Dolphin trading well below NAV

21st Sep 2010 13:33

Greek residential resorts developer Dolphin Capital Investors is trading at a discount of more than 75% to its net asset value. AIM-quoted Dolphin's net asset value after deferred tax liabilities is slightly lower at 156p a share at the end of June 2010. This was due to the reported loss and a 9% appreciation in Sterling against the Euro. The shares are trading at 36p. There was a €1m valuation gain on investment properties in the first half of 2010 but this was not enough to prevent a first half loss of €11.2m. There is cash of €40.7m in the balance sheet. There is also gross debt of nearly €380m but none of this is at company level. Since the end of June, Dolphin has sold a 14.29% stake in the Aman at Porto Heli for €11m, which represents a gain of €5m on the original cost of the land. Completion of the planned hotel is expected by the end of 2011. So far this year Dolphin has made €53m of new asset sales and further sales are being negotiated. Dolphin is progressing with its existing investments but does not intend to get involved in any new development projects.