Raptis Group Limited - Quarterly Activity Report to 30 June 2024
RAPTIS GROUP LIMITED (RPG) Share Update July 2024 Monday 29th
Raptis Group Limited Reports Quarterly Activity and Financial Updates
Raptis Group Limited has released its quarterly activity report for the period ending 30 June 2024, providing insights into its business activities, financial performance, and future prospects.
Instant Summary:
- Stable income flow from The Gallery Residences letting and caretaking business.
- Anticipated increment of $100,000 in unaudited management reports.
- Amortisation for the twelve months to 30 June 2024 expected to be $61,504.
- Contingent liability of $100,000 for a personal injury claim.
- Pearl Main Beach Caretaking and Letting agreements to commence operations in September 2024.
- Ongoing project research and negotiations for a residential resort tower on the Gold Coast.
Business Activities
The Gallery Residences letting and caretaking business has continued to operate normally, generating a stable income flow. The audited accounts for 30 June 2024 will reflect the fair value recognition of any increment or decrement based on the investment property independent valuation at that date. An increment of $100,000 is anticipated in the unaudited management reports, following a $274,850 increment at 30 June 2023, which was an increase from the valuation dated 17 September 2021.
The management rights business cost is amortized according to IAS 38 Intangible Assets and is not disclosed at market value. Amortisation for the twelve months to 30 June 2024 is expected to be $61,504, compared to $77,805 in the prior year as disclosed in the 2023 Annual Report. Historically, the industry has shown growth in valuation multipliers over the past 30 years, and the asset class is generally considered to have lower business risk than property development.
Financial Updates
The management accounts to 30 June 2024 have not yet been audited but disclose a contingent liability of $100,000 for a personal injury claim. This amount represents the insurance excess, and there is significant uncertainty regarding the matter. However, it is not expected to exceed the insurance excess, and negotiations are ongoing to settle the issue appropriately.
The Pearl Main Beach Caretaking and Letting agreements were approved for acquisition by members at a general meeting. The building is nearing completion, with management rights expected to commence operations in September 2024. A deposit of $100,000 has been paid towards the acquisition of this asset and is noted in the Quarterly Cash Flow to 30 June 2024.
Property Development and Cash Flow
Project research and discussions with prospective Joint Venture/Funding partners are ongoing. The development of a residential resort tower on the Gold Coast is in the feasibility stage, with no firm commitments at this time. Negotiations are in the early stages and will be reported to the market as per Listing Rules.
Management rights are providing a consistent monthly cash flow. The quarter is not covered by 'use of funds' reporting as specified in section 4.7C.2.
The stable income flow from The Gallery Residences and the anticipated increment in valuation are positive indicators for Raptis Group Limited. However, the contingent liability for the personal injury claim introduces an element of uncertainty. The commencement of operations for the Pearl Main Beach Caretaking and Letting agreements in September 2024 is expected to further stabilize income. The ongoing feasibility study for the residential resort tower on the Gold Coast could provide future growth opportunities if successful.
Investor Reaction:
Investors are likely to view the stable income flow and anticipated valuation increment positively. However, the contingent liability for the personal injury claim may cause some concern. The upcoming commencement of operations for the Pearl Main Beach Caretaking and Letting agreements is expected to be a positive development.
Conclusion:
Investors should keep an eye on the final audited accounts for 30 June 2024 and monitor the progress of the Pearl Main Beach Caretaking and Letting agreements. The ongoing feasibility study for the residential resort tower on the Gold Coast could offer future growth opportunities. Staying informed about these developments will be crucial for making informed investment decisions.