TIDMDCI
RNS Number : 3231B
Dolphin Capital Investors Limited
30 September 2022
30 September 2022
DOLPHIN CAPITAL INVESTORS LIMITED
("DCI", "Dolphin" or the "Company"
and together with its subsidiaries the "Group")
Half Year Results for the six months ended 30 June 2022 and
Trading Update
Financial Highlights:
-- At 30 June 2022, the total Group Net Asset Value ("NAV") was
EUR 122.7 million and EUR 116 .1 million before and after Deferred
Tax Liabilities ("DTL") respectively. This represents a decrease of
EUR3 .0 million (2.5%) compared to 31 December 2021. The NAV
reduction is principally due to operating, finance, corporate and
management expenses.
-- Sterling NAV per share as at 30 June 2022 stood at 11.7 p and
11.1 p, before and after DTL respectively and remained unchanged
compared to 31 December 2021. The Sterling NAV per share remained
stable as the operating and other expenses were offset by the 2.8 %
depreciation in Sterling against the Euro during the period.
-- Aggregate Group debt was EUR 18.3 million, a Group total debt
to gross asset ratio of 9.7 % as at 30 June 2022 (31 December 2021:
9.2 %).
Finance and Realisations Highlights:
-- In accordance with the Company's announcement released on 29
September 2022, DCI has reached a preliminary agreement to sell its
indirect equity interest held in the One&Only at Kea Island
project ("OOKI"). Dolphin is the owner of 66.7% of Single Purpose
Vehicle Ten Ltd ("SPV10") which, in turn, indirectly owns 50.0% of
OOKI, thereby providing DCI with an effective equity interest of
33.3%. On 28 September 2022, SPV10 received a notice from the
project's minority shareholder that it had reached a binding
agreement for the sale of its 40.0% effective equity ownership
interest in OOKI. Pursuant to the Shareholders' Agreement dated 27
May 2019, SPV10 is entitled to exercise a tag-along right to sell
its interest in OOKI simultaneously with the proposed transfer of
the minority shareholder's interest for a proportionate
consideration. SPV10 intends to exercise its tag-along right to
sell all of its effective equity interest in OOKI for a
proportionate cash consideration of EUR26.9 million. The pro-rata
consideration attributable to Dolphin's stake in SPV10 amounts to
EUR17.9 million and represents a premium of 17.0% over the
valuation of Dolphin's investment in OOKI disclosed in the
Company's financial statements as at 31 December 2021. The
completion of the disposal remains subject to the execution of a
share purchase agreement and the fulfilment of the terms and
conditions precedent set out therein, which is expected to conclude
during Q4 2022. Given the completion uncertainties and that the
tag-along notice was received following period end, the valuation
of the OOKI investment as at 30 June 2022 has not been adjusted to
reflect the agreed sale price. The disposal proceeds will first be
applied towards the repayment in full of the existing loan facility
that Dolphin drew down on 7 June and 16 July 2021, of which EUR12.8
million was outstanding on 31 August 2022. The remaining proceeds
are expected to be retained by Dolphin to meet its current
liabilities and working capital requirements. Dolphin Capital
Partners Ltd will retain its role as OOKI's development and asset
manager and has informed the Company that it does not intend to
sell its shareholding stake in the project. One&Only will also
continue to operate the OOKI Resort and Private Homes through the
existing long-term management and branding agreements.
-- At our Kilada Country Club, Golf and Residences development
("Kilada"), construction works continued. Earthworks have been
completed on 13 of the 18 fairways and the first hydroseed grassing
in certain completed areas has commenced. The irrigation lake has
been filled to the level required for the watering needs of the
grassed areas, with water that is sourced from the upgraded
municipal wastewater treatment plant. The infrastructure works are
also progressing. A continuing significant risk factor for the
project timing remains the ongoing archaeological investigations,
which are taking place in parallel with the construction works. We
continue to co-operate with the Ministry of Culture in order to
accelerate the investigations, with additional specialist
archaeologists and longer working hours.
From a project financing perspective, the sale of the 24 founder
land plots to the owner of the Amanzoe resort in return for an
aggregate consideration of EUR10.0 million has been substantially
delayed by the purchaser. With no immediate resolution in sight, we
are working on fallback financial solutions, including the
possibility of a loan facility from an institutional private credit
provider. The conclusion of such a loan, together with the third
party EUR12.0 million preferred equity investment that has been
fully drawn down and the EUR6.0 million Greek state subsidy, which
was awarded to the project in November 2021, would ensure that
Kilada's first phase development costs are fully financed.
The Kilada product offering has been substantially enhanced to
include apartments and family units. These have been introduced to
the market through a series of promotional efforts, including
targeted social media and real estate agency campaigns, advertising
and participation in international real estate fairs. New sales
material has been prepared, a dedicated Kilada sales office near
the site has opened and new signage has been erected. During the
period, three new reservation agreements and one pre-contract for
the sale of a residential plot were concluded. Numerous site visits
over the summer by potential buyers have also resulted in a solid
pipeline of potential new sales leads.
-- The Company has mandated AXIA Ventures Group Limited to
undertake a formal sales process starting Q4 2022 for the sale of
its shareholding in Aristo Developers Ltd ("Aristo"). Gross sales
of Aristo, a 47.9% DCI affiliate, d uring the six months to June
2022 increased by 65.8% compared to the 2021 corresponding period,
with Cypriot and other European Union buyers representing 41.6% of
sales.
-- There has been no progress in selling the Livka Bay Project to the interested buyers.
For further information, please contact:
Dolphin Capital Investors Via FIM Capital Limited
Martin Adams
Dolphin Capital Partners miltos@dolphincp.com
Miltos E Kambourides
finnCap (Nominated Adviser & Broker)
William Marle / Jonny Franklin-Adams / Edward Whiley / Milesh Hindocha
(Corporate Finance)
Mark Whitfeld / Pauline Tribe (Sales) +44 (0) 20 7220 0500
FIM Capital Limited (Administrator) llennon@fim.co.im / gdevlin@fim.co.im
Lesley Lennon / Grainne Devlin (Corporate Governance)
DOLPHIN CAPITAL INVESTORS LIMITED ("DCI", "Dolphin" or the
"Company" and together with its subsidiaries the "Group")
Unaudited Interim Financial Report For the Six Months Ended 30
June 2022
A. Chairman's Statement
Dear Shareholder,
Overview
Progress continues in the implementation of Dolphin's
realisation strategy. In particular:
-- we have received a tag-along notice to sell our equity
interest in the One&Only at Kea Island project ("OOKI") at a
premium to our last carrying valuation and we intend to exercise
our respective tag-along right; and
-- together with the controlling shareholder, we have appointed
AXIA Ventures Group Limited to market the sale of Aristo Developers
Ltd ("Aristo") .
Further details are provided below and in the Investment
Manager's Report in section B.
Once the sale of our equity in OOKI has been completed, the bulk
of the disposal proceeds will be applied towards the repayment in
full of DCI's existing loan facility. This will de-risk the
Company's financial position as it will have no direct
indebtedness, leaving at a Group level, only the limited recourse
loan to the Livka Bay project ("Livka Bay"). The remaining cash
will be sufficient to finance operations for the foreseeable
future.
Meanwhile, progress continues with the construction at OOKI and
Kilada Country Club, Golf and Residences development ("Kilada") and
resolving the various issues impacting Dolphin's other
investments.
Summary of Financial Performance
At 30 June 2022, the Group Net Asset Value ("NAV") after
Deferred Tax Liability ("DTL") was EUR116 .1 million, representing
a 2.5% decrease compared to 31 December 2021. The NAV decline
reflects operating and other expenses of EUR1.9 million ( 30 June
2021: EUR3.8 million ). In the first half of 2022, DCI advanced to
Dolphin Capital Partners Limited ("DCP" or the "Investment
Manager") EUR1.2 million against future incentive fees, compared
with investment management fees of EUR1.8 million paid during the
first half of 2021. The net loss after tax attributable to the
owners of the Company was EUR3 .0 million, as at 30 June 2022 and
30 June 2021.
In sterling terms, DCI's NAV was unchanged at 11.1p per Share on
30 June 2022 and on 31 December 2021. At 30 June 2022, DCI had a
market capitalisation of approximately GBP28.0 million, compared
with the Company's NAV of GBP105.8 million before DTL and GBP100.1
million after DTL, respectively.
Investment Portfolio
Following the period end, the Company in principle intends to
sell its effective 33.3% stake in OOKI for a consideration of
EUR17.92 million, representing a 17.0% premium to the valuation of
OOKI included in DCI's financial statements at 30 June 2022 and 31
December 2021. The valuation had increased by 18.0% between 31
December 2020 and 31 December 2021. The disposal is subject to
execution of a share purchase agreement and fulfilment of certain
conditions precedent, expected to be concluded in Q4 2022.
Although DCI's strategy had been to sell the OOKI investment
following completion of construction and opening of the first phase
of the development, the Board and DCP decided that it would be in
the Company's best interests to take advantage of the opportunity
to sell the equity at a premium to valuation through exercise of
the tag-along provision in the shareholders' agreement, together
with other minority shareholders. The sale of DCI's interest in
OOKI advances the Company's Investing Policy and Realisation
Strategy and avoids the future potential cost and difficulty of
selling an effective minority interest at a time of deteriorating
economic conditions in the European Union ("EU").
The sale of the Company's equity interest in OOKI, permits the
Company's financial resources and DCP's investment team to focus on
the Kilada and Aristo investments in the short term.
Construction of the centrepiece Jack Niklaus Signature Golf
Course at Kilada continues to progress, despite delays caused by
archaeological works and findings. The first villa plots have been
pre-sold and a sales campaign for multi-family town houses and
apartments is underway. As Greece's first project to receive
'Strategic Investment' status, Kilada's application for EUR6.0
million of state subsidies was awarded to the project in Q4 2021,
which may be drawn in stages, subject to construction milestones
being met. The completion of the golf course, scheduled for late
2023, will be a key attraction for individual property buyers.
The Company's and DCP's principal focus for the remainder of
2022 is centred on securing the development funds required for the
completion of the first phase of Kilada's development. We have
entered into preliminary discussions with an institutional private
credit fund to secure a loan of up to EUR10.0 million. We expect
the loan to be concluded during Q4 2022, thereby providing us with
flexibility regarding the delay by the buyer of the 24 founder
plots to provide the funds required for the completion of the first
phase of Kilada's development plan.
In relation to our investment in Aristo, one of Cyprus'
principal residential property developers, together with the
controlling shareholder, we have engaged AXIA Ventures Group
Limited, to identify potential buyers of Aristo through a formal
sales process, which will commence during Q4 2022.
It is disappointing to report that there has been no progress in
selling the Livka Bay investment to the interested buyers.
Following a recent site visit and discussions with the various
contracted service providers, the Board and DCP will be reassessing
the Company's options in the coming months.
The legal dispute which emerged in 2021 between the Greek Church
and the Greek State in relation to the title to the Lavender Bay
Resort Project ("Lavender" or "Lavender Bay") land purchased by
DCI, makes this investment unmarketable for the time being. DCP
continues to engage constructively with the Greek Church in an
endeavour to reach an amicable solution.
It remains the intention of the Board and the Investment Manager
to dispose all of the Company's remaining investments by the end of
2024, consistent with the new Investing Policy and Realisation
Strategy.
Corporate Governance
The Company's new Memorandum and Articles of Association
approved and adopted at the 2021 Extraordinary General Meeting
("EGM") require the Company to hold Annual General Meetings
("AGM"s). The Company's first AGM will be held on 18 October 2022,
at which Shareholders will be requested inter alia to adopt the
Annual Report & Accounts for 2021 and re-elect all the current
Directors of the Company. Notice of the AGM has been communicated
to Shareholders.
Prospects
The Board intends to apply the net proceeds from the sale of the
Company's stake in OOKI to repay the outstanding balance of the
term loan facility. After repaying the loan, the remaining cash
will be retained to meet the Company's other accrued liabilities
and cover its reasonable working capital requirements.
The Board and the Investment Manager will continue their efforts
to realise the Company's other assets. After the sale of our
interest in OOKI has completed and the financing of the Kilada
development has been secured, it is the intention to distribute
substantially all further realisation proceeds to shareholders.
Greek tourism and visitor arrivals have been buoyant in 2022,
however, given the increasing economic headwinds we are witnessing
in the EU, which affects all of our assets in Greece, Cyprus and
Croatia, the pricing and terms of disposals of the remaining
investments remains unpredictable and thus the timing and quantum
of distributions to shareholders cannot be determined with any
certainty.
Subject to regulatory constraints, the Board and DCP remain open
to discussions with Shareholders at any time. We are most
appreciative of your continuing patience and support.
On behalf of the Board
Dolphin Capital Investors
30 September 2022
B. Investment Manager's Report
B.1. Business Overview
During the first nine months of 2022 we focused on enhancing the
value of our portfolio assets and pursuing divestment opportunities
for all of our assets other than Kilada and OOKI, while addressing
the day-to-day challenges presented mainly by the significant
inflationary effects on development costs, as well as the effects
of the conflict in Ukraine. Our focus was on:
-- progressing construction works at OOKI and Kilada;
-- adjusting our retail and project sales and marketing strategies;
-- securing liquidity at the DCI level to meet all our operational expenses in the medium-term;
-- making permitting advances across our asset portfolio; and
-- monitoring our operational budgets and reducing overhead costs.
B.2. Major Assets Review
-- Kilada Country Club, Golf and Residences , Greece - www.mykilada.com
o Construction works continue on the golf course site, with 13
of the 18 fairways having been excavated through rough shaping.
Further the irrigation and drainage works have advanced in those
fairways, with sanding works also progressing on which the grass
planting with hydroseeding commenced in September 2022. The
irrigation lake has been partially filled, using recycled water
from the upgraded municipal wastewater treatment plant and bore
holes in accordance with the environmental requirements of the
project, so as to cover the watering needs of the first grassed
areas. The roads site infrastructure works for the first phase have
significantly advanced, with only the electrical works pending,
whereas the club house excavation commenced, but was suspended due
to archaeological findings.
o Delays driven by unexpected archaeological findings continue
to affect the progress of the works. The project management team
remains in continuous communication with the antiquities department
to accelerate the ongoing archaeological investigation in affected
areas of the project, with longer working hours and additional
resources.
o The preferred equity co-investor, has contributed to date
EUR12.0 million into the project, fully meeting his commitment.
o During the period, three new reservation agreements and one
pre-contract for the sale of residential plots have been concluded.
The new family style units have been designed, new signage was
created on site, and a dedicated Kilada sales office has been
created. A targeted social media campaign has been underway during
the summer months, alongside PR activities and advertising
campaigns in international media. We also participated in
international real estate affairs and a series of events in
collaboration with PGA. Sales meetings and promotional events are
planned for the UK in September.
-- Lavender Bay Resort Project
o The Greek Council for Public Properties issued an Opinion on
29 September 2021 claiming that the land that was sold to Golfing
Developments S.A. ("Golfing"), our wholly owned subsidiary that
owns the Lavender Bay investment, belonged to the Greek State and
not the Archdiocese of Dimitriada (the "Greek Church") which had
sold the property to us in 2006 and 2007. This Opinion was adopted
by the Ministry of Finance in Q1 2022, who has since taken steps to
register the property in the name of the Greek State at the local
land registries.
o In view of these developments, we have entered into
negotiations with the Greek Church with a view to ensuring that no
additional funds will be paid to them under our sale and purchase
contracts until the resolution of this legal dispute with the Greek
State, and to reduce the overall quantum of our deferred
liabilities to them. We have had a series of constructive
discussions with the Greek Church during Q3 2022 on the subject
matter and currently expect to reach an amicable resolution of this
matter by the end of the year.
o In parallel, we are working with the Greek Church's legal
counsels to prepare our case against the Greek State to the
competent courts, so that the matter can be finally judicially
resolved.
-- Aristo Developers Limited (a 47.9% affiliate) - www.aristodevelopers.com
o 44 homes and plots were sold during the first six months of
2022, representing total sales of EUR13.9 million, up 65.8%
compared to EUR8.4 million for the same period in 2021.
o 63 homes and plots were sold in total up to the end of August
2022, representing total sales of EUR19.3 million, up 71.7%
compared to EUR11.3 million for the same period in 2021.
o The main nationality of clients was Cypriots & Russians
during 2022, representing c. 32% and 26% of sales,
respectively.
Six months Six months Eight months Eight months
to 30 June to 30 June to 31 August to 31 August
RETAIL SALES 2022 2021 2022 2021
EUR 13.9 EUR 19.3
New sales booked m EUR8.4m m EUR11.3m
% change 65.8 % 71.7 %
Units sold 44 41 63 48
% change 7.3 % 31.6 %
CLIENT ORIGIN
-------------------- ------------ ------------ -------------- --------------
Cyprus & Other EU 41.6 % 8 0.7 % 32.2 % 69.6 %
Russia 24.8% -- 25.7 % 7.7%
China & Other Asia 22.9 % 9.9 % 23.9 % 10.3 %
UK 4.1 % 5.6 % 8.3 % 4 .2 %
MENA 6.6% 3.8 % 6.6 % 6.4 %
Other -- -- 3.3% 1.8%
C. Group Assets
A summary of Dolphin's current investments is presented
below.
PROJECT Landsite DCI's Debit Real estate Loan to Net Asset
(hectares) stake (EURm) value (EURm) real estate Value
asset value (% of total)
(%)
--------------- -------------- ------- -------- -------------- ------------- --------------
GREECE
33 .3
1 OOKI 65 % --
8 5.0
2 Kilada 224 % --
100 .0
3 Scorpio Bay 172 % --
100 .0
4 Lavender Bay 310 % --
100 .0
5 Plaka Bay 442 % --
--------------- -------------- ------- -------- -------------- ------------- --------------
TOTAL GREECE 1,213 -- 114.0 * -- 51.4 %
------------------- -------------- ------- -------- -------------- ------------- --------------
OTHER
Apollo Heights 100 .0
6 ( CY) 447 % --
100 .0
7 Livka Bay (CR) 63 % 4.7
8 Aristo (CY) 472 47.9% --
TOTAL OTHER 982 -- 70.8 * 6.6 % 48.6 %
------------------- -------------- ------- -------- -------------- ------------- --------------
GRAND TOTAL 2,195 4.7 184.8 * 2.5 % 100.0 %
------------------- -------------- ------- -------- -------------- ------------- --------------
*Total real estate value includes equity investments in OOKI and
Aristo.
D. Outlook
The Company's main objectives for the remainder of 2022 remain
to:
1. complete the sale of DCI's 33.3% stake at OOKI;
2. secure adequate working capital liquidity for DCI;
3. execute further portfolio asset disposals;
4. progress construction at Kilada and generate plot/villa sales; and,
5. progress planning and permitting selectively for the remaining portfolio.
Miltos Kambourides
Managing Partner
Dolphin Capital Partners
30 September 2022
E . Financial results for the first half of 2022
E.1. Consolidated statement of profit or loss for the first half
of 2022
Financial Results
Loss after tax for the periods ended 30 June 2022 and 30 June
2021 attributable to owners of the Company amounted to EUR3.0
million. Loss per share was EUR0.003 compared to EUR0.003 in the
same period last year.
Consolidated statement of profit or loss and other comprehensive
income
For the six-month period ended 30 June 2022
From 1 January 2022 From 1 January 2021
to 30 June 2022 to 30 June 2021
EUR'000 EUR'000
---------------------------------------------------------------------- -------------------- --------------------
CONTINUING OPERATIONS
---------------------------------------------------------------------- -------------------- --------------------
Revenue 55 3,049
---------------------------------------------------------------------- -------------------- --------------------
Cost of sales - (2,046)
---------------------------------------------------------------------- -------------------- --------------------
Gross profit 55 1,003
---------------------------------------------------------------------- -------------------- --------------------
Change in valuations - (228)
---------------------------------------------------------------------- -------------------- --------------------
Investment Manager remuneration - (1,800)
---------------------------------------------------------------------- -------------------- --------------------
Directors' remuneration (1 00 ) (194)
---------------------------------------------------------------------- -------------------- --------------------
Depreciation charge (38) (38)
---------------------------------------------------------------------- -------------------- --------------------
Professional fees (1,04 9 ) ( 907 )
---------------------------------------------------------------------- -------------------- --------------------
Administrative and other expenses (684) ( 655 )
---------------------------------------------------------------------- -------------------- --------------------
Total operating and other expenses (1,871) (3,822)
---------------------------------------------------------------------- -------------------- --------------------
Results from operating activities (1,816) (2,819)
---------------------------------------------------------------------- -------------------- --------------------
Finance income 1 112
---------------------------------------------------------------------- -------------------- --------------------
Finance costs (1,290) (819)
---------------------------------------------------------------------- -------------------- --------------------
Share of (losses)/profits of equity-accounted investees, net of tax (275) 12
---------------------------------------------------------------------- -------------------- --------------------
Loss before taxation (3,380) (3,514)
---------------------------------------------------------------------- -------------------- --------------------
Taxation (2) 360
---------------------------------------------------------------------- -------------------- --------------------
Loss (3,382) (3,154)
---------------------------------------------------------------------- -------------------- --------------------
OTHER COMPREHENSIVE INCOME
---------------------------------------------------------------------- -------------------- --------------------
Items that are or may be reclassified subsequently to profit or loss
---------------------------------------------------------------------- -------------------- --------------------
Share of revaluation on equity-accounted investees - 6
---------------------------------------------------------------------- -------------------- --------------------
Foreign currency translation differences ( 24 ) (886)
---------------------------------------------------------------------- -------------------- --------------------
Other comprehensive income, net of tax ( 24 ) (880)
---------------------------------------------------------------------- -------------------- --------------------
TOTAL COMPREHENSIVE LOSS (3,406) (4,034)
---------------------------------------------------------------------- -------------------- --------------------
Loss attributable to:
---------------------------------------------------------------------- -------------------- --------------------
Owners of the Company (2,972) (3,007)
---------------------------------------------------------------------- -------------------- --------------------
Non-controlling interests ( 410 ) (147)
---------------------------------------------------------------------- -------------------- --------------------
( 3,382 ) (3,154)
---------------------------------------------------------------------- -------------------- --------------------
Total comprehensive income attributable to:
---------------------------------------------------------------------- -------------------- --------------------
Owners of the Company ( 2,996 ) (3,889)
---------------------------------------------------------------------- -------------------- --------------------
Non-controlling interests ( 410 ) (145)
---------------------------------------------------------------------- -------------------- --------------------
( 3,406 ) (4,034)
---------------------------------------------------------------------- -------------------- --------------------
Loss per share
---------------------------------------------------------------------- -------------------- --------------------
Basic and diluted loss per share (EUR) (0.003) (0.003)
---------------------------------------------------------------------- -------------------- --------------------
Further analysis of individual revenue and expense items is
provided below.
Professional Fees
The charge for the period was EUR 1. 0 million (30 June 2021:
EUR0.9 million) and comprises the following:
H1 2022 H1 2021
EUR million EUR million
------------------------------------- ------------- -------------
Legal fees 0.3 0.3
Auditors' remuneration 0.1 0.1
Accounting expenses 0.1 0.1
Project design and development fees 0.2 0.2
Consultancy fees 0.0 0.1
Administrator fees 0.2 0.0
Other professional fees 0.1 0.1
------------------------------------- ------------- -------------
TOTAL 1.0 0.9
Administrative and other expenses
The administrative and other expenses amounted to EUR 0. 7
million (30 June 2021: EUR0. 7 million) and are analysed as
follows:
H1 2022 H1 2021
EUR million EUR million
---------------------------------------- ------------- -------------
Personnel expenses 0.3 0.3
Immovable property tax and other taxes 0.1 0.0
Other 0.3 0.4
---------------------------------------- ------------- -------------
TOTAL 0.7 0.7
E.2. Consolidated statement of financial position as at 30 June
2022
30 June 31 December
2022 2021
--------------------------------------------- --------- -----------
EUR'000 EUR'000
--------------------------------------------- --------- -----------
Assets
--------------------------------------------- --------- -----------
Property, plant and equipment 10,733 9,069
---------------------------------------------- --------- -----------
Investment property 52,298 52,188
---------------------------------------------- --------- -----------
Equity-accounted investees 65,280 65,555
---------------------------------------------- --------- -----------
Non-current assets 128,311 126,812
---------------------------------------------- --------- -----------
Trading properties 56,516 56,516
---------------------------------------------- --------- -----------
Receivables and other assets 1,844 1,092
---------------------------------------------- --------- -----------
Other Investments - 99
---------------------------------------------- --------- -----------
Cash and cash equivalents 3,112 4,575
---------------------------------------------- --------- -----------
Current assets 61,472 62,282
---------------------------------------------- --------- -----------
Total assets 189,783 189,094
============================================== ========= ===========
Equity
--------------------------------------------- --------- -----------
Share capital 9,046 9,046
---------------------------------------------- --------- -----------
Share premium 569,847 569,847
---------------------------------------------- --------- -----------
Retained deficit (463,362) (460,390)
============================================== ========= ===========
Other reserves 560 584
============================================== ========= ===========
Equity attributable to owners of the Company 116,091 119,087
---------------------------------------------- --------- -----------
Non-controlling interests 9,153 8,942
---------------------------------------------- --------- -----------
Total equity 125,244 128,029
---------------------------------------------- --------- -----------
Liabilities
--------------------------------------------- --------- -----------
Loans and borrowings 10,028 20,125
---------------------------------------------- --------- -----------
Lease liabilities 3,343 3,331
---------------------------------------------- --------- -----------
Deferred tax liabilities 6,607 6,609
---------------------------------------------- --------- -----------
Trade and other payables 19,940 20,089
---------------------------------------------- --------- -----------
Non-current liabilities 39,918 50,154
---------------------------------------------- --------- -----------
Loans and borrowings 18,320 4,743
---------------------------------------------- --------- -----------
Lease liabilities 88 89
---------------------------------------------- --------- -----------
Trade and other payables 6,213 6,079
---------------------------------------------- --------- -----------
Current liabilities 24,621 10,911
---------------------------------------------- --------- -----------
Total liabilities 64,539 61,065
---------------------------------------------- --------- -----------
Total equity and liabilities 189,783 189,094
---------------------------------------------- --------- -----------
Net asset value ('NAV') per share (EUR) 0.13 0.13
---------------------------------------------- --------- -----------
The reported NAV as at 30 June 2022 is presented below:
As at As at Variation since
30 June 2022 31 December 2021 31 December 2021
EUR GBP EUR GBP EUR% GBP%
--------------------------------- -------- ------- --------------------- ----------- --------
Total NAV before DTL (million) 122.7 105.8 125.7 105.5 (2. 4 ) (0.3)
--------------------------------- -------- ------- ---------- --------- ----------- --------
Total NAV after DTL (million) 116.1 100.1 119.1 100.0 (2. 5 ) (0.2)
--------------------------------- -------- ------- ---------- --------- ----------- --------
NAV per share before DTL 0.14 0.12 0.14 0.12 (2. 4 ) (0.3)
--------------------------------- -------- ------- ---------- --------- ----------- --------
NAV per share after DTL 0.13 0.11 0.13 0.11 (2. 5 ) (0.2)
___________
Notes:
1. Euro/GBP rate 0.86258 as at 30 June 2022 and 0.83939 as at 31 December 2021.
2. NAV per share has been calculated on the basis of 904,626,856
issued shares as at 30 June 2022 and as at 31 December 2021.
Total Group NAV as at 30 June 2022 was EUR122.7 million and
EUR116.1 million before and after DTL respectively. This represents
a decrease of EUR3.0 million ( 2.4 )% and EUR3.0 million ( 2.5 )%
respectively, from the 31 December 2021 figures. Given that no
independent valuation of the Company's portfolio took place as at
30 June 2022, the NAV reduction is mainly due to Dolphin's regular
operational, corporate, finance and management expenses.
Sterling NAV per share as at 30 June 2022 was 11.7p before DTL
and 11.1p after DTL and remained unchanged compared to 31 December
2021. The Sterling NAV per share remained stable due to 2.8%
depreciation of the Sterling versus the Euro during the period,
which was counterbalanced by the factors mentioned above.
The Company's consolidated assets of EUR189.8 million include
EUR119.6 million of real estate assets, EUR65.3 million of
equity-accounting investees (which reflects our 33.3 % shareholding
in OOKI as well as the Company's 47.9% interest in Aristo), EUR1.8
million of trade and other receivables, and EUR3.1 million in
cash.
The figure of EUR119.6 million of real estate assets (property,
plant and equipment, trading properties and investment property)
represents the fair market valuations conducted as at 31 December
2021 for both freehold and long leasehold interests.
The Company's consolidated liabilities (excluding DTL) total
EUR57.9 million and comprise EUR26.1 million of trade and other
payables as well as EUR31.8 million of interest-bearing loans and
finance lease obligations. Trade and other payables comprise mainly
EUR20.8 million of option contracts to acquire land in Lavender
Bay. The Company is in negotiations with the original vendor with a
view to ensuring that no additional deferred payments are made to
them under the relevant sale and purchase contracts until the
resolution of this legal dispute with the Greek State.
Condensed consolidated interim statement of financial
position
As at 30 June 2022
30 June 2022 31 December 2021
Note EUR'000 EUR'000
Assets
---------------------------------------------- ------- ------------- -----------------
Property, plant and equipment 14 10,733 9,069
---------------------------------------------- ------- ------------- -----------------
Investment property 15 52,298 52,188
---------------------------------------------- ------- ------------- -----------------
Equity-accounted investees 16 65,280 65,555
---------------------------------------------- ------- ------------- -----------------
Non-current assets 128,311 126,812
---------------------------------------------- ------- ------------- -----------------
Trading properties 17 56,516 56,516
---------------------------------------------- ------- ------------- -----------------
Receivables and other assets 18 1,844 1,092
---------------------------------------------- ------- ------------- -----------------
Other investments - 99
---------------------------------------------- ------- ------------- -----------------
Cash and cash equivalents 3,112 4,575
---------------------------------------------- ------- ------------- -----------------
Current assets 61,472 62,282
---------------------------------------------- ------- ------------- -----------------
Total assets 189,783 189,094
============================================== ======= ============= =================
Equity
---------------------------------------------- ------- ------------- -----------------
Share capital 19 9,046 9,046
---------------------------------------------- ------- ------------- -----------------
Share premium 19 569,847 569,847
---------------------------------------------- ------- ------------- -----------------
Retained deficit (463,362) (460,390)
============================================== ======= ============= =================
Other reserves 560 584
============================================== ======= ============= =================
Equity attributable to owners of the Company 116,091 119,087
---------------------------------------------- ------- ------------- -----------------
Non-controlling interests 9,153 8,942
---------------------------------------------- ------- ------------- -----------------
Total equity 125,244 128,029
---------------------------------------------- ------- ------------- -----------------
Liabilities
---------------------------------------------- ------- ------------- -----------------
Loans and borrowings 20 10,028 20,125
---------------------------------------------- ------- ------------- -----------------
Lease liabilities 3,343 3,331
---------------------------------------------- ------- ------------- -----------------
Deferred tax liabilities 21 6,607 6,609
---------------------------------------------- ------- ------------- -----------------
Trade and other payables 22 19,940 20,089
---------------------------------------------- ------- ------------- -----------------
Non-current liabilities 39,918 50,154
---------------------------------------------- ------- ------------- -----------------
Loans and borrowings 20 18,320 4,743
---------------------------------------------- ------- ------------- -----------------
Lease liabilities 88 89
---------------------------------------------- ------- ------------- -----------------
Trade and other payables 22 6,213 6,079
---------------------------------------------- ------- ------------- -----------------
Current liabilities 24,621 10,911
---------------------------------------------- ------- ------------- -----------------
Total liabilities 64,539 61,065
---------------------------------------------- ------- ------------- -----------------
Total equity and liabilities 189,783 189,094
---------------------------------------------- ------- ------------- -----------------
Net asset value ('NAV') per share (EUR) 23 0.13 0.13
---------------------------------------------- ------- ------------- -----------------
Condensed consolidated interim statement of profit or loss and
other comprehensive income
For the six-month period ended 30 June 2022
From 1 January 2022 From 1 January 2021
to 30 June 2022 to 30 June 2021
Note EUR'000 EUR'000
---------------------------------------------------------------- ------ -------------------- --------------------
Continuing operations
---------------------------------------------------------------- ------ -------------------- --------------------
Revenue 6 55 3,049
---------------------------------------------------------------- ------ -------------------- --------------------
Cost of sales 7 - (2,046)
---------------------------------------------------------------- ------ -------------------- --------------------
Gross profit 55 1,003
---------------------------------------------------------------- ------ -------------------- --------------------
Change in valuations 8 - (228)
---------------------------------------------------------------- ------ -------------------- --------------------
Investment Manager remuneration 24 .2 - (1,800)
---------------------------------------------------------------- ------ -------------------- --------------------
Directors' remuneration 24 .1 (100) (194)
---------------------------------------------------------------- ------ -------------------- --------------------
Depreciation charge (38) (38)
---------------------------------------------------------------- ------ -------------------- --------------------
Professional fees 1 0 (1,049) ( 907 )
---------------------------------------------------------------- ------ -------------------- --------------------
Administrative and other expenses 11 (684) ( 655 )
---------------------------------------------------------------- ------ -------------------- --------------------
Total operating and other expenses (1,871) (3,822)
---------------------------------------------------------------- ------ -------------------- --------------------
Results from operating activities (1,816) (2,819)
---------------------------------------------------------------- ------ -------------------- --------------------
Finance income 1 112
---------------------------------------------------------------- ------ -------------------- --------------------
Finance costs (1,290) (819)
---------------------------------------------------------------- ------ -------------------- --------------------
Share of (losses)/profits of equity-accounted investees (275) 12
---------------------------------------------------------------- ------ -------------------- --------------------
Loss before taxation (3,380) (3,514)
---------------------------------------------------------------- ------ -------------------- --------------------
Taxation 12 (2) 360
---------------------------------------------------------------- ------ -------------------- --------------------
Loss (3,382) (3,154)
---------------------------------------------------------------- ------ -------------------- --------------------
Other comprehensive income
---------------------------------------------------------------- ------ -------------------- --------------------
Items that are or may be reclassified subsequently to profit or loss
------------------------------------------------------------------------ -------------------- --------------------
Share of revaluation on equity-accounted investees - 6
---------------------------------------------------------------- ------ -------------------- --------------------
Foreign currency translation differences (24) (886)
---------------------------------------------------------------- ------ -------------------- --------------------
Other comprehensive income net of tax (24) (880)
---------------------------------------------------------------- ------ -------------------- --------------------
Total comprehensive income (3,406) (4,034)
---------------------------------------------------------------- ------ -------------------- --------------------
Loss attributable to:
---------------------------------------------------------------- ------ -------------------- --------------------
Owners of the Company (2,972) (3,007)
---------------------------------------------------------------- ------ -------------------- --------------------
Non-controlling interests (410) (147)
---------------------------------------------------------------- ------ -------------------- --------------------
(3,382) (3,154)
================================================================ ====== ==================== ====================
Total comprehensive income attributable to:
---------------------------------------------------------------- ------ -------------------- --------------------
Owners of the Company (2,996) (3,889)
---------------------------------------------------------------- ------ -------------------- --------------------
Non-controlling interests (410) (145)
================================================================ ====== ==================== ====================
(3,406) (4,034)
================================================================ ====== ==================== ====================
Loss per share
---------------------------------------------------------------- ------ -------------------- --------------------
Basic and diluted loss per share (EUR) 13 (0.003) (0.003)
---------------------------------------------------------------- ------ -------------------- --------------------
Condensed consolidated interim statement of changes in
equity
For the six-month period ended 30 June 2022
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 2021 9,046 569,847 8,337 465 (439,047) 148,648 6,523 155,171
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
TOTAL COMPREHENSIVE INCOME
Loss - - - - (3,007) (3,007) (147) (3,154)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Other comprehensive income
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Share of revaluation on
equity accounted
investees - - - 6 - 6 2 8
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Foreign currency
translation differences - - (886) - - (886) - (886)
============================ ======= ======= =========== =========== ========= ======= =============== =======
Total other comprehensive
income - - (886) 6 - (880) 2 (878)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Total comprehensive income - - ( 886 ) 6 (3,007) (3,887) (145) (4,032)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
TRANSACTIONS WITH OWNERS OF
THE COMPANY
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Changes in ownership
interests in subsidiaries
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Disposal of interests
without a change in control - - - - - - 517 517
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Total transactions with
owners of the Company - - - - - - 517 517
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Balance at 30 June 2021 9,046 569,847 7,451 471 (442,054) 144,761 6,895 151,656
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Balance at 1 January 2022 9,046 569,847 305 279 (460,390) 119,087 8,942 128,029
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
TOTAL COMPREHENSIVE INCOME
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Loss - - - - (2,972) (2,972) (410) (3,382)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Other comprehensive income
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Share of revaluation on
equity accounted investees - - - - - - - -
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Foreign currency
translation differences - - (24) - - (24) - (24)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Total other comprehensive
income - - (24) - - (24) - (24)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Total comprehensive income - - (24) - (2,972) (2,996) (410) (3,406)
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
TRANSACTIONS WITH OWNERS OF
THE COMPANY
Changes in ownership
interests in subsidiaries
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Disposal of interests
without a change in control - - - - - - 621 621
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Total transactions with
owners of the Company - - - - - - - -
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Balance at 30 June 2022 9,046 569,847 281 279 (463,362) 116,091 9,153 125,244
---------------------------- ------- ------- ----------- ----------- --------- ------- --------------- -------
Condensed consolidated interim statement of cash flows
For the six-month period ended 30 June 2022
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
-------------------------------------------------- --------------- ---------------
CASH FLOWS FROM OPERATING ACTIVITIES
-------------------------------------------------- --------------- ---------------
Loss (3,382) (3,154)
--------------------------------------------------- --------------- ---------------
Share of losses / (profits) in equity-accounted
investees 275 (12)
--------------------------------------------------- --------------- ---------------
Other adjustments 1,305 (594)
--------------------------------------------------- --------------- ---------------
(1,802) (3,760)
-------------------------------------------------- --------------- ---------------
Changes in:
-------------------------------------------------- --------------- ---------------
Receivables (752) 159
--------------------------------------------------- --------------- ---------------
Payables 14 792
--------------------------------------------------- --------------- ---------------
Trading properties -- 2,100
--------------------------------------------------- --------------- ---------------
Deferred revenue -- 4
--------------------------------------------------- --------------- ---------------
Cash used in operating activities (2,540) (705)
=================================================== =============== ===============
Tax paid (52) (3)
--------------------------------------------------- --------------- ---------------
Net cash used in operating activities (2,592) (708)
--------------------------------------------------- --------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES
-------------------------------------------------- --------------- ---------------
Proceeds from other investments 99 --
-------------------------------------------------- --------------- ---------------
Net acquisitions of investment property (145) (23)
--------------------------------------------------- --------------- ---------------
Net acquisitions of property, plant and
equipment (1,702) (1,047)
--------------------------------------------------- --------------- ---------------
Net cash used in investing activities (1,748) (1,070)
--------------------------------------------------- --------------- ---------------
CASH FLOWS FROM FINANCING ACTIVITES
-------------------------------------------------- --------------- ---------------
Repayment of loans and borrowings -- (250)
--------------------------------------------------- --------------- ---------------
New loans 810 1,750
--------------------------------------------------- --------------- ---------------
Proceeds from issue of redeemable preference
shares 3,000 2,500
--------------------------------------------------- --------------- ---------------
Transaction costs related to loans and
borrowings (165) (339)
--------------------------------------------------- --------------- ---------------
Payment of lease liabilities -- (14)
--------------------------------------------------- --------------- ---------------
Interest paid (768) (5)
=================================================== =============== ===============
Net cash from financing activities 2,877 3,642
--------------------------------------------------- --------------- ---------------
Net (decrease)/increase in cash and cash
equivalents (1,463) 1,864
--------------------------------------------------- --------------- ---------------
Cash and cash equivalents at the beginning
of the period 4,575 1,661
--------------------------------------------------- --------------- ---------------
Cash and cash equivalents at the end
of the period 3,112 3,525
=================================================== =============== ===============
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 3,112 3,525
--------------------------------------------------- --------------- ---------------
Cash and cash equivalents at 30 June 3,112 3,525
=================================================== =============== ===============
Notes to the condensed consolidated interim financial
statements
For the six-month period ended 30 June 202 2
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. The Company is managed by
Dolphin Capital Partners Limited (the 'Investment Manager' or
'DCP'), 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 2022
comprise the financial statements of the Company and its
subsidiaries (together referred to as the 'Group') and the Group's
interests in associates. These interim financial statements have
not been subject to an audit.
2. Basis of preparation
(a) Statement of compliance
These condensed consolidated interim financial statements for
the six-month period ended 30 June 2022 have been prepared in a
form consistent with that which will be adopted in the Company's
annual accounts having regard to the accounting standards
applicable to such annual accounts namely International Financial
Reporting Standards ('IFRS') as adopted by the European Union
('EU') and should be read in conjunction with the Group's last
annual consolidated financial statements as at and for the year
ended 31 December 2021 ('last annual financial statements'). They
do not include all of the information required for a complete set
of financial statements prepared in accordance with IFRS Standards.
However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the
changes in the Group's financial position and performance since the
last annual financial statements. 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 29 September
2022.
(b) Basis of preparation
The condensed consolidated interim financial statements of the
Company for the six-month period ended 30 June 2022 have been
prepared on a going concern basis, which assumes that the Group
will be able to discharge its liabilities in the normal course of
business.
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 will take
actions to reduce costs and is confident that it can secure
additional loan facilities and/or obtain repayment extension on
existing ones, until planned asset sales are realised and proceeds
received.
If, for any reason, the Group is unable to continue as a going
concern, then this could have an impact on the Group's ability to
realise assets at their recognised values and to extinguish
liabilities in the normal course of business at the amounts stated
in the condensed consolidated interim financial statements.
Based on these factors, management has a reasonable expectation
that the Group has and will have adequate resources to continue in
operational existence for the foreseeable future.
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 2021. A number of new standards
are effective from 1 January 2022, but they do not have a material
effect on the Group's financial statements.
Where necessary, comparative figures have been adjusted to
conform to changes in presentation in the current period.
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 the 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 2021.
5. PRINCIPAL SUBSIDIARIES
As at 30 June 2022, the Group's most significant subsidiaries
were the following:
Country Shareholding
of
Name Project incorporation interest
--------------------------------------- -------------------- --------------- -------------
Scorpio Bay Holdings Limited Scorpio Bay Resort Cyprus 100%
======================================= ==================== =============== =============
Scorpio Bay Resorts S.A. Scorpio Bay Resort Greece 100%
======================================= ==================== =============== =============
Lavender Bay
Xscape Limited Resort Cyprus 100%
======================================= ==================== =============== =============
Lavender Bay
Golfing Developments S.A. Resort Greece 100%
======================================= ==================== =============== =============
MindCompass Overseas One Limited Kilada Hills
('MCO 1') Golf Resort Cyprus 85%
======================================= ==================== =============== =============
Kilada Hills
MindCompass Overseas S.A. Golf Resort Greece 85%
======================================= ==================== =============== =============
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 Country Apollo Heights
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%
======================================= ==================== =============== =============
Single Purpose Vehicle Ten Limited One&Only Kea
('SPV 10')** Resort Cyprus 67%
======================================= ==================== =============== =============
The above shareholding interest percentages are rounded to the
nearest integer.
*This entity holds 48% shareholding interest in DCI Holdings Two
Ltd ('DCI H 2' owner of Aristo Developers Ltd)
** This entity holds 50% shareholding interest in Single Purpose
Vehicle Fourteen Limited ('SPV 14' owner of OOKI)
6. revenue
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Sale of trading and investment properties - 3,000
------------------------------------------- --------------- ---------------
Other income 55 49
------------------------------------------- --------------- ---------------
Total 55 3,049
------------------------------------------- --------------- ---------------
7. COST OF SALES
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Cost of sales related to:
--------------------------------------------- --------------- ---------------
Sales of trading and investment properties - 2,046
--------------------------------------------- --------------- ---------------
Total - 2,046
--------------------------------------------- --------------- ---------------
8. chANGE IN VALUATIONS
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
----------------------------------------------- --------------- ---------------
Net change in fair value of other investments - (228)
----------------------------------------------- --------------- ---------------
Total - (228)
=============================================== =============== ===============
9. SEGMENT REPORTING
Operating segments
As at 30 June 2022 and 30 June 2021, the Group is not considered
to have reportable operating segments that require disclosure. The
Group has one business segment, focusing on achieving capital
growth through investing in residential resort developments
primarily in south-east Europe.
The geographic information analyses the Group's non-current
assets by the Company's country of domicile. In presenting the
geographic information, segment assets were based on the geographic
location of the assets.
Non-current assets
30 June 31 December
2022 2021
EUR'000 EUR'000
----------------------- -------- ------------
Greece 57,468 55,935
Croatia 18,448 18,482
Cyprus 52,395 52,395
At end of period/year 128,311 126,812
----------------------- -------- ------------
Country risk developments
Greek tourism is heading for an excellent year, supporting
public revenue, despite inflationary pressures worldwide and the
environment of high uncertainty that has emerged following the
energy crisis. High-frequency indicators confirm the expected solid
outlook for tourism in 2022 and remain in line with the projections
of a full return to pre-pandemic levels by 2023.
According to Alpha Bank's bulletin Greek tourism revenue in 2022
is expected to reach EUR20 billion, exceeding the amount generated
by tourism in 2019 (EUR18.2 billion). 8 million travellers from
abroad visited Greece in the first half of 2022 with travel
receipts amounting to EUR5.1 billion. Compared to the January-June
2019 period, this year's tourism figures were down by 15 % and 5.3%
respectively. Meanwhile, the average expenditure per trip increased
by 12.6 % compared to the January-July 2019 period.
Travel receipts during the first half of 2022 boosted state
revenue, which amounted to EUR41.8 billion compared to EUR35.3
billion in the same period of 2021, registering an increase of
18.5%. The Bank of Greece has revised its GDP growth forecast
upwards and now expects that the economy will grow 4.2% in 2022 and
3.1% in 2023 versus 3.2% and 4.1% respectively expected previously,
driven by strong tourism performance. Greece's exit from the
enhanced surveillance regime on August 20, 2022 is also another
positive aspect.
In Cyprus, tourist arrivals in the first half of 2022 exceeded
1.22 million which correspond to 74.9% of the respective period of
2019, which was an historic record year. The 1.22 million arrivals
also mark 63.2% of those of the whole of last year, according to
data released by the Statistical Service of Cyprus.
The Cyprus property market continues to recover after falling
prices in 2021. In the first quarter of 2022, the number of real
estate transactions increased for the first time in 14 years. In
the second quarter of 2022, it remains high, according to the
Cyprus Land Registry. Buyers are especially interested in land and
luxury real estate.
Management continues to closely monitor developments in this
sphere and will adjust its operational processes and divestment
strategies accordingly so that it can successfully navigate the
business through the coming months.
10. PROFESSIONAL FEES
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Legal fees 318 295
------------------------------------- --------------- ---------------
Auditors' remuneration 80 143
------------------------------------- --------------- ---------------
Accounting expenses 99 81
------------------------------------- --------------- ---------------
Project design and development fees 207 192
------------------------------------- --------------- ---------------
Consultancy fees 63 68
------------------------------------- --------------- ---------------
Administrator fees 186 29
------------------------------------- --------------- ---------------
Other professional fees 96 99
------------------------------------- --------------- ---------------
Total 1,049 907
------------------------------------- --------------- ---------------
11. ADMINISTRATIVE AND OTHER EXPENSES
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Personnel expenses (see below) 274 331
------------------------------------ --------------- ---------------
Travelling and accommodation 28 9
------------------------------------ --------------- ---------------
Insurance 35 34
------------------------------------ --------------- ---------------
Repairs and maintenance 3 4
------------------------------------ --------------- ---------------
Marketing and advertising expenses 30 19
------------------------------------ --------------- ---------------
Rents 41 32
------------------------------------ --------------- ---------------
Immovable property and other taxes 78 22
------------------------------------ --------------- ---------------
Other 195 204
------------------------------------ --------------- ---------------
Total 684 655
------------------------------------ --------------- ---------------
Personnel expenses
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Wages and salaries 188 243
-------------------------------------------- --------------- ---------------
Compulsory social security contributions 68 83
-------------------------------------------- --------------- ---------------
Other personnel costs 18 5
-------------------------------------------- --------------- ---------------
Total 274 331
-------------------------------------------- --------------- ---------------
The average number of employees during the
period was 23 30
============================================ =============== ===============
12.Taxation
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Income tax - 3
------------------ --------------- ---------------
Net deferred tax 2 (363)
================== =============== ===============
Total 2 (360)
------------------ --------------- ---------------
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
2022 2021
to 30 June to 30 June
2022 2021
'000 '000
Loss attributable to owners of the Company
(EUR) (2,972) (3,007)
------------------------------------------------------ --------------- ---------------
Number of weighted average common shares outstanding 904,627 904,627
------------------------------------------------------ --------------- ---------------
Basic loss per share (EUR) (0.003) (0.003)
------------------------------------------------------ --------------- ---------------
Weighted average number of common shares outstanding
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
'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 2022 and 30 June 2021, 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
Under construction Land and buildings
EUR'000 EUR'000 Other Total
EUR'000 EUR'000
30 June 2022
------------------------------------ ------------------- ------------------- ---------- ----------
Cost or revalued amount
------------------------------------ ------------------- ------------------- ---------- ----------
At beginning of period 5,683 20,445 411 26,539
------------------------------------ ------------------- ------------------- ---------- ----------
Direct acquisitions 1,685 10 7 1,702
------------------------------------ ------------------- ------------------- ---------- ----------
At end of period 7,368 20,455 418 28,241
------------------------------------ ------------------- ------------------- ---------- ----------
Depreciation and impairment losses
------------------------------------ ------------------- ------------------- ---------- ----------
At beginning of period - 17,080 390 17,470
------------------------------------ ------------------- ------------------- ---------- ----------
Depreciation charge for the period - 36 2 38
==================================== =================== =================== ========== ==========
At end of period - 17,116 392 17,508
------------------------------------ ------------------- ------------------- ---------- ----------
Carrying amounts 7,368 3,339 26 10,733
------------------------------------ ------------------- ------------------- ---------- ----------
Under construction Land and buildings
EUR'000 Other Total
EUR'000 EUR'000 EUR'000
31 December 2021
--------------------------------------- ------------------- ------------------- ---------- ----------
Cost or revalued amount
--------------------------------------- ------------------- ------------------- ---------- ----------
At beginning of year 2,054 20,445 400 22,899
--------------------------------------- ------------------- ------------------- ---------- ----------
Direct acquisitions 3,629 6 16 3,651
--------------------------------------- ------------------- ------------------- ---------- ----------
Disposals through subsidiary disposal - (6) (5) (11)
--------------------------------------- ------------------- ------------------- ---------- ----------
At end of year 5,683 20,445 411 26,539
--------------------------------------- ------------------- ------------------- ---------- ----------
Depreciation and impairment losses
--------------------------------------- ------------------- ------------------- ---------- ----------
At beginning of period - 17,665 379 18,044
--------------------------------------- ------------------- ------------------- ---------- ----------
Depreciation charge for the year - 36 12 48
======================================= =================== =================== ========== ==========
Disposals through subsidiary disposal - (6) (3) (9)
======================================= =================== =================== ========== ==========
Reversal of impairment loss - (615) - (615)
======================================= =================== =================== ========== ==========
Exchange Difference - - 2 2
======================================= =================== =================== ========== ==========
At end of year - 17,080 390 17,470
--------------------------------------- ------------------- ------------------- ---------- ----------
Carrying amounts 5,683 3,365 21 9,069
--------------------------------------- ------------------- ------------------- ---------- ----------
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 2021.
15. Investment property
30 June 2022 31 December
2021
EUR'000 EUR'000
----------------------------- ------------- ------------
At beginning of period/year 52,188 76,303
----------------------------- ------------- ------------
Net direct additions 145 21
----------------------------- ------------- ------------
Fair value adjustment - (24,240)
----------------------------- ------------- ------------
Exchange differences (35) 104
----------------------------- ------------- ------------
At end of period/year 52,298 52,188
----------------------------- ------------- ------------
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 2021.
16. equity-accounted investees
30 June 2022 DCI H2 SPV 14 Total
EUR '000 EUR '000 EUR '000
Balance as at 1 January
20 2 2 42,694 22,861 65,555
----------------------------- --------- --------- ---------
Share of profits/ ( losses),
net of tax 669 (275) 394
----------------------------- --------- --------- ---------
Impairment Loss (669) - (669)
----------------------------- --------- --------- ---------
Balance as at 30 June
2022 42,694 22,586 65,280
----------------------------- --------- --------- ---------
31 December 2021 DCI H2 SPV14 Total
EUR '000 EUR '000 EUR '000
Balance as at 1 January
20 2 1 42,694 17,980 60,674
----------------------------- --------- --------- ---------
Share of revaluation surplus - (278) (278)
----------------------------- --------- --------- ---------
Share of profits , net
of tax 814 5,159 5,973
----------------------------- --------- --------- ---------
Impairment Loss (814) - (814)
----------------------------- --------- --------- ---------
Balance as at 31 December
2021 42,694 22,861 65,555
----------------------------- --------- --------- ---------
DCI H2
As at 30 June 2022 and 31 December 2021, the investment in DCI
H2 is presented at its recoverable amount of EUR42.7 million. The
recoverable amount is calculated based on the NAV of DCI H2 group
at the reporting date adjusted by approximately 30% discount on the
DCI H2 group's real estate properties. The fair value of the
investment in DCI H2 has been categorised as a Level 3 fair value
based on the inputs to the valuation techniques used.
The details of the above investments are as follows:
Shareholding interest
Name Country of incorporation Principal activities 30 June 2022 31 December
2021
------ -------------------------- -------------------------------- ------------- -------------
SPV Cyprus Development of OOKI 33%* 33%*
14 (Greece)
------ -------------------------- -------------------------------- ------------- -------------
Acquisition and holding
DCI of real estate investments
H2 BVIs in Cyprus 48% 48%
------ -------------------------- -------------------------------- ------------- -------------
The above shareholding interest percentages are rounded to the
nearest integer.
*This represents the indirect shareholding % in SPV14. The Group
has 67% shareholding interest in its subsidiary SPV 10 which owns
50% shareholding interest in SPV 14.
17. Trading properties
30 June 2022 31 December 2021
EUR'000 EUR'000
---------------------------- ------------ ----------------
At beginning of period/year 56,516 59,769
---------------------------- ------------ ----------------
Disposals - (3,253)
---------------------------- ------------ ----------------
At end of period/year 56,516 56,516
---------------------------- ------------ ----------------
18. RECEIVABLES AND OTHER ASSETS
30 June 2022 31 December 2021
EUR'000 EUR'000
------------------------------------ ------------ ----------------
Trade receivables 142 45
------------------------------------ ------------ ----------------
VAT receivables 231 859
------------------------------------ ------------ ----------------
Other receivables 1,46 0 176
------------------------------------ ------------ ----------------
Total trade and other receivables 1,833 1,080
------------------------------------ ------------ ----------------
Prepayments and other assets 11 12
------------------------------------ ------------ ----------------
Total 1,844 1,092
------------------------------------ ------------ ----------------
19. CAPITAL AND RESERVES
Capital
Authorised share capital 30 June 2022 31 December 2021
----------------------- -----------------------
'000 of shares EUR'000 '000 of 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 capital Share premium
issue
'000 EUR'000 EUR'000
--------------------------------------- ---------- -------------- --------------
Capital at 1 January 2021 and 30
June 2022 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.
20 . LOANS AND BORROWINGS
Within two to five
Total Within one year years
--------------------- -------------------- -----------------------
30 June 31 December 30 June 31 December 30 June 31 December
2022 2021 2022 2021 2022 2021
---------------------- -------- ----------- ------- ----------- --------- -----------
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
---------------------- -------- ----------- ------- ----------- --------- -----------
Loans in Euro 18,320 17,391 18,320 4,743 - 12,648
---------------------- -------- ----------- ------- ----------- --------- -----------
Redeemable preference
shares 10,028 7,477 - - 10,028 7,477
---------------------- -------- ----------- ------- ----------- --------- -----------
Total 28,348 24,868 18,320 4,743 10,028 20,125
---------------------- -------- ----------- ------- ----------- --------- -----------
Loans in Euro
On 3 June 2021 the Company entered into a EUR15.0 million senior
secured term loan facility agreement ("senior loan facility") with
two institutional private credit providers acting on behalf of
their managed and advised funds. The nominal interest rate is 12.5%
and the initial maturity date falls 18 months from the loan
draw-down and is subject to a six-month extension at Company's
option with a 2.0% interest step-up. The facility agreement
includes mandatory prepayment clauses with regard to revenues
realised by the Company from the disposal of its assets, as well as
standard event of default provisions including, inter alia,
borrower change of control, termination of investment management
agreement and cancelation of existing borrower securities listing.
As of 31 December 2021, an amount of EUR14.1 million had been drawn
down and arrangement and commitment fees amounting to EUR0.7
million had been prepaid. EUR0.8 million was drawn down on 4 March
2022 and transferred to an interest reserve account less any
arrangement fees.
Redeemable Preference Shares
On 18 December 2019, the Company signed an agreement with an
international investor for a EUR12.0 million investment in Kilada.
The investor agreed to subscribe for both common and preferred
shares. The total EUR12.0 million investment is payable in 24
monthly instalments of EUR0.5 million 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 2022, 15% (31 December 2021: 11.58%) of the
ordinary shares have been transferred to the investor.
As of 30 June 2022, 12,000 redeemable preference shares (31
December 2021: 9,000) were issued as fully paid with value of
EUR1,000 per share. 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 2022, the fair value of the redeemable
preference shares was EUR10.0 million (31 December 2021: EUR7.5
million).
Terms and conditions of the Loans
As of 30 June 2022, there were no significant changes in terms
and conditions of the outstanding loans, compared to 31 December
2021.
Security given to lenders
As at 30 June 2022, the Group's loans and borrowings were
secured as follows:
-- Regarding the senior term loan facility, fixed and floating
charges over all of the Company's assets including all of the
shares in DCI Holdings One Limited, fixed charge over the interest
reserve account, pledges over the shares of DolphinCI Twenty-Four
Limited and the subsidiaries in Kilada and Apollo Project and
assignments and charges over intercompany loans.
-- With regard to the Kilada subscription agreement, upon
transfer of the entire amount of EUR12.0 million from the investor
in accordance with the terms of the agreement, a mortgage will be
set against the immovable property of the Kilada Project, in the
amount of EUR15.0 million.
-- With respect to Azurna loan, mortgage against the immovable
property of the Croatian subsidiary, Azurna (the owner of the
'Livka Bay'), with a carrying value of EUR17.0 million (2021:
EUR17.0 million), two promissory notes, a debenture note and a
letter of support from its parent company Single Purpose Vehicle
Four Limited.
21. Deferred tax liabilities
30 June 2022 31 December 2021
EUR'000 EUR'000
-------------------------------------------- ------------ ----------------
Balance at the beginning of the period/year 6,609 8,000
-------------------------------------------- ------------ ----------------
Recognised in profit or loss (2) (1,399)
-------------------------------------------- ------------ ----------------
Exchange differences - 8
============================================ ============ ================
Balance at the end of the period/year 6,607 6,609
-------------------------------------------- ------------ ----------------
Deferred tax liabilities are attributable to the following:
30 June 2022 31 December 2021
EUR'000 EUR'000
Investment property 2,245 2,247
------------------------------ ------------ ----------------
Trading properties 4,299 4,299
------------------------------ ------------ ----------------
Property, plant and equipment 63 63
============================== ============ ================
Total 6,607 6,609
------------------------------ ------------ ----------------
22 . Trade and other payables
30 June 2022 31 December 2021
EUR'000 EUR'000
Land creditors 20,752 20,752
==================================== ============ ================
Investment Manager fees (Note 24.2) 1,300 1,301
==================================== ============ ================
Other payables and accrued expenses 4,101 4,115
------------------------------------ ------------ ----------------
Total 26,153 26,168
------------------------------------ ------------ ----------------
31 December
30 June 2022 2021
EUR'000 EUR'000
Non-current 19,940 20,089
------------- ------------- ------------
Current 6,213 6,079
============= ============= ============
Total 26,153 26,168
------------- ------------- ------------
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 2.0%. Full settlement is due on 31 December 2025.
There is currently a dispute regarding the ownership rights of
the land sold to Golfing Developments S.A. ('Golfing' - our wholly
owned subsidiary that owns the Lavender Bay investment). Golfing is
in negotiations with the original vendor with a view to ensuring
that no additional deferred payments will be made to them under the
relevant sale and purchase contracts until the resolution of this
legal dispute with the Greek State. Following a series of
constructive discussions during Q3, an amicable resolution to this
matter with the Greek Church is expected by the end of the
year.
23. NAV per share
30 June 2022 31 December 2021
'000 '000
------------------------------------------- ------------ ----------------
Total equity attributable to owners of the
Company (EUR) 116,091 119,087
------------------------------------------- ------------ ----------------
Number of common shares outstanding at end
of period/year 904,627 904,627
------------------------------------------- ------------ ----------------
NAV per share (EUR) 0.13 0.13
------------------------------------------- ------------ ----------------
24. Related party transactions
24.1 Directors' interest and remuneration
Directors' interest
Miltos Kambourides is the founder and managing partner of the
Investment Manager.
On 30 June 2021, Mr. Martin Adams, Mr. Nicholas Paris and Mr.
Nicolai Huls joined the Board as non-executive Directors, with Mr.
Martin Adams becoming Chairman. On the same date, Mr. Andrew
Coppel, Mr.Graham Warner and Mr. Mark Townsend stepped down from
the Board as non-executive Directors.
The interests of the Directors as at 30 June 2022, 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
--------------------------------------- -------
Nicolai Huls 775
--------------------------------------- -------
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.
Directors' remuneration
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Remuneration 100 194
-------------------- --------------- ---------------
Total remuneration 100 194
==================== =============== ===============
The Directors' remuneration details for the six-month period
ended 30 June 2022 and 30 June 2021 were as follows:
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
Martin Adams 37 -
---------------------------------------------- --------------- ---------------
Nicholas Paris 33 -
---------------------------------------------- --------------- ---------------
Nicolai Huls 30 -
---------------------------------------------- --------------- ---------------
Andrew Coppel (stepped down on 30 June 2021) - 104
---------------------------------------------- --------------- ---------------
Graham Warner (stepped down on 30 June 2021) - 61
---------------------------------------------- --------------- ---------------
Mark Townsend (stepped down on 30 June 2021) - 29
---------------------------------------------- --------------- ---------------
Total 100 194
============================================== =============== ===============
Mr. Miltos Kambourides has waived his fees.
24.2 Investment Manager remuneration
From 1 January From 1 January
2022 2021
to 30 June to 30 June
2022 2021
EUR'000 EUR'000
---------------------- --------------- ---------------
Fixed management fee - 1,800
---------------------- --------------- ---------------
Total remuneration - 1,800
====================== =============== ===============
With effect from 1 January 2022, a new Investment Management
Agreement ('IMA') came into force replacing the previous one which
was effective from 1 January 2019.
Under the terms of the IMA, the Investment Manager is now
entitled to fees as follows:
An incentive becomes payable once shareholders have received
aggregate distributions of EUR40.0 million. Thereafter an incentive
fee of 15% accrues on all distributions up to EUR80.0 million paid
to shareholders. Once EUR80.0 million has been distributed to
Shareholders, a bonus of EUR1.0 million for every EUR5.0 million of
distributions will be payable until a total of EUR100.0 million has
been distributed.
To assist the Investment Manager in meeting its working capital
commitments, quarterly advances will be paid to the Investment
Manager in the amounts of EUR2.4 million in total for 2022, EUR2.3
million in 2023 and EUR1.3 million in 2024.
Any fees accruing to the Investment Manager under an asset
management agreement entered into under the terms of an agreement
with the project company for the OOKI investment will be offset
against the accrued incentive fee entitlement.
25% of any incentive fee entitlements payable to the Investment
Manager under the IMA will be held in escrow and released with the
last distribution to Shareholders after the last remaining
investment has been sold.
Prior to 31 December 2021, the Investment Manger operated under
an Investment Management Agreement which was effective from 1
January 2019, as follows:
i. Fixed investment management fee
The annual investment management fees for 2021 were EUR3.6
million per annum.
ii. Variable investment management fee
The variable investment management fee for the period from 1
January 2020 to 31 December 2021 would have been 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
subject to certain conditions, under the terms of the IMA. However,
any performance fees earned under this arrangement would have been
fully deducted from any future annual investment management fees
and variable management fees payable over the term of the IMA.
No performance fee was payable to the Investment Manager for the
six-month period ended 30 June 2022 (30 June 2021: EUR Nil).
At 30 June 2022, the advances made to the Investment Manager
under the revised IMA amounted to EUR1.2 million (31 December 2021:
EUR Nil).
24.3 Other related party arrangements
DCP owns an effective 5% equity interest in SPV14 Ltd (an
equity-accounted investee and the holding company of the OOKI
project). Under the relevant shareholders agreement dated 27 May
2019, DCP, One&Only and Exactarea have priority returns for an
amount equal to 75% of their equity investment, following the
payment of which the Company becomes entitled to a priority
catch-up for the same amount. DCP is party to an asset management
agreement dated 1 November 2017 with OOKI and provided management
services during the period amounting to EUR0.04 million (30 June
2021: EUR0.12 million).
DCP retains an equity interest in AZOE Holdings Ltd, the company
that owns Amanzoe resort and it is counterparty to an asset
management agreement dated 3 October 2018 related to the resort. On
2 August 2021, Amanzoe Resort S.A. entered into a contract to buy
24 founder plots in the Company's Kilada project for a price of
EUR10 million payable in instalments subject to the achievement of
certain construction milestones.
AXIA Ventures Group Limited, which is 20% owned by an affiliate
of DCP and on whose Board of Directors Miltos Kambourides serves,
was appointed by the Company on 16 September 2022 to undertake a
process for the sale of its shareholding in Aristo but no
transaction was concluded and therefore no fee was due or paid.
25. 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
2021.
Fair values
The fair values of the Group's financial assets and liabilities
approximate their carrying amounts at the statement of financial
position date.
26. 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.
27. SUBSEQUENT EVENTS
On 28 September 2022, SPV10 (an entity owned 66.67% by DCI
which, in turn, indirectly owns 50% of the OOKI project), received
a notice from the project's minority shareholder, that it had
reached a binding agreement for the sale of its 40% effective
equity ownership interest in OOKI. Pursuant to a Shareholders'
Agreement dated 27 May 2019, SPV10 is entitled to exercise a
tag-along right to sell its interest in OOKI simultaneously with
the proposed transfer of the minority shareholder's interest for a
proportionate consideration. SPV10 intends to exercise its
tag-along right to transfer all of its effective equity interest in
OOKI for a proportionate cash consideration of EUR26.88 million.
The pro rata consideration for Dolphin's stake in SPV10 amounts to
EUR17.92 million and represents a premium of 17.0% to the valuation
of the Dolphin's investment in OOKI disclosed in the Company's
financial statements as at 31 December 2021 . The conclusion of the
purchase and sale transaction remains subject to the execution of
the final documentation and the fulfilment of the terms and
conditions set out therein, which is expected to complete during
the fourth quarter of 2022.
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 2022 other than as
disclosed.
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END
IR DBLBXLKLXBBD
(END) Dow Jones Newswires
September 30, 2022 03:46 ET (07:46 GMT)
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