Fort Cambridge sales slow, Gap liquidity improves

Gap Developments plc has reported an interim loss before taxation of €234,252 (2008: €93,501) and a group loss of €240,979 (2008: €107,263).

The company said that market conditions remained unchanged from that prevailing in the previous year, and sales of units at the upscale Fort Cambridge residential development in Sliema slowed. After reporting date, apartments reached shell form stage and the company started to receive 20 per cent deposits on the relevant preliminary agreements signed, reflecting positively on the company's cash flow.

The increase in equity from €6 million to €16 million, and the shareholders' loan agreements during the period to June, also improved its debt/equity ratio considerably. The company's liquidity also improved.

Gap Developments plc said that given the challenging scenario, management would continue to focus on increasing efficiency, tight cost control and maintaining the project's timescale.

Between January to June, momentum of work on site increased: four underground parking levels were completed. The construction of apartments on Level 1 and 2 of the South, West and East blocks began and a number were completed to shell form. The number of completed units currently stands at 30. The project's completion target date is mid-2011.

The directors did not recommend an interim dividend. The company has also announced that lawyer Pio Valletta and accountant John Abela had been appointed non-executive directors.