Camper & Nicholsons Marina Invst : Preliminary Results for the year to 31 December 16

Camper & Nicholsons Marina Investments Limited

('CNMI' or the 'Company' or the 'Group')

Preliminary Results for the year to 31 December 2016

Camper & Nicholsons Marina Investments Ltd (AIM:CNMI.L), the leading international marina company, today announces its preliminary results for the year ended 31 December 2016.

Highlights

· Sales of €10.2 million from underlying operating businesses (2015: €11.2 million). Excluding the €1.7 million revenue impact of the one-off Yas Marina ('Yas') termination fee and the Yas recharged expenses in 2015, revenues grew by 6.4%. Under international accounting standards, reported group revenues are €7.6 million (2015: €9.1 million)

o The Group's 2015 results included €1.7 million of revenues from recharged expenses and the termination fee relating to Yas with an associated EBITDA impact of €0.7 million which were not repeated in 2016

· Total operating expenses before depreciation reduced to €5.1 million (2015: €5.2 million). At constant exchange rates, operating expenses show a small increase over 2013 levels, some of which is turnover related

· Before a €1.0 million impairment charge in 2016 in relation to Port Louis and excluding the €0.7 million benefit of the Yas termination fee from the 2015 results, the loss before tax reduced by €0.5 million to €0.7 million (2015: €1.2 million). After the impairment charge, 2016 loss before tax was €1.7 million

· Group cash balances of €1.3 million at 31 December 2016 (2015: €3.0 million)

· NAV per share 15.4 euro cents (December 2015: 16.5 euro cents) with 165.8 million shares in issue (2015: 165.8 million)

· Completed refurbishment of St Katharine Docks in central London in early February 2017 with initial three year term of contract for management and branding commencing at that time

· Continued to work alongside Westcourt Real Estate (Europe) Ltd on proposals for the marina at East Cowes although the agreement for development of Victoria Quay remains subject to the satisfaction of certain conditions

Chairman, Sir Christopher Lewinton commented:

'The Company has made good progress since 2012 and is now a stronger business with reduced losses and strong underlying revenues. During this time we have had the benefit of continuity of our Management team and the continuing support of our major shareholder. Your Board believes that we are now well positioned to develop the opportunities that will arise from today's uncertain world and to realise the inherent value in the business.

Enquiries

CHAIRMAN'S STATEMENT

By Sir Christopher Lewinton, Chairman

The unaudited 5 year table of summary financials on the cover of this report demonstrates the progress made by the Company since 2012. Over that period operating revenues have increased by €2.4 million with EBITDA increasing by a similar amount from a €0.7 million loss (excluding the benefit of the berth sale) in 2012 to a €1.7 million profit in 2016.

Highlights of our 2016 Results were as follows:

· The Group's 2015 results included €1.7 million of revenues from recharged expenses and the termination fee relating to Yas Marina with an associated EBITDA impact of €0.7 million which have not been repeated in 2016

· With improvements at Grand Harbour Marina and in the Third Party Consultancy business excluding Yas referred to above, revenues in our underlying businesses increased by 6% to €10.2 million (2015: €9.6 million). However, headline Group revenues, which exclude revenues from our joint ventures, IC Cesme Marina ('IC Cesme') and Camper & Nicholsons First Eastern ('CNFE'), decreased by €1.5 million to €7.6 million (2015: €9.1 million) which reflects the loss of the termination fee and recharged expenses relating to Yas Marina.

· Operating expenses, excluding depreciation and exchange gains, remained tightly controlled with a €0.1 million reduction to €5.2 million (2015: €5.3 million)

· Performance, at two of our three marinas improved with increased revenues the key driver of GHM's improved PBT, up €0.3 million to €0.5 million. In difficult trading conditions in Turkey during 2016, Cesme succeeded in increasing PBT to €1.0 million (2015: €0.8 million) on revenues of €5.4 million, largely unchanged from last year. Port Louis made a €0.5 million loss before tax (2015: €0.4 million loss), before recognition of the impairment charge.

· As a result of the weaker trading performance at Port Louis, CBRE have reduced their year end valuation of that marina to US$19.75 million (2015: US$20.9 million). As this CBRE valuation is below the current book value of the Port Louis asset, these financial statements include a US$1.1 million (€1.0 million) impairment charge against the book value of Port Louis,

· Although there were improvements in underlying trading the inclusion of the impairment charge resulted in Group loss before tax of €1.7 million, an increase of €1.2 million from the €0.5 million loss in 2015, which benefitted from the Yas termination fee. This loss includes a breakeven result (2015: €0.1 million loss) from our share of the results from our joint ventures, Cesme (€0.3 million profit) and CNFE (€0.3 million loss).

· Net cash flow from operating activities reduced to €0.8 million (2015: €1.6 million) with the main changes being an increased investment in receivables in 2016 and the €0.8 million Yas termination fee received in 2015.

· Refurbishment of St Katharine Docks in London, where we have been overseeing the marina related work, was completed in February 2017. The initial three year term for management and branding of the marina commenced upon completion of the refurbishment

The management revenues generated last year by the Yas contract have been successfully replaced in our third party consultancy business with revenues generated from new and existing clients in the UK, Dubai, Mexico and Panama. Some of these have generated further consultancy opportunities and may also result in future marina management agreements. There remains a good pipeline of opportunities to support future consultancy revenue growth.

We reported last year that there had been an increase in activity levels in late 2015 and early 2016 at CNFE, our joint venture in Asia Pacific, and these continued through much of the year with a mix of new and returning clients. As a result, CNFE generated total revenues of €0.7 million as compared with just €0.2 million in 2015 with the majority of the 2016 revenues being in Asia however outside the People's Republic of China. The after tax loss reduced by €0.2 million to €0.5 million with our share being €0.25 million.

We continued to work with Westcourt Real Estate (Europe) Ltd on the Victoria Quay project which includes a marina at East Cowes. The project has been delayed by economic uncertainties and remains subject to satisfaction of certain conditions.

Outlook

The Company has made good progress since 2012 and is now a stronger business with reduced losses and strong underlying revenues. During this time we have had the benefit of continuity of our Management team and the continuing support of our major shareholder. Your Board believes that we are now well positioned to develop the opportunities that will arise from today's uncertain world and to realise the inherent value in the business.

Sir Christopher Lewinton

Chairman

29 March 2017

BUSINESS REVIEW

By Clive Whiley, CEO of Camper & Nicholsons Marinas Limited

2016 Review

We entered 2016 with a cohesive strategic plan, focused upon exploring ways to add value to the core business, whilst remaining both defensively positioned and cash constrained, as we awaited the outcome of the Brexit vote. I am now pleased to report:

· ‎a continuation in 2016 of the steady progress from our marina operating activities and consultancy business fees with revenues increasing by 5% and 60% respectively, excluding the impact of the fee from the termination of the Yas Marina management contract in August 2015. Gross profit of €6.2 million (2015: €6.7 million including €0.7 million Yas termination fee impact) represents compound growth of 12% per annum since 2013;

· operating expenses, excluding depreciation and exchange gains were once again well controlled, falling marginally in 2016, to €5.2 million (2015: €5.3 million) and representing only a small increase over 2013 levels in constant currency terms;

· as a result, before a €1.0 million impairment charge in relation to Port Louis and excluding the €0.7 million prior year benefit of the Yas termination fee, the loss before tax decreased by 40% to €0.7 million (2015: €1.2 million loss);

Marina Development Assets

Grand Harbour Marina, Malta ('GHM') - the Maltese Government-led regeneration of the waterfront, around and adjacent to the marina, continues apace in preparation for Valletta's term as European Capital of culture in 2018, with refurbishment works to the historic Knight`s and British buildings:

· several years of Government-led investment are now highly visible and, in our view, likely to encourage complementary foreign investment in the remaining pockets of undeveloped marina side real estate;

· all of the above enhances the GHM experience for boat owners, their guests and crew;

In the interim we have developed a clear strategic understanding as to how to harness the development potential of GHM, where we have over a decade`s history of consistently improving marina performance, in a location which we believe has the potential to be a premium destination of choice for super yachts in the Mediterranean.

Victoria Quay Estate Limited ('VQEL')- we continue to work alongside Westcourt Real Estate (Europe) Ltd ('WREE'), on proposals for a new 400 berth marina at East Cowes on the Isle of Wight.

First Eastern, which has a 59% shareholding in Camper & Nicholsons Marina Investments Limited, is the lead investor in VQEL and has been instrumental in maintaining progress as the wider project has been delayed by economic uncertainties surrounding Brexit, and remains subject to the satisfaction of certain conditions.

In our capacity as consultant to the developer, we remain convinced of the opportunity for a Camper & Nicholsons branded Marina at East Cowes.

IC Cesme Marina- whilst we have understandably taken a more defensive stance with regard to our 45% interest in our marina in Turkey I am delighted to report:

· a 35% increase in Cesme profit before tax to €1.0 million, representing a highly creditable performance given the uncertainties post the events of 15th July in Turkey;

· the repayment of €2.0 million of the subordinated loan from Isbank with GHM's share (€0.9 million) of the pledged cash balance returned following the year end;

We intend to maintain our cautious stance for Cesme as we anticipate increased competition in the region from other, less attractive marinas.

Port Louis Marina- in light of the 2016 trading performance at Port Louis and the Board's view that this nevertheless represents a key development asset, the Board is considering opportunities to best realise its value for shareholders.

Marina Consultancy Fees

Marina consultancy fees, excluding therevenue from the termination of the Yas Marina management contract in August 2015, were at a record level in 2016 with the redesign & refurbishment of St Katharine Docks, in central London, completed on time and within budget for Blackstone Group. Hence in February 2017 we welcomed St Katharine Docks to our portfolio of marina management contracts as a fully branded Camper & Nicholsons marina.

We continue to undertake feasibility work on several marinas, worldwide, which could ultimately lead to additional management contracts.

Camper & Nicholsons First Eastern ('CNFE')

The long-term attractions of sustainable revenue growth in the region have encouraged us to persevere with CNFE, our Hong Kong-based Asian joint venture, and I would like to thank First Eastern for their continued efforts in supporting the joint-venture locally. In addition the quality of repeat work-in-progress now evident should assist in providing a sustainable platform from which to build upon in due course.

Outlook

We entered 2017 finally positioned to pursue a more expansive development strategy, particularly at GHM, designed to drive liquidity into our existing portfolio of marinaprojects and developmentassets, in pursuit of our core objectives.

Central to this will be our desire to build upon the demonstrableprogress made in growing EBITDA from our owned marinas, as marina revenue streams continue to be re-evaluated with the return ofinterest in the sector.

We are confident this will ultimately allow us to release the latent potential evident within the business for the benefit of shareholders.

Operating Performance

Excluding berth sales, as shown in the table below, the combined revenues of our 3 marinas, GHM, Port Louisand 45% of Cesme, increased in the year by €0.4 million or 5% with increases at GHM and Cesme and a small decrease at Port Louis.

The market for the sale of superyacht berths has remained challenging and as shown in the table below in the continuing difficult markets, no sales have been achieved during the period 2013 to 2016. However there were a number of enquiries during 2016 which could result in future sales although the timing and value of these remains difficult to forecast. During 2016 however one berth resale was completed at GHM which generated a €0.1 million fee, which is classified as Marina Operating Revenue, for that marina.

Revenues from our third party marina services business (including 50% of the revenues from our Hong Kong based joint venture, CNFE), reduced by €1.1 million. However when the impact of the one-off Yas termination fee (€0.8 million) and the recharged expenses (€0.9 million) to Yas in 2015 are excluded the underlying revenues increased by €0.6 million. Our 50% share of CNFE contributed nearly €0.3 million of the increase with a similar increase generated by ROW Consultancy. Significant work was completed on projects in the UK, Dubai, Panama and Mexico which it is expected will lead to further revenues in 2017. The business pipeline remains strong with new opportunities under review in several geographic regions. As reported last year, CNFE entered 2016 with an improved pipeline and as a result sales by CNFE more than trebled to €0.7 million (our share €0.35 million) with the majority relating to projects outside the Peoples Republic of China (PRC). The increased profile of CNFE and successful completion of previous projects resulted in business from both new and returning clients. The business pipeline at the end of 2016 remained strong.

As reported above and last year, the 2015 results benefitted from non-recurring revenues of €1.7 million on the Yas contract with a €0.7 million benefit at EBITDA and PBT level from the termination fee. The 2016 revenues, EBITDA and PBT, before the impairment charge, all show improvements over 2015 when these one-off Yas impacts are excluded. The 2016 results also include €0.2 million of charges relating to bad debts without which the 2016 PBT result would have shown improvement over the unadjusted 2015 results.

Summary Group Financials

* Under IFRS 11, revenues of the Group's two joint ventures, IC Cesme Marina and CNFE are excluded from the headline figures and the Group's share of the results of those two businesses is reported as a single line item, being, 'Share of profits/(losses) of equity accounted investees'. The breakeven result for the year includes the Group's share of the after tax profit at Cesme, €0.3 million, and the loss at CNFE, €0.3 million.

Operating costs reduced by €0.1 million from 2015 with the benefit of the 11% reduction in the average €:£ exchange rate offsetting other cost increases, some of which were turnover related. Net interest expense reduced by €0.2 million primarily due to the benefit of the reduced interest rate and lower outstanding debt at Port Louis and the non-recurrence of premiums paid on bond buybacks at Grand Harbour Marina.

Grand Harbour Marina

Increased tourist footfall in the area around the marina has resulted from the opening to the public of the UNESCO World Heritage site at Fort St. Angelo, the restoration of which was completed in 2015. With Malta holding the EU presidency until June 2017 the Government intends to use Fort St. Angelo for a number of high level summit meetings. The Maltese Minister for Transport & Infrastructure has stated that Malta's vision is to develop the island as a leading maritime and yachting hub in the Mediterranean. Transformation of the landside area around the marina is continuing with restoration works starting on the Captain of the Galleys' Palace and progress made on the American University of Malta project which is planned to open in the second half of 2017.

Grand Harbour Marina again hosted the finish and closing event for the 2016 Baille de Suffren classic yacht race in addition to numerous events for owners and their guests and captains and crews of boats berthing at the marina. The marina also provided berthing to some participants, including the winner, in the 2016 Rolex Middle Sea Race.

Trading

Sales revenues excluding berth sales increased by nearly 14% with berthing revenues increasing by 16% and utility revenues, including fuel sales, increasing by around 8%. The key factor in the increase in berthing revenues was the overall level of superyacht visitors. Since 2012 the compound growth in revenues, excluding berth sales, has been nearly 11%. Over the same period the level of operating expenses, excluding the impact of the 2012 berth sale, has increased by around 5% resulting in a high proportion of the revenue increase being reflected in EBITDA. 2016 EBITDA improved to €1.5 million an increase of 15% over the prior year. After finance charges of €0.7 million, primarily relating to the Bond interest cost and depreciation of €0.3 million, GHM achieved a €0.5 million profit before tax (2015: €0.2 million). GHM paid a €0.5 million (2015: Nil) dividend in September.

Although there were a number of berth sale enquiries during the year, none of these has yet been converted into a completed sale. However, the resale of a 75m berth was completed during the year resulting in a €0.1 million fee being paid to GHM.

During the year, in accordance with the terms of the Bond issue made in 2010, GHM placed €0.8 million (2015: €0.8 million) in the sinking fund towards repayment of the Bond. No further buyback of the outstanding bonds was made during the year. At 31 December 2016 there was €1.9 million (2015: €1.1 million) held in the sinking fund.

CBRE valued 100% of GHM at €23.2 million as at 31 December 2016 (2015: €23.1 million). This valuation compares with the market capitalisation of GHM on the Malta Stock Exchange on 29 March 2017 of €17.9 million.

Cesme Marina

Cesme Marina, Turkey, our 45% joint venture with IC Holdings maintained performance at a similar level to 2015 in spite of difficult trading conditions in Turkey where the tourism sector has been adversely impacted by the political uncertainty and concerns over terrorism. Management have been working closely with Palmarina, an independent high quality Turkish marina and member of the 1782 Club, to retain existing customers and attract new ones by emphasising 'life goes on'. Cesme Marina continues to be involved in the Izmir Autumn and Winter Trophy races and this year's Autumn event attracted 29 participants. For 2017, Cesme, the only marina in the region where races are arranged, is organising 14 seasonal sailing races spread across the year. Landside events arranged in the summer season included exhibitions for both seaside and landside clients and activities for berth holders.

Trading

Revenues in 2016 increased by €0.1 million from the levels achieved in 2015 with all of the increase generated by the landside operations. When considered in local currency however revenues increased by 13% over 2015 with landside up 16% and seaside up 11%. Since 2012 Cesme has shown compound growth in revenues in Euros in excess of 7% per annum in spite of a 31% reduction in the average Turkish Lira to Euro exchange rate which impacts on some of the landside revenues. Operating expenses, excluding depreciation, remained stable at €2.9 million with reduced operator fees and the benefit of the weak Turkish currency applied to some local costs offsetting the impact of cost inflation. After net finance charges and depreciation of €0.4 million and €0.8 million respectively, Cesme made a profit before tax of €1.0 million (2015: €0.8 million). With brought forward losses now all utilised, Cesme incurred a €0.4 million (2015: €0.15 million) tax charge in the year.

The Group's 45% share of Cesme's after tax profits was €0.29 million (2015: €0.27 million) and this is included within its total share of profits of equity accounted investees, net of tax.

Having added 21 small berths in 2015, management succeeded in realigning some pontoon berths during the year and added a further 9 new berths increasing the number of berths available to 394. At the end of 2016, there were 357 boats on annual contracts with a further 37 boats contracted on a seasonal basis. The marina remains at full occupancy in terms of berth numbers however the opportunity to continue to grow revenues remains as the marina is only 75% full in terms of berthing area and management is continuing to try to increase the average size of boats in the marina as annual contract renewals occur. The political and economic situation in Turkey resulted in 10% decrease in the average rate for the Turkish Lira against the Euro as compared with 2015. This had a beneficial impact on operating expenses but an adverse impact on landside revenues as in each case some are denominated in Turkish Lira. By the end of the year the exchange rate had decreased a further 10% from the average rate during the year and was nearly 15% below the rate at the end of 2015. As in previous years a number of berth holders did not renew their annual contracts with changing location and sale of the boat the most common explanations, not price. Management however were successful in finding new annual berth holders with a small net increase in the number of berths let and the square meterage let.

The retail properties remained fully occupied during the year with management continually looking to improve the quality of the customer offering. The full year effect of the significant renegotiation exercise completed in 2015 led to further increases in rents in local currency, particularly fixed rents and common area charges with landside income increasing by 15% before the adverse impact of the weak local currency.

CBRE valued 100% of Cesme Marina at €18.3 million as at 31 December 2016 which is a small decrease on their €18.9 million valuation as at 31 December 2015, reflecting primarily the one year reduction in the remaining life of the BOT contract.

Port Louis Marina

* 2016 and 2012 PBT results excludes the €1.0 million and €3.8 million impairment charges in those years respectively.

In addition to the World Arc Rally hosted in March and the finish of the RORC Transatlantic race hosted in December for the third consecutive year, Port Louis Marina hosted the first ever Yacht Charter Show in Grenada (organised by Select Yachts) and was heavily involved in the first ever Pure Grenada Music Festival held on the adjoining property. Both events were considered a great success, generated good publicity for the marina and are planned to be repeated in 2017. The traditional New Year's Eve party was also hugely successful. Among notable yachts to visit the marina during 2016 were the 93m SY EOS and the returning 64m SY Pilar Rossi with the latter highlighting the benefit of being at Port Louis Marina in the hurricane season.

Trading

As reported with the Interim results the number of boats in the region decreased from the levels seen in 2015 although with an increase in the average length of stay, berthing revenues were similar to those achieved in 2015. Seaside utility revenues were however €0.1 million below the level achieved in 2015 due to price reductions which also led to a reduction in associated cost of sales. With all landside units occupied, landside revenues matched the levels seen in 2015.

Grenada remains an attractive location for development and during 2016 construction commenced on the Silversands hotel and private villas. This 5 star development will benefit from the proximity of the airport and will increase the number of high net worth visitors to the island. The new villas at Silversands are expected to be owned by potential clients for Port Louis Marina.

Tight control of costs and a largely unchanged average US$:€ exchange rate resulted in no change from the level of operating costs seen in 2015. With a small decrease in revenues partly offset by the reduction in costs of sales and maintained operating costs, Port Louis achieved a €0.2 million EBITDA profit (2015: €0.3 million). After depreciation and interest charges there was a pre and post-tax loss of €0.5 million (2015: €0.4 million loss). With the full year benefit of the interest rate reduction agreed from mid-2015 with Scotia Bank and the reduction in the outstanding balance of the loan, the net interest cost reduced by nearly €0.1 million.

Capital expenditure in the year of €0.1 million (2015: €0.1 million) related mainly to operational equipment with some marina offshore and onshore improvement works.

Dream Yacht Charters which commenced operating at Port Louis Marina in 2013 with four berths signed a five year extension during 2016 with fourteen berths together with office and storage space.

CBRE has valued the Port Louis marina at US$19.75 million (€18.7 million) at 31 December 2016, (2015: US$20.9 million, €19.2 million). After adjusting this valuation by US$1.5 million for the estimated value of the unused seabed to which CBRE did not attribute a specific value, the valuation remains below the carrying value of the asset. As explained in Note 14 the shortfall is an indicator of impairment and after due consideration the Directors have included an impairment charge of US$1.1 million (€1.0 million) in the 2016 financial statements. After adjusting for other assets and liabilities, losses and exchange impacts there is a cumulative positive NAV adjustment of €0.1 million.

Third Party Marina Consultancy

(including 50% share of CNFE joint venture)

The above figures include the Group's 50% share of the results of Camper & Nicholsons First Eastern, our Asia Pacific joint venture with First Eastern although, under the IFRS 11 accounting standards, the detailed revenues and costs of the joint venture are not shown in the Statement of Comprehensive Income as they are included as part of a total share of profits and losses of equity accounted investees net of tax. The Group's share of CNFE's EBITDA in 2016 was a loss of €0.3 million (2015: €0.4 million loss) on revenues approaching €0.4 million (2015: €0.1 million). Further information on the Group's share of the results of CNFE is provided in Note 13 to the Financial Statements.

The business provides sales and marketing, technical and operational services to a range of third party marinas in addition to our three owned marinas and also services to the parent company, Camper & Nicholsons Marina Investments Limited. As reported last year the 2015 results included recharged expenses and a termination fee relating to Yas Marina which together generated external revenues of €1.7 million with an estimated EBITDA impact of €0.7 million. Non-recurrence of the Yas recharged expenses resulted in a €1 million reduction in cost of sales from the 2015 level. Management has been successful in replacing the normal management fees generated from the Yas contract in 2015 and generated over 25% growth in external revenues over 2015 when the Yas termination fee and recharged expenses are excluded.

Year on year external revenue growth was driven by the improved performance at CNFE with work completed in the People's Republic of China, Malaysia, Vietnam and the Maldives and new and existing projects for the Rest of World Consultancy Business. The existing clients included provision of consultancy services for the refurbishment of St Katharine Docks in London, as consultant to Victoria Quay Estate Limited for the construction of a new marina at East Cowes and for operating management and branding of Limassol Marina in Cyprus. New projects involved significant work in Dubai, Mexico and Panama in addition to some smaller projects in the UK and Europe with the majority of these projects providing the opportunity for future revenues.

Revenues from the Group's owned businesses decreased due partly to the non-recurrence of additional fees from Cesme and partly due to exchange rate impacts.

The combined operating costs of the business remained constant at €2.3 million with beneficial impact of the lower average £:€ exchange rate on the UK business operating costs offset by €0.2 million cost of bad debt provisions in Rest of World Consultancy and CNFE and other small cost changes.

Net Asset Value and property valuation

At 31 December 2016 the Group's net assets, on an IFRS basis, amounted to €26.0 million (Dec 2015: €27.8 million). Of this amount, €0.5 million related to the minority shareholders in GHM with €25.5 million (Dec 2015: €27.3 million) attributable to the equity shareholders of the Company, which equated to 15.4 cents (Dec 2015: 16.5 cents) per share on both a basic and diluted basis. As reported in prior years, these figures do not reflect any revaluation of the Company's investments in subsidiaries and joint ventures, since in accordance with our statutory accounting policies, which conform to the requirements of International Financial Reporting Standards (IFRS), such investments are consolidated in the statement of financial position at the book value of the Group's share of net assets. On a revaluation basis, the net assets per share were 19.4 cents (Dec 2015: 20.5 cents) on both a basic and diluted basis.

However, in accordance with the Group's stated valuation policy, which was set out in its Admission Document, CBRE Limited has updated its valuations of Cesme Marina, Turkey, Grand Harbour Marina, Malta and Port Louis Marina, Grenada. The basis on which these valuations were completed, is explained in the Note at the end of this report. CBRE's valuations of Cesme, Grand Harbour Marina and Port Louis Marina, completed in accordance with RICS Valuation - Professional Standards (2014), are €18.3 million, €23.2 million and US$19.75 million (€18.7 million) respectively. Adjusting for debt and other liabilities, and taking into account the Company's 100% shareholding in Port Louis Marina and 79.2% shareholding in GHM, which itself owns 45% of Cesme, there is a cumulative NAV increase of €6.7 million equating to an Adjusted NAV per share of 20.5 cents on both a basic and diluted basis.

The Company holds some investments, which are accounted for and valued in currencies other than Euros. In keeping with its stated policies, it is not intended to hedge the exchange rate risk but, where possible, the Company's investments and related borrowings will be in matched currencies.

The NAV, and reconciliation to Adjusted NAV, are summarised in the table below.

Basic and diluted per share figures are the same as there are no options outstanding at the reporting date

The year on year reconciliation is shown in the table below:

Basic and diluted per share figures are the same as there are no options outstanding at the reporting date

Note concerning Property Valuations

CBRE Ltd is the Company's property valuer and has prepared valuations for Grand Harbour Marina, Malta, Cesme Marina, Turkey and Port Louis Marina, Grenada. Further information is set out below.

Grand Harbour Marina, Malta

The property was initially valued as at 11 June 2007 in accordance with Royal Institution of Chartered Surveyors Appraisal and Valuation Standards Fifth Edition (Red Book) in the sum of €23.2 million. The property was valued as a fully operational business entity with reference to trading potential. The property is occupied by way of a sub-Emphyteusis agreement granted June 1999 expiring in 2098. The property was valued again in accordance with the RICS Valuation - Professional Standards January 2014 ('the Standards') at 31 December 2016 in the sum of €23.2 million. We are in receipt of a valuation report as at 31 December 2016.

Cesme Marina, Turkey

The property was initially valued as at 20 April 2007 in accordance with Royal Institution of Chartered Surveyors Appraisal and Valuation Standards, Fifth Edition (Red Book) in the sum of €4.1 million. The property was valued as a fully operational business entity with reference to trading potential. The property is occupied by way of a Build Operate and Transfer agreement expiring after 25 years. On expiry, all interest in the Marina, its fixtures and fittings will revert to the Turkish Government, free of consideration or compensation. The property was valued again at 31 December 2016 in accordance with the RICS Valuation - Professional Standards January 2014 ('the Standards') in the sum of €18.3 million. We are in receipt of a valuation report as at 31 December 2016.

Port Louis Marina, Grenada

The property was initially valued as at 6 December 2007 in accordance with Royal Institution of Chartered Surveyors Appraisal and Valuation Standards Fifth Edition (Red Book) in the sum of $27.3 million (€18.7 million). The property and reclaimed land for development was valued in its then current state with reference to trading potential. The property is occupied by way of a 99 year lease from the Government of Grenada which expires in 2105 but is renewable at that time for a further 99 years. The property was valued again at 31 December 2016 in accordance with the RICS Valuation - Professional Standards January 2014 ('the Standards') in the sum of $19.75 million (€18.7 million). We are in receipt of a valuation report as at 31 December 2016. As explained in Note 14 of these Consolidated Financial Statements the CBRE valuation is around 9% below the current book value. The Directors, having considered the current economic climate and the global uncertainties have concluded that the value of Port Louis Marina may not return to book value in the near term and have therefore decided that an impairment charge of US$1.1 million (€1.0 million) is necessary.

Independent auditor's report to the members of Camper & Nicholsons Marina Investments Limited

We have audited the consolidated financial statements (the 'financial statements')of Camper & Nicholsons Marina Investments Limited (the 'Company') together with its subsidiaries, (together the 'Group') for the year ended 31 December 2016, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Financial Position, the Consolidated Statement of Cash Flows, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards.

This report is made solely to the Company's members, as a body, in accordance with section 262 of the Companies (Guernsey) Law, 2008. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Board of Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

· give a true and fair view of the state of the Group's affairs as at 31 December 2016 and of its loss for the year then ended;

· are in accordance with International Financial Reporting Standards; and

· comply with the Companies (Guernsey) Law, 2008.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies (Guernsey) Law 2008 requires us to report to you if, in our opinion:

· the Company has not kept proper accounting records; or

· the financial statements are not in agreement with the accounting records; or

· we have not received all the information and explanations, which to the best of our knowledge and belief are necessary for the purpose of our audit.

KPMG Channel Islands Limited

Guernsey, Channel Islands

Chartered Accountants

29 March 2017

Consolidated Statement of Comprehensive Income

The accompanying notes (see below) form an integral part of these consolidated financial statements.

Consolidated Statement of Financial Position

As at 31 December 2016

These consolidatedfinancial statements were approved by the Board of Directors on 29 March 2017.

Sir C Lewinton, Chairman M Bralsford, Director

The accompanying notes (see below) form an integral part of these consolidated financial statements.

Consolidated Statement of Cash Flows

For the year ended 31 December 2016

The accompanying notes (see below) form an integral part of these consolidated financial statements.

1 Corporate Information

Camper & Nicholsons Marina Investments Limited ('the Company') is a limited liability company, registered and domiciled in Guernsey, whose shares are publicly traded on the AIM Market.

The principal activity of the Company and its subsidiaries and joint ventures (together the 'Group') during 2016 was the acquisition, development, redevelopment and operation of an international portfolio of both new and existing marinas and related real estate in the Mediterranean and the United States / Caribbean. The Group has also continued to develop its third party marina management and consulting business.

The Consolidated Financial Statements of the Group for the year ended 31 December 2016 were authorised for issue in accordance with a resolution of the Directors on 29 March 2017.

2 Basis of preparation

The consolidated financial statements of the Group for the year to 31 December 2016 have been prepared on a historical cost basis and are presented in Euro 000s.

Going concern

The Directors are actively pursuing opportunities to drive liquidity into the Group's portfolio of assets, the net proceeds from which should provide significant cash resources for the Group's future needs. In the interim, until this process is completed, the Directors, after making the necessary enquiries, believe that the overall improvement in the underlying trading results and the consequent improvement in cash generation, alongside a planned further reduction in central costs, combined with the availability of cash elsewhere within the Group which could be utilised if required, and access to funding from the Group's major shareholder, the Group has adequate resources to continue in business for the foreseeable future. Accordingly the Directors believe that it is appropriate to continue to apply the going concern basis in preparing the consolidated financial statements.

Statement of compliance

The consolidated financial statements of the Group, which give a true and fair view, have been prepared in accordance with International Financial Reporting Standards (IFRS) and are in compliance with The Companies (Guernsey) Law 2008.

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group at 31 December each year. The financial statements of the subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies.

(i) Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

(ii) Business Combinations

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group (see note 2i) The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment.

(iii) Equity Accounted Investees

The Group's interests in equity accounted investees comprise interests in two joint ventures and these are accounted for using the equity method. They are initially recognised at cost. Subsequent to initial recognition, the consolidated financial statements include the Group's share of the profit or loss of equity accounted investees, until the date on which significant influence or joint control ceases.

An impairment loss in respect of an equity-accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss, and is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.

(iv) Non-Controlling Interests

Non-Controlling Interests are measured at their proportionate share of the acquiree's identifiable net assets at the date of acquisition plus their proportionate share of profits and losses since acquisition less any dividends paid.

(v) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions are eliminated on consolidation.

Significant accounting judgments, estimates and assumptions

The preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future.

(a) Judgements

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements is included in Note 4, Revenue recognition.

(b) Assumptions and estimation uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are: the impairment of non-financial assets, the impairment of trade receivables and the measurement of fair values. The policies adopted for each of these items are included within the detailed accounting policies in Note 4.

3 Changes in accounting policies

The Group has applied consistently the accounting policies set out in Note 4 to all periods presented in these consolidated financial statements.

4 Summary of significant accounting policies

Goodwill

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,

allocated to each of the Group's cash generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes or duty. The following specific recognition criteria must be met before revenue is recognised:

Licensing of super yacht berths

Super yacht berths are licensed to berth holders on terms which transfer substantially all the risks and rewards incidental to ownership. Revenue from such licensing is recognised in the statement of comprehensive income on the signing of the licensing agreements with the berth-holders, on the basis that they give effect to the sale of the Group's right to the use of such berths.

Rendering of marina operating activities and consultancy fees

Revenue from the rendering of marina operating activities and consultancy fees is recognised when the services have been delivered. When services are delivered evenly over a period of time the revenue is recognised pro rata to the time elapsed.

Rental income

Rental income from operating leases is recognised on a straight line basis over the term of the rental.

Taxation

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred income tax

Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax assets and liabilities are recognised for all taxable temporary differences, except:

- where the deferred tax liability arises from the initial recognition of goodwill, and

- in respect of taxable temporary differences associated with investments in subsidiaries or joint ventures where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

The carrying amount of deferred income tax assets and liabilities is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that had been enacted or substantially enactedat the reporting date.

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies.

Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset, including interest incurred during the construction phase.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

(ii) Subsequent costs

Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. On-going repairs and maintenance expenditure is expensed as incurred.

(iii) Long term berth licences

As described above under revenue recognition, part of the Group's operating activities involves the licensing of superyacht berths under finance leases typically for periods of 25-30 years. The cost of such berths is apportioned between that part attributable to the initial licensing period, which is recognised immediately in profit or loss within the consolidated statement of comprehensive income, and that part (the residual amount) attributable to the time period which extends beyond the initial licensing period. The method of cost apportionment used represents a fair reflection of the pattern of future economic benefits estimated to accrue from the licensing of such berths. The residual amount is classified in the consolidated Statement of Financial Position as 'deferred costs' and included within property, plant and equipment. (see note 14)

(iv) Depreciation

Items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated.

Items of property, plant and equipment are depreciated from the date they are installed and are ready for use. Assets in course of construction are not depreciated.

The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:

Leasehold seabed 99 years

Buildings 10-24 years

Superyacht berths 50 years

Pontoons 25 years

Motor vehicles 5 years

Other equipment 5 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

In relation to the superyacht berths, depreciation is provided up to the point when a long term licensing contract is signed, at which time the carrying amount of such berths is apportioned and accounted for as explained in (iii)above.

Cash and cash equivalents

Cash and cash equivalents in the consolidated Statement of Financial Position comprise cash at banks and at hand and short term deposits with an original maturity of three months or less.

For the purposes of the consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

Trade and other receivables

Trade receivables are recognised and carried at the lower of their original invoiced value and recoverable amount. Where the time value of money is material, receivables are carried at amortised cost. Provision is made where there is objective evidence that the Group will not be able to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.

Trade and other payables

Trade payables are included at the lower of their original invoiced value and the amount payable.

Interest bearing loans and borrowings

Obligations for loans and borrowings are recognised when the Group becomes party to the related contracts and are measured initially at fair value less directly attributable transaction costs.

After initial recognition interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are realised respectively in finance revenue and finance cost.

Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised as expense using the effective interest method.

Foreign currency

(i) Foreign currency transactions

The consolidated financial statements are prepared in Euros, which is the Company's functional and presentational currency. Transactions in a foreign currency are initially translated into the functional currency at the exchange rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the rate of exchange ruling at the reporting date.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

All differences are taken to the consolidated Statement of Comprehensive Income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Euro at exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income, and presented in the foreign exchange reserve in equity. However, if the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and presented in the foreign exchange reserve in equity.

Impairment of non-financial assets

The carrying amounts of the Group's non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill and indefinite life intangible assets are tested every six months for impairmentand at other times when such indicators exist.An impairment loss is recognised if the carrying amount of an asset or cash generating unit (CGU) exceeds its recoverable amount.

Impairment losses are recognised in profit or loss within the consolidated Statement of Comprehensive Income. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Impairment of non-derivative financial assets

Financial assets not classified as at fair value through profit or loss are assessed at each reporting date to determine whether there is objective evidence of impairment which may include default or delinquency of a debtor, restructuring of amounts due to the Group on very unfavourable terms, indications that a debtor or issuer will enter bankruptcy and the disappearance of an active market for a security.

Fair values

The Group uses market observable data as far as possible to measure the fair value of an asset or a liability. Fair values are categorised into different levels in a fair value hierarchy as defined in IFRS13.

Share Capital

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.

Leases

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Other leases are operating leases and not recognised in the consolidated Statement of Financial Position; lease payments under operating leases are straight lined across the term of the lease.

Segment reporting

All operating segments' operating results are reviewed by the CEO of Camper & Nicholsons Marinas Ltd, the Group's chief operating decision maker, to make decisions about resources to be allocated to the segment and assess its performance.

Reported segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and liabilities (primarily Camper & Nicholsons Marina Investments Limited) and head office expenses.

When trading occurs between segments this is done at current market prices and revenues are accounted for as if services were being provided to a third party.

Segment expenditure on non-current assets is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill.

Standards issued but not yet effective

A number of new standards and amendments to standards are effective for annual accounts beginning after 1 January 2016, and have not been early adopted in preparing these consolidated financial statements.

Those which may be relevant to the Group are set out below.

IFRS 9 (Financial Instruments) published in July 2014, replaces the existing guidance in IAS 39 Financial Instruments Recognition and Measurement.IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment of financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and de-recognition of financial instruments from IAS39. IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The Group is assessing the potential impact on its consolidated financial statements resulting from the application of IFRS 9.

IFRS 15 (Revenue from Contracts with Customers) establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. IFRS 15 is effective for annual reporting periods beginning on or after 1 January 2018 with early adoption permitted. The Group is assessing the potential impact on its consolidated financial statements resulting from the application of IFRS 15.

IFRS 16 (Leases) published in January 2016, replaces the existing guidance in IAS17 (Leases) and changes fundamentally the accounting by lessees. It introduces a single, on-balance sheet accounting model for all leases similar to the current finance lease accounting. Lessor accounting remains similar with lessors continuing to classify leases as finance and operating leases. Sale-and-leaseback is effectively eliminated as an off-balance sheet financing structure. IFRS 16 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted provided IFRS15 has also been adopted. The Group is assessing the potential impact on its consolidated financial statements resulting from the application of IFRS16.

5 Seasonality of operations

Marinas derive their income from several sources some of which will produce greater revenues during the summer months and while these seasonally-affected sources are generally relatively small in relation to the overall level of sales they can make an important contribution to profitability. The timing of long term berth sales, which are neither seasonal by nature nor capable of accurate prediction, can have a more significant impact on the level of both sales and profits.

6 Segmental Reporting

Under the 'management approach' to segmental reporting, the Company believes there are two separately reportable segments to its business, Marina operations and Marina consultancy. These two operating segments are managed separately as they have different resource and capital requirements. A summary of the business operations in each of these two operating segments is given below:

Marina operations:ownership and operation of high quality marina facilities providing berthing and ancillary services for yachts and super yachts.

Marina consultancy:provision through multi-year contracts of a range of services, including consultancy, to third party marinas.

The results for these two segments for the year ended 31 December 2016 are set out below:-

Reconciliation of reportable segment revenues and profit and loss

10 Taxation

10.1 Taxation charge

The parent company, Camper & Nicholsons Marina Investments Limited is a Guernsey Exempt Company and is therefore not subject to taxation on its income under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. An annual exempt fee of £1,200 (2015:£1,200) has been paid. The Group's tax charge during the year is calculated as shown in the table below and as last year consists primarily of a deferred tax charge and a small income tax charge with the latter relating to withholding tax in foreign jurisdictions.

The deferred tax liability has increased by €378k to €482k at 31 December 2016 (31 December 2015: €104k) with this balance reflecting the temporary differences relating mainly to plant and equipment net of unrelieved tax losses and unabsorbed capital allowances.

The deferred tax charge reflects the change in recognised unrelieved tax losses and unabsorbed capital allowances.

10.2 Reconciliation of taxation charge

A reconciliation between tax expense and the product of accounting profit multiplied by domestic tax rates in the countries of operation for the year ended 31 December 2016 is as follows:

11 Earnings per share

Basic earnings per share amounts are calculated by dividing €2,200k Group net loss (2015: €812k Group net loss) for the year attributable to ordinary equity holders of the parent by 165,784k (2015: 165,784k) being the weighted average number of ordinary shares outstanding during the period.

There is no difference between the weighted average number of shares used to calculate both the basic and diluted earnings per share because there were no outstanding options for either of the years ended 31 December 2015 or 31 December 2016.

12 Subsidiaries and Joint Ventures

* The Group's subsidiary Grand Harbour Marina plc, owns a 45% equity interest in IC Cesme Marina.

13 Equity Accounted Investees - Joint ventures

The Group accounts for a 45% interest in IC Cesme Marina Yatirim Turizm ve Isletmeleri Sirketi ('IC Cesme'), a jointly controlled entity which operates a marina in Turkey. As at 31 December 2016 the Group had invested €1.8 million (31 December 2015: €1.8 million) in the equity of IC Cesme.

The Company has a 50% interest in Camper & Nicholsons First Eastern Limited ('CNFE'), a jointly controlled entity established during 2011 which is involved in marina management and consultancy in the Asia Pacific region. The Company agreed initially to provide funding of up to US$1.25 million to CNFE over 2 years of which $0.5 million was to be equity capital with US$0.75 million as shareholder loan. The equity capital was provided in 2011 and a US$0.3 million (€0.22 million) shareholder loan was provided in July 2013. Additional funding was provided by both joint venture partners by permitting CNFE to take extended credit terms on invoices for services provided. This was accounted for as a short term investment in joint ventures in the year ended 31 December 2015. In early 2016, the two joint venture partners concluded that, although there was an improvement in the activity levels at CNFE, it was unlikely that the business would be able to pay the outstanding amounts in the near future. The partners decided that each partner should convert the equivalent of US$950k of the amounts owed to them into a shareholder loan, to rank as preferred debt of CNFE, with interest at a rate of 3% per annum, and be due for repayment by March 2018. These shareholder loan arrangements were completed in April 2016 and following this each joint venture partner has provided funding of US$1.75 million (€1.66 million) of which US$0.5 million (€0.47 million) is equity capital and US$1.25 million (€1.19 million) is a shareholder loan. Since April 2016 the Group has provided a further €51k of short term investment in the joint venture in the form of extended payment of receivables.

As reported last year and indicated above, CNFE was allowed to take extended credit terms on invoices from the two joint venture partners for services provided and at 31 December 2015 Management believed that €699k of the receivables due from CNFE should be considered to be a short term investment in CNFE. This amount had reduced to €51k at 31 December 2016 following the conversion of the equivalent of US$950k of receivables due from CNFE into a shareholder loan.

The lease of Cesme Marina in Turkey is held by IC Cesme Marina Yatrim Turizm ve Isletmeleri Sirketi, a company in which the Group's subsidiary, Grand Harbour Marina, has a 45% interest. The lease is non-cancellable and expires in 2033. The initial annual rent payable was approximately €1 million and this is index linked in future years in accordance with the Build Operate Transfer (BOT) contract.

The bank loan was provided by Isbank to IC Cesme in the form of a Term Facility Agreement ('Term Facility') in the amount of €9.25 million. This loan was repayable in semi-annual instalments which commenced in December 2011 and had reduced the outstanding balance to €5.44 million at 30 June 2015. In July 2015 negotiations were completed with Isbank to increase the loan by €1.56 million to €7.0 million (Group's 45% share, €3.15 million) with the additional funding to be used for further development of the marina. At the same time the interest rate on the loan was reduced to Euribor + 4.5% (previously Euribor + 5.5%) and the repayment profile was amended with the loan to be repaid in thirteen equal semi-annual instalments which commenced in July 2016 and will end in July 2022.

In addition to the Term Facility, Isbank provided a loan in the form of a General Cash and Non-Cash Credit Agreement (the 'Subordinated Loan') with a maximum facility of €10 million of which €8.495 million has been drawn down. The Subordinated Loan has been secured against cash pledges by the shareholders and is repayable commensurate with the Term Facility.

The Isbank loans are guaranteed by the shareholders as detailed in notes 16 and 26.

14 Property, plant and equipment

During 2016, trading performance at the Port Louis Marina was a little weaker than in 2015 and EBITDA reduced to US$0.3 million (€0.23 million) due to a reduced number of large boats in the region caused by continuing weak regional economic conditions. Operating marina performance has reduced below the performance levels previously expected at the beginning of the year. CBRE Ltd have completed their annual valuation and have applied a discount rate of 8.5% (2015: 9%) and an exit multiple of 12.5x (2015: 12.5x) to their forecast of the cash flows for the marina excluding the superyacht berths. As last year they have applied a bulk valuation approach for the unsold superyacht dock area of 11,415 square metres and a bulk valuation to the other superyacht berth area of 5,355 square metres. Having considered the lower trading results, the continued slow take up of annual berthing contracts and the generally weak economic climate in the region, CBRE have reduced their valuation of the asset at 31 December 2016 to US$19.75 million (2015: US$20.9 million) or €18.7 million (2015: €19.2 million). This valuation is US$1.75 million (2015: US$1.0 million) below the US$21.5 million (2015: US$21.9 million) carrying value of the asset and is therefore considered to be an indicator of possible impairment of value.

When considering the value of the marina at the end of 2014 and 2015, the Directors reviewed the CBRE valuation carefully and noted that it did not attribute a specific value to the 20,000 square metres of unutilised seabed for which there is planning permission to install additional berthing. Based on the cost originally attributed to the whole seabed area of around 50,000 square metres and after considering the overall decrease in the value of the marina since acquisition it was estimated that the unused seabed area had a value of around US$1.5 million (€1.2 million). The Directors have again reviewed the CBRE valuation as at 31 December 2016 and maintain the view that the unused seabed area has a value of US$1.5 million (€1.4 million).

The CBRE valuation is now around 9% below the current book value, primarily due to the impact of the weaker trading conditions in 2016, CBRE's use of a bulk valuation of the superyacht dock water area that is based on a price that is less than 50% of the current list price and the lack of a specific value being attributed to the unused seabed. However in the current economic climate and with uncertainties arising from political changes the Directors recognise that the value of the Port Louis Marina may not recover to book value in the near term. The Directors have decided therefore to include an impairment charge of US$1.1 million (€1.0 million) in the 2016 financial statements (2015: Nil). In light of the 2016 trading performance at Port Louis and the Board's view that this nevertheless represents a key development asset, the Board is considering opportunities to best realise its value for shareholders.

15 Assets held under Trust

In accordance with the terms of the Trust Deed for Grand Harbour Marina plc's ('GHM') unsecured 7% Bond, GHM is required to establish a sinking fund to support repayment of the Bond in 2020 and during the year, GHM transferred €808k to the Trustees for this purpose. Bonds re-purchased in prior years were cancelled and may not be re-issued or re-sold.

The nominal value of bonds bought back during 2016 was €Nil (2015: €682k) with total costs and premium paid of €Nil (2015: €73k).

16 Cash pledges

As detailed in Note 13, the subordinated loan provided by Isbank to IC Cesme is secured against cash pledges made by the IC Cesme Marina shareholders. The Company's interest in IC Cesme Marina was sold to Grand Harbour Marina plc ('GHM') in March 2011. Part of the contractual terms of the sale required GHM to take over the Company's obligations to Isbank. At 31 December 2016 the Group's share of the cash pledge amounted to €4,047k(31 December 2015: €4,008k) including interest added of €210k (31 December 2015: €171k). This continued to be held in the Company's name but in line with the terms of the sale agreement, GHM has lodged an equivalent sum with the Company in anticipation of Isbank agreeing to substitute GHM for the Company in relation to the banking arrangements for IC Cesme.

17 Goodwill

Goodwill arises from the following acquisitions:

The Company commissions annual professional valuations of the marinas in which it has a financial interest and reviews the carrying value of marina related goodwill by reference to those valuations. A valuation of Grand Harbour Marina was carried out as at 31 December 2016 by the specialist leisure consultancy team of CBRE Limited, (see Business Review) the Company's independent property valuer, who also completed the 31 December 2015 valuation. Having reviewed this valuation the Directors have concluded that no adjustment to the carrying value of goodwill was necessary at 31 December 2016.

The goodwill relating to Camper & Nicholsons Marinas International Ltd arose originally on Camper & Nicholsons Marina Holdings ('CNMH') of which it was a wholly owned subsidiary. When CNMH was dissolved, Camper & Nicholsons Marinas International Ltd became a wholly owned subsidiary of the Company. In relation to Camper & Nicholsons Marinas International Ltd, management has considered the performance of the business during the last three years, and the forecast performance of the business in 2017. As this is a specialist business there are no recent transactions or listed businesses that are truly comparable. However management has used businesses with similar characteristics in estimating an appropriate EBITDA multiple range. Using the lower end of this range of multiples, the estimated value of the business is in excess of the carrying value of the business assets including the goodwill of €1.3 million and no impairment of goodwill is considered necessary.

18 Trade and other receivables

Trade receivables are non-interest bearing and are generally on 30-90 days terms.

At 31 December 2016 receivables totalling €267k (2015: €818k) were owed to Group companies by the Group's 50:50 joint venture with First Eastern, Camper & Nicholsons First Eastern ('CNFE'). As at 31 December 2016, €51k (2015: €699k) was considered to be a short term investment in the joint venture as detailed in note 13. The trade receivables figure above includes €216k (2015: €119k) owed to the Group by CNFE.

As at 31 December 2016 the ageing analysis of trade receivables was as follows:

19 Cash and cash equivalents

20 Trade and other payables

Trade payables are non-interest bearing and are normally settled on 30-90 day terms.

21 Unsecured Bond Issue

During the period ended 31 December 2010, Grand Harbour Marina plc ('GHM') issued €10 million bonds, with an over-allotment option of €2 million bearing an interest rate of 7%, redeemable on 25 February 2020 and subject to an early redemption option that may be exercised by GHM between 2017 and 2020.

As at 31 December 2016 the outstanding balance relating to these bonds was €10,810k(31 December 2015: €10,762k) which can be analysed as shown in the table below:

As indicated in Note 15, during 2015, the Trustees utilised some of the cash transferred to the Sinking Fund to purchase in the market some of the Bonds in issue. The re-purchased bonds have been cancelled.

22 Interest bearing loans and deposits

Information on the maturity profiles of the loans is given in Note 30.

Security:

The Scotia Bank loan in respect of Camper & Nicholsons Grenada Limited ('CNGL') is secured by:

- First ranking and continuing sum Demand Mortgage Debenture stamped for US$15 million or equivalent charge over the fixed assets, goodwill, and uncalled capital of the borrower and a floating charge over all other assets.

The Scotia Bank loan was re-profiled during 2014 to remove the bullet repayment that was due at 30 June 2015 and to amend the 5.7% fixed interest rate to a floating rate being Libor+3%. Under the terms of the amendment the capital repayments were due to recommence in June 2016 with the initial quarterly instalments being $250k. During the first few months of 2016 further discussions were held with Scotia Bank and agreement was reached with them to reduce each of the six quarterly payments commencing in June 2016 from $250k to $100k with the total $900k (€854k) reduction in these payments being added to the final bullet payment due in 2019.

The bank overdraft in respect of Grand Harbour Marina plc ('GHM') is secured by:

- a first general hypothec for €1,747k on overdraft basis over all assets, present and future given by Grand Harbour Marina plc; and

- a first special hypothec for €1,747k on overdraft basis over the temporary utile dominium for 99 years commencing from 2 June 1999 over the land measuring 1,410 square metres at Cottonera Waterfront Vittoriosa.

Details of the Grand Harbour Marina 7% unsecured bond are given in Note 21.

The share capital is shown in the consolidated Statement of Financial Position net of issue costs of €2,883k (2015: €2,883k).

24 Net asset value per share

The calculation of basic net asset value per share as at 31 December 2016 is based on net assets of€25,511k (2015: €27,267k) attributable to the equity shareholders,divided by the165,784k (2015: 165,784k) ordinary shares in issue at that date. As there were no options outstanding at 31 December 2016 the basic and diluted net asset value per share are the same.

25 Non-controlling interest

The non-controlling interest is all attributable to the 20.83% non-controlling shareholding in Grand Harbour Marina plc ('GHM'), the Group's Maltese subsidiary which owns a 45% interest in IC Cesme Marina Yatirim Turizm ve Isletmeleri Sirketi, in Turkey.

The following is summarised financial information for the GHM subgroup, prepared in accordance with IFRS, modified for fair value adjustments on acquisition and differences in the Group's accounting policies. The information is before inter-company eliminations with other companies in the Group.

26 Commitments and contingencies

Operating lease commitments - Group as lessee

The Group carries on business from three marinas and three office premises all of which are held under non-cancellable operating leases. Rentals, excluding those related to IC Cesme Marina which is not consolidated on a line by line basis, are payable as follows: