Newfound, the AIM-listed resort group headed by former Multiplex UK chief executive Jayne McGivern, is to target ‘mainstream’ property in a bid to improve on its poor performance this year.
The company, which is undertaking holiday resort development projects in Canada and the Carribean, said in half-year results today that it would look to focus on ‘more mainstream property development and investment predominantly in the UK and Europe’.
The company has performed poorly this year, and earlier this month filed for Canadian Companies’ Creditors Arrangement Act protection on one of its resort developments, the Humber Valley Resort in Canada.
Newfound said it had agreed to pay lenders £2m in the event of it defaulting on its loan, but that in spite of this it may still be able to go ahead and develop the site, depending on the result of proceedings with creditors.
‘We intend to submit a plan to the appointed monitor for consideration, during October this year,’ McGivern said. ‘However, whatever the outcome is, it is clear that by having dealt with the liabilities and by withdrawing from the loss making activities of HVRC, Newfound will be a much stronger business.’
It booked a loss for the six months to 30 June of $6.2m (£3.3m), plus an exceptional loss of $3.8m (£2m) from Humber Valley