DCI Advisors reports fall in net asset value

DCI Advisors reported a decline in net asset value in its half-year report on Friday, to €123.5m before accounting for deferred tax liabilities and €116.9m after.

The AIM-traded firm said that indicated a drop of €3.6m, or 3%, when compared to the figures from 31 December.

It said the primary reasons for the reduction were operational, financial, corporate, and management expenses.

Furthermore, when analysed in terms of sterling, DCI's net asset value for the six months ended 30 June declined from 11p per share at the end of 2022 to 10p per share by the end of June.

That substantial decline in the sterling net asset value per share was put down to the 2.9% depreciation of sterling against the euro within the period.

Additionally, the aggregate debt for the group at the end of June stood at €5.7m, bringing the group's total debt-to-gross asset ratio to 3.4%, rising from the 2.8% recorded at the end of 2022.

“The focus remains on improving the company's corporate governance and implementing its new investment policy and realisation strategy that was approved by shareholders in December 2021 and is aimed at selling the remaining investments, repaying debt and distributing the net proceeds to shareholders,” said chairman Sean Hurst.

“Following the removal of Dolphin Capital Partners as investment manager on 20 March and Miltos Kambourides from the board of the company on 18 March, the company has gone through a stabilisation phase of securing its assets and managing them with a view to readying them for sale.”

Hurst said construction had restarted at Kilada, and efficiency improved through the cutting of costs in order to complete phase one, which is when the firm intended to sell it.

“Asset sale processes that have already started have been kept on track, but none has reached a notifiable conclusion.”

At 0813 BST, shares in DCI Advisors were down 1.98% at 4.71p.

Reporting by Josh White for Sharecast.com.