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 5.39 NET ASSET VALUE PER SHARE (MUR 6.75 in 2015)

Total revenue for the year under review reached MUR 1.47 billion, an improvement of 42% on the year 2015 (MUR 1.01 billion). The increase is attributed to:

• The inherently cyclical nature of the Property Development market, meaning that projects are subject to variations, from the conception stage to the sale of the unit, and from the construction phases to delivery. Sales of residential units in our IRS developments, namely to foreign buyers, substantially contributed to this revenue growth by MUR 349 million.

• A significant performance-enhancing change in our hospitality segment, following a difficult year in 2015 due to a change in operators.

• A challenging trading year for our yielding assets with tough market conditions and downward pressure on rent prices. Occupancy levels have stabilised but have not reached our level of expectation

Borrowings

BORROWINGS AND DEBT-TO-EQUITY (Rs’M)

Our borrowings were reduced by 134 million during the year. A drop in our Net Asset Value prompted an increase of the gearing ratio to an uncomfortable level of 83%. We have disbursed MUR 177 million in interests to our debt providers, compared to MUR 184 million in 2015.

Our short-term strategy is to substantially reduce the gearing level of BlueLife Limited – neglecting to do so would limit our ability to seize investment opportunities.

ASSETS UNDER MANAGEMENT (MUR Millions)

BlueLife’s Total Assets Value dropped from MUR 5.68 billion to MUR 5.01 billion during the year. The decrease is due to the combined effect of the following components of the Group’s Income Statement:

• The fair value losses and impairment, on both investment properties and assets held for sale
• The reduction in inventory value and land development cost on completion of residential development

The land development segment continues to carry a work-inprogress status regarding our project under construction, with 437 acres of freehold land available for future development, of which 75 acres have been allocated to the development of Azuri Golf – Northern Precinct.

Total Asset Value2