Business Update

DCI Advisors Limited

12 May 2026

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.

DCI Advisors Ltd

(the "Company", the "Group" or "DCI")

Shareholder Update

Ahead of the Company's Annual General Meeting to be held on 26 May, the Directors wanted to provide shareholders with the following update. The Directors believe the Company has now entered a decisive phase in the execution of its strategy to realise value from its asset portfolio and return capital to shareholders.

Since the Company's last shareholder update in September, further progress has been achieved across a number of key areas, most notably:

•             Receipt of multiple expressions of interest for Kilada, representing the most significant strategic development during the period.

•             The sale of approximately €2.9 million of non-core land banks at Kilada, which reduced funding requirements and strengthened the Company's cash position.

•             Receipt of bank financing proposals relating to Kilada.

•             Strong interest from international hotel operators regarding operation of the planned hotel at Kilada.

•             Substantial progress in resolving outstanding tax matters in Cyprus, including recent settlement of the Apollo Heights tax obligation, enabling preparation for the land transfer process, which is expected to complete by the end of May and release approximately €4.15 million in cash to the Company.

•             Progressing the resolution of legacy tax and operational matters while reducing operating costs and simplifying its structure.

Progress on Asset Realisations

Since February 2025, the Company has entered into and completed or is in the process of completing asset sales, transactions, and settlement arrangements with an aggregate value exceeding €48 million. This includes approximately €2.9 million generated from non-core land sales at Kilada since December 2025. The total also includes payment in kind through the transfer of land surrounding Paphos, Cyprus, independently valued at €12.8 million. Approximately €15 million remains outstanding and receivable under these contracted transactions and settlements.

These disposals, transactions and settlements have supported continued deleveraging, improved liquidity, and strengthened the Company's financial flexibility.

Aristo Developers Ltd and Venus Rock (Cyprus)

The sale of the Company's stake in Aristo Developers and its interest in Venus Rock ("Venus Rock") for €31.1 million agreed 21 February 2025 remains a key milestone in the Company's realisation strategy. Consideration included cash and permitted residential land plots in Paphos, which continue to be marketed.

To date, €8.7 million (of which €3.2 million is held in escrow) of the cash consideration for the sale of Aristo Developers has been received, the land plots have been transferred to the Company's ownership and the final payment of approximately €11 million remains linked to the completion of tax filings and clearances in Cyprus, which continue to progress.

The Venus Rock disposal is also approaching completion, with total expected proceeds of approximately €3.5 million, of which €1.8 million is expected to be received in the near term. The Company notes that a tax amount of €1.7 million has been indicated as due by the Cypriot tax authorities in relation to the total value of the Venus rock disposal, which the Company disputes and intends to appeal against.

A key issue remains the tax treatment applied by the Cypriot authorities to the Aristo Developers and Venus Rock disposals. The authorities have taken the position that capital gains tax should be calculated based upon a 1980 valuation benchmark of the underlying land rather than on the Company's acquisition cost. The Company and its advisors do not agree with this approach, particularly as both investments generated a significant loss relative to acquisition cost.

The tax implications of the inter-company loans also remain under review, although the final position is expected to be resolved shortly. Resolution of these tax matters is expected to enable the release of funds currently held in escrow, including the majority of the €3.2 million escrow balance. The Company's advisors continue to progress discussions towards resolution of these matters.

Separately, discussions regarding the sale of the remaining land assets in Paphos have made limited progress since the disruption caused by the Iran conflict. While the Company expects these discussions to restart, it is also engaging with additional local real estate agents to support the sales process and broaden the pool of potential buyers.

Apollo Heights (Cyprus)

The Directors are pleased to confirm that the Apollo Heights transaction has now entered its final stage.

Following settlement of the related tax obligation, the Company is preparing for completion of the land transfer process, which is expected by the end of May. Upon closing, the Company expects to receive approximately €4.15 million in net cash proceeds. Further updates will be made in due course.

Cyprus Tax Matters and Transaction Closures

The Company has made substantial progress in resolving outstanding tax matters in Cyprus, which are critical to completing several transactions and releasing associated cash proceeds, although the process has at times proven challenging given differing interpretations of certain aspects of the Cypriot tax regime.

These processes have been complex, particularly following changes introduced to the Cypriot tax framework in 2015. The Company is currently managing four tax files, three of which are now close to resolution.

Kilada Golf & Country Club (Greece)

Kilada remains the Company's principal asset and the central focus of its strategy. The Company is currently engaged in discussions with multiple parties regarding the potential sale of its approximately 85% stake in the project. Several non-binding expressions of interest and indicative offers have been received, with discussions advancing on transaction structure and terms.

Initial due diligence work has already been undertaken by interested parties, with further formal diligence processes expected over the coming months. The Company's objective remains to maximise value for shareholders while maintaining disciplined oversight of the process.

Importantly, the Company has also received financing proposals from Greek banks relating to the hotel and branded residential components of the development, alongside strong interest from international hotel operators regarding management of the resort.

Development progress at the site continues. The golf course is nearing operational readiness, with 12 holes expected to become playable in the coming months.

In parallel, the Company completed approximately €2.9 million of non-core land disposals at Kilada, comprising €2 million from a sale in December 2025 and a further €0.9 million from two land plot disposals in early May 2026, strengthening liquidity and reducing future funding requirements.

Other Greek Land Assets

Progress continues in relation to Lavender Bay, including discussions aimed at resolving historic ownership matters and clarifying development rights. This includes securing ownership of undisputed land parcels and restructuring arrangements relating to the remaining areas.

For Plaka Bay and Scorpio Bay, preparatory planning work continues to enhance marketability, supported by external advisors.

Livka Bay Land (Croatia)

The sales process for Livka Bay continues following renewed marketing efforts. While there is ongoing interest in the asset, this is currently more pronounced from hotel operators than outright buyers of the project.

Further work is required to convert this interest into a full sale transaction. The Company continues to work closely with advisors to enhance the attractiveness of the asset and broaden the pool of potential buyers.

The Company also has an outstanding bank loan of approximately €3.95 million (plus interest) secured against the asset, which will need to be repaid as part of any transaction. The Board remains in active dialogue with the lending bank to ensure this exposure is managed in an orderly manner throughout the process.

Operational Efficiency and Cost Management

The Company continues to prioritise cost discipline and operational efficiency. Operating costs have reduced materially in recent years following the transition to a self-managed structure, resolution of legacy matters, and ongoing simplification of the Group structure.

Further initiatives remain under review to reduce recurring overheads and align the Company's cost base with its current realisation phase.

Financial Position

Asset sales and financial management initiatives have supported continued deleveraging of the Company. The Group's main outstanding liabilities are the balance of shareholder loans of approximately €2.75 million, which are expected to be repaid as they reach their respective maturity dates in 2026, and the bank facility at Livka Bay. Following the completion of the remaining deleveraging steps the Company expects to be in a position to commence returning capital to shareholders. Thereafter, future proceeds from asset sales are expected to be distributed to shareholders, subject only to retaining sufficient working capital for ongoing operations.

The anticipated completion of the Apollo Heights transaction and further progress on Cyprus matters are also expected to strengthen the Company's balance sheet and liquidity position further.

Outlook

As noted, the Company remains focused on progressing its asset realisation strategy and moving toward returning capital to shareholders.

With Kilada in an active sale process, Apollo Heights nearing completion, Venus Rock approaching closing, and substantial progress having been achieved across operational, tax and financing matters, the Board believes the Company is increasingly well positioned to advance its objectives.

While timing remains dependent on transaction execution, regulatory approvals and market conditions, the Company believes it is now operating with substantially greater clarity, financial flexibility and strategic focus.

The Directors acknowledge how difficult it has been to drive the business to this point and are pleased about the progress which has been made most recently. The Board believe that, given the Company's current stage, particularly the ongoing Kilada sale process, continuity within management remains essential to ensure consistent execution and preserve institutional knowledge.

Enquiries

DCI Advisors Ltd Nicolai Huls / Nick Paris, Managing Directors Sean Hurst, Chairman	[e-mail] [phone] [e-mail]
Cavendish Capital Markets (Nominated Adviser & Broker) Jonny Franklin-Adams / Edward Whiley (Corporate Finance) Pauline Tribe (Sales)	[phone]
FIM Capital Limited (Administrator) Caitlin Sleight/Nick Oxley (Corporate Governance)	[e-mail] /[e-mail]

 

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