K+G Complex Public Company Ltd presents the Interim Management Statement of the Group for the period from July 1st 2013 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 2012, which are the development and sale of residential units, development and sale of land located in the Amathus area of Limassol and holding of investments.
During the reporting period, the Group shows profits compared to losses for the corresponding period in year 2012. This is due to the increased of Group’s turnover during the reporting period. We would like to note, that although the Group shows profits in the period of reference, for the whole year, from January 1st until today it shows increased losses.
Events and transactions
Cyprus and the Eurogroup (together with the International Monetary Fund) reached an agreement on 25 March 2013 on the key elements necessary for a future macroeconomic adjustment programme which includes the provision of financial assistance to the Republic of Cyprus of up to €10 billion. The programme aims to address the exceptional economic challenges that Cyprus is facing and to restore the viability of the financial sector, with the view of restoring sustainable economic growth and sound public finances over the coming years. The Eurogroup decision on Cyprus includes plans for the restructuring of the financial sector and safeguards deposits below € 100.000 in accordance with EU legislation.
On 29 March 2013 the Central Bank of Cyprus issued a decree concerning Laiki Bank and Bank of Cyprus by implementing measures pursuant to the Resolution and Other Credit Institutions Law of 2013. The Group’s cash held with banks affected from the above measures were €688.195 deposits in Bank of Cyprus. The Bank of Cyprus uninsured depositors have received new shares through a conversion of 47,5% of their deposits (amounts over €100.000). These instruments have not been admitted for trading in the Stock exchange as yet. The fair value of these instruments is still unknown and very difficult to calculate due to the unavailability of public information and active market. Management’s preliminary assessment is that the Croup’s deposits held in Bank of Cyprus have suffered an impairment of approximately €688.195.
Developments and Prospects
The Board of Directors and the Management believe that under the current circumstances and taking account the operating environment of Cyprus and the conditions created after the Eurogroup decisions on 25 March 2013 and the global crisis, the results for 2013 might show fluctuations, which due to the uncertainties in the market, might be difficult to predict.
C.C.C. Secretarial Ltd
Limassol, 20 November 2013