REG - Dolphin Capital Inv - Half Yearly Report <Origin Href="QuoteRef">DOLC.L</Origin> - Part 2
24/09/2015 07:01
- Part 2: For the preceding part double click ID:nRSX0308Aa
non-operating (losses)/profits (7,077) 45,596
(Loss)/profit before taxation (37,424) 31,957
Taxation 7 (17) (40)
(Loss)/profit for the period (37,441) 31,917
OTHER COMPREHENSIVE INCOME
Items that are or may be reclassified to profit or loss
Foreign currency translation differences 12,137 686
Translation differences to profit or loss due to disposal of subsidiary 23 - (2,709)
Share of revaluation on equity accounted investees 13 17 17
Fair value adjustment on available-for-sale financial assets - (64)
12,154 (2,070)
Other comprehensive income for the period, net of tax 12,154 (2,070)
Total comprehensive income for the period (25,287) 29,847
(Loss)/profit attributable to:
Owners of the Company (36,057) 30,359
Non-controlling interests (1,384) 1,558
(Loss)/profit for the period (37,441) 31,917
Total comprehensive income attributable to:
Owners of the Company (26,218) 28,110
Non-controlling interests 931 1,737
Total comprehensive income for the period (25,287) 29,847
(Loss)/EARNINGS per share
Basic and diluted (loss)/earnings per share (E) 8 (0.05) 0.05
Condensed consolidated interim statement of financial position
As at 30 June 2015
30 June 2015 31 December 2014
Note E'000 E'000
Assets
Investment property 9 459,408 451,880
Property, plant and equipment 10 195,625 176,765
Equity accounted investees 13 227,539 234,223
Available-for-sale financial assets 12 2,201 2,201
Deferred tax assets 19 2,405 2,557
Other non-current assets 2,953 2,584
Non-current assets 890,131 870,210
Trading properties 11 59,183 52,323
Receivables and other assets 14 19,198 21,138
Cash and cash equivalents 15 74,820 30,978
Current assets 153,201 104,439
Total assets 1,043,332 974,649
Equity
Share capital 16 9,046 6,424
Share premium 16 569,921 498,933
Retained earnings (7,781) 28,821
Other reserves 33,109 23,270
Equity attributable to owners of the Company 604,295 557,448
Non-controlling interests 31,840 30,364
Total equity 636,135 587,812
Liabilities
Loans and borrowings 17 205,415 213,923
Finance lease obligations 18 7,408 7,628
Deferred tax liabilities 19 55,324 55,180
Other non-current liabilities 19,829 21,393
Non-current liabilities 287,976 298,124
Loans and borrowings 17 34,101 26,166
Finance lease obligations 18 431 467
Trade and other payables 20 84,565 62,059
Current tax liabilities 124 21
Current liabilities 119,221 88,713
Total liabilities 407,197 386,837
Total equity and liabilities 1,043,332 974,649
Net asset value ('NAV') per share (E) 21 0.67 0.87
Condensed consolidated interim statement of changes in equity
For the six-month period ended 30 June 2015
Attributable to owners of the Company
Share Share Translation Revaluation Retained Non-controlling Total
capital premium reserve reserve earnings Total interests equity
E'000 E'000 E'000 E'000 E'000 E'000 E'000 E'000
Balance at 1 January 2014 6,424 498,933 1,491 6,768 10,056 523,672 24,504 548,176
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Profit for the period - - - - 30,359 30,359 1,558 31,917
Other comprehensive income for the period
Foreign currency translation differences - - 507 - - 507 179 686
Translation differences to profit or loss due to disposal of subsidiary - - (2,709) - - (2,709) - (2,709)
Share of revaluation on equity accounted investees - - - 17 - 17 - 17
Fair value adjustment on available-for-sale financial asset - - - (64) - (64) - (64)
Total other comprehensive income for the period - - (2,202) (47) - (2,249) 179 (2,070)
Total comprehensive income for the period - - (2,202) (47) 30,359 28,110 1,737 29,847
TRANSACTIONS WITH OWNERS OF THE COMPANY
Changes in ownership interests
Acquisition of non-controlling interests without a change in control - - - - 535 535 (1,535) (1,000)
Total changes in ownership interests - - - - 535 535 (1,535) (1,000)
Total transactions with owners of the Company - - - - 535 535 (1,535) (1,000)
Balance at 30 June 2014 6,424 498,933 (711) 6,721 40,950 552,317 24,706 577,023
Balance at 1 January 2015 6,424 498,933 10,695 12,575 28,821 557,448 30,364 587,812
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Loss for the period - - - - (36,057) (36,057) (1,384) (37,441)
Other comprehensive income for the period
Foreign currency translation differences - - 9,822 - - 9,822 2,315 12,137
Share of revaluation on equity accounted investees - - - 17 - 17 - 17
Total other comprehensive income for the period - - 9,822 17 - 9,839 2,315 12,154
Total comprehensive income for the period - - 9,822 17 (36,057) (26,218) 931 (25,287)
TRANSACTIONS WITH OWNERS OF THE COMPANY
Contributions by and distributions to owners of the Company
Issue of ordinary shares 2,193 60,527 - - - 62,720 - 62,720
Placement costs - (1,390) - - - (1,390) - (1,390)
Bond conversions 429 11,851 - - - 12,280 - 12,280
Non-controlling interests on capital increases of subsidiaries - - - - (545) (545) 545 -
Total contributions by and distributions to owners of the Company 2,622 70,988 - - (545) 73,065 545 73,610
Total transactions with owners of the Company 2,622 70,988 - - (545) 73,065 545 73,610
Balance at 30 June 2015 9,046 569,921 20,517 12,592 (7,781) 604,295 31,840 636,135
For the six-month period ended 30 June 2015
From 1 January 2015to 30 June 2015 From 1 January 2014to 30 June 2014
E'000 E'000
Cash flows from operating activities
(Loss)/profit for the period (37,441) 31,917
Share of losses/(profits) on equity accounted investees, net of tax 7,077 (42,887)
Unrealised loss/(gain) on property 96 (4,517)
Other adjustments 12,634 3,788
(17,634) (11,699)
Changes in:
Receivables 1,571 (1,250)
Payables 20,942 18,147
Cash from operating activities 4,879 5,198
Tax received/(paid) 77 (17)
Net cash from operating activities 4,956 5,181
Cash flows from investing activities
Proceeds from disposal of subsidiaries, net of cash disposed of - 8,288
Net disposals of investment property 2,621 151
Net acquisitions of property, plant and equipment (13,900) (10,751)
Net change in equity accounted investees (376) (1,116)
Net change in trading properties (6,704) 4,773
Interest received 242 265
Net cash (used in)/from investing activities (18,117) 1,610
Cash flows from financing activities
Proceeds from issue of share capital, net of placement costs 61,330 -
Acquisition of non-controlling interests without a change in control - (1,000)
Change in loans and borrowings 2,460 186
Change in finance lease obligations (256) (209)
Interest paid (5,960) (4,782)
Net cash from/(used in) financing activities 57,574 (5,805)
Net increase in cash and cash equivalents 44,413 986
Cash and cash equivalents at the beginning of the period 28,739 4,861
Effect of exchange rate fluctuations on cash held (619) (2)
Cash and cash equivalents at the end of the period 72,533 5,845
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 (see note 15) 74,820 8,145
Bank overdrafts (see note 17) (2,287) (2,300)
Cash and cash equivalents at the end of the period 72,533 5,845
Notes to the condensed consolidated interim financial statements
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 and the Americas, and managed by Dolphin Capital Partners Limited (the 'Investment
Manager'), 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
2015 comprise the financial statements of the Company and its subsidiaries (together referred to as the 'Group') and the
Group's interests in associates.
The consolidated financial statements of the Group as at and for the year ended 31 December 2014 are available at
www.dolphinci.com.
2. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 'Interim Financial
Reporting'. They do not include all of the information required for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2014. They are
presented in euro (E), rounded to the nearest thousand.
These condensed consolidated interim financial statements were authorised for issue by the Board of Directors on 23
September 2015.
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 2014.
4. 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 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 2014.
5. Significant SUBSIDIARIES
As at 30 June 2015, the Group's most significant subsidiaries were the following:
Country of Shareholding
Name incorporation interest
Scorpio Bay Holdings Limited Cyprus 100%
Scorpio Bay Resorts S.A. Greece 100%
Latirus Enterprises Limited Cyprus 80%
IktinosTechnikiTouristikiS.A. ('Iktinos') Greece 78%
Xscape Limited Cyprus 100%
Golfing Developments S.A. Greece 100%
MindCompass Overseas Limited Cyprus 100%
MindCompass Overseas S.A. Greece 100%
MindCompass Overseas Two S.A. Greece 100%
MindCompass Parks S.A. Greece 100%
Dolphin Capital Greek Collection Limited Cyprus 100%
DCI Holdings One Limited BVIs 100%
Aristo Developers S.A. Greece 100%
D.C. Apollo Heights Polo and Country Resort Limited Cyprus 100%
Symboula Estates Limited Cyprus 100%
DolphinCI Fourteen Limited ('DCI 14') Cyprus 92%
Eidikou Skopou Dekatessera S.A. ('ES 14') Greece 92%
Eidikou Skopou Dekaokto S.A. ('ES 18') Greece 92%
EidikouSkopouEikosiEnaS.A. Greece 80%
AzurnaUvalaD.o.o. ('Azurna') Croatia 100%
Eastern Crete Development Company S.A. Greece 100%
DolphinLux 2 S.a.r.l. Luxembourg 100%
Kalkan Yapi ve Turizm A.S. Turkey 100%
Dolphin Capital Americas Limited BVIs 100%
DCA Pearl Holdings Limited BVIs 100%
DCA Holdings Six Limited BVIs 100%
DCA Holdings Seven Limited BVIs 100%
DCI Holdings Seven Limited ('DCI H7') BVIs 100%
Playa Grande Holdings Inc. ('PGH') Dominican Republic 100%
Single Purpose Vehicle Eight Limited Cyprus 100%
Eidikou Skopou Dekapente S.A. Greece 100%
Single Purpose Vehicle Ten Limited ('SPV 10') Cyprus 67%
Eidikou Skopou Eikosi Tessera S.A. Greece 67%
Pearl Island Limited S.A. Panama Republic 60%
Zoniro (Panama) S.A. Panama Republic 60%
The above shareholding interest percentages are rounded to the nearest integer.
As at 30 June 2015 and 31 December 2014, all or part of the shares held by the Company in some of its subsidiaries are
pledged as a security for loans.
6. Segment reporting
The Group has one operation, investing in real estate, and three reportable segments as shown below, which represent the
geographical regions in which the Group operates.
Americas1 South-East Europe2 Other3 Reportable segment totals Adjustments4 Consolidated totals
E'000 E'000 E'000 E'000 E'000 E'000
30 June 2015
Investment property 129,898 329,510 - 459,408 - 459,408
Property, plant and equipment 95,884 99,741 - 195,625 - 195,625
Trading properties 1,993 57,190 - 59,183 - 59,183
Equity accounted investees - 225,919 1,620 227,539 - 227,539
Available-for-sale financial assets 2,201 - - 2,201 - 2,201
Cash and cash equivalents 13,210 8,464 53,146 74,820 - 74,820
Intra-group debit balances 14,399 291,257 522,406 828,062 (828,062) -
Other assets 2,979 21,016 561 24,556 - 24,556
Total assets 260,564 1,033,097 577,733 1,871,394 (828,062) 1,043,332
Loans and borrowings 52,480 113,941 73,095 239,516 - 239,516
Finance lease obligations 59 7,780 - 7,839 - 7,839
Deferred tax liabilities 2,321 53,003 - 55,324 - 55,324
Intra-group credit balances 148,215 394,377 285,470 828,062 (828,062) -
Other liabilities 14,259 89,074 1,185 104,518 - 104,518
Total liabilities 217,334 658,175 359,750 1,235,259 (828,062) 407,197
Valuation loss on investment property (80) (16) - (96) - (96)
Share of losses on equity accounted investees, net of tax - (6,070) (1,007) (7,077) - (7,077)
Other operating profits 1,622 3,299 84 5,005 - 5,005
Investment Manager fees - - (6,814) (6,814) - (6,814)
Net finance costs (1,494) (5,109) (2,881) (9,484) - (9,484)
Other expenses (4,562) (13,659) (737) (18,958) - (18,958)
Loss before taxation (4,514) (21,555) (11,355) (37,424) - (37,424)
Taxation 14 (31) - (17) - (17)
Loss for the period (4,500) (21,586) (11,355) (37,441) - (37,441)
Americas1 South-East Europe2 Other3 Reportable segment totals Adjustments4 Consolidated totals
E'000 E'000 E'000 E'000 E'000 E'000
31 December 2014
Investment property 120,285 331,595 - 451,880 - 451,880
Property, plant and equipment 75,996 100,769 - 176,765 - 176,765
Trading properties 1,837 50,486 - 52,323 - 52,323
Equity accounted investees - 231,996 2,227 234,223 - 234,223
Available-for-sale financial assets 2,201 - - 2,201 - 2,201
Cash and cash equivalents 20,514 7,662 2,802 30,978 - 30,978
Intra-group debit balances 13,274 285,185 507,763 806,222 (806,222) -
Other assets 2,673 19,729 3,877 26,279 - 26,279
Total assets 236,780 1,027,422 516,669 1,780,871 (806,222) 974,649
Loans and borrowings 43,128 113,801 83,160 240,089 - 240,089
Finance lease obligations 134 7,961 - 8,095 - 8,095
Deferred tax liabilities 2,139 53,041 - 55,180 - 55,180
Intra-group credit balances 125,522 393,200 287,500 806,222 (806,222) -
Other liabilities 9,045 73,495 933 83,473 - 83,473
Total liabilities 179,968 641,498 371,593 1,193,059 (806,222) 386,837
30 June 2014
Valuation gain on investment property - 8,766 - 8,766 - 8,766
Impairment losses - (4,249) - (4,249) - (4,249)
Share of profits on equity accounted investees, net of tax - 42,887 - 42,887 - 42,887
Gain on disposal of investment in subsidiaries - 2,709 - 2,709 - 2,709
Other operating profits 2,660 5,909 - 8,569 - 8,569
Investment Manager fees - - (6,858) (6,858) - (6,858)
Net finance costs (16) (4,031) (1,579) (5,626) - (5,626)
Other expenses (4,129) (9,146) (966) (14,241) - (14,241)
(Loss)/profit before taxation (1,485) 42,845 (9,403) 31,957 - 31,957
Taxation (25) (15) - (40) - (40)
(Loss)/profit for the period (1,510) 42,830 (9,403) 31,917 - 31,917
1 Americas comprises the Group's activities in the Dominican Republic and the Republic of Panama. Also includes the
investment in Itacare Capital Investments Ltd ('Itacare') (see note 12).
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. Concepts such as inflation, unemployment, and development of the gross domestic product are directly linked to
the economic course of every country and variation in these and the economic environment in general might affect the Group
to a certain extent.
The global fundamentals of the sector remained strong during 2014 and the first half of 2015, 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 slowly, but steadily improving in Cyprus assisted
by the legislative reforms implemented during the last eighteen months by the Cypriot government.
After the escalation of the sovereign debt crisis in Greece in mid-2012 and the international media speculation involving
scenarios of default and/or Greece's exit from the Eurozone, the country's economic conditions significantly stabilized
until the end of 2014, when a general election was called in Greece for January 2015. In 2014 international tourist
arrivals, according to Tourism Research Institute, set a new historical record by reaching 21.5 million, a 20% increase
compared to 2013. In the first six months of 2015, the number of international tourist arrivals to Greece increased by 6.7%
compared to the same period last year, according to the Greek Tourism Confederation (SETE). In late June 2015 capital
controls were imposed and the banking system was closed for more than two weeks. On 12 July 2015, the Greek Prime Minister
agreed with the European Union leaders a list of reforms that the Greek Government needs to implement in order to unlock a
fresh E82bn to E86bn bail-out. On 15 July 2015, the Greek parliament passed this law and in the context of this agreement
the government has put forward a plan of reforms, spending cuts and tax rises. The conclusion of this agreement is
expected, if the respective measures are implemented, to restore the sustainability of the Greek economy on a long term
basis. Since the announcement of the referendum on 5 July 2015, tourism was negatively affected by the cancelation of
reservations and the slowdown of new ones. Since the announcement of the provisional agreement for the 3rd bail out,
reservations are picking up again and the expectation is that the end result for 2015 will be the same as 2014, which was a
record year for Greece.
The crisis of sovereign debt affected the Cypriot economy with a time lag, causing negative effects not only on public
finances but also in the banking system. Despite the fact that the Government tried to react promptly and effectively by
preparing a fiscal consolidation programme, the country captured the world's attention earlier in 2013 as it fought hard to
bounce back from the brink of bankruptcy through intense negotiations with international lenders. The so called 'bail in'
decision of the Eurozone included imposing losses on depositors with amounts exceeding E100,000, a closed banking system
for two weeks and extensive capital controls. Since then Cyprus has been remarkably resilient following the financial
crisis and in implementing tough austerity measures to restructure its economy. Although a challenging time for one of the
smallest EU member states, the economic adjustment programme remains on track, with progress made in all key objectives set
out by the country's international lenders. The banking sector is also on a steady path to stabilization with all domestic
capital controls lifted in early April 2015. Tourist arrivals during 2014 amounted to 2.4 million and stayed at the same
level when compared to 2013, as reported by the Statistical Service of the Republic of Cyprus. There was a strong start to
the tourist season with arrivals to Cyprus from Britain, Israel, Germany, Holland, France, and Austria rising in the first
five months of 2015. Arrivals from the UK in the period of January to May 2015 were up by 16.4% compared to the same period
in 2014 (according to the Cyprus Tourism Organisation).
Consequently, it is encouraging to note that, despite the banking crisis that occurred in early 2013, the tourism industry
remained unharmed and expectations for the remainder of 2015 are positive. The decision by the Ministerial Council to
reduce the investment amount requirements and accelerate Cypriot citizenship awards to buyers of real estate is expected to
significantly increase sales momentum and margins at Aristo Developers Limited ('Aristo') and increase the value and
saleability of its larger projects. Significant value is also estimated to be unlocked through the expected zoning of the
Apollo Heights Resort, following the agreement reached by the Cypriot and UK governments to permit development of such
projects falling within the Sovereign British Areas.
7. Taxation
From 1 January 2015 From 1 January 2014
to 30 June 2015 to 30 June 2014
E'000 E'000
Corporate income tax 26 44
Deferred tax (9) (4)
Total 17 40
8. (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 2015 From 1 January 2014
to 30 June 2015 to 30 June 2014
'000 '000
(Loss)/profit attributable to owners of the Company (E) (36,057) 30,359
Number of weighted average common shares outstanding 671,174 642,440
Basic (loss)/earnings per share (E) (0.05) 0.05
Weighted average number of common shares outstanding
From 1 January 2015 to 30 June 2015 From 1 January 2014 to 30 June 2014
'000 '000
Outstanding common shares at beginning of period 642,440 642,440
Effect of shares issued during the period 24,227 -
Effect of Bond Conversion shares 4,507 -
Weighted average number of common shares outstanding 671,174 642,440
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 2015, 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 this period. As of 30 June 2014, the Company had one category of dilutive potential common shares: warrants. The
number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise
of the warrants.
From 1 January 2015 From 1 January 2014
to 30 June 2015 to 30 June 2014
'000 '000
(Loss)/profit attributable to owners of the Company (E) (36,057) 30,359
Weighted average number of common shares outstanding 671,174 642,440
Effect of potential conversion of warrants - 5,585
Weighted average number of common shares outstanding for diluted (loss)/earnings per share 671,174 648,025
Diluted (loss)/earnings per share (E) (0.05) 0.05
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.
9. Investment property
30 June 2015 31 December 2014
E'000 E'000
At beginning of period/year 451,880 423,791
Direct acquisitions 443 3,515
Transfers to trading properties (see note 11) - (5,568)
Direct disposals (3,064) (2,109)
Exchange difference 10,245 13,675
459,504 433,304
Fair value adjustment (96) 18,576
At end of period/year 459,408 451,880
As at 30 June 2015 and 31 December 2014, part of the Group's immovable property is held as security for bank loans.
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 2014.
Under construction Land, buildings and other Total
30 June 2015 E'000 E'000 E'000
Cost or revalued amount
At beginning of period 31,273 163,019 194,292
Direct acquisitions of property, plant and equipment 13,095 946 14,041
Direct disposal of property, plant and equipment - (576) (576)
Exchange difference 2,661 4,129 6,790
At end of period 47,029 167,518 214,547
Depreciation and impairment losses
At beginning of period - 17,527 17,527
Depreciation charge for the period - 1,506 1,506
Direct disposal of property, plant and equipment - (435) (435)
Exchange difference - 324 324
At end of period - 18,922 18,922
Carrying amounts 47,029 148,596 195,625
Under constructionE'000 Land, buildingsand otherE'000 TotalE'000
31 December 2014
Cost or revalued amount
At beginning of year 8,180 156,114 164,294
Direct acquisitions of property, plant and equipment 19,232 4,230 23,462
Capitalised depreciation 133 - 133
Direct disposal of property, plant and equipment - (113) (113)
Transfer from/(to) other assets 2,303 (8,545) (6,242)
Revaluation adjustment - 6,322 6,322
Exchange difference 1,425 5,011 6,436
At end of year 31,273 163,019 194,292
Depreciation and impairment losses
At beginning of year - 20,690 20,690
Direct disposal of property, plant and equipment - (63) (63)
Transfer from/(to) other assets - (6,242) (6,242)
Depreciation charge for the year - 3,239 3,239
Capitalised depreciation - 133 133
Impairment loss - 13 13
Reversal of impairment loss - (670) (670)
Exchange difference - 427 427
At end of year - 17,527 17,527
Carrying amounts 31,273 145,492 176,765
As at 30 June 2015 and 31 December 2014, part of the Group's immovable property is held as security for bank loans.
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 2014.
11. Trading properties
30 June 2015 31 December 2014
E'000 E'000
At beginning of period/year 52,323 64,524
Net direct additions/(disposals) 6,704 (4,510)
Net transfers from investment property (see note 9) - 5,568
Disposals through disposal of subsidiary companies (see note 23) - (7,252)
Impairment loss - (6,216)
Exchange difference 156 209
At end of period/year 59,183 52,323
As at 30 June 2015 and 31 December 2014, part of the Group's immovable property is held as security for bank loans.
12. 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.
30 June 2015 31 December 2014
E'000 E'000
At beginning of period/year 2,201 2,265
Net change in fair value - (64)
At end of period/year 2,201 2,201
Fair value hierarchy
The fair value of available-for-sale financial assets, on Itacare's de-listing date, was transferred from Level 1 to Level
3 at the fair value hierarchy.
13. equity accounted investees
DCI Holdings DCI Holdings Progressive Single Purpose
Two Limited Fifty Limited Business Vehicle Five
('DCI H2') ('DCI H50') Advisors S.A. Limited ('SPV 5') Total
E'000 E'000 E'000 E'000 E'000
Balance as at 1 January 2015 231,972 2,227 24 - 234,223
Additions - 400 - - 400
Disposals - - (24) - (24)
Share of losses, net of tax (6,070) (1,007) - - (7,077)
Share of revaluation surplus 17 - - - 17
Balance as at 30 June 2015 225,919 1,620 - - 227,539
Balance as at 1 January 2014 179,420 - 24 1,418 180,862
Initial cost of investment - 1,972 - - 1,972
Additions - - - 1,116 1,116
Profit on dilution - 149 - - 149
Share of profits/(losses), net of tax 52,574 106 - (2,534) 50,146
Share of revaluation deficit (22) - - - (22)
Balance as at 31 December 2014 231,972 2,227 24 - 234,223
The details of the above investments are as follows:
Principal place
of business/Country of Shareholding interest
Name incorporation Principal activities 30 June 2015 31 December 2014
DCI H2 BVIs Acquisition and holding of investments in Cyprus 50% 50%
DCI H50 BVIs Acquisition and holding of investments in Greece 25% 25%
SPV 5 Cyprus Acquisition and holding of investments in Greece - 25%
Progressive Business Advisors S.A. Greece Provision of professional services to Group companies - 20%
The above shareholding interest percentages are rounded to the nearest integer.
During the period, the Company's investment in its equity accounted investee, DCI H2, decreased by E6,053 thousand
representing Aristo, DCI H2's largest subsidiary, operating losses for the period, compared to the increase of E52,552
thousand during the year 2014, in which Venus Rock property revaluation gain was included, following the termination of the
agreement with China Glory Investment Group ('CGIG'). In 2013, the fair
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