Mauritius realty player Bluelife incurs semi-annual loss of Rs 200.7 mn upon restructuring plan
BlueLife Ltd is continuing with implementing its turnaround plan with Rs 200.7 million losses incurred for the six months ended June 2015 in line with the restructuring exercise, the negative performance being driven mainly by the hospitality cluster with Centara’s exit from the group and the negative contribution of the cluster in the off-peak tourist season.
For the six months ended June 2015, Bluelife Ltd posted losses of Rs 200.7 million with revenues dropping by 53.8% to hit Rs 378.8 million, compared to 2014 when turnover stood at Rs 820.0 million.
The losses of the group are in line with the restructuring and turnaround plan.
In pursuit of this plan, Bluelife’s shareholders, being GML Ineo Ltée and Actis Paradise Jersey Limited, have injected additional capital by way of shareholder loans with additional support provided by the group’s lenders.
The losses were driven by a Rs 117.8 million negative contribution by the hospitality cluster for the half year, which reflects the off-peak tourist season and Centara’s exit as hotel operator in the group.
BlueLife Ltd’s reportable segments – namely land development, property, hotels and services – are strategic business units that offer different products and services. They are managed separately because each business requires different technological and marketing strategies. Most of the businesses were acquired as individual units, and the management at the time of the acquisition was retained.
The Group has four reportable segments: Land development, Yielding Property, Hotel and Service. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. Performance is evaluated on the basis of profit or loss from operations before tax expense. Intersegmental sales and transfers are accounted for as if the sales or transfers were to third parties, that is, at current market prices.
Rezidor Hotels APS will manage the hotels and rental pools from 01 September 2015 under the Radisson Blu brand. Rezidor’s international network and deep hotel experience is expected to gradually improve the results for the hotel cluster, with full benefits expected to be derived in course of 2016.
With regard to the group’s residential segment, new IRS projects will be launched in the second semester of 2015. It may be noted that 25 units were sold in July 2015 under the latest property development encompassing local residences.
The revenue on these units will only be recognised in the next quarter on a percentage completion basis in accordance with accounting standards with costs incurred with respect to delivery of improvements and investments in infrastructure during the period being reflected in results to June 30, 2015.
The group’s and the company’s total assets are Rs 5.853 billion and Rs 3.433 billion respectively. No major investment, disinvestment or revaluation took place in the quarter ended 30 June 2015. The injection of shareholder loans is reflected in the increase in the group’s and company’s liabilities during the period.
The continued development of Azuri is expected to enhance the group’s asset value. Net asset value per share is Rs 7.35.