C.C.C. Tourist Enterprises Public Company Ltd presents the Interim Management Statement of the Group for the period from January 1st 2016 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 Company is the investment in the share capital of L’ Union Nationale (Tourism and Sea Resorts) Limited (“L’ Union”). L’ Union’s principal activities, is the erection and development of hotels, the carrying on of the business of hotels, and the development and promotion of tourism and touristic activities. L’ Union is the owner company of the luxurious hotel complex Le Meridien Limassol Spa & Resort (“Le Meridien”) which is currently under full renovation. The renovation is expected to be completed within 2017.
During the reporting period, the Company shows marginal losses as in the corresponding period in 2015.
The Board of Directors has decided to reclassify its investment in L’ Union from “Investment in associated company” to “Available for sale investment” with effect from 1 January 2015. The Board of Directors believes that this classification reflects better the economical substance of the events in accordance with the level of influence of the Company in the financial and operating policy decisions of L’ Union with the most important ones being the complete renovation of the hotel complex and the future business model plans. As a result, the investment is accounted for at fair value in accordance with the principles of “IAS 39: Financial instruments: Recognition and measurement”.
Events and transactions
There are no other significant events and transactions, other than the normal operations activities of the Company, which have an impact on the Company’s financial position.
Developments and Prospects
The Board of Directors and the Management taking into account the current negative economic situation in Cyprus, as well as the global crisis, believes that the results for the year might show fluctuations, which due to the uncertainties in the market, might be difficult to predict.
C.C.C. Secretarial Ltd
Limassol, 26th May 2016