Develica co-founder hopes for recovery

published 4 January 2010

Develica Deutschland co-founder Grant N Tromans has been adding to his stake in the German property investor.

The non-executive director bought 540,000 shares on New Year's Eve at 3.18518 eurocents a share. This €17,200 investment took his stake to 4.22%.

Just before Christmas, Tromans bought 2,250,500 shares at 3 eurocents each. That cost €67,515.

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Tromans also controls the company's manager, Devilica Deutschland Management, which added 1.2m shares to its holding at the same price. That took its stake to 12.9%.

On Christmas Eve, chairman Derek Butler invested €9,250 taking his stake to 0.18%, while non-exec John Hallam invested €27,375 making his stake equivalent to 0.44%.

These directors believe the share price is too low and that there is potential for recovery in Germany.

Develica reported negative net liabilities for the end of September 2009. That was partly due to the negative effect of interest rate swaps. The company admitted that it might be in breach of some property loan to value covenants but they have not been tested.

Develica hopes to announce a restructuring of its bank facilities.

Top Director Buys

Develica Deutschland (DDE) Director name: Mr Grant N TromansAmount purchased: 540,000 @ € 0.03 Value: € 17,226

Huntsworth (HNT) Director name: Mr Eugene P. BeardAmount purchased: 25,000 @ 64.00p Value: £16,000