(Alliance News) - Reconstruction Capital II Ltd on Friday said its portfolio companies took a beating in the first half of 2020 due to the challenges presented by Covid-19.
The closed-end investment fund posted a net asset value per share of EUR0.1428, down 1.5% since the start of this year.
Loss for the half ended June 30 narrowed to EUR297,790 from EUR454,409 a year prior.
Romania-based Mamaia Resort Hotels re-opened at the beginning of June, but is still under strict restrictions which is limiting the number of customers. It is expected to have a revised revenue of EUR2.0 million, down from the original EUR3.2 million.
Telecredit, a Romania-based non-banking financial institution, deployed EUR3.7 million in financing products to small and medium sized enterprises in the first half, generating an operating loss before depreciation of EUR200,000 due to increased provisions expenses, reflecting the difficulties small and medium-sized companies are currently facing due to the pandemic.
Both Mamaia Resort Hotels and Telecredit's operations were been badly affected by the Covid-19 pandemic, and both management teams have prepared revised budgets to reflect the estimated impact of the pandemic on their respective businesses this year.
Telecredit's revised budget expects a net loss of EUR390,000 compared to an original estimated net profit of EUR60,000.
More positively, paint and varnish company Policolor Group's sales results were up 3.4% to the year prior at EUR31.2 million. Sales of coatings were badly affected by the Covid-19 pandemic and related lockdown restrictions during April, but sales of both coatings and resins have since recovered, making up some of the lost ground.
At June 30, Reconstruction Capital II had cash and cash equivalents of around EUR10,000 while its subsidiary Reconstruction Capital II Cyprus had cash and cash equivalents of around EUR68,000.
Reconstruction Capital II shares were untraded on Friday and last closed at EUR0.11.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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