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Dana Group International Investments: Final Results for Year Ended 30th June 2019

Wed 27th November, 2019 7:00am
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014, AS AMENDED ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Dana Group International Investments Limited and its subsidiaries

(the “Group” or the “Company”)

Consolidated Financial Results for the Year Ended 30(th) June 2019

Chairman’s Statement

On behalf of the Board of Directors, I am pleased to present the Group’s
consolidated, audited financial statements for the financial year ended 30(th)
June 2019 together with selected notes thereto.

The period under assessment was challenging. As experienced in 2018-19,
property sales and rental values are also expected to decline in the short
run, owing to the large volume of supply relative to current demand. Though
enduring in the same vein, the Directors anticipate further price changes to
be modest and the rate of waning may slow down. They expect that the New Year
may see an increase in real estate buyers entering the market.

The upcoming Expo 2020 is also expected to have an encouraging impact on the
Dubai property market. The Dubai real estate market could benefit from the
possible increase in economic activity as the Expo 2020 draws closer,
attracting tourists as well as new residents into the country.

The UAE Federal Government’s reforms of the residency rules in the UAE,
including the introduction of long-term visas for eligible individuals, could
also see more prospective residents viewing the UAE as a long-term option.

Board
Changes                                                                                

During the year under review, Mr. Mustafa Saifuddin - Director and CEO -
stepped down from the Board and Mr. Nawaf Qassim Shahin Abdullah was appointed
as the new Executive Director and CEO.

Financial
Results                                                                                                                                                             

The comprehensive loss for the financial year ended 30th June 2019 was USD
(44.88) million (2018: comprehensive income of USD 33.92 million) and the net
profit for the year was USD 34,905 (2018: net loss of USD (3,567)), giving
rise to a basic profit per share of 0.014 US cents (2018: basic loss per share
of (0.001) US cents). In financial 2018-19 the Company has not posted
consultancy revenue as in financial 2017-18, owing to termination of its
previous consultancy services agreement. The net result for the year
nonetheless improved by USD 38,472 from the previous year. This improvement
was attributable to lower operational costs during the year under review.

As at 30th June 2019, the Company’s net assets stood at USD 7.03 million
(2018: USD 51.90 million); or US cents 3 per share (2018: US cents 21 per
share). The change in fair value of the Company’s available for sale
financial asset (i.e., Bonyan International Investment Group (Holding) LLC
("Bonyan") in which the Company holds a 21.68 per cent interest) arose mainly
from over-supply and softening demand in the real estate sector in the UAE,
marked by the declines in real property asset prices and values of real
property assets of between 10 and 15 per cent on average during the year under
review.  

During the year, the shareholding of Bonyan in its investee company was
reduced to 2.5 per cent (30 June 2018: 19.68 per cent). The reduction in this
holding was attributable to the settlement of a liability between Bonyan and
the Investee Company. Further information on this item is provided in the
Directors’ Report appearing in the Group’s Annual Report.

Current
Trading                                                                               

Trading from 1(st) July 2019 to date remains consistent with the Directors’
expectations at the beginning of the current financial period.

Recommendation                                                                                                          

The Directors believe that all the proposals to be considered at the
forthcoming Annual General Meeting, notice of which will be posted to
shareholders with the Annual Report, are in the best interests of the Company
and recommend shareholders to vote in favour of them as they intend, where
relevant, to do in respect of their own beneficial shareholdings.

Conclusion        

The restructuring of Bonyan’s investment portfolio should benefit the Group
as the former’s prospects of expansion and its involvement in distinguished
and unique projects in the field of real estate development and various other
areas of investment should increase returns from sustainable sources; these
are expected to improve the Company’s overall value. As the current
financial year progresses, the Directors will remain dedicated to exploring
and seizing opportunities for further business development.

Finally, I would like to extend my wholehearted gratitude to my fellow members
of the Board and to our valued shareholders who continue to place their trust
in us. On behalf of the Board, we pledge to continue doing our best to achieve
success.

Firas Baba,

Chairman,                                             
                                                   
        

Dubai, 26 November 2019

Consolidated statement of profit or loss and other comprehensive income
 for the year ended 30(th) June 2019

                                                                                                        30-Jun-19       30-Jun-18     
                                                                                                        12 Months       12 Months     
                                                                                             Notes         USD             USD        
 Revenue                                                                                       5                  -         108,047   
                                                                                                                                      
 Employee costs                                                                                6           (89,025)       (146,464)   
 Other operating expenses                                                                      7           (74,417)        (90,233)   
 Legal and professional expenses                                                               8           (77,286)        (94,753)   
 Depreciation                                                                                  11                 -           (702)   
 Other income                                                                                  9            276,177         222,228   
 Operating profit/(loss)                                                                                     35,449         (1,877)   
 Finance expense                                                                                              (544)         (1,690)   
 Profit/(loss) for the year                                                                                  34,905         (3,567)   
 Other comprehensive income                                                                                                           
                                                                                                                                      
 Items that are or may be reclassified subsequently to profit or loss                                                                 
 Fair value changes in available for sale financial assets                                     12      (44,910,985)    (33,916,203)   
                                                                                                                                      
 Total comprehensive loss for the year                                                                 (44,876,080)    (33,919,770)   
 Profit/(Loss) per share attributable to the owners of the parent during the year                                                     
 Basic profit/(loss) per share for the year                                                    10           0.00014       (0.00001)   

Consolidated statement of financial position
as at 30(th) June 2019

 ASSETS                                                                 30-Jun-19       30-Jun-18     
 NON CURRENT ASSETS                                          Notes         USD             USD        
                                                                                                      
 Property and equipment                                        11                 -               -   
 Available for sale financial assets                           12         7,709,102      52,620,087   
                                                                                                      
 Total Non-Current Assets                                                 7,709,102      52,620,087   
 CURRENT ASSETS                                                                                       
 Prepayments, advances and other receivables                   14            11,637          42,054   
 Cash and cash equivalents                                     15             8,822          14,481   
                                                                                                      
 Total Current Assets                                                        20,459          56,535   
                                                                                                      
 TOTAL ASSETS                                                             7,729,561      52,676,622   
                                                                                                      
 LIABILITIES AND SHAREHOLDERS' EQUITY                                                                 
                                                                                                      
 CAPITAL AND SHAREHOLDERS' EQUITY                                                                     
 Share capital                                                 16         2,010,490       2,010,490   
 Share premium                                                 16        83,862,586      83,862,586   
 Available for sale fair valuation reserve                     17      (70,472,402)    (25,561,417)   
 Accumulated losses                                                     (8,373,608)     (8,408,513)   
                                                                                                      
 Total Capital and Shareholders' Equity                                   7,027,066      51,903,146   
 NON CURRENT LIABILITIES                                                                              
                                                                                                      
 Provision for employees' end of service benefits              18            30,645          25,540   
                                                                                                      
 Total Non-current Liabilities                                               30,645          25,540   
                                                                                                      
 CURRENT LIABILITIES                                                                                  
 Trade and other payables                                      19           671,850         747,936   
                                                                                                      
 Total Current Liabilities                                                  671,850         747,936   
                                                                                                      
 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY                                 7,729,561      52,676,622   

The consolidated financial statements were approved by the Board of Directors
on 26(th) November 2019.

_____________________                                                                                       

Nawaf Qassim Shahin

Director

Consolidated statement of changes in equity
for the year ended 30(th) June 2019      

                                          Share capital    Share premium    Available for sale fair valuation reserve    Accumulated losses        Total     
                                               USD              USD                            USD                               USD                USD      
                                                                                                                                                             
 At 1 (st)July 2017                            2,010,490       83,862,586                                    8,354,786           (8,404,946)      85,822,916 
 Total comprehensive income for the year                                                                                                                     
 Loss for the year                                     -                -                                            -               (3,567)         (3,567) 
 Other comprehensive loss for the year                 -                -                                 (33,916,203)                     -    (33,916,203) 
                                                                                                                                                             
 At 30 (th)June 2018                           2,010,490       83,862,586                                 (25,561,417)           (8,408,513)      51,903,146 
                                                                                                                                                             
 At 1 (st)July 2018                            2,010,490       83,862,586                                 (25,561,417)           (8,408,513)      51,903,146 
 Total comprehensive income for the year                                                                                                                     
 Loss for the year                                     -                -                                            -                34,905          34,905 
 Other comprehensive loss for the year                 -                -                                 (44,910,985)                     -    (44,910,985) 
                                                                                                                                                             
 At 30 (th)June 2019                           2,010,490       83,862,586                                 (70,472,402)           (8,373,608)       7,027,066 

Consolidated statement of cash flows
for the year ended 30(th) June 2019

                                                                            30-Jun-19     30-Jun-18   
                                                                   Notes       USD           USD      
 Cash Flow from Operating Activities                                                                  
 Net loss for the year                                                          34,905        (3,567) 
 Adjustments for:                                                                                     
 Balance payable written back                                                        -      (251,598) 
 Depreciation                                                        11              -            702 
 Provision for employees' end of service benefits                    18          5,105        (7,118) 
 Operating cash flow before working capital changes                             40,010      (261,581) 
 Working capital changes:                                                                             
 Prepayments, advances and other receivables                                    30,417        499,086 
 Trade and other payables                                                     (76,086)    (4,965,555) 
                                                                                                      
 Net cash used in operating activities                                         (5,659)    (4,728,050) 
                                                                                                      
 Cash flow from financing activities                                                                  
 Loans and advances                                                                  -      4,700,000 
                                                                                                      
 Net cash flow from financing activities                                             -      4,700,000 
 Net decrease in cash and cash equivalents                                     (5,659)       (28,050) 
 Cash and cash equivalents at the beginning of the year                         14,481         42,531 
                                                                                                      
 Cash and cash equivalents at end of the year                        15          8,822         14,481 

Basis of preparation

These consolidated financial statements have been prepared for the 12 months
year ended 30(th) June 2019, here as corresponding figures were extracted from
the audited consolidated financial statements for the year ended 30(th) June
2018 for comparative purposes as explained above in the chairman’s
statement.

These consolidated financial statements as at 30(th) June 2019 comprise the
Company and its subsidiaries (collectively referred to as “the Group”) and
the Group’s interest in equity accounted investees.

The financial information does not constitute the Group’s consolidated
financial statements for either the year ended 30(th) June 2019 or the year
ended 30(th) June 2018, but is derived from those accounts. The Group’s
non-statutory accounts for 2019 are available from the Company's website from
27(th) November 2019. The auditor’s reports on both the 2019 and 2018
accounts were unqualified; did not draw attention to any matters by way of an
emphasis; and did not contain any statement in regard to matters reported on
by exception.

The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS). The consolidated financial
statements have been prepared under the historical cost convention, except for
investment properties and available for sale investments which are stated at
fair values. The accounting policies used are consistent with those applied in
the 2018 consolidated financial statements and those that were applied in the
2019 consolidated financial statements.

1. Profit/(Loss) per share
1. Basic
Basic profit/(loss) per share is calculated by dividing the loss attributable
to owners of the parent by the weighted average number of ordinary shares in
issue during the year.

                                                               30 June 2019             30 June 2018             
 Profit (Loss) attributable to the owners of the parent (USD)          34,905  ========        (3,567)  ======== 
 Weighted average number of ordinary shares in issue (No.)      249,289,747  ==========  249,289,747  ========== 
                                                                                                                 

The company has no diluted instrument at the reporting date.

2. Available for sale financial assets

                                                       2019                  2018 
                                                        USD                   USD 
 Balance at the beginning of the year            52,620,087            86,536,290 
 Change in fair value                          (44,910,985)          (33,916,203) 
                                              -------------         ------------- 
 Balance at the end of the year         7,709,102  ========  52,620,087  ======== 

The Group holds 21.68% interest in Bonyan International Investment Group
(Holding) LLC (“Bonyan”). Bonyan is engaged in the property development
business in the UAE. The Group assessed the investment in Bonyan at its fair
value. The fair value of Bonyan was determined by an independent professional
valuer by using discounted cash flow model.

During the year shareholding of Bonyan Group in its Investee Company decreased
to 2.5 per cent (30 June 2018: 19.68 per cent). The decrease was attributed to
the settlement of the liability towards the Investee Company.

3. Share capital and share premium

Movement in share capital during the year

                                         Number of shares    Ordinary  Shares        Share  Premium                 Total 
                                                                          USD                   USD                   USD 
 At 1 July 2017                               249,289,747           2,010,490            83,862,586            85,873,076 
 Shares issued during the year         -  ---------------     -  ------------     -  --------------     -  -------------- 
 At 30 June 2018                   249,289,747  =========  2,010,490  =======  83,862,586  ========  85,873,076  ======== 
 At 1 July 2018                               249,289,747           2,010,490             2,010,490             2,010,490 
 Shares issued during the year                                                                                            
 At 30 (th)June 2019               249,289,747  =========  2,010,490  =======  83,862,586  ========  85,873,076  ======== 

(a) As at 30(th) June 2019, Bonyan holds 64,936,640 shares (26.05%) (30(th)
June 2018: 64,936,640 shares (26.05%) of the Company.

Share warrants

No new share warrants were issued by the Company during the year.

This announcement has been made after due and careful enquiry; the Directors
of the Group accept responsibility for its content.

REGULATORY ANNOUNCEMENT ENDS

Enquiries:

Dana Group International Investments Ltd:

Contact: tel: +971 (0)4 430 9355; e-mail: ir@dana-investments.com; further
information on Dana Group International Investments Limited is available from
the Company’s website: www.dana-investments.com 

Keith, Bayley, Rogers & Co. Limited:

Graham Atthill-Beck: tel: +44 (0)20 7464 4091; mobile: +971 (0)50 856 9408/+44
(0)750 643 4107;

e-mail: Graham.Atthill-Beck@kbrl.co.uk; blackpearladvisers@gmail.com

Brinsley Holman: tel: +44 (0)20 7464 4098; e-mail: Brinsley.Holman@kbrl.co.uk

Copies of the Annual Report for the year ended 30(th) June 2019 and the
accompanying Annual General Meeting notice are available during normal
business hours for a period of one month from the date of this announcement,
by arrangement, from the offices of Keith, Bayley, Rogers & Co. Limited, No. 1
Royal Exchange Avenue, London, EC3V 3LT; telephone: +44 (0) 20 7464 4090. A
soft copy of the Annual Report is also downloadable from the Company’s
website: www.dana-investments.com/  



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