03/09/2012 - 14:25

Port Bouvard appoints Azure as deadline looms

03/09/2012 - 14:25

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Port Bouvard appoints Azure as deadline looms
Port Bouvard's Oceanique apartment complex, near Mandurah.

Troubled developer Port Bouvard has appointed Azure Capital to assess its strategic options in the wake of a loss of $103.5 million for the 12 months ended June 30.

Revenue was down 76 per cent, to $17.6 million, as the company’s only activity comprised the sell-down of the luxury Oceanique apartment development near Mandurah.

The company's pre-tax result was a loss of $6.4 million, compared to a $4.6 million profit in the previous corresponding period.

As of June 30, 31 of the 56 apartments at Oceanique remained unsold, while the carrying value of the apartments was written down by $19.2 million in the company’s half year accounts in December.

Port Bouvard reported additional impairments of $56.9 million in the second half of the year, with $47 million relating to Point Grey and $9.9 million relating to a development site at Esperance and two smaller sites near Oceanique.

The company also launched a review of the holding value of the Point Grey project, which was independently valued at $60 million in April.

Port Bouvard said it had appointed Azure Capital to provide corporate advisory services as it reviews its capital management strategy.

Port Bouvard said its current cash reserves would be sufficient through November.

Despite the loss, the company saw a silver lining in the progress at Point Grey.

“Notwithstanding the difficult circumstances for the company, it is pleasing to have achieved significant project milestones in relation to the Point Grey project,” Port Bouvard said in a statement.

“Earlier this year the company obtained final approvals for the land component, including specific approvals for the land component, including specific approval for the initial 330 lots of the development.”

Approvals for the marina component of Point Grey are with the federal government.

Port Bouvard stocks were up 17.6 per cent at 2:00PM, trading at 2 cents.

 

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