C.C.C. Tourist Enterprises Public Company Ltd presents the Interim Management Statement of the Group for the period from July 1st, 2014 until today. The Interim Management Statement has been prepared in accordance to the provisions of Article 11 of the Transparency Requirements (Securities Admitted to Trading on Regulated Market) Law of 2007 (Ν190 (I)/2007).
The principal activities of the Group remain the same as those in 2013, which are the erection and development of hotels, the carrying on and holding of investments of the business of hoteliers, the development and promotion of tourism and touristic activities and the development of luxurious villas for sale.
During the reporting period, the Group shows profits compare to losses to the corresponding period in 2013. This is due to the accounting profit arises on Group’s results after the completion of the Share Capital Restructuring of L’ Union Nationale (Tourism and Sea Resorts) Ltd) and also the improved results of its associated company , L’ Union, due to the reduction of finance costs.
Events and transactions
On June 6th, 2014, C.C.C. Tourist Enterprises Public Company Ltd (“CCCT”) signed a Memorandum of Understanding (MOU) with Emerald Coast Properties Ltd (“Emerald”), which held 50% of the issued shares of L’ Union. According to the MOU the issued share capital of L’ Union would increase approximately by €52,5 million through the issue of new shares to Emerald (and simultaneous waiver of all and any pre-emption rights of CCCT).
On September 30th, 2014, the Share Capital Restructuring of L’ Union Nationale (Tourism and Sea Resorts) Ltd was completed. With the restructuring, the issued share capital of L’ Union increased by €52,5 million by issuing of 40.076.336 shares of nominal value of €1,31 each share. By issuing of these shares, CCCT holds 24.98% of the total issued shares of L’ Union.
The Proceeds have been used exclusively for the re-payment of bank debts of L’ Union to the Bank of Cyprus Public Company Ltd.
From this transaction, CCCT has recognized an accounting profit of €2,08 million, which concerns the difference between the book value of the assets of L’ Union Nationale attributable to the Company before and after the completion of the restructuring.
Developments and Prospects
The Board of Directors and the Management taking into account the current negative economic situation in Cyprus and the conditions created after the Eurogroup decisions on 25 March 2013, as well as the global crisis, believes that the results for 2014 might show fluctuations, which due to the uncertainties in the market, might be difficult to predict.
C.C.C. Secretarial Ltd
Limassol, 25th November 2014