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Dilutive share issue behind 44% NAV drop for Dolphin

Dolphin Capital announced results on 30 June 2016 that cover the year to the end of 31 December 2015 – so these figures are quite a bit out of date. The dramatic 44% NAV drop is mainly down to a dilutive share issue. We have just reproduced the key points from the statement:

  • Gross Assets of EUR911 million (2014: EUR1,006 million), including Dolphin’s share of Aristo Developers’ (Aristo) deferred tax liabilities (DTL).
  • Total Group Net Asset Value of EUR545 million before DTL of EUR63 million (2014: EUR644 million)
  • NAV reduction principally due to EUR55 million reduction in Greek asset values, EUR44 million arising from DCI’s 49.8% share of losses from its interest in Aristo, a further EUR22 million impairment charge in other territories, and financial and operating expenses.
  • Impact partly offset by the capital increase of EUR73.5 million, net of expenses, in June 2015 and by the appreciation of the Americas properties due to the devaluation of the Euro against the Dollar by around 11.5%.
  • Sterling NAV per share before DTL of 44p (2014: 78p) mainly driven by issuance of 262,186,689 new common shares at 21p, the other factors mentioned above and by a 5.8% appreciation of Sterling versus the Euro.
  • Revenues of EUR51.9 million (2014: EUR41.2 million).
  • Total Debt of EUR232 million (2014: EUR240 million) with a Group total debt to gross asset ratio of 26%. The remaining US$16.7 million of the 2016 Convertible Bonds, which matured on 31 March 2016, were repaid in full.
  • Aristo reached a final agreement for the swap of its total c. EUR283 million debt with Bank of Cyprus, in exchange for certain Aristo assets (including most of its Venus Rock project), a transaction that will leave Aristo with c.EUR443 million of assets and c. EUR110 million of debt.
  • Unrestricted cash as of 31 December 2015: EUR37.9 million. As of 31 May 2016, unrestricted cash was approximately EUR7 million and additional restricted cash for use only towards the development of the Amanzoe project was approximately EUR4.1 million.
  • To improve the liquidity position of the Group, the Company is considering proposals for credit facilities. If completed, these are expected to provide adequate liquidity for the Company’s activities until at least December 2017.
  • Additionally, a Memorandum of Understanding (MoU) has been signed for the sale of the Company’s 78% holding in Sitia Bay for EUR17.2 million, a transaction which, if completed, would provide further liquidity to the Group.
  • Working with Houlihan Lokey on strategies to maximise shareholder value and to improve liquidity, including joint ventures, divestments and project fundings.

DCI : Dilutive share issue behind 44% NAV drop for Dolphin

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