C.C.C. Tourist Enterprises Public Company Ltd presents the Interim Management Statement of the Group for the period from January 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 Net loss remain at the same level as the corresponding period in 2013.
Events and transactions
On 23 October 2013, the Company signed an “Agreement and plan of Subscription” with Emerald Coast Properties Ltd, “The Investor”, according to which the Company’s subsidiary, L’ Union Nationale (Tourism and Sea Resorts) Ltd, would have issued at par 20.000.000 shares of a new class, with a nominal value of €1 each, to be subscribed by the Investor, with the Company waiving its pre-emption rights. The conclusion of the transaction was subject to completion of certain conditions and to due diligence from the investor, the scope of which was to verify certain parameters and representations.
On 31 January 2014, all conditions of the above agreement have been satisfied and the subsidiary company by a special Resolution on the same day issued and allotted 20.000.000 shares with nominal value of €1 each, to the Investor for the subscription price of €20.000.000. After the issue of the said new shares, the Company and the Investor each have 50% share in L’ Union Nationale (Tourism and Sea Resorts) Ltd and therefore as from the year ended 31 December 2014 the investment of the Company in L’ Union Nationale will be accounted for under the equity method in accordance with IFRS 11, “Joint Arrangements”.
The new funds will be primarily used for the renovation of the hotel Le Meridien Limassol Spa and Resort which is expected to take place in 2014, as well as for the strengthening of the subsidiary’s working capital.
The Group recognized a loss of €1,4m in 2014 from the above transaction, being the difference between the book value of the assets attributable to the subsidiary before and after the completion of the Agreement.
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, 26 May 2014