Dolphin Capital raises funds at tiny discount – MoneyWeek

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Themaximumnumberofsharesthatcanbeissuedintheplacement,basedonafixedeuroexchangerateof79。

73p,isjustover204。

4mshares。

Theproceedswillbeusedtoensurethatthecompanyhasadequatecashbalancestoexecuteitsdevelopmentprogrammeoverthenexttwoyears。

Thefundraisingplansaccompaniedthereleaseofinterimresults,whichrevealedthattotalgroupnetassetvalue(NAV)atJune30thwas€683mbeforedeferredincometaxliabilities(DITL)and€613mafter,whichisequaltoadecreaseof€406m(37%)and€371m(38%),respectively,fromthefirstquarterof2012。

Ofthe€406mdecrease,around90%wasduetotherevaluationofits49%stakeinAristoExchangeandtheremaining€46mwasduetoadecreaseinthevaluationofcertainGreekandCypriotassetsandregularoperationalexpenses。

Insterling,NAVpersharebeforeDITLwas126pandafterDITLwas113p,adecreaseof8%and9%versus136pand123p,respectively,asatMarch31st。

HousebrokerPanmureGordonhadforecastapre-DITLNAVpershareof135p。

Thefirmsaidthatduringthesixmonthperioditexecutedaround€53。

3mofassetsalesanddivestments,withthevalueofthesetransactionstoDolphintotalling€43。

5m,representinga48%premiumoverthecorrespondingnetassetvalueof€29。

5manda91%premiumoverthecorrespondingcostbasisof€22。

8m。

Attheperiodend,grossassetstotalled€909m,whiletotaldebtwas€140mthegrouptotaldebttoassetvaluerationwas15%。

Itscurrentcashbalanceisaround€10m。

Thecompanyiscurrentlyindiscussionsrelatingtoanumberofothertransactionsthatinclude:thesaleofothercomponentsofthePortoHeliCollection;thesaleofanumberofAmanzoeVillas;ajointventurefortheRitzCarltonReservephaseofPearlIsland;andajointventurefortheAmanphaseofPlayaGrande。

AndreasPapageorghiou,ChairmanofDolphin,said:Althoughthemacro-economicenvironmentcontinuestopresentchallenges,significantvalueisbeinggeneratedbythecompanyontheground。

WeareconfidentthatthemomentumgainedthroughtheopeningoftheAmanzoeresortatPortoHeliwillbesustainedthroughouttheyear。

WeexpectthatthecompletionoftheequityraisingwillensurethatDolphinentersanewcycleofsignificantgrowthandtherealisationofreturnsforshareholders。

TheAmanzoehotelsopeningatthestartofAugustmarkedthefirstofitsluxuryresortstocometomarket。

AtthattimeDolphinreceivedaconversionnoticefromArchimediatoconvert6。

43%ofitssharesinAmanzoeinexchangeforanAmanVilla,whichitisintheprocessoffinalising。

Dolphinsguaranteeonthe€33mAmanzoeconstructionloanand€8mVATfacilitywasliftedonSeptember14thandreplacedwithacorporateguaranteebyDolphinCapitalHoldings。

Dolphinssharepricerose16。

25%to23。

25pby13:28。

NR

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