REG - Dolphin Capital Inv - Half-year Report <Origin Href="QuoteRef">DOLC.L</Origin> - Part 3
29/09/2017 07:07
- Part 3: For the preceding part double click ID:nRSc1693Sb
(3,871) (4,511) - (4,511)
Other operating expenses - (3,491) (3,021) (6,512) - (6,512)
Net finance cost - (5,006) (1,987) (6,993) - (6,993)
Loss before taxation - (152,098) (8,879) (160,977) - (160,977)
Taxation - 319 - 319 - 319
Loss from continuing operations - (151,779) (8,879) (160,658) - (160,658)
Loss from discontinued operation, net of tax (2,333) - - (2,333) - (2,333)
Loss (2,333) (151,779) (8,879) (162,991) - (162,991)
1. Americas comprises the Group's activities in the Dominican Republic and the Republic of Panama. Also, includes the investment in ItacareCapital Investments Ltd ('Itacare') (see note 17).
2. South-East Europe comprises the Group's activities in Cyprus, Greece, Croatia and Turkey.
3. Other comprises the parent company, Dolphin Capital Investors Limited.
4. Adjustments consist of intra-group eliminations.
Country risk developments
The general economic environment prevailing in the south-east Europe area and internationally may affect the Group's
operations. Factors such as inflation, unemployment, public health crises, international trade and development of the gross
domestic product directly impact the economy of each country and variation in these and the economic environment in general
affect the Group's performance to a certain extent.
The global fundamentals of the hospitality sector remained strong during 2016 and the first half of 2017, with both
international tourism and wealth continuing to grow, even though economic activity in two of the Group's primary markets,
Greece and Cyprus, continued to face significant challenges. The business climate is steadily improving in Cyprus assisted
by the legislative reforms implemented during the last two years by the Cypriot government.
Greece
While throughout 2016 Greek economic growth was essentially flat,Greece's successful return to the capital markets sent a
clear sign that the country is finally recovering following its recent bailout program. Greece returned to the bond markets
for the first time since 2014, pricing E3 billion of new five-year bonds at a yield of 4.625%. According to Hellenic
Financial Council (the 'Council'), the 0.8% year-on-year increase in GDP for the second quarter of 2017 is a positive
development. In respect of the State Budget execution, the Council notes that for the January-July 2017 period primary
surplus stands at 1.7% of GDP higher versus the 1.5% achieved in the same period in 2016 and the targeted 1.2% for the
period.
Greece's tourism sector is expected to have a significant impact on the recovery of the country's economy and on curbing
the external trade deficit. Official data released by the Greek Tourism Confederation confirmed that 2016 was an all-time
record year for Greek tourism as the number of tourism arrivals in Greece increased 9% compared to 2015. In 2017 air, road
and sea arrival indicators show significant increases. According to data of the Greek Tourism Confederation, in the first
half of 2017, tourism arrivals reached 11 million, incoming travellers were up by 6.6% and travel receipts rose by 7.1%.
Summer holiday-makers from the Eurozone, Russia and the USA are leading the increase in arrivals and revenues. In addition,
high levels of consumer confidence in most Greek tourism markets indicate potential for high demand for the Greek tourism
product.
Cyprus
Cyprus successfully concluded its three-year European Stability Mechanism ('ESM') financial assistance programme on 31
March 2016. The ESM disbursed E6.3 billion, in addition to around E1 billion in loans from the IMF, out of a loan package
of up to E10 billion. The Cypriot authorities did not need the remaining E2.7 billion. The emerging economic recovery has
been reinforced since then with the economy expanding by 3.5% year-on-year in real terms in the second quarter of of 2017,
driven mainly by improved levels of private consumption and a record year for the tourism industry.
The available data for the tourism industry highlighted, once again, that tourism was amongst one of the key catalysts for
the country's 2016 economic performance, as revenues reached E2.4 billion at the end of the year surpassing the total
tourism revenues recorded throughout 2015 (E2.1 million) by 11.9%. Total arrivals amounted to 3.2 million in 2016 versus
2.7 million in the previous year. For the period of January - July 2017 arrivals of tourists totalled 2 million compared to
1.7 million in the corresponding period of 2016, recording an increase of 14.8% and outnumbering the total arrivals ever
recorded in Cyprus during the first seven months of the year, as reported by the country's Statistical Service. During the
first eight months of 2017, real estate market activity accelerated on the back of incentives and debt-asset swaps by 20%
year-on-year. Recognising the growing interest, Cyprus has focused on modernising legislation, introducing tax incentives
and speeding up licensing procedures.
10. DISCONTINUED OPERATION
During the second half of 2016, the Group sold Playa Grande (owner of 'Amanera, Dominican Republic') and also committed to
a plan to sell Pearl (owner of 'Pearl Island, Republic of Panama'). Playa and Pearl constituted the operations of the Group
in the geographical area of Americas, which as at 31 December 2016, is presented as a discontinued operation. Pearl is also
classified as a disposal group held for sale as at 31 December 2016. During the period ended 30 June 2017, Pearl was
disposed of.
As at 30 June 2016, Americas segment was not classified as a discontinued operation. The comparative condensed
consolidated interim statement of profit or loss and other comprehensive income has been restated to show the discontinued
operation separately from continuing operations.
Results of discontinued operation
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
(Restated)
Note E'000 E'000
Revenue 6 - 9,334
Expenses
Cost of sales 7 (368) (7,280)
Change in valuations 8B - (11)
Depreciation charge - (298)
Professional fees 11 (82) (1,237)
Administrative and other expenses 12 (933) (444)
Net finance income/(costs) 13,415 (2,397)
Results from operating activities 12,032 (2,333)
Taxation 13 - -
Results from operating activities, net of tax 12,032 (2,333)
Gain on disposal of discontinued operation 8A 299 -
Profit/(loss) from discontinued operation, net of tax 12,331 (2,333)
Cash flows used in discontinued operation
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
E'000 E'000
Net cash (used in)/from operating activities (26,474) 3,439
Net cash from investing activities 26,293 453
Net cash used in financing activities - (3,663)
Net cash flows for the period (181) 229
11. PROFESSIONAL FEES
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
Continuing Discontinued Continuing operations Discontinued operation Total
operations operation Total (Restated) (Restated) (Restated)
E'000 E'000 E'000 E'000 E'000 E'000
Legal fees 555 19 574 445 51 496
Auditors' remuneration (see below) 166 28 194 182 30 212
Accounting expenses 140 - 140 142 - 142
Project design and development fees 1,011 21 1,032 1,146 1,124 2,270
Consultancy fees 169 - 169 400 - 400
Administrator fees 35 - 35 120 - 120
Other professional fees 235 14 249 382 32 414
Total 2,311 82 2,393 2,817 1,237 4,054
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
Continuing Discontinued Continuing operations Discontinued operation Total
operations operation Total (Restated) (Restated) (Restated)
E'000 E'000 E'000 E'000 E'000 E'000
Auditors' remuneration comprises the following fees:
Audit and other audit related services 134 28 162 150 30 180
Tax and advisory 32 - 32 32 - 32
Total 166 28 194 182 30 212
12.ADMINISTRATIVE AND OTHER EXPENSES
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
Continuing Discontinued Continuing operations Discontinued operation Total
operations operation Total (Restated) (Restated) (Restated)
E'000 E'000 E'000 E'000 E'000 E'000
Travelling and accommodation 139 - 139 205 69 274
Insurance 31 - 31 29 29 58
Repairs and maintenance 61 5 66 74 54 128
Marketing and advertising expenses 76 14 90 220 161 381
Rents 68 23 91 84 91 175
Other 432 891 1,323 909 40 949
Total 807 933 1,740 1,521 444 1,965
13. TAXATION
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
(Restated)
E'000 E'000
Income tax 35 (43)
Net deferred tax (1,125) (276)
Taxation recognised in profit or loss - continuing operations 1,090 (319)
Taxation recognised in profit or loss - discontinued operations - -
Total 1,090 (319)
14. (LOSS)/EARNINGS PER SHARE
Basic (loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to owners of the Company by the
weighted average number of common shares outstanding during the period.
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
Continuing Discontinued Continuing operations Discontinued operation Total
operations operation Total (Restated) (Restated) (Restated)
'000 '000 '000 '000 '000 '000
(Loss)/profit attributable to owners of the Company (E) (10,051) 7,369 (2,682) (160,585) (1,832) (162,417)
Number of weighted average common shares outstanding 904,627 904,627 904,627 904,627 904,627 904,627
Basic (loss)/earnings per share (E) (0.011) 0.008 (0.003) (0.178) (0.002) (0.180)
(Loss)/profit attributable to owners of the Company
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
Continuing Discontinued Continuing operations Discontinued operation Total
operations operation Total (Restated) (Restated) (Restated)
E'000 E'000 E'000 E'000 E'000 E'000
(Loss)/profit attributable to owners of the Company (10,051) 7,369 (2,682) (160,585) (1,832) (162,417)
(Loss)/profit attributable to non-controlling interests (88) 4,962 4,874 (73) (501) (574)
Total (10,139) 12,331 2,192 (160,658) (2,333) (162,991)
Weighted average number of common shares outstanding
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
(Restated)
'000 '000
Outstanding common shares at the beginning and end of the period 904,627 904,627
Diluted (loss)/earnings per share
Diluted (loss)/earnings per share is calculated by adjusting the (loss)/profit attributable to owners and the number of
common shares outstanding to assume conversion of all dilutive potential shares. As of 30 June 2017 and 31 December 2016,
the diluted (loss)/earnings per share is the same as the basic (loss)/earnings per share, due to the fact that no dilutive
potential ordinary shares were outstanding during these periods.
The average market value of the Company's shares for the purpose of calculating the dilutive effect of warrants and
Convertible Bonds was based on quoted market prices. The Convertible Bonds were repaid on the scheduled maturing date in
March 2016 and all warrants expired on 3 January 2017.
15. PROPERTY, PLANT AND EQUIPMENT
Land and buildingsE'000 OtherE'000 TotalE'000
30 June 2017
Cost or revalued amount
At beginning of period 99,561 5,409 104,970
Direct acquisitions 67 87 154
Direct disposals - (27) (27)
At end of period 99,628 5,469 105,097
Depreciation and impairment losses
At beginning of period 14,381 2,942 17,323
Direct disposals - (8) (8)
Depreciation charge for the period 923 252 1,175
At end of period 15,304 3,186 18,490
Carrying amounts 84,324 2,283 86,607
Under constructionE'000 Land and buildingsE'000 OtherE'000 TotalE'000
31 December 2016
Cost or revalued amount
At beginning of year 12,227 176,426 30,509 219,162
Direct acquisitions 1,041 153 1,875 3,069
Direct disposals - (576) (926) (1,502)
Disposals through disposal of subsidiary companies - (69,101) (24,220) (93,321)
Reclassification to assets held for sale (2,294) (20,291) (5,179) (27,764)
Transfers to trading property (see note 18) - (2,266) (252) (2,518)
Transfer (to)/from other assets (11,311) 8,078 3,233 -
Revaluation adjustment - 5,796 - 5,796
Exchange difference 337 1,342 369 2,048
At end of year - 99,561 5,409 104,970
Depreciation and impairment losses
At beginning of year - 26,126 6,021 32,147
Direct disposals - - (849) (849)
Disposals through disposal of subsidiary companies - (12,363) (2,658) (15,021)
Reclassification to assets held for sale - (1,420) (330) (1,750 )
Transfer to trading property (see note 18) - - (103) (103)
Depreciation charge for the year-continuing operations - 1,614 670 2,284
Depreciation charge for the year - discontinued operation - 358 138 496
Impairment loss - 780 - 780
Reversal of impairment loss - (872) - (872)
Exchange difference - 158 53 211
At end of year - 14,381 2,942 17,323
Carrying amounts - 85,180 2,467 87,647
Fair value hierarchy
The fair value of land and buildings, has been categorised as a Level 3 fair value based on the inputs to the valuation
techniques used.
Valuation techniques and significant unobservable inputs
The valuation techniques used in measuring the fair value of land and buildings, as well as the significant unobservable
inputs used are the same as those used as at 31 December 2016.
16. INVESTMENT PROPERTY
Note 30 June 2017 31 December 2016
E'000 E'000
At beginning of period/year 176,548 340,853
Direct acquisitions 5 11
Disposals through disposal of subsidiary companies - (74,644)
Transfers to trading properties 18 - (273)
Reclassification to assets held for sale - (28,135)
Exchange difference - 3,320
Fair value adjustment - continuing operations - (22,126)
Fair value adjustment - discontinued operation - (42,458)
At end of period/year 176,553 176,548
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 2016.
17. DISPOSAL GROUPS HELD FOR SALE
As at 30 June 2017, the Company remains committed to its plan to sell five disposal groups which are presented as held for
sale. These disposal groups are: Iktinos (owner of 'Sitia Bay') and Porto Heli (owner of 'Nikki Beach') in Greece, Azurna
(owner of 'Livka Bay') in Croatia, Kalkan (owner of 'La Vanta') in Turkey and DCI Holdings Two Limited ('DCI H2') (owner of
Aristo Developers Limited ('Aristo') in Cyprus. All of the disposal groups are included in the geographical segment of
'South-East Europe' and in the operating segments of 'Hotel & Leisure operations' (Porto Heli), 'Construction &
Development' (Kalkan and DCI H2) and 'Other' (Iktinos and Azurna) operating segments.
As at 31 December 2016, Pearl was also presented as held for sale with its disposal being completed during the period ended
30 June 2017. Pearl was part of the discontinued geographical operation of Americas and was also included in the operating
segments of 'Construction & development' and 'Other'.
Impairment losses relating to the disposal group
No impairment losses have been recognised during the period ended 30 June 2017 for write-downs of the disposal groups to
the lower of their carrying amount and their fair value less costs to sell (30 June 2016: E205 thousand). The impairment
losses have been recognised and included in 'Change in valuations' (see note 8B).
Assets and liabilities of disposal groups held for sale
As at 30 June 2017, the disposal groups comprised the following assets and liabilities:
Iktinos disposal group Azurnadisposal group Kalkan disposal group Porto Heli DCI H2 disposal group Total
disposal group
E'000 E'000 E'000 E'000 E'000 E'000
Property, plant and equipment 6,699 - 9 - - 6,708
Investment property 14,537 32,969 - - - 47,506
Equity-accounted investees - - - 783 42,694 43,477
Trading properties - - 6,901 - - 6,901
Trade and other receivables - 6 1,153 - - 1,159
Cash and cash equivalents 50 14 - - - 64
21,286 32,989 8,063 783 42,694 105,815
Available-for-sale financial assets - - - - - 893
Assets held for sale 106,708
Loans and borrowings - 8,163 - - - 8,163
Deferred tax liabilities 3,062 3,707 - - - 6,769
Trade and other payables 184 959 177 - - 1,320
Liabilities held for sale 3,246 12,829 177 - - 16,252
Available-for-sale financial assets
On 15 July 2013, the Company acquired 9.6 million shares, equivalent to 10% of Itacare's share capital, for the amount of
E1.9 million. Itacare is a real estate investment company that was listed on AIM until 16 May 2014, when the admission of
its ordinary shares to trading on AIM was cancelled following a decision of its shareholders at the Extraordinary General
Meeting that took place on 6 May 2014. Itacare's shareholders have decided to dispose of all assets and after a series of
asset sales/swaps Itacare now owns two development sites with the Company's shareholding being 13%. The Company is
currently in advanced discussions for the sale of its shareholding in Itacare, for a US$1 million payment in cash, with the
transaction expected to close by the end of 2017.
DCI H2 disposal group
During 2016, the Company's investment in DCI H2, owner of Aristo, decreased significantly, as a result of a share of loss
and an impairment loss amounting to E34,389 thousand and E109,265 thousand, respectively. The share of losses comprised
the result of the loan restructuring arrangement between Aristo and Bank of Cyprus, whereby a loss from the redemption of
such bank loans emerged through their settlement with property swapped. The impairment loss has been recognised to bring
the DCI H2 investment to its recoverable amount of E45 million, which represented the originally agreed proceeds to the
Company from the disposal of its investment, as further described below.
On 29 September 2016, the Company reached an agreement to dispose of its 49.75% shareholding in DCI H2 to an entity
controlled by Theodoros Aristodemou ('TA'), DCI H2' s current controlling shareholder. The disposal would have been
effected by way of a sale to TA of 49.75% of the shares in DCI H2 held by DCI Holdings One Ltd, a wholly-owned subsidiary
of the Company, for a total cash consideration of E45 million, payable in quarterly instalments over three years and
bearing annual interest of 4% in the first year, increasing to 5% and 6%, respectively, for each of the subsequent years.
The Company was also be entitled to a 25% share of any gross proceeds in excess of an implied company equity valuation of
E100 million from the sale of any shares of DCI H2 (or of its subsidiaries) sold by the acquirer until the earlier of six
months from the settlement of the full consideration (to the extent such settlement occurred by 29 December 2016 and the
second anniversary from the transaction). The acquisition shares would have been kept in escrow and transferred to the
acquirer in line with the collection of the consideration by the Company, apart from a percentage which would have been
remained escrowed until the final settlement of the consideration. In the event that any payment became overdue for more
than three months either party would have the right to terminate the sales agreement, in which case all the shares kept in
escrow together with any corresponding dividend distributions would have been retained by the Company. On 6 September 2016,
the Company received E1.1 million in exchange for 105 DCI H2 shares, resulting in a gain on disposal of E151 thousand and
to a reduction in the Company's holding in DCI H2 to 48.7%.
On 13 February 2017, the Company signed a supplementary agreement amending the date of execution of the agreement to the
earlier of a) 30 April 2017 and b) the 'Stay Period', the date falling 5 Business days after the issuance of the Court
verdict for the current trial between the Attorney General and the Bank of Cyprus Public Company Ltd (in which TA is a
defendant). Completion was to take place upon the expiration of the Stay Period, subject to the full receipt by the Company
of any outstanding amount from the consideration. Upon execution of this agreement an amount of E700 thousand was paid to
the Company (received on 14 February 2017) in exchange for 77 shares in DCI H2, resulting in a gain on disposal of E4
thousand and to a reduction in the Company's holding in DCI H2 to 47.9%. In the event that by 30 April 2017 a court verdict
had not been issued, then the Stay Period would have been extended until 30 June of 2017, provided that TA made by the 30
April 2017 a payment of E300 thousand in exchange for 33 DCIH2 shares.
On 3 May 2017, the Company decided to terminate the agreement with TA to dispose its Aristo shares, as a result of TA's
failure to settle deferred payments by 30 April 2017. The Company will retain the unpaid portion of its Aristo shares,
which corresponds on 3 May 2017 to 47.9%. The Board remains committed to dispose Aristo and realise value from the
remaining shareholding.
As at 30 June 2017 and as at 31 December 2016, the Company's holding of 47.9% and 48.7%, respectively has been classified
as asset held for sale.
As at 31 December 2016, the disposal groups comprised the following assets and liabilities:
Iktinos disposal group Azurnadisposal group Kalkan disposal group Porto Heli DCI H2 disposal group Pearl disposal group Total
disposal group
E'000 E'000 E'000 E'000 E'000 E'000 E'000
Property, plant and equipment 6,699 - 23 - - 26,014 32,736
Investment property 14,541 32,937 - - - 28,135 75,613
Equity-accounted investees - - - 783 43,391 - 44,174
Trading properties - - 6,850 - - - 6,850
Trade and other receivables - 7 1,269 - - 627 1,903
Cash and cash equivalents 11 8 7 - - 183 209
21,251 32,952 8,149 783 43,391 54,959 161,485
Available-for-sale financial assets - - - - - - 950
Assets held for sale 162,435
Loans and borrowings - 8,165 94 - - - 8,259
Deferred tax liabilities 3,062 3,633 - - - 1,239 7,934
Trade and other payables 274 959 210 - - 9,561 11,004
Liabilities held for sale 3,336 12,757 304 - - 10,800 27,197
Cumulative income or expenses included in other comprehensive income
An amount of E10,270 thousand loss (30.6.2016: Nil) relating to the disposal groups is included in other comprehensive
income.
Measurement of fair values
i. Fair value hierarchy
The fair value measurement for the disposal groups before costs to sell has been categorised as a Level 3 fair value based
on the inputs to the valuation techniques used.
ii. Valuation techniques and significant unobservable inputs
The fair value of each disposal group is significantly based on the valuation of the immovable property in each group. The
valuation techniques and significant unobservable inputs used in measuring the fair values of these properties are the same
as those used as at 31 December 2016.
18. Trading properties
30 June 2017 31 December 2016
E'000 E'000
At beginning of period/year 29,763 37,387
Net direct acquisitions/(disposals) 258 (3,200)
Reversal of/(concession/write off) of land 193 (193)
Net transfers from investment property (see note 16) - 273
Net transfers from property, plant and equipment (see note 15) - 2,415
Disposals through disposal of subsidiary companies - (6,205)
Impairment loss - (724)
Exchange difference - 10
At end of period/year 30,214 29,763
19. TRADE AND OTHER RECEIVABLES
30 June 2017 31 December 2016
E'000 E'000
Trade receivables 935 863
VAT receivables 428 370
Other receivables 4,241 1,998
Total trade and other receivables 5,604 3,231
Prepayments and other assets 2,183 770
Total 7,787 4,001
20. Cash and cash equivalents
30 June 2017 31 December 2016
E'000 E'000
Bank balances 14,628 4,669
Cash in hand 25 29
Total 14,653 4,698
During the period, the Group had no fixed deposits.
As at 30 June 2017, the amount of E3.2 million (2016: E3.2 million) received through the Colony Luxembourg S.a.r.l loan
facility is restricted for use only towards the development of Amanzoe project.
21. CAPITAL AND RESERVES
Capital
Authorised share capital
30 June 2017 31 December 2016
'000 of shares E'000 '000 of shares E'000
Common shares of E0.01 each 2,000,000 20,000 2,000,000 20,000
Movement in share capital and premium
Shares in Share capital Share premium
'000 E'000 E'000
Capital at 1 January 2016 and 30 June 2017 904,627 9,046 569,847
Warrants
In December 2011, the Company raised E8.5 million through the issue of new shares at GBP 0.27 per share (with warrants
attached to subscribe for additional Company shares equal to 25% of the aggregate value of the new shares at the price of
GBP 0.3105 per share, subject to anti-dilution adjustments pursuant to the warrant's terms and conditions - initial price
of GBP 0.35 per share). The warrants were exercisable within five years from the admission date. The number of shares to be
issued on exercise of their rights would have been determined based on the subscription price on the exercise date. All
warrants expired on 3 January 2017.
Reserves
Translation reserve
Translation reserve comprises all foreign currency differences arising from the translation of the interim financial
statements of foreign operations.
Fair value reserve
Fair value reserve comprises the cumulative net change in fair value of available-for-sale financial assets until the
assets are derecognised or impaired, and the revaluation of property, plant and equipment from both subsidiaries and
equity-accounted investees, net of any deferred tax.
22. LOANS AND BORROWINGS
Total Within one year Within two to five years More than five years
30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December
2017 2016 2017 2016 2017 2016 2017 2016
E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000
Loans in Euro 89,240 92,270 11,126 12,749 67,114 67,146 11,000 12,375
89,240 92,270 11,126 12,749 67,114 67,146 11,000 12,375
Loans in Euro within disposal groups held for sale 8,163 8,259 8,163 765 - 7,494 - -
Total 97,403 100,529 19,289 13,514 67,114 74,640 11,000 12,375
As of 30 June 2017, there were no significant changes in terms and conditions of the outstanding loans, compared to 31
December 2016.
1 January 2017 New issues Capital repayments Interest paid Other movements 30 June 2017
E'000 E'000 E'000 E'000 E'000 E'000
Loans in Euro 92,270 - (1,375) (5,084) 3,429 89,240
Loans in Euro within disposal groups held for sale 8,259 89 (169) (174) 158 8,163
Total 100,529 89 (1,544) (5,258) 3,587 97,403
Securities
As of 30 June 2017, there were no significant changes in the Group's loan securities compared to 31 December 2016. The
securities include mortgages against immovable property, pledge of shares, fixed and floating charges over assets and
corporate guarantees.
Convertible bonds payable
On 5 April 2013, the Company issued 5,000 Bonds (the 'Euro Bonds') at E10 thousand each, bearing interest of 5.5% per
annum, payable semi-annually, and maturing on 5 April 2018. On 23 April 2013, the Company issued 917 Bonds (the 'US$
Bonds') at US$10 thousand each, bearing interest of 7% per annum, payable semi-annually, and maturing on 23 April 2018.
The Euro Bonds and the US$ Bonds could be converted prior to maturity (unless earlier redeemed or repurchased) at the
option of the holder into common shares of E0.01 each. The conversion price was E0.5623, equivalent of GBP0.49 (initial
conversion price GBP0.50) and US$0.6583, equivalent of GPB0.4410 (initial conversion price GBP0.45) per share for the Euro
Bonds and the US$ Bonds, respectively. The Euro Bonds and the US$ Bonds were not publicly traded.
Part of the Bonds, amounting to E41,004 thousand, was subscribed for by Third Point LLC, a significant shareholder of the
Company at that time. On 8 December 2016, both Euro Bonds and US Bonds were cancelled and all accrued interest was waived
as a result of the Share Purchase Agreement entered into for the sale of Playa Grande.
On 29 March 2011, DCI H7 issued 4,000 Bonds at US$10 thousand each, bearing interest of 7% per annum, payable
semi-annually, and maturing on 29 March 2016. The Bonds were trading on the Open Market of the Frankfurt Stock Exchange
(the freiverkehr market) under the symbol 12DD. On 23 April 2013, the Company purchased 891 Bonds at a consideration of
US$10 thousand each (representing their par value) plus corresponding accrued interest of approximately US$200 thousand
using the funds received from the issue of the US$ Bonds. On 10 June 2015, certain bondholders, including the Investment
Manager, opted to convert Bonds of total value US$14,420 thousand into 42,930,080 shares that were admitted on AIM on 11
June 2015. The Investment Manager converted Bonds of total value US$420 thousand into 1,250,390 shares. The remaining
amount of DCI H7 Bonds including any accrued interest was repaid on the scheduled maturing date in March 2016.
23. Finance lease LIABILITIES
30 June 2017 31 December 2016
Future minimum lease payments Interest Present value of minimum lease payments Future minimum lease payments Interest Present value of minimum lease payments
E'000 E'000 E'000 E'000 E'000 E'000
Less than one year 86 2 84 49 1 48
Between two and five years 197 10 187 195 8 187
More than five years 4,167 1,442 2,725 4,162 1,415 2,747
Total 4,450 1,454 2,996 4,406 1,424 2,982
The major finance lease liabilities comprise leases in Greece with 99-year lease terms.
24. Deferred tax assets and liabilities
30 June 2017 31 December 2016
Deferred Deferred Deferred Deferred
tax assets tax liabilities tax assets tax liabilities
E'000 E'000 E'000 E'000
Balance at the beginning of the period/year 996 (24,255) 997 (30,129)
Recognised in profit or loss - continuing operations (1) (1,124) (1,549) 5,107
Recognised in profit or loss - discontinued operation - - - 1,273
Recognised in other comprehensive income - - - (1,682)
Reclassification to liabilities held for sale - - 1,548 1,239
Exchange difference and other - - - (63)
Balance at the end of the period/year 995 (25,379) 996 (24,255)
Deferred tax assets and liabilities are attributable to the following:
30 June 2017 31 December 2016
Deferred Deferred Deferred Deferred
tax assets tax liabilities tax assets tax liabilities
E'000 E'000 E'000 E'000
Revaluation of investment property - (15,268) - (15,268)
Revaluation of trading properties - (2,022) - (1,905)
Revaluation of property, plant and equipment - (6,472) - (6,449)
Other temporary differences - (1,617) - (633)
Tax losses 995 - 996 -
Total 995 (25,379) 996 (24,255)
25. DEFERRED REVENUE
30 June 2017 31 December 2016
E'000 E'000
Prepayment from clients 17,687 10,683
Government grant 7,108 7,230
Total 24,795 17,913
30 June 2017 31 December 2016
E'000 E'000
Non-current 7,108 7,230
Current 17,687 10,683
Total 24,795 17,913
26. Trade and other payables
30 June 2017 31 December 2016
E'000 E'000
Trade payables 760 660
Land creditors 21,205 25,354
Investment Manager fees payable 3,188 4,221
Professional fees accrual - 1,952
Deposit relating to Pearl disposal - 1,000
Branding fees accrual 2,684 2,444
Other payables and accrued expenses 13,462 13,960
Total 41,299 49,591
30 June 2017 31 December 2016
E'000 E'000
Non-current 27,764 6,479
Current 13,535 43,112
Total 41,299 49,591
During the period, the Company entered into new contracts in connection with the deferred purchase of land at Lavender Bay.
The amount outstanding as at 30 June 2017 was E21,205 thousand and payment will be made on 31 December 2025. As a result of
a retroactive change in the interest rate charged on the outstanding consideration, an accrued interest payable amount of
approximately E4 million has been reversed during the six-month period ended 30 June 2017 and included in finance income in
profit or loss.
27. NAV per share
30 June 2017 31 December 2016
'000 '000
Total equity attributable to owners of the Company (E) 218,631 233,887
Number of common shares outstanding at end of period/year 904,627 904,627
NAV per share (E) 0.24 0.26
28. Related party transactions
28.1 Directors' interest and remuneration
Directors' interest
Miltos Kambourides is the founder and managing partner of the Investment Manager.
The interests of the Directors as at 30 June 2017, all of which are beneficial, in the issued share capital of the Company
as at this date were as follows:
Shares
'000
Miltos Kambourides (indirect holding) 66,019
Mark Townsend 282
Andrew Coppel 150
Save as disclosed, none of the Directors had any interest during the period in any material contract for the provision of
services which was significant to the business of the Group.
From 1 January 2017to 30 June 2017 From 1 January 2016to 30 June 2016
E'000 E'000
Remuneration 388 1,022
Equity-settled share-based payment arrangements 34 49
Total remuneration 422 1,071
The Directors' remuneration details for the six-month periods ended 30 June 2017 and 30 June 2016 were as follows:
From 1 January 2017to 30 June 2017 From 1 January 2016to 30 June 2016
E'000 E'000
Andrew Coppel 115 112
Graham Warner 86 93
Robert Heller 101 103
Mark Townsend 28 31
Sue Farr 58 -
Laurence Geller - *678
David B. Heller - 3
Justin Rimel - 2
Total 388 1,022
*Comprises E636 thousand compensation for loss of office and E42 thousand compensation for expenses.
Mr. Miltos Kambourides has waived his fees.
On 1 March 2016, Laurence Geller, David B. Heller and Justin Rimel resigned from the Company's Board with Andrew Coppel
being appointed as the Independent Chairman.
Laurence Geller no longer retains an interest in the stock options issued pursuant to the Company's Stock Option Programme
whilst Andrew Coppel does not participate in the Stock Option Programme.
On 19 July 2016, Sue Farr joined the Board as a non-executive Director.
28.2 Investment Manager remuneration
From 1 January 2017 to 30 June 2017 From 1 January 2016 to 30 June 2016
E'000 E'000
Fixed management fee/Annual fee 3,000 4,250
Variable management fees/Performance fee 1,606 -
Equity-settled share-based payment arrangements - Investment Management Awards - 261
Total remuneration 4,606 4,511
In 2016, the Investment Manager, fully waived any rights under
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