Newfound, the AIM-listed leisure developer run by former Multiplex UK chief Jayne McGivern, has posted a pretax loss of $10.5m (£5.7m) and said its “disappointing performance” in 2007 had continued into this year.
The higher loss in the six months to 30 June, compared with a $7.4m (£3.4m) loss last year, was due to $3.8m (£2m) of contractual obligations by one of its major development assets, Humber Valley Resort Corporation.
Earlier this month, HVR in Canada filed for protection from creditors after a review found the 2,200-acre resort “not economically viable” and a “prolonged drain on resources”.
Newfound also posted lower revenue during the period of $10.7m (2007: $17m) due to lower levels of construction activity in the HVR project.
“The performance of the company has been disappointing in 2007 and has continued in the first half of 2008,” McGivern said.
“The operating performance of Newfound almost entirely relates to the Humber Valley Resort and central costs as the Caribbean businesses are both yet to contribute any revenue.
“However, I am confident that the company is now on a stronger financial footing and will emerge with renewed strength.”
McGivern said she would like to see Newfound’s development focus shift from holiday resorts to include more mainstream property development and investment to provide a more balanced risk profile.
She said it had also appointed external agents to take its products to a wider market while reducing its overheads.
