C.C.C. Tourist Enterprises Public Company Ltd presents the Interim Management Statement of the Group for the period from January 1st, 2015 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 activity of the Group is the 24,98% participation in L’ Union Nationale (Tourism and Sea Resorts) Limited (“L Union”) (from 1 February 2014 until 30 September 2014: 50%, Until 31 January 2014: 100%). L’ Union’s principal activities, is the erection and development of hotels, the carrying on 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 compared to significant losses in the corresponding period in 2014.
The improvement on results is mainly due to the reduction in financial expenses and interest of its associated company, L ‘Union Nationale (Tourism and Sea Resorts), and the profits arising from the completion of the sales of houses in the partnership L’Union Branded Residence.
Additional in 2014, CCCT has recognized loss of €1,4 million after the completion of the agreement with the investor Emerald Coast Properties Ltd and the issue of share capital of L ‘Union. This amount was the difference between the carrying value of the assets of L’ Union attributable to the Company before and after the completion of the Agreement.
Events and transactions
C.C.C. Tourist Enterprises Public Company Ltd was held 100% of L’ Union Nationale until 31st of January 2014 and the 50% as from February 1st 2014. After the completion of L’ Union Share Capital Restructuring on 30th of September 2014, CCCT holds the 24.98% of the issued share capital of L’Union. From 1 October 2014, the Company’s investment in L ‘Union is also presented using the equity method in accordance with IAS 28 ” Investments in Associates and Joint Ventures”.
The Proceeds from Equity Capital Restructuring have been used for re-payment of bank debt of L’Union and for the renovation of Le Meridien Limassol Spa & Resort, which has been started in 2015 and is expected to be completed in 2016.
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, 28th May 2015