------
Receivables and other assets 1, 308 1, 452
---------------------------------------------- ------------- ------------
Cash and cash equivalents 2, 460 2, 854
---------------------------------------------- ------------- ------------
Assets held for sale - 2,139
---------------------------------------------- ------------- ------------
C urrent assets 64, 594 67,271
---------------------------------------------- ------------- ------------
Total assets 220, 678 226,462
============================================== ============= ============
Equity
--------------------------------------------- ------------- ------------
Share capital 9,046 9,046
---------------------------------------------- ------------- ------------
Share premium 569,847 569,847
---------------------------------------------- ------------- ------------
Retained deficit (42 3 , 280 ) (417,905)
============================================== ============= ============
Other reserves 8, 288 8,559
============================================== ============= ============
Equity attributable to owners of the Company 16 3 , 901 169,547
---------------------------------------------- ------------- ------------
Non-controlling interests 5, 885 5,681
---------------------------------------------- ------------- ------------
Total equity 169 , 786 175,228
---------------------------------------------- ------------- ------------
Liabilities
--------------------------------------------- ------------- ------------
Loans and borrowings 1 ,5 5 8 -
---------------------------------------------- ------------- ------------
Lease liabilities 3,036 3,028
---------------------------------------------- ------------- ------------
Deferred tax liabilities 10,341 11,027
---------------------------------------------- ------------- ------------
Trade and other payables 20,483 20,529
---------------------------------------------- ------------- ------------
Deferred income 619 433
---------------------------------------------- ------------- ------------
Non-current liabilities 36,0 3 7 35,017
---------------------------------------------- ------------- ------------
Loans and borrowings 6,630 6,644
---------------------------------------------- ------------- ------------
Lease liabilities 8 8
---------------------------------------------- ------------- ------------
Trade and other payables 8 , 175 6,289
---------------------------------------------- ------------- ------------
Deferred income 42 -
---------------------------------------------- ------------- ------------
Liabilities held for sale - 3,276
---------------------------------------------- ------------- ------------
Current liabilities 14 , 855 16,217
---------------------------------------------- ------------- ------------
Total liabilities 50 , 892 51,234
---------------------------------------------- ------------- ------------
Total equity and liabilities 220, 678 226,462
---------------------------------------------- ------------- ------------
Net asset value ('NAV') per share (EUR) 0.18 0.19
---------------------------------------------- ------------- ------------
The reported NAV as at 30 June 2020 is presented below:
As at As at Variation since
30 June 2020 31 December 2019 31 December 2019
EUR GBP EUR GBP % %
--------------------------------- -------- ------- ---------- --------- ------------ -------
Total NAV before DTL (million) 174 159 181 154 (3.5%) 3.2%
--------------------------------- -------- ------- ---------- --------- ------------ -------
Total NAV after DTL (million) 164 150 170 145 (3.3%) 3.3%
--------------------------------- -------- ------- ---------- --------- ------------ -------
NAV per share before DTL 0.19 0.18 0.20 0.17 (3.5%) 3.2%
--------------------------------- -------- ------- ---------- --------- ------------ -------
NAV per share after DTL 0.18 0.17 0.19 0.16 (3.3%) 3.3%
___________
Notes:
1. Euro/GBP rate 0.91263 as at 30 June 2020 and 0.85369 as at 31 December 2019.
2. NAV per share has been calculated on the basis of 904,626,856 issued shares as at 30 June 2020 and as at 31 December 2019.
Total Group NAV as at 30 June 2020 was EUR 174 million and EUR 164 million before and after DTL respectively. This represents a decrease of EUR 6.3 million ( 3.5 %) and EUR 5.6 million ( 3.3 %) respectively, from the 31 December 2019 figures. Given that no valuation of the Company's portfolio took place as at 30 June 2020, apart from the Livka Bay investment property, for which the fair value was adjusted downwards by EUR2.1 million due to market conditions prevailing in the property market of Croatia, the NAV reduction is mainly due to Dolphin's regular operational, corporate, finance and management expenses.
Sterling NAV per share as at 30 June 2020 was 0.18 p before DTL and 0.17 p after DTL and increased by 3.2 % and 3.3 % before and after DTL respectively, compared to the 31 December 2019 figures. The depreciation of Sterling versus the Euro during the period of approximately 6.9% has fully offset the Euro decrease in NAV.
The Company's consolidated assets of EUR 221 million include EUR 157 million of real estate assets, EUR 60 million of equity-accounting investees (which reflects our 33 % shareholding in OOKI as well as the Company's 47.9% interest in Aristo), EUR 1 million of trade and other receivables, EUR 1 million of other investments (which represents the Company's investment in Itacare) and EUR 2 million in cash.
The figure of EUR 157 million of real estate assets (property, plant and equipment, trading properties and investment property) represents the fair market valuations conducted as at 31 December 2019 for both freehold and long leasehold interests.
The Company's consolidated liabilities (excluding DTL) total EUR 41 million and mainly comprise EUR29 million of trade and other payables as well as EUR 11 million of interest bearing loans and finance lease obligations. All loans are held by Group subsidiaries and are non-recourse to Dolphin. Trade and other payables comprise mainly EUR 21 million of option contracts to acquire land in the Company's Lavender Bay project.
The consolidated financial statements have been reviewed by KPMG in accordance with the International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'.
Condensed consolidated interim statement of financial position
As at 30 June 2020
31 December 2019
30 June 2020 (Restated)
Note EUR'000 EUR'000
--------------------------------------------- ---- ------------- ----------------
Assets
--------------------------------------------- ---- ------------- ----------------
Property, plant and equipment 14 3, 351 2,647
--------------------------------------------- ---- ------------- ----------------
Investment property 15 92,3 92 96,601
--------------------------------------------- ---- ------------- ----------------
Equity-accounted investees 17 59,428 59,943
--------------------------------------------- ---- ------------- ----------------
Other investments 16 913 -
--------------------------------------------- ---- ------------- ----------------
Non-current assets 156, 084 159,191
--------------------------------------------- ---- ------------- ----------------
Trading properties 18 60,826 60,826
--------------------------------------------- ---- ------------- ----------------
Receivables and other assets 19 1, 308 1, 452
--------------------------------------------- ---- ------------- ----------------
Cash and cash equivalents 20 2, 460 2, 854
--------------------------------------------- ---- ------------- ----------------
Assets held for sale 16 - 2,139
--------------------------------------------- ---- ------------- ----------------
C urrent assets 64, 594 67,271
--------------------------------------------- ---- ------------- ----------------
Total assets 220, 678 226,462
============================================= ==== ============= ================
Equity
--------------------------------------------- ---- ------------- ----------------
Share capital 21 9,046 9,046
--------------------------------------------- ---- ------------- ----------------
Share premium 21 569,847 569,847
--------------------------------------------- ---- ------------- ----------------
Retained deficit (42 3 , 280 ) (417,905)
============================================= ==== ============= ================
Other reserves 8, 288 8,559
============================================= ==== ============= ================
Equity attributable to owners of the Company 16 3 , 901 169,547
--------------------------------------------- ---- ------------- ----------------
Non-controlling interests 5, 885 5,681
--------------------------------------------- ---- ------------- ----------------
Total equity 169 , 786 175,228
--------------------------------------------- ---- ------------- ----------------
Liabilities
--------------------------------------------- ---- ------------- ----------------
Loans and borrowings 22 1 ,5 5 8 -
--------------------------------------------- ---- ------------- ----------------
Lease liabilities 23 3,036 3,028
--------------------------------------------- ---- ------------- ----------------
Deferred tax liabilities 24 10,341 11,027
--------------------------------------------- ---- ------------- ----------------
Trade and other payables 25 20,483 20,529
--------------------------------------------- ---- ------------- ----------------
Deferred income 619 433
--------------------------------------------- ---- ------------- ----------------
Non-current liabilities 36,0 3 7 35,017
--------------------------------------------- ---- ------------- ----------------
Loans and borrowings 22 6,630 6,644
--------------------------------------------- ---- ------------- ----------------
Lease liabilities 23 8 8
--------------------------------------------- ---- ------------- ----------------
Trade and other payables 25 8 , 175 6,289
--------------------------------------------- ---- ------------- ----------------
Deferred income 42 -
--------------------------------------------- ---- ------------- ----------------
Liabilities held for sale 16 - 3,276
--------------------------------------------- ---- ------------- ----------------
Current liabilities 14 , 855 16,217
--------------------------------------------- ---- ------------- ----------------
Total liabilities 50 , 892 51,234
--------------------------------------------- ---- ------------- ----------------
Total equity and liabilities 220, 678 226,462
--------------------------------------------- ---- ------------- ----------------
Net asset value ('NAV') per share (EUR) 26 0.18 0.19
--------------------------------------------- ---- ------------- ----------------
Condensed consolidated interim statement of profit or loss and other comprehensive income
For the six-month period ended 30 June 2020
From 1 January 2020 From 1 January 2019
to 30 June 2020 to 30 June 2019
Note EUR'000 EUR'000
------------------------------------------------------------------ ------ -------------------- --------------------
Continuing operations
------------------------------------------------------------------ ------ -------------------- --------------------
Revenue 6 2,007 382
------------------------------------------------------------------ ------ -------------------- --------------------
Cost of sales 7 (1, 697 ) ( 14 )
------------------------------------------------------------------ ------ -------------------- --------------------
Gross profit 310 368
------------------------------------------------------------------ ------ -------------------- --------------------
Disposal of investments in subsidiaries 8A 336 630
------------------------------------------------------------------ ------ -------------------- --------------------
Change in valuations 8 B (2,144) 90
------------------------------------------------------------------ ------ -------------------- --------------------
Investment Manager remuneration 27 .2 (1,800) (2,00 0 )
------------------------------------------------------------------ ------ -------------------- --------------------
Directors' remuneration 27 .1 (205) (246)
------------------------------------------------------------------ ------ -------------------- --------------------
Depreciation charge (19) (19)
------------------------------------------------------------------ ------ -------------------- --------------------
Professional fees 1 0 ( 1,061 ) (1, 542 )
------------------------------------------------------------------ ------ -------------------- --------------------
Administrative and other expenses 11 ( 505 ) ( 532 )
------------------------------------------------------------------ ------ -------------------- --------------------
Total operating and other expenses ( 5 , 398 ) (3, 619 )
------------------------------------------------------------------ ------ -------------------- --------------------
Results from operating activities ( 5 , 088 ) (3, 251 )
------------------------------------------------------------------ ------ -------------------- --------------------
Finance costs (6 23 ) ( 789 )
------------------------------------------------------------------ ------ -------------------- --------------------
Share of losses of equity-accounted investees, net of tax (51 5 ) (751)
------------------------------------------------------------------ ------ -------------------- --------------------
Loss before taxation ( 6 , 226 ) (4, 791 )
------------------------------------------------------------------ ------ -------------------- --------------------
Taxation 12 6 41 (2)
------------------------------------------------------------------ ------ -------------------- --------------------
Loss ( 5 , 585 ) (4, 793 )
------------------------------------------------------------------ ------ -------------------- --------------------
Other comprehensive income
------------------------------------------------------------------ ------ -------------------- --------------------
Items that are or may be reclassified subsequently to profit or
loss
------------------------------------------------------------------ ------ -------------------- --------------------
Foreign currency translation differences ( 271 ) 364
------------------------------------------------------------------ ------ -------------------- --------------------
Other comprehensive income, net of tax ( 271 ) 364
------------------------------------------------------------------ ------ -------------------- --------------------
Total comprehensive income ( 5 , 856 ) (4, 429 )
------------------------------------------------------------------ ------ -------------------- --------------------
Loss attributable to:
------------------------------------------------------------------ ------ -------------------- --------------------
Owners of the Company ( 5 , 375 ) (4, 940 )
------------------------------------------------------------------ ------ -------------------- --------------------
Non-controlling interests ( 210 ) 147
------------------------------------------------------------------ ------ -------------------- --------------------
( 5,585 ) (4, 793 )
================================================================== ====== ==================== ====================
Total comprehensive income attributable to:
------------------------------------------------------------------ ------ -------------------- --------------------
Owners of the Company ( 5 , 646 ) (4, 576 )
------------------------------------------------------------------ ------ -------------------- --------------------
Non-controlling interests ( 210 ) 147
================================================================== ====== ==================== ====================
( 5 , 856 ) (4, 429 )
================================================================== ====== ==================== ====================
Loss per share
------------------------------------------------------------------ ------ -------------------- --------------------
Basic and diluted loss per share (EUR) 13 (0.006) (0.005)
------------------------------------------------------------------ ------ -------------------- --------------------
Condensed consolidated interim statement of changes in equity
For the six-month period ended 30 June 2020
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
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
==================== ======= ======= =========== =========== ============= ========= =============== =========
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 (4 27 , 162 ) 159 , 940 5,899 165,839 -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Balance at 1 January 2020 9,046 569,847 8,233 326 (417,905) 169,547 5,681 175,228 -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- TOTAL COMPREHENSIVE INCOME -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Loss - - - - (5,375) (5,375) (210) (5,585) -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Other comprehensive income -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Foreign currency translation differences - - (271) - - (271) - (271) -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Total other comprehensive income - - (271) - - (271) - (271) -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Total comprehensive income - - (271) - (5,375) (5,646) (210) (5,856) -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- TRANSACTIONS WITH OWNERS OF THE COMPANY Changes in ownership interests in subsidiaries -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Disposal of interests without a change in control - - - - - - 414 414 -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Total transactions with owners of the Company - - - - - - 414 414 -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- --------- Balance at 30 June 2020 9,046 569,847 7,962 326 (423,280) 163,901 5,885 169,786 -------------------- ------- ------- ----------- ----------- ------------- --------- --------------- ---------
Condensed consolidated interim statement of cash flows
For the six-month period ended 30 June 2020
From 1 January 2019
From 1 January 2020 to 30 June 2019
to 30 June 2020 (Restated)
EUR'000 EUR'000
-------------------------------------------------------------------------- -------------------- -------------------
Cash flows from operating activities
---------------------------------------------------------------------- --- -------------------- -------------------
Loss (5,585) (4,793)
--------------------------------------------------------------------------- -------------------- -------------------
Net change in fair value of investment property 2,144 (90)
--------------------------------------------------------------------------- -------------------- -------------------
Gain on disposal of investment in subsidiaries (336) (630)
--------------------------------------------------------------------------- -------------------- -------------------
Share of losses in equity-accounted investees 515 751
--------------------------------------------------------------------------- -------------------- -------------------
Other adjustments (256) 652
--------------------------------------------------------------------------- -------------------- -------------------
(3,518) (4, 110 )
-------------------------------------------------------------------------- -------------------- -------------------
Changes in:
---------------------------------------------------------------------- --- -------------------- -------------------
Receivables 144 1, 460
--------------------------------------------------------------------------- -------------------- -------------------
P ayables 157 ( 112 )
--------------------------------------------------------------------------- -------------------- -------------------
Prepayments from clients 228 -
--------------------------------------------------------------------------- -------------------- -------------------
Cash used in operating activities (2,989) (2, 762 )
--------------------------------------------------------------------------- -------------------- -------------------
Tax paid (46) (11)
--------------------------------------------------------------------------- -------------------- -------------------
Net cash used in operating activities (3,035) (2, 773 )
--------------------------------------------------------------------------- -------------------- -------------------
Cash flows from investing activities
---------------------------------------------------------------------- --- -------------------- -------------------
Proceeds from disposal of subsidiaries, net of cash disposed of (1) 3,577
--------------------------------------------------------------------------- -------------------- -------------------
Net change in net assets held for sale - 537
--------------------------------------------------------------------------- -------------------- -------------------
Net disposals of investment property 1,602 -
--------------------------------------------------------------------------- -------------------- -------------------
Net acquisitions of property, plant and equipment (723) (82)
--------------------------------------------------------------------------- -------------------- -------------------
Net change in trading properties - (11)
--------------------------------------------------------------------------- -------------------- -------------------
Net cash from investing activities 878 4,021
--------------------------------------------------------------------------- -------------------- -------------------
Cash flows from financing activities
---------------------------------------------------------------------- --- -------------------- -------------------
Change in loans and borrowings 1,925 (1,600)
=========================================================================== ==================== ===================
Change in lease liabilities 8 7
=========================================================================== ==================== ===================
Interest paid (170) (155)
=========================================================================== ==================== ===================
Net cash from/(used in) financing activities 1,763 (1,748)
--------------------------------------------------------------------------- -------------------- -------------------
Net decrease in cash and cash equivalents (394) (500)
--------------------------------------------------------------------------- -------------------- ------------------- Cash and cash equivalents at the beginning of the period 2,854 8,294 --------------------------------------------------------------------------- -------------------- ------------------- Cash and cash equivalents at the end of the period 2,460 7,794 --------------------------------------------------------------------------- -------------------- ------------------- 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 2,460 7,794 --------------------------------------------------------------------------- -------------------- ------------------- Cash and cash equivalents at the end of the period 2,460 7,794 --------------------------------------------------------------------------- -------------------- -------------------
Notes to the condensed consolidated interim financial statements
For the six-month period ended 30 June 2020
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 2020 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 20 19 . They are presented in euro (EUR), rounded to the nearest thousand.
These condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 28 September 2020.
(b) Basis of preparation
The condensed consolidated interim financial statements of the Company for the six-month period ended 30 June 2020 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
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 2019. A number of new standards are effective from 1 January 2020, but they do not have a material effect on the Group's financial statements.
Comparatives
Comparative figures have been reclassified to reflect the required changes in presentation in relation to the reclassification of Azurna Uvala D.o.o (owner of 'Livka Bay') in Croatia and DCI Holdings Two Limited (owner of 'Aristo') out of disposal groups held for sale (see note 16).
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 2019.
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.
As stated in note 9, the slowdown in economic activity and transportation restrictions in all the countries where the Group operates due to COVID-19 outbreak, is expected to have a significant impact on both its ability to complete the construction of its ongoing projects in a timely manner as well as hinder its efforts to realise transactions for the disposal of its portfolio assets.
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 2020, the Group's most significant subsidiaries were the following:
Country Shareholding
of
Name Project incorporation interest
--------------------------------------- ------------------- --------------- -------------
Scorpio Bay
Scorpio Bay Holdings Limited Resort Cyprus 100%
======================================= =================== =============== =============
Scorpio Bay
Scorpio Bay Resorts S.A. Resort Greece 100%
======================================= =================== =============== =============
Lavender Bay
Xscape Limited Resort Cyprus 100%
======================================= =================== =============== =============
Lavender Bay
Golfing Developments S.A. Resort Greece 100%
======================================= =================== =============== =============
Kilada Hills
MindCompass Overseas S.A. Golf Resort Greece 97%
======================================= =================== =============== =============
Kilada Hills
MindCompass Overseas Two S.A. Golf Resort Greece 100%
======================================= =================== =============== =============
Kilada Hills
MindCompass Parks S.A. Golf Resort Greece 100%
======================================= =================== =============== =============
Dolphin Capital Greek Collection Kilada Hills
Limited Golf Resort Cyprus 100%
======================================= =================== =============== =============
DCI Holdings One Limited ('DCI
H1') Aristo Developers BVIs 100%
======================================= =================== =============== =============
D.C. Apollo Heights Polo and Apollo Heights
Country Resort Limited Resort Cyprus 100%
======================================= =================== =============== =============
Apollo Heights
Symboula Estates Limited ('Symboula') 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 One&Only Kea
Limited ('SPV 10') Resort Cyprus 67%
======================================= =================== =============== =============
The above shareholding interest percentages are rounded to the nearest integer.
6. revenue
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
------------------------------------------- --------------- ---------------
Sale of trading and investment properties 1 ,500 -
------------------------------------------- --------------- ---------------
Rental income 7 6
------------------------------------------- --------------- ---------------
Other income 500 376
------------------------------------------- --------------- ---------------
Total 2,007 382
------------------------------------------- --------------- ---------------
7. COST OF SALES
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
--------------------------------------------- --------------- ---------------
Cost of sales related to:
--------------------------------------------- --------------- ---------------
Sales of trading and investment properties 1,697 -
--------------------------------------------- --------------- ---------------
Other operating expenses - 14
--------------------------------------------- --------------- ---------------
Total 1, 697 14
--------------------------------------------- --------------- ---------------
8. INCOME AND EXPENSES
. Disposal of investments in subsidiaries
From 1 January From 1 January
Note 2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
-------------------------------- ------- --------------- ---------------
Gain on disposal of investment
in subsidiaries 28 336 630
-------------------------------- ------- --------------- ---------------
Total 336 630
================================ ======= =============== ===============
. Change in valuations
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
---------------------------------------- --------------- ---------------
Net change in fair value of investment
property (2,144) 90
---------------------------------------- --------------- ---------------
Total (2,144) 90
======================================== =============== ===============
9. SEGMENT REPORTING
Operating segments
As at 30 June 2020 and 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.
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.
On 11 March 2020, the World Health Organisation declared the Coronavirus COVID-19 outbreak to be a pandemic in recognition of its rapid spread across the globe. Many governments are taking increasingly stringent steps to help contain, and in many jurisdictions, now delay, the spread of the virus, including: requiring self-isolation/ quarantine by those potentially affected, implementing social distancing measures, and controlling or closing borders and 'locking-down' cities/regions or even entire countries.
The COVID-19 outbreak is already having a major effect on the travel, real estate and hospitality industry. The Group has witnessed a significant reduction in foreign travel intent, complied with governmental lock-down measures imposed on hotels and resorts in Greece and been affected by supply chain delays which have impacted the Group' s ongoing construction activities.
The slowdown in economic activity and transportation restrictions in all the countries where the Group operates is expected to have a significant impact on both its ability to complete the construction of its ongoing projects in a timely manner as well as hinder its efforts to realise transactions for the disposal of its portfolio assets.
The size of the impact cannot be fully quantified at this stage and will depend on how quickly the outbreak fades and normal conditions resume. The situation is being closely monitored and strategies will be adjusted including implementation of any emergency measures needed.
10. PROFESSIONAL FEES
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
------------------------------------- --------------- ---------------
Legal fees 231 281
------------------------------------- --------------- ---------------
Auditors' remuneration (see below) 125 113
------------------------------------- --------------- ---------------
Accounting expenses 106 109
------------------------------------- --------------- ---------------
Project design and development fees 37 3 756
------------------------------------- --------------- ---------------
Consultancy fees 60 91
------------------------------------- --------------- ---------------
Administrator fees 29 28
------------------------------------- --------------- ---------------
Other professional fees 137 164
------------------------------------- --------------- ---------------
Total 1,061 1,542
------------------------------------- --------------- ---------------
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
---------------------------------------- --------------- ---------------
Auditors' remuneration comprises the
following fees:
---------------------------------------- --------------- ---------------
Audit and other audit related services 105 113
---------------------------------------- --------------- ---------------
Tax and advisory 20 -
---------------------------------------- --------------- ---------------
Total 125 113
---------------------------------------- --------------- ---------------
11. ADMINISTRATIVE AND OTHER EXPENSES
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
------------------------------------ --------------- ---------------
Personnel expenses (see below) 22 9 151
------------------------------------ --------------- ---------------
Travelling and accommodation 26 45
------------------------------------ --------------- ---------------
Insurance 17 19
------------------------------------ --------------- ---------------
Repairs and maintenance 3 5
------------------------------------ --------------- ---------------
Marketing and advertising expenses 72 44
------------------------------------ --------------- ---------------
Rents 3 2 30
------------------------------------ --------------- ---------------
Other 126 238
------------------------------------ --------------- ---------------
Total 505 532
------------------------------------ --------------- ---------------
Personnel expenses
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
------------------------------------------ --------------- ---------------
Wages and salaries 178 131
------------------------------------------ --------------- ---------------
Compulsory social security contributions 45 15
------------------------------------------ --------------- ---------------
Other personnel costs 6 5
------------------------------------------ --------------- ---------------
Total 22 9 151
------------------------------------------ --------------- ---------------
The average number of employees during
the period was 16 5
========================================== =============== ===============
12. Taxation
From 1 From 1 January
January 2019
2020 to 30 June
to 30 June 2019
2020
EUR'000 EUR'000
Income tax 2 2
------------------ ------------ ---------------
Net deferred tax (643) -
================== ============ ===============
(6 41
Total ) 2
------------------ ------------ ---------------
13. 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
2020 2019
to 30 June to 30 June
2020 2019
'000 '000
------------------------------------ --------------- ---------------
Loss attributable to owners of the (5 , 375
Company (EUR) ) (4,940)
------------------------------------ --------------- ---------------
Number of weighted average common
shares outstanding 904,627 904,627
------------------------------------ --------------- ---------------
Basic loss per share (EUR) (0.006) (0.005)
------------------------------------ --------------- ---------------
Weighted average number of common shares outstanding
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
'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 2020 and 30 June 2019, 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.
14. Property, plant and equipment
Land and buildings Other Total
EUR'000 EUR'000 EUR'000
30 June 2020
------------------------------------ ------------------- ---------- ----------
Cost or revalued amount
------------------------------------ ------------------- ---------- ----------
At beginning of period 20,181 386 20,567
------------------------------------ ------------------- ---------- ----------
Direct acquisitions 721 2 723
------------------------------------ ------------------- ---------- ----------
At end of period 20,9 02 388 21, 290
------------------------------------ ------------------- ---------- ----------
Depreciation and impairment losses
------------------------------------ ------------------- ---------- ----------
At beginning of period 17,550 370 17,920
------------------------------------ ------------------- ---------- ----------
Depreciation charge for the period 16 3 19
==================================== =================== ========== ==========
At end of period 17,566 373 17,939
------------------------------------ ------------------- ---------- ----------
Carrying amounts 3,336 15 3,351
------------------------------------ ------------------- ---------- ----------
Land &
buildings Other Total
EUR'000 EUR'000 EUR'000
==================================================================== =========== ========== ==========
31 December 201 9
-------------------------------------------------------------------- ----------- ---------- ----------
Cost or revalued amount
-------------------------------------------------------------------- ----------- ---------- ----------
At beginning of year 19,975 384 20,359
-------------------------------------------------------------------- ----------- ---------- ----------
Direct acquisitions 117 2 119
-------------------------------------------------------------------- ----------- ---------- ----------
Recognition of right-of-use asset on initial application of IFRS16 89 - 89
-------------------------------------------------------------------- ----------- ---------- ----------
At end of year 20,181 386 20,567
-------------------------------------------------------------------- ----------- ---------- ----------
Depreciation and impairment losses
-------------------------------------------------------------------- ----------- ---------- ----------
At beginning of year 7,720 366 8,086
-------------------------------------------------------------------- ----------- ---------- ----------
Depreciation charge for the year 34 4 38
-------------------------------------------------------------------- ----------- ---------- ----------
I mpairment loss 9,796 - 9,796
-------------------------------------------------------------------- ----------- ---------- ----------
At end of year 17,550 370 17,920
==================================================================== =========== ========== ==========
Carrying amounts 2,631 16 2, 647
==================================================================== =========== ========== ==========
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 2019.
15. Investment property
30 June 31 December
2020 2019
(Restated)
Note EUR'000 EUR'000
--------------------------------- ----- -------- ------------
At beginning of period/year 96,601 145,356
--------------------------------- ----- -------- ------------
(1,6 02
Net direct disposals ) ( 671 )
--------------------------------- ----- -------- ------------
Transfers to trading properties 18 - (56,516)
--------------------------------- ----- -------- ------------
Fair value adjustment (2,144) 8,528
--------------------------------- ----- -------- ------------
Exchange differences (463) (96)
--------------------------------- ----- -------- ------------
At end of period/year 92,3 92 96,601
--------------------------------- ----- -------- ------------
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 2019, apart from the investment property held by Azurna (Croatia), for which the fair value was adjusted downwards.
16. DISPOSAL GROUPS HELD FOR SALE
In 2019, the Group completed the sale of six out of seven Seafront Villas in Greece (owned by the Collection Group) and was in the process of finalising the sale of the one remaining Villa. Accordingly, the remaining assets and liabilities of the Collection Group as at 31 December 2019, were presented as a disposal group held for sale. As shown in note 28, the Group as of 30 June 2020 has completed the disposal of the one remaining Seafront Villa.
As at 31 December 2019, Azurna (owner of 'Livka Bay') in Croatia and DCI Holdings Two Limited ('DCI H2') (owner of 'Aristo') were also presented as held for sale, but as the disposals did not materialise, they were classified out of held for sale as of 30 June 2020.
Impairment losses relating to the disposal group
No impairment losses have been recognised during the period ended 30 June 2020 and 30 June 2019 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 group held for sale
As at 31 December 2019, the disposal groups comprised the following assets and liabilities:
Collection
disposal Total
group
(Restated) EUR'000 EUR'000
------------------------------ ----------- --------
Trading properties 1,124 1,124
------------------------------ ----------- --------
Trade and other receivables 110 110
------------------------------ ----------- --------
Cash and cash equivalents 54 54
------------------------------ ----------- --------
1,288 1,288
----------------------------- ----------- --------
Other investments 851
------------------------------ ----------- --------
Assets held for sale 2,139
------------------------------ ----------- --------
Trade and other payables 3,276 3,276
------------------------------ ----------- --------
Liabilities held for sale 3,276 3,276
------------------------------ ----------- --------
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 which it is seeking to sell. Itacare was presented as held for sale as at 31 December 2019, but as the disposal did not materialise, as of 30 June 2020 it was classified out of held for sale.
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 2019: il ).
17. equity-accounted investees
Single Purpose
30 June 2020 Vehicle
Fourteen
Limited
('SPV 14'
DCI H2 ) Total
EUR'000 EUR'000 EUR'000
------------------------ ------- -------------- --------
Balance as at 1 January
20 20 42,694 17,249 59 , 943
------------------------- ------- -------------- --------
Share of losses, net
of tax - (515) (515)
------------------------- ------- -------------- --------
Balance as at 30 June
2020 42,694 16,734 59,428
------------------------- ------- -------------- --------
31 December 201 9
(Restated) DCI H2 SPV 14 Total
Note EUR'000 EUR'000 EUR'000
-------------------------- ---- ------- --------- ---------
Balance as at 1 January
20 19 42,694 - 42,694
-------------------------- ---- ------- --------- ---------
Additions 28 - 18,655 18,655
-------------------------- ---- ------- --------- ---------
Share of losses, net
of tax - ( 1,478 ) ( 1,478 )
-------------------------- ---- ------- --------- ---------
Share of revaluation
surplus - 72 72
-------------------------- ---- ------- --------- ---------
Balance as at 31 December
2019 42,694 1 7 , 249 59, 943
-------------------------- ---- ------- --------- ---------
SPV14
As stated in note 28, in 2019, SPV 10 entered into a joint venture agreement pursuant to which the Group's shareholding interest in SPV 14 (owner of 'One&Only Kea Resort') was decreased from 67% to 33%, as a result of dilution. The Group accounted for the remaining 33% interest as an equity-accounted investee.
DCI H2
As at 30 June 2020 and 31 December 2019, the Company's holding of 47.9% in DCI H2, has been classified as an equity accounted investee (as already stated in note 16). Pursuant to the terms of the transaction executed in August 2019, for the sale 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 Mr. Theodoros Aristodemou, chairman of Aristo), the Company as of 30 June 2020 received EUR0.5 million (31 December 2019: EUR5 million) cash consideration from Aristo Ktimatiki. The remaining EUR3.5 million that was due by 30 June 2020 is expected to be received during the fourth quarter of 2020. The corresponding preferred shares are being transferred by the Company to Aristo Ktimatiki on a prorated basis in line with the receipt of the commensurate instalment.
As of 30 June 2020, the Group has not recognised losses totaling EUR2,420 thousand (2019: EUR239 thousand profit) in relation to its interest in DCI H2, as the investment in DCI H2 is already impaired and is presented at its recoverable amount EUR42.7 million (2019: EUR42.7 million).
The recoverable amount of DCI H2 was based on its fair value less cost of disposal. Following the impairment loss recognised in 2016, the recoverable amount is equal to the carrying amount.
The details of the above investments are as follows:
Shareholding
interest
Name Country of Principal activities 30 June 31 December
incorporation 2020 2019
-------- ---------------- ------------------------------ -------- ------------
Development of Kea
SPV 14 Cyprus Resort (Greece) 33% 33%
-------- ---------------- ------------------------------ -------- ------------
Acquisition and holding
of real estate investments
DCI H2 BVIs in Cyprus 48% 48%
-------- ---------------- ------------------------------ -------- ------------
The above shareholding interest percentages are rounded to the nearest integer.
As at 30 June 2020, SPV 14 had EUR35,892 thousand (31 December 2019: EUR38,292 thousand) contractual capital commitments on property, plant and equipment. Also, as at 30 June 2020, DCI H2 had EUR3,500 thousand (31 December 2019: EUR3,500 thousand) contractual capital commitments on investment property.
Summary of financial information for equity-accounted investees as at 30 June 2020 and 31 December 2019, not adjusted for the percentage of ownership held by the Group:
DCI H2 SPV 14 Total
30 June 2020 EUR'000 EUR'000 EUR'000
---------------------------------- -------- -------- --------
Current assets 145,970 9,119 155,089
---------------------------------- -------- -------- --------
Non-current assets 224,480 26,976 251,456
---------------------------------- -------- -------- --------
Total assets 370,450 36,095 406,545
---------------------------------- -------- -------- --------
Current liabilities 121,792 711 122,503
---------------------------------- -------- -------- --------
Non-current liabilities 51,055 1,916 52,971
---------------------------------- -------- -------- --------
Total liabilities 172,847 2,627 175,474
---------------------------------- -------- -------- --------
Net assets 197,603 33,468 231,071
---------------------------------- -------- -------- --------
Carrying amount of interest in
investee 42,694 16,734 59,428
================================== ======== ======== ========
Revenues 8,127 - 8,127
---------------------------------- -------- -------- --------
Loss (5,052) (1,030) (6,082)
---------------------------------- -------- -------- --------
Other comprehensive income - - -
================================= ======== ======== ========
Total comprehensive income (5,052) (1,030) (6,082)
================================== ======== ======== ========
Group's share of loss and total
comprehensive income (2,420) (515) (2,935)
================================== ======== ======== ========
DCI H2 SPV 14 Total
31 December 2019 EUR'000 EUR'000 EUR'000
(Restated)
--------------------------------------- -------- -------- --------
Current assets 147,531 11,692 159,223
--------------------------------------- -------- -------- --------
Non-current assets 224,293 24,981 249,274
--------------------------------------- -------- -------- --------
Total assets 371,824 36,673 408,497
--------------------------------------- -------- -------- --------
Current liabilities 121,285 258 121,543
--------------------------------------- -------- -------- --------
Non-current liabilities 48,092 1,916 50,008
--------------------------------------- -------- -------- --------
Total liabilities 169,377 2,174 171,551
--------------------------------------- -------- -------- --------
Net assets 202,447 34,499 236,946
--------------------------------------- -------- -------- --------
Carrying amount of interest
in investee 42,694 17,249 59,943
======================================= ======== ======== ========
Revenues 50,574 - 50,574
--------------------------------------- -------- -------- --------
( 1,330
Profit / (loss) 501 (1,831) )
--------------------------------------- -------- -------- --------
Other comprehensive income - 139 139
======================================= ======== ======== ========
( 1
, 191
Total comprehensive income 501 (1,692) )
======================================= ======== ======== ========
Group's share of profit /(loss) (1,
and total comprehensive income 239 (1,406) 167 )
======================================= ======== ======== ========
18. Trading properties
30 June 31 December
2020 2019
Note EUR'000 EUR'000
--------------------------------------- ---- ------- -----------
At beginning of period/year 60,826 4,699
--------------------------------------- ---- ------- -----------
Net direct acquisitions - 424
--------------------------------------- ---- ------- -----------
Net transfers from investment property 15 - 56,516
--------------------------------------- ---- ------- -----------
Impairment loss - (813)
--------------------------------------- ---- ------- -----------
At end of period/year 60,826 60,826
--------------------------------------- ---- ------- -----------
19. RECEIVABLES AND OTHER ASSETS
31 December
2019
30 June
2020 (Restated)
EUR'000 EUR'000
------------------------------------ ------- -----------
Trade receivables 76 75
------------------------------------ ------- -----------
VAT receivables 746 1,215
------------------------------------ ------- -----------
Other receivables 4 71 141
------------------------------------ ------- -----------
Total trade and other receivables 1,2 93 1,431
------------------------------------ ------- -----------
Prepayments and other assets 15 21
------------------------------------ ------- -----------
Total 1, 308 1,452
------------------------------------ ------- -----------
20. Cash and cash equivalents
31 December
2019
30 June
2020 (Restated)
EUR'000 EUR'000
---------------- ------- -----------
Bank balances 2,451 2,846
---------------- ------- -----------
Cash in hand 9 8
---------------- ------- -----------
Total 2,460 2,854
---------------- ------- -----------
During the period, the Group had no fixed deposits.
21. CAPITAL AND RESERVES
Capital
Authorised share capital
30 June 2020 31 December 2019
------------------ ------------------
'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
issue capital
'000 EUR'000 EUR'000
------------------------------- ---------- --------- --------------
Capital at 1 January 2019 and
30 June 2020 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 Within two
Total one year to five years
------- --------- --------------------
30 June 31 December 30 June 31 December 30 June 31 December
2020 2019 2020 2019 2020 2019
( Restated) ( Restated) ( Restated)
---------------------- ------- ----------- --------- ----------- ------- -----------
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
---------------------- ------- ----------- --------- ----------- ------- -----------
Loans in Euro 6,630 6 ,644 6,630 6,644 - -
---------------------- ------- ----------- --------- ----------- ------- -----------
Redeemable preference
shares 1,558 - - - 1,558 -
---------------------- ------- ----------- --------- ----------- ------- -----------
Total 8,188 6,644 6,630 6,644 1,558 -
---------------------- ------- ----------- --------- ----------- ------- -----------
As of 30 June 2020, there were no significant changes in terms and conditions of the outstanding loans, compared to 31 December 2019.
On 18 December 2019, the Company signed an agreement with an international investor for a EUR12 million investment in the Kilada Hills Project. The investor has agreed to subscribe for both common and preferred shares. The total EUR12 million investment is payable in 24 monthly instalments of EUR500 thousand each. Under the terms of the agreement, the investor will be entitled to a priority return of the total investment amount from the net disposal proceeds realised from the project and will retain a 15% shareholding stake in Kilada. As of 30 June 2020, 2.8% of the ordinary shares have been transferred to the investor.
As of 30 June 2020, 2,000 redeemable preference shares were issued as fully paid with value of EUR1,000 per share (2019: nil). The redeemable preference shares are issued with a zero-coupon rate and are discounted with a 0.66% effective monthly interest rate, do not carry the right to vote and are redeemable when net disposal proceeds are realised from the Project. As at 30 June 2020 the fair value of the redeemable preference shares was EUR1,558 thousand.
1 January New Capital Interest Other 30 June
2020 issues repayments paid movements 2020
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
----------------------- ---------- -------- ------------ --------- ----------- --------
Loans in E uro 6,644 - - (170) 156 6,630
----------------------- ---------- -------- ------------ --------- ----------- --------
Redeemable preference
shares - 2,000 - - (442) 1,558
----------------------- ---------- -------- ------------ --------- ----------- --------
Total 6,644 2,000 - (170) (286) 8,188
----------------------- ---------- -------- ------------ --------- ----------- --------
Securities
As at 30 June 2020, the Group's loans and borrowings were secured as follows:
-- Mortgage against the immovable property of the Croatian subsidiary, Azurna, with a carrying amount of EUR23.2 million (2019: EUR25.8 million), two promissory notes, a debenture note and a letter of support from its parent company Single Purpose Vehicle Four Limited.
-- Upon transfer of the entire amount of EUR12 million from the investor in accordance with the terms of the agreement, a mortgage will be set against the immovable property of the Kilada Hills Project, in the amount of EUR15 million (2019: nil).
23. lease LIABILITIES
30 June 2020 31 December 2019
-------------------------------- ---------------------------------
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 32 24 8 8 - 8
--------------------------- --------- -------- ----------- --------- -------- ------------
Between two and five years 423 117 306 245 5 240
--------------------------- --------- -------- ----------- --------- -------- ------------
More than five years 3,732 1,002 2,730 3,963 1,175 2,788
--------------------------- --------- -------- ----------- --------- -------- ------------
Total 4,187 1,143 3,044 4,216 1,180 3,036
--------------------------- --------- -------- ----------- --------- -------- ------------
The major lease liabilities comprise leases in Greece with 99-year lease terms.
24. Deferred tax liabilities
31 December
2019
30 June
2020 (Restated)
EUR'000 EUR'000
-------------------------------------------- -------- -----------
Balance at the beginning of the period/year 11 , 027 11,314
-------------------------------------------- -------- -----------
Recognised in profit or loss ( 643) ( 305 )
-------------------------------------------- -------- -----------
Exchange differences (43) 18
============================================ ======== ===========
Balance at the end of the period/year 10,341 11,027
-------------------------------------------- -------- -----------
Deferred tax liabilities are attributable to the following:
31 December
2019
30 June
2020 (Restated)
EUR'000 EUR'000
------------------------------ ------- -----------
Investment property 5,979 6,665
------------------------------ ------- -----------
Trading properties 4,299 4,299
------------------------------ ------- -----------
Property, plant and equipment 63 63
============================== ======= ===========
Total 10,341 11,027
------------------------------ ------- -----------
25 . Trade and other payables
31 December
2019
30 June
2020 (Restated)
EUR'000 EUR'000
------------------------------------ ------- -----------
Trade payables 11 19
==================================== ======= ===========
Land creditors 20,688 20,740
==================================== ======= ===========
Investment Manager fees 1 , 935 1,932
==================================== ======= ===========
Other payables and accrued expenses 6 , 024 4,12 7
------------------------------------ ------- -----------
2 8 , 26,81
Total 658 8
------------------------------------ ------- -----------
31 December
2019
30 June (Restated)
2020
EUR'000 EUR'000
------------- -------- -------------
Non-current 20,483 20,529
------------- -------- -------------
Current 8 , 175 6,28 9
============= ======== =============
2 8 , 26,81
Total 658 8
------------- -------- -------------
Land creditors relate to contracts in connection with the purchase of land at Lavender Bay. The above outstanding amount bears an annual interest rate equal to the inflation rate, which cannot exceed 2%. Full settlement is due on 31 December 2025.
26. NAV per share
30 June 31 December
2020 2019
'000 '000
--------------------------------------- ------- -----------
Total equity attributable to owners of 16 3 ,
the Company (EUR) 901 169,547
--------------------------------------- ------- -----------
Number of common shares outstanding at
end of period/year 904,627 904,627
--------------------------------------- ------- -----------
NAV per share (EUR) 0.18 0.19
--------------------------------------- ------- -----------
27. Related party transactions
27.1 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 2020, 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
--------------------------------------- -------
Directors' remuneration
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
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
-------------------- --------------- ---------------
Remuneration 205 246
-------------------- --------------- ---------------
Total remuneration 205 246
==================== =============== ===============
The Directors' remuneration details for the six-month periods ended 30 June 2020 and 30 June 2019 were as follows:
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
--------------- --------------- ---------------
Andrew Coppel 96 117
--------------- --------------- ---------------
Graham Warner 7 3 87
--------------- --------------- ---------------
Mark Townsend 36 42
--------------- --------------- ---------------
Total 205 246
=============== =============== ===============
Mr. Miltos Kambourides has waived his fees.
27.2 Investment Manager remuneration
From 1 January From 1 January
2020 2019
to 30 June to 30 June
2020 2019
EUR'000 EUR'000
---------------------- --------------- ---------------
Fixed management fee 1,800 2,000
---------------------- --------------- ---------------
Total remuneration 1,800 2,000
====================== =============== ===============
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 were EUR4 million 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.
ii. Variable management fee
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.
27.3 Other related parties
During the period ended 30 June 2020 and 30 June 2019, the Group did not enter into any significant related party transactions.
28. Business combinations
On 30 January 2020, the Group finalised the sale of the one remaining Seafront Villa (owned by the Collection Group), creating a net gain on disposal of EUR336 thousand (see note 16).
Collection
EUR'000
-------------------------------- -----------
Trading properties (1,124)
---------------------------------- -----------
Cash and cash equivalents (1)
---------------------------------- -----------
Trade and other payables 1,461
---------------------------------- -----------
Net liabilities 336
---------------------------------- -----------
Net assets disposed of - 100 % 336
---------------------------------- -----------
Net proceeds on disposal -
-------------------------------- -----------
Gain on disposal recognised in
profit or loss 336
---------------------------------- -----------
Cash effect on disposal:
-------------------------------- -----------
Net proceeds on disposal -
-------------------------------- -----------
Cash and cash equivalents (1)
---------------------------------- -----------
Net cash outflow on disposal (1)
---------------------------------- -----------
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 received EUR3.4 million on 2 January 2019 whilst the balance has been 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.
On 1 November 2017, the Company along with the project's current minority shareholder entered into an agreement through its relevant project subsidiary companies, for a EUR16 million equity investment by One&Only Resorts Limited ('One&Only') in exchange for a 40% shareholding in SPV 14, 100% holding company of Kea Resort. The consideration will be deployed in the development of the Kea Resort, with the transaction including the operation of the Kea Resort and its residences by One&Only through long-term management and branding agreements. 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 17). 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 17) - 18,655 18,655
--------------------------------------- ----------- --------- ---------
(Loss)/ gain 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/(outflow) on disposal 3,758 (181) 3,577 --------------------------------------- ----------- --------- ---------
29. 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 2019.
Fair values
The fair values of the Group's financial assets and liabilities approximate their carrying amounts at the statement of financial position date.
30. Commitments
As of 30 June 2020, the Group had a total of EUR893 thousand contractual capital commitments on property, plant and equipment (31 December 2019: EUR45 thousand).
31. Contingent liabilities
Companies of the Group are involved in pending litigation. This 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 advisers, 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.
32. SUBSEQUENT EVENTS
There were no material events after the reporting period which have a bearing on the understanding of the condensed consolidated interim financial statements as at 30 June 2020.
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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR QVLFLBKLFBBQ
(END) Dow Jones Newswires
September 29, 2020 02:00 ET (06:00 GMT)
1 Year Dci Advisors Chart |
1 Month Dci Advisors Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
