Mission Capital, the AIM-listed property company subject to a boardroom rift, suffered a share plunge this morning after revealing a huge fall in its net asset value.

The company, which last month saw its two executive directors Neil Sinclair and his daughter Emma leave, today reported a 39% drop in NAV to 2.59p a share in the year to 30 September and a £1.8m pretax loss, six times greater than the loss in 2006. A dividend is not being paid to shareholders.

‘This highly disappointing performance has led the board to make substantial changes to the management,’ the company said. ‘The board is taking steps to secure the future of the group.’

The Sinclairs had what a source close to the company described as a 'very bitter' fallout with three other large shareholders - Elliott Bernerd, Christopher Jonas and Robert Burrow. Following their departure a month ago, Chris Phillips, the chairman of London & Newcastle Securities and former managing director of Colliers Capital UK, was made a non-executive director to look after property investments.

Burrow joined the board of one of Mission’s three assets, Karspace Management, which provides management services to car park-owning businesses.

Litigation

Mission and the Sinclairs are now in litigation.

Mission’s annual results show that, while Karspace made a pretax profit of £0.39m, a joint venture created in December 2006 with Chelsfield Partners to buy a portfolio of four properties from CB Richard Ellis Investors' Strategic Partners UK Fund 1 for £36m, has proved a disaster.

Mission invested £1.2m for a 20% stake in the joint venture company Athens Investments Holding Group and Chelsfield Partners contributed £4m.

Mission said today ‘there is no net asset value to this investment now’ with bank borrowings now exceeding the estimated realisable value of the four properties.

‘None of the targets produced by the company’s former executive management team for realisation of the assets of Athens have been achieved,’ Mission said.

‘It is highly unlikely that the company will receive a significant return on its investment in Athens. Furthermore, owing to the poor performance of the Athens' property portfolio, there are insufficient liquid resources within Athens to pay the management fees to the company's subsidiary, Mission Real Estate Limited.

‘Two of the Company's directors with relevant property experience will liaise with our joint venture partner to manage the Athens portfolio. In our accounts we have provided for our investment in Athens in its entirety and for the receivable from Athens to be written off.’