DCI Advisors Reports 18-Month Loss as it Pushes Ahead with Asset Realisation Strategy

DCI Advisors’ 18‑Month Results: big NAV discount, asset sales progressing, and first capital returns in sight

DCI Advisors has published audited results for the 18‑month period to 30 June 2025. It’s a mixed bag: a statutory loss on paper, but clear traction on disposals, costs coming down, and a chunky discount to asset value that could narrow as sales complete.

The company continues to execute a realisation strategy across Greece, Cyprus and Croatia, with several sizeable transactions agreed and more in the pipeline. The Board is guiding towards the first shareholder distribution once final cash receipts land and debt and tax items are tidied up.

Headline numbers investors need to know

Net Asset Value (NAV)	€111.2 million (31 Dec 2023: €126.4 million)
NAV per share	€0.12, down from €0.14 (about 10p vs 12p at €1 = £0.85)
Total comprehensive loss	€14.8 million
Loss attributable to owners	€22.5 million; EPS -€0.003
Adjusted NAV (incl. deferred tax)	€128.3 million
Market capitalisation	£43.3 million (30 June 2025)
Discount to adjusted NAV	c.60%
Cash	€37k (with receivables and escrow inflows pending)
Key liabilities	€12.0m Kilada preference shares; €4.9m Livka Bay bank debt; €4.3m shareholder loans

What drove the loss and why it matters

The statutory loss was driven primarily by crystallising a loss on the Aristo Developers exit, plus equity‑accounted losses before disposal. That is the short‑term pain of turning illiquid stakes into cash and directly held land that can be sold.

Counterbalancing that, there were €5.9 million of valuation gains and €7.4 million of revaluation gains in reserves, showing underlying land values holding up or improving where projects have advanced.

Aristo Developers and Venus Rock: deal structure, cash received and what’s left

• Total consideration €31.1 million for DCI’s 47.93% interest in DCI H2, comprising €27.6 million cash and €12.8 million of fully permitted residential land in Paphos transferred in May 2025.
• Cash received to date totals €8.7 million on signing and a €4.1 million tranche in May 2025, with €3.2 million of that in escrow until December 2026 pending Cyprus tax clearances.
• A contracted €6.1 million remains due on tax certification, plus €3.5 million relating to the Venus Rock preferred interest, also expected on completion of the tax process.

Why it matters: the mix of cash, escrow and prime permitted land gives DCI multiple ways to realise value, albeit with the usual Cypriot tax clearance timeframes. Importantly, this is meaningful progress against the realisation plan.

Apollo Heights (Cyprus): sale agreed above carrying value

DCI agreed the sale of 27 plots at Apollo Heights for €7.5 million versus a €5.6 million NAV. A 30% deposit (€2.25 million) has been received, with completion following tax confirmation. Achieving a premium to book value is a clear positive signal for the Cypriot land marketability within the portfolio.

Livka Bay (Croatia): sale fell through, remarketing underway

The 2024 sale fell over due to the buyer’s financing, but Colliers has been re‑appointed and marketing has resumed. The PBZ Bank loan of €3.95 million plus interest is expected to be repaid soon, with a mortgage lift to follow. Livka remains a large, clearly defined exit that could unlock significant cash once a buyer is secured.

Kilada Golf & Country Club (Greece): maturing asset now in sale process

Kilada is the flagship and a potential catalyst for a meaningful re‑rating once sold. Since 2023, c.€11 million has been invested, including €1.2 million in 2025 and €1.9 million repaid to a JV lender. Progress highlights:

• 95% of the golf course area cleared; nine holes grassed and playable.
• Clubhouse structural works advanced.
• €1.5 million government grant approved, with further disbursements expected.
• Discussions ongoing with a leading five‑star hotel operator.
• Savills Greece leading an active sales process with strong interest reported.

Costs, governance and the DCP settlement

On costs, professional fees, investment manager and directors’ remuneration fell from €6.0 million in 2021 to €3.8 million in 2024, with total administrative and professional costs down 27%. The Board targets a further 25‑30% reduction at holding company level over the coming year.

Crucially, DCI reached a global settlement with former manager Dolphin Capital Partners in September 2025. Net positive impact on NAV c.€4.2 million, cash received, and several legacy disputes closed – which should materially reduce future legal spend and management distraction.

There were Board changes in late 2025, including the return of Martin Adams and the appointment of Nikiforos Charagkionis as non‑independent NEDs, alongside Chairman Sean Hurst and the two Managing Directors. New auditors Grant Thornton Guernsey signed off the accounts, noting an emphasis of matter on Lavender Bay land rights (see risks below).

Balance sheet shape and NAV discount

At 30 June 2025, NAV per share was €0.12. The shares traded at a market cap of roughly £43.3 million versus an adjusted NAV of c.£109 million, a discount of around 60%. The Board attributes the discount to historic uncertainty and questions about realisable values. The strategy is simple: sell assets, bank proceeds, and return capital – and let the discount narrow as proof points arrive.

What to watch in 2026

• Cash collection: remaining Aristo/Venus Rock tranches as Cyprus tax clearances complete, and Apollo Heights completion.
• Kilada: formal bids, a signed SPA and progress with the hotel operator. A sale here would be a portfolio‑defining event.
• Livka Bay: a new buyer mandate and deal closure to clear the PBZ debt and release cash.
• Further disposals across Greek assets (Plaka Bay, Scorpio Bay) as Savills readies exits.
• First capital return to shareholders – management says the company is now close, subject to receipts and commitments.

Risks to keep in mind

• Transaction risk and timing: complex, illiquid land deals often require extended diligence and tax clearances.
• Lavender Bay land dispute: an emphasis of matter remains over parts of the asset and leasehold sections; discussions with the Greek Church are ongoing.
• Working capital dependence: operations need continued liquidity until sales complete; shareholder loans outstanding were €4.3 million at period‑end.
• Tax and escrow: €3.2 million is in escrow and further cash is contingent on Cyprus tax certifications.

Josh’s view: progress that should start to count

The numbers include a hefty paper loss, but the strategic direction is clearer than it’s been in years. Over €45 million of transactions agreed in 2025 and meaningful cash already received is exactly what you want to see in a realisation vehicle. The DCP settlement removes a cloud and trims overheads. The NAV discount, at roughly 60%, is punchy.

Execution remains the whole story. If Kilada lands a credible buyer and Livka Bay is sold, the market should take notice. In the meantime, the near‑term watchlist is cash in, debt down, and evidence of surplus capital being returned. If DCI keeps ticking those boxes, the 10p share price that implies a deep haircut to asset value may not last.

For the full Annual Report and Accounts, see the company’s website: www.dciadvisorsltd.com.