Dimand closed the first half of 2026 with higher revenues and profits, but also a significantly larger debt burden. The group’s total loan obligations rose to €141.7 million, up from €99 million at the end of 2025, while net debt increased from €45.6 million to €80.4 million.
The increase is linked to the expansion of the group’s investment portfolio and the acquisition of new properties. The key question is whether collections from ongoing projects and property sales will keep pace with the rising obligations.
At the center of attention are the loan maturities. Short-term loan obligations reached €59.2 million, compared to €28.9 million in December. According to maturity data, Dimand is required to repay loans totaling €63.6 million within the next 12 months, an amount that includes both principal and interest.
The group’s available cash at the end of June stood at €58.1 million, of which €3.3 million was restricted. This left freely available cash of approximately €54.7 million — nearly €9 million short of the loan repayments due over the next twelve months.
This gap does not in itself signal an inability to meet payments. It does indicate, however, that covering upcoming maturities depends on new collections, available credit lines, refinancing, or asset monetization. The company itself acknowledges liquidity risk arising from its medium-term investment program commitments and financial obligations.
The picture becomes more challenging when broader short-term needs are factored in. Total current liabilities climbed to €102.4 million from €48.1 million at the end of 2025. Current assets stood at €107.2 million, putting the current ratio marginally above 1, at approximately 1.05. Notably, these assets include €32.9 million in receivables and €16.3 million in inventories, neither of which converts immediately to cash. Cash and equivalents covered roughly 57% of current liabilities.
Particular attention is warranted regarding the sharp increase in trade and other payables, which surged from €18.4 million to €42.4 million. This increase may reflect a higher volume of real estate development activity, but it is important to determine whether obligations are being settled on schedule or whether the company is partially funding its development pipeline through extended supplier credit.
Operating cash flows were positive at €15.3 million, compared to negative €12.9 million in the same period of 2025. The improvement appears significant, but the composition is critical: the increase in trade payables and other liabilities contributed €15.7 million to operating cash flows. Stripping out this effect, net operating cash flows after interest would have been approximately negative €0.4 million. In other words, the company did not generate sufficient cash from its day-to-day operations during the half-year to independently cover its investment needs.
Investing cash flows were negative at €50.2 million, driven primarily by the acquisition of investment properties and development expenditures. To fund its investment program, the group drew down €68.3 million in new loans and repaid €24.9 million. The net financing inflow was €42.9 million. Cash and equivalents increased by €8 million, but this improvement coexists with a substantial rise in total debt.
A similar level of scrutiny applies to the earnings figures. Net profit reached €19.5 million, up 61% compared to the first half of 2025. However, this includes €13.7 million in fair value gains on investment properties and €6.5 million from equity-accounted associates — together totaling €20.2 million, which exceeds the reported net profit for the period. Deducting these items from pre-tax profit of €22.9 million leaves approximately €2.7 million in pre-tax earnings from recurring operations. These valuation gains reflect portfolio value, but they do not represent cash receipts.
Recognized financial expenses in the income statement amounted to €1.2 million, while interest and related costs actually paid in cash totaled €3.45 million. A portion of borrowing costs is capitalized into properties under development and does not flow directly through the income statement. As a result, the interest burden reflected in reported profits is lower than the actual cash outflow for the period.
There is also exposure to floating interest rates. The company estimates that a one-percentage-point increase in rates would reduce half-year results by approximately €637,000, all else being equal. As of June 30, no interest rate hedging instruments were in place. This exposure would intensify if the debt load continues to grow.
Finally, revenue from construction projects reached €61.9 million and was the primary driver of total turnover, which rose to €66 million. The report notes that two clients accounted for 77% and 17% of total revenue respectively. This concentration creates a dependency on the progress and payment schedules of a limited number of projects. Construction costs stood at €53.4 million, leaving a margin of approximately €8.5 million before other operating expenses.
Management states that the group is in compliance with its loan covenants and does not anticipate any difficulty maintaining compliance over the next 12 months. Nevertheless, the financial picture for the first half of 2026 depicts a company investing at pace, expanding its debt, and relying on the timely conversion of projects, receivables, and properties into cash. On July 30 — after the close of the half-year period — subsidiary IQ Athens sold a vertical property unit to the Hellenic Electricity Distribution Network Operator (HEDNO) and undertook the development of 37,530 square meters of office space for €134.7 million, to be collected in installments. The total estimated development value of the 16 projects under management stands at €2.19 billion. The second half of 2026 will reveal whether collections arrive in time to cover the €104.7 million in obligations maturing within the next twelve months.
