We have extracted the Chairman’s Statement from the 2019 abridged report for BlueLife Limited, listed on The Stock Exchange of Mauritius:
The abridged financial statements for the year ended June 30, 2019 have been prepared in accordance with International Financial Reporting Standards and audited by Messrs BDO & Co Ltd.
Performance of the Group and the Company
After the change in the financial year end last year with BlueLife reporting for the six months period ended June 30, 2018, we are presently reporting for a twelve months period ended June 30, 2019.
The Group registered operational losses of Rs.29.5M for the year ended June 30, 2019 as compared with losses of Rs.2.2M for the six months period ended June 30, 2018. This is mainly the result of the absence of revenue and subsequent profit on disposal from our property development sector throughout the financial period under consideration with no project at construction stage. However the continuous improvement in the results of our hospitality cluster in a challenging market must be highlighted. Our hotels registered a combined 16% growth in the TREVPAR and 45% growth in the GOPPAR this year.
The Group’s results have also been impacted by fair value decrease of investment properties for Rs.3.2M and impairment of goodwill of Rs.51.2M for the year compared to a combined Rs.69.2M for the six months ended June 30, 2018. An assessment of goodwill was performed during the financial year 2019 which resulted in an accelerated impairment of Rs.51.2m at Group level and Rs.11.5m at Company level. These amounts related to the remaining goodwill which initially arose on amalgamation on 31 December 2013 (Goodwill on amalgamation amounted Rs555.9m at 31 December 2013).
Financial costs of Rs.85M have been incurred for the year ended June 30, 2019. With the expected reduction of the Group’s indebtedness as a result of assets sales, we are aiming to lower the financial costs’ burden even further.
The income tax charge of Rs.15M for the financial year ended 30 June 2019 includes the reversals of deferred tax assets.
All the above contributed to Group losses of Rs.189M for the year ended June 30, 2019 as compared to Rs.133.4M for the six months period ended June 30, 2018. At year end, the Group total assets and net assets stood at Rs.4.11Bn and Rs.2.15Bn respectively (2018 restated: Rs.4.21Bn and Rs.2.34Bn). Net assets per share was Rs.3.30 as at June 30, 2019 as compared with Rs.3.59 as at June 30, 2018.
The Group will continue to favour cash generation with the sale of non-core assets, and will focus on the implementation of its property development projects. The sale of part of Circle Square has been completed in August 2019 and we are working towards selling the rest of investment property in the course of this financial year. The construction of the golf estate and its residential components is planned to start in the course of this financial year and our Group’s results shall be positively impacted with the profit on disposal of inventory for sale on a percentage completion basis.
By Order of the Board
IBL Management Ltd