The Cyprus Cement 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 Group remain the same as those in 2013, which are the development/improvement of land, and the holding of strategic investments in companies operating in hotel and tourism industry and in the industry of manufacturing and sale of cement and other related activities.
During the reporting period, the Group’s shows significant profits compared to losses to the corresponding period in year 2013. This is due to the following:
The improved results of its associated company Vassiliko Cement Works Public Company Ltd, which shows significant profits during the reporting period compared to losses to the corresponding period in 2013. The improvement of results is mainly due to the significant increase of the company’s income from exports to neighbouring countries as well as the reduced cost of production.
The improved results of its subsidiary company C.C.C. Tourist Enterprises Public Company Ltd, due to accounting profit arises on Company’s results after the completion of Share Capital Restructuring of L’ Union Nationale (Tourism and Sea Resorts) Ltd) and to the improved results of L’ Union Nationale due to reduced financing costs.
Events and transactions
On June 6th, 2014, the subsidiary, 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, the subsidiary 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