FINANCIALS

The vision for the newly merged entity is to advance our endeavours and to deliver a company that has the foundations and vision to generate further value for our shareholders through Azuri and a number of potential projects in the Indian Ocean Region. The capabilities of our core team and Board members will place BlueLife in position to maximise returns in the coming years, to be best in class, and to enhance the quality of living and lifestyle across the region.
Net Assets value

MUR 4.80 NET ASSET VALUE PER SHARE (MUR 5.39 in 2016)

The Net Asset Value decreased by MUR 252m through the combined effect of operating losses, fair value losses as well as impairment recognised during the year.

Net borrowings

Our net borrowings were only reduced by MUR 18m during the year. Although long term loans, in relation to the assets which were sold, were fully repaid, the high level of debt has kept pressure on our cash flow and led to additional short term funding.

We have paid interest of MUR 162m to our debt providers (MUR 168m in 2016) on continued activities. In 2017 we announced that in addition to the renegotiation of our bank facilities, the Board of Directors agreed to proceed with a Rights Issue of MUR 450m, underwritten by IBL Ltd for MUR 400m

450M rights issue

The strategy has been to significantly reduce the Group debt with the proceeds of the Rights Issue and through the sale of assets earmarked. The Rights Issue has been successfully completed in the first quarter of 2018 for MUR 450,015,572 received from the shareholders and the Underwriter. There have been ongoing efforts to sell the earmarked assets.

The sale of the 4th Floor of Harbour Front at the beginning of 2018, added to the Rights Issue, allowed a reduction of the Group’s net borrowings of MUR 348m, and Debt to Equity is standing at 64%

BlueLife’s total asset value decreased from MUR 5.01 billion to MUR 4.52 billion during the year. This drop is attributable to the cumulative effect of the sale of assets in 2017, the reduction in inventory value, and land development cost on completion of residential development which is posted to the Group’s Income Statement. Furthermore there were also fair value losses and impairment adjustments on both investment properties and assets held for sale.

The land development segment continues to carry a work-in-progress value in relation to our project under construction, initial expenditure in relation to the recently launched projects and the value of the 403 arpents of freehold land available for future development.

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