This article is from the Australian Property Journal archive
DEVELOPER Devine has suffered a loss after tax of $36 million for the 12 months ending 31 December 2015.
The company’s loss before tax from continuing operations of $34.6 million, compared to a profit of $14.5m in the previous corresponding year.
Total revenue from continuing operations declined to $215.9 million compared to $252.2 million for December 2014.
No dividend has been declared for the year.
In the annual report, chairman David Robinson said the loss result was due primarily to the underperformance of Devine Constructions which reported a loss before tax of $29.1 million.
The Devine housing business recorded after tax profit of $0.49 million.
The company’s result was prepared on the basis of a going concern.
As at 31 December 2015, the group had drawn debt of $56m with ANZ Bank which matures on 31 August 2016. Devine has been able to get an extension on the testing of financial covenants until 31 March 2016.
Robinson said the current $56m net exposure to ANZ is secured by assets valued well in excess of the debt amount.
Under the terms, a breach of a financial covenant entitles ANZ to request repayment of the facility on demand.
Robinson said in such an event, the group currently does not have the immediate capacity to repay the facility in full nor does it currently have readily available alternate sources of liquidity.
“As a result, currently there is uncertainty in regard to whether the group can continue to operate as a going concern to realise assets and discharge liabilities in the ordinary course of business.
“Directors note that the ANZ Bank has continued to work closely with Devine Limited and its major shareholder, CIMIC Group Ltd, and has previously agreed to deferrals of a covenant testing date which it has recently extended to 31 March 2016,” he added.
Robinson said Devine’s primary focus is the completion of the strategic review and the upcoming discussions with ANZ.
Australian Property Journal
