2nd Apr 2019 11:35
LONDON (Alliance News) - Dolphin Capital Investors Ltd on Tuesday reported a reduction in net asset value, primarily due to year-end valuation write-downs and impairment charges.
At December 31, the Mediterranean residential resort investor's NAV per share stood at EUR0.18 compared to EUR0.21 at the end of 2017, a 14% decrease.
The company's net assets decreased 20% in 2018 to EUR178 million. Dolphin Capital's gross assets decreased 38% to EUR244 million from EUR395 million.
Dolphin blamed the decrease in NAV on EUR19.0 million in valuation and impairment charges, including a EUR3.8 million impairment loss on trading properties, increased from EUR700,000 in 2017. The company also booked a EUR800,000 write off in 2018 compared to a EUR1.0 million gain the year before.
"Whilst market conditions for disposals in our geographic area of operation remain challenging, we are encouraged by the disposals realized in 2018 and the continued improvement in the economic landscape in both Greece and Cyprus. We are working closely with the board to formulate a realistic exit strategy for each remaining asset," said Miltos Kambourides, founder and managing partner.
The company's 48% affiliate, Aristo, sold 115 units in 2018, down 9.4% on 2017. Aristo's new sales booked was up 1.5% to EUR67.2 million.
The company believes the current strategy of offloading its remaining assets by the end of 2019 to be unachievable and is proposing a two year extension. The proposal will be put to shareholders.
Chair Andrew Coppel said: "We made significant progress in disposing a number of portfolio assets during the year. Our attention is now focussed on the commencement of construction at the One&Only at Kea Resort and the first phase of the Kilada Hills Golf Resort within 2019 which, together with the company's strategic shareholding in Aristo Developers, we consider critical in our efforts to realize tangible value for our shareholders."
Shares in Dolphin Capital were down 3.6% Tuesday at 5.30 pence each.
Related Shares:
Dci Advisors