TIDMHLS
RNS Number : 5150T
Helesi PLC
29 September 2010
29 September 2010
Helesi PLC
("Helesi" or "the Group")
Interim results for the six months to 30 June 2010
Helesi PLC (AIM: HLS), the Greece, Italy and Cyprus based waste management
products manufacturer and services supplier announces final results for the six
months to 30 June 2010.
Highlights
* Group revenues decreased by 35.6% to EUR25.7 million (2009: EUR39.9 million).
* Loss before tax of EUR1.0 million (2009: Profit EUR3.0 million) due to lower sales
across all regions and higher depreciation charges.
* Completion of the sale of the commercial and productive activity of two-wheel
containers in the UK for EUR1.7 million in cash.
* Collection of EUR2.0 million from outstanding government and EU grants the first
quarter.
* Net debt reached EUR73.8 million reflecting further outstanding Greek and
Italian grants, and slow collection of receivables.
* Announcement of appointment of Dimitri Kainaros as Chairman.
Commenting on the results, Sakis Andrianopoulos, Chief Executive of Helesi,
said, "Helesi showed resilience during the recession in 2009. As the global
recession continue into 2010, Helesi was impacted
by the potentially disastrous event of default of the Greek state. In reaction
to the current situation we have successfully restructured our long term
obligations in the first half, and we are reorganising our operations in Italy
and Cyprus during the second half. The Board believes that Helesi should have a
more manageable profile until we return to more favourable economic conditions".
For further information please visit www.helesi.com or contact:
+--------------------------------------------+-------------------------+
| Helesi PLC | +30 (0) 2299 0 82700 |
+--------------------------------------------+-------------------------+
| Sakis Andrianopoulos, Chief Executive | |
+--------------------------------------------+-------------------------+
| Ioannis Tolias, Finance Director | itolias@helesi.com |
+--------------------------------------------+-------------------------+
| Panmure Gordon (Nomad and broker) | +44 (0) 20 7459 3600 |
+--------------------------------------------+-------------------------+
| Katherine Roe | |
| Andrew Godber | |
+--------------------------------------------+-------------------------+
| Tavistock Communications | + 44 (0) 20 7920 3150 |
+--------------------------------------------+-------------------------+
| Simon Hudson | shudson@tavistock.co.uk |
+--------------------------------------------+-------------------------+
| Lydia Eades | leades@tavistock.co.uk |
+--------------------------------------------+-------------------------+
Chairman and Chief Executive's Review
Introduction
As Sakis has said, 2010 has been even tougher than 2009. The Group has been
focused on managing the through the economic crisis; its ability to restructure
its debt is testament to the success of that. After discussions with Sakis
and given the current environment, I have decided that it is in the best
interests of the Group that I resign and make way for an Athens-based chairman
who can focus on the two critical domestic issues: receivables and bank
financing. It has been a pleasure for me to work with the Group's management
and I wish them all the luck and success going forward.
Financial Performance
The downgrades of the Greek State, has caused great uncertainty and liquidity
issues. The EU/IMF support package and the austerity measures opposed from the
Greek State played a key role. Greek government budget cuts and the extensive
restructuring in some parts of the public sector has delayed the receipt of due
receivables and postponed the implementation of new projects.
Revenues in the six months to 30 June 2010 decreased by 35.6% to EUR25.7 million
(2009: EUR39.2million), reporting a slowdown in sales across all geographical
regions. A tight monitoring of inventories and the change of the sales mix
resulted to a 50% gross margin, compared to 42.4% in the same period of 2009.
Despite a continued focus on costs operating expenses decreased by only 1.2% to
EUR9.7 million (2009: EUR9.8 million), with earnings before interest, tax,
depreciation and amortisation ("EBITDA") decreasing by 56.2% to EUR3.0 million
(2009: EUR7.0 million). However, with finance costs lower by 25% at EUR1.8 million
(2009: EUR2.38 million), and depreciation charges up by 42.6%, pre-tax profits of
2010 were erased leading Priority for the Group is on cash management. Funding
requirements are likely to remain for the rest of the year and local banks have
been very supportive. Of the outstanding government grants due to the Group,
EUR2.0 million was collected in the first half and EUR9.3 million was still due at
30 June 2009.
As mentioned at the time of our trading update in August and reflecting the slow
collection of due receivables, net debt remained at high levels of EUR74 million
(2009: EUR71 million). The Board is finalising the restructuring of some of its
short term debt with its banks. It is expected that this will provide some
breathing space, on the assumption that the repayment of approximately EUR6.0
million is delayed until the end of 2011 (see note 5 for additional
information). The blended average rate for our borrowings during the period was
approximately 4.6% and finance costs of EUR1.78 million were covered 1.7 times by
EBITDA (2009: blended rate of 4% and finance costs of EUR2.3 million covered 2.9
times by EBITDA).
Dividend
Dividends will resume again once the operating cashflow of the Company improves
through the receipt of owed grants and normalizing debtor days.
Operations
In plastic products, revenues decreased due to demand reduction and a more
selective sales strategy overseas. Utilisation levels of the facilities in Italy
and Komotini, northern Greece both stood below 50%. As a result of the
available capacity, Helesi has sold its UK assets and will satisfy UK demand
from unutilized Greek capacity.
In Services and Vehicles, overall revenues declined due to the implementation of
the "Kallikratis" plan in Greece. Although the Kallikratis plan would result in
a new administrative architecture for local authorities that would be simple,
functional and stable, leading to less, larger and more powerful municipalities
armed with new powers and resources, the public reform taking place postponed
new projects and slowed down the execution of the existing ones.
Board
We announce the appointment of Dimitri Kainaros as non-executive Chairman in
succession to Dimitri Goulanris who had taken on the role after the death of
Roger Parsons. Dimitri is an external consultant of the Greek Ministry of
Development, responsible for the assessment and supervision of investment
projects related to EU Cofinanced Development Programs. Previously, Dimitri
held the position of General Director of the Hellenic Arms Industry.
Outlook
Helesi remains positive for the future, despite the near term headwinds. The
waste management sector faces huge challenges both in Greece and Cyprus where
Helesi operates. Geographical diversification and product diversification
reduces the downside risk of a prolonged recession scenario in Greece. Signs of
increased demand for plastic products in some EU countries in the second half of
2010 lessen our concerns. Increase of sales exposure to selected countries
offering attractive opportunities will allow Helesi to return to steady growth.
Dimitri Goulandris
Non-Executive Chairman
Sakis Andrianopoulos
Chief Executive Officer
29 September 2010
Statement of the members of the Board of Directors and other responsible persons
of the Company for the financial statements
In accordance with Article 9, sections (3) (c) and (7) of the Transparency
Requirements (Securities for Trading on regulated Market) Law of 2007 ("Law"),
we the members of the Board of Directors and the other responsible persons for
the consolidated financial statements of Helesi Plc for the period ended 30 June
2010 we confirm that, to the best of our knowledge:
(a) the annual consolidated financial statements that are on pages 7
to24:
(i) were prepared in accordance with the International Financial
Reporting Standards as adopted by the European Union, and in accordance with the
provisions of Article 9, section (4) of the Law, and
(ii) give a true and fair view of the assets and liabilities, the
financial position and the profit or losses of Helesi Plc and the businesses
that are included in the consolidated accounts as a total , and
(b) the directors' report gives a fair review of the developments and the
performance of the business as well as the financial position of Helesi Plc and
the businesses that are included in the consolidated accounts as a total,
together with a description of the principal risks and uncertainties that they
are facing.
Members of Board of Directors:
+------------------------------+------------------------------+
| Goulandris Dimitrios | Non-Executive Chairman |
| Athanassios (Sakis) | Chief Executive Officer |
| Andrianopoulos | |
+------------------------------+------------------------------+
| Christina Thanassoulia | Deputy Chief Executive |
+------------------------------+------------------------------+
| Apostolos Binomakis | Non-Executive Director |
+------------------------------+------------------------------+
| Yiannis Riskakis | Executive Director |
+------------------------------+------------------------------+
| Elena Paraskeva | Non Executive Director |
+------------------------------+------------------------------+
Nicosia, Cyprus
28 September 2010
Statements of Comprehensive Income
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | The Group | The Company | |
+---------------------+-------+----------------------------------------------+-----------------------------------+---------------------+
| | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| |Notes | First | First | Year | First | First | Year | |
| | | half | half | | half | half of | | |
| | | of | of | | of | | | |
+ + +---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | |
+ + + + + + + + +---------------------+
| | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Sales revenue | | 24.879 | 39.217 | 73.998 | - | - | - | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Other revenue | | 851 | 737 | 1.228 | 349 | 498 | 789 | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | 25.730 | 39.954 | 75.226 | 349 | 498 | 789 | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Changes in | | 56 | 1.337 | 2.371 | - | - | - | |
| inventories of | | | | | | | | |
| finished goods | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Cost of materials | | (12.924) | (24.353) | (44.125) | - | - | - | |
| used | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Personnel-related | 8 | (4.210) | (3.980) | (8.045) | (152) | (136) | (342) | |
| costs | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Depreciation and | | (2.347) | (1.646) | (3.770) | | - | - | |
| amortisation | | | | | | | | |
| charges | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Other operating | | (5.566) | (5.920) | (12.722) | (164) | (135) | (230) | |
| expenses | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ----- | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Operating profit | | 739 | 5.392 | 8.935 | 33 | 227 | 217 | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Finance income/ | | (1.781) | (2.384) | (4.530) | (1) | (1) | (3) | |
| (costs) | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ----- | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Profit (loss) | | (1.042) | 3.008 | 4.405 | 32 | 226 | 214 | |
| before tax | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Income tax expense | 9 | (399) | (424) | (1.539) | (3) | (23) | (7) | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ----- | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Profit (loss) for | | (1.441) | 2.584 | 2.866 | 29 | 203 | 207 | |
| the period | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ----- | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Other comprehensive | | | | | | | | |
| income | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Exchange | | 127 | 709 | 711 | - | - | - | |
| differences on | | | | | | | | |
| translation of | | | | | | | | |
| foreign operations | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ---------- | --------- | ---------- | ---------- | --------- | -------- | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Total comprehensive | | (1.314) | 3.293 | 3.577 | 29 | 203 | 207 | |
| income for the | | | | | | | | |
| period, net of tax | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Attributable to : | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Owners of the | | (1.314) | 3.293 | 3.577 | | 5.749 | | |
| parent | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Basic earnings/loss | 12 | (0,036) | 0,075 | 0,08 | 0,00 | 0,01 | 0,005 | |
| per share (in Euro) | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| Diluted | 12 | (0,036) | 0,075 | 0,08 | 0,00 | 0,01 | 0,005 | |
| earnings/loss per | | | | | | | | |
| share (in Euro) | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| | | | | | | | | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
| The attached notes form an integral part of this interim condensed | |
| financial information | |
+---------------------+-------+---------------------+-----------+------------+------------+-----------+----------+---------------------+
Statements of Financial Position
+--------------------+-------+--------------------+-----------+-----------+----------+---------+-----+--+----------+--+
| | | The Group | The Company | |
+--------------------+-------+--------------------------------------------+----------------------------------------+--+
| |Notes | 30 | 30 | 31 | 30 | 30 | 31 December |
| | | June | June | December | June | June | |
+ + +--------------------+-----------+-----------+--------------------+--------+-------------+
| | | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Property, plant | 10 | 78.463 | 74.879 | 77.670 | - | 1 | - | |
| and equipment | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Intangible assets | | 1.705 | 1.347 | 1.766 | - | - | - | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Goodwill | | 12.559 | 12.559 | 12.559 | - | - | - | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Investments in | | - | - | - | 39.874 | 39.874 | 39.874 | |
| subsidiaries | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Other non-current | | 81 | 86 | 80 | | - | - | |
| assets | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Non-current assets | | 92.808 | 88.871 | 92.075 | 39.874 | 39.875 | 39.874 | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Inventories | | 10.970 | 14.473 | 11.948 | - | - | - | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Trade and other | | 51.768 | 56.149 | 53.105 | 92 | 107 | 93 | |
| receivables | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Cash and cash | | 634 | 4.267 | 1.411 | 18 | 11 | 14 | |
| equivalents | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Current assets | | 63.372 | 74.889 | 66.464 | 110 | 118 | 107 | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Total assets | | 156.180 | 163.760 | 158.539 | 39.984 | 39.993 | 39.981 | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Trade and other | | (24.414) | (29.893) | (26.915) | (1.898) | (196) | (1.930) | |
| payables | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Income tax payable | | (1.235) | (500) | (958) | (3) | (23) | - | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Short term | 11 | (50.553) | (46.007) | (47.016) | - | - | - | |
| borrowings | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Current | | (76.202) | (76.400) | (74.889) | (1.901) | (219) | (1.930) | |
| liabilities | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Long term | 11 | (23.966) | (29.041) | (26.129) | - | - | - | |
| borrowings | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Long term | | - | (1.700) | - | - | (1.700) | - | |
| liabilities due to | | | | | | | | |
| related parties | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Employee benefit | | (106) | (71) | (115) | - | - | - | |
| liability | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Deferred tax | | (2.404) | (1.990) | (2.590) | - | - | - | |
| liabilitiy | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Non current | | (26.476) | (32.802) | (28.834) | 0 | (1.700) | 0 | |
| liabilities | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Share capital | | (3.981) | (3.981) | (3.981) | (3.981) | (3.981) | (3.981) | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Share premium | | (33.641) | (33.668) | (33.641) | (33.641) | (33.668) | (33.641) | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Capital reserves | | (9.981) | (8.903) | (9.981) | - | - | - | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Currency | | 823 | 952 | 950 | - | - | - | |
| translation | | | | | | | | |
| adjustments | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Retained earnings | | (6.722) | (8.958) | (8.163) | (461) | (425) | (429) | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Total equity | | (53.502) | (54.558) | (54.816) | (38.083) | (38.074) | (38.051) | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| Total liabilities | | (156.180) | (163.760) | (158.539) | (39.984) | (39.993) | (39.981) | |
| and equity | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------------+-------------+--+
| | |
| The attached notes form an integral part of this interim condensed financial | |
| information | |
+------------------------------------------------------------------------------------------------------------------+--+
| | | | | | | | | | | |
+--------------------+-------+--------------------+-----------+-----------+----------+---------+-----+--+----------+--+
Statements of Changes in Shareholders' Equity
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| | Share | Share | Capital | Currency | Retained | Total | |
| | capital | premium | reserves | translation | earnings | | |
| | | | | adjustments | | | |
+ + + + + + + +--------------+
| | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| As at 1 | 3.278 | 29.950 | 8.903 | (1.661) | 6.375 | 46.845 | |
| January 2009 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Profit for | - | - | - | - | 2.584 | 2.584 | |
| the period | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Currency | - | - | - | 709 | - | 709 | |
| translation | | | | | | | |
| adjustments | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Proceeds | 703 | 3.797 | - | - | - | 4.500 | |
| from shares | | | | | | | |
| issued | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Capital | - | (79) | - | - | - | (79) | |
| increase | | | | | | | |
| cost | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| As at 30 | 3.981 | 33.668 | 8.903 | (952) | 8.959 | 54.559 | |
| June 2009 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Profit for | - | - | - | - | 282 | 282 | |
| the period | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Currency | - | - | - | 2 | - | 2 | |
| translation | | | | | | | |
| adjustments | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Capital | - | (27) | 1.078 | - | (1.078) | (27) | |
| increase | | | | | | | |
| cost | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| As at 1 | 3.981 | 33.641 | 9.981 | (950) | 8.163 | 54.816 | |
| January 2010 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Profit for | - | - | - | - | (1.441) | (1.441) | |
| the period | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| Currency | - | - | - | 127 | - | 127 | |
| translation | | | | | | | |
| adjustments | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
| As at 30 | 3.981 | 33.641 | 9.981 | (823) | 6.722 | 53.502 | |
| June 2010 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+---------+--------------+
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | The Company | |
+--------------+----------------------------------------------------------------+--------------+
| | Share | Share | Capital | Currency | Retained | Total | |
| | capital | premium | reserves | translation | earnings | | |
| | | | | adjustments | | | |
+ + + + + + + +--------------+
| | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| As at 1 | 3.278 | 29.950 | - | - | 222 | 33.450 | |
| January 2009 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| Profit for | - | - | - | - | 204 | 204 | |
| the period | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| Proceeds | 703 | 3.797 | - | - | - | 4.500 | |
| from shares | | | | | | | |
| issued | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| Capital | - | (79) | - | - | - | (79) | |
| increase | | | | | | | |
| cost | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| As at 30 | 3.981 | 33.668 | 0 | 0 | 426 | 38.075 | |
| June 2009 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| Profit for | - | - | - | - | 3 | 3 | |
| the period | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| Dividends | - | (27) | - | - | - | (27) | |
| paid | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| As at 31 | 3.981 | 33.641 | 0 | 0 | 429 | 38.051 | |
| December | | | | | | | |
| 2009 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| Profit for | - | - | - | - | 32 | 32 | |
| the period | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| as at 30 | 3.981 | 33.641 | 0 | 0 | 461 | 38.083 | |
| June 2010 | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | ------ | ------ | ------ | ------ | ------ | ------ | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| | | | | | | | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
| The attached notes form an integral part of this interim | |
| condensed financial information | |
+--------------+---------+---------+----------+-------------+----------+--------+--------------+
Statements of cash flows
+-------------------------+---------+----------+----------+--------+---------+---------+
| | The Group | The Company |
+-------------------------+-------------------------------+----------------------------+
| | First | First | Year | First | First | Year |
| | half | half | | half | half | |
| | of | of | | of | of | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR\'000 | EUR'000 |
+-------------------------+ + + + + + +
| Operating activities | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Profit before tax | (1.042) | 3.008 | 4.405 | 32 | 226 | 214 |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Adjustments in respect | | | | | | |
| of non-cash | | | | | | |
| transactions: | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Depreciation, | 2.347 | 1.541 | 3.770 | - | - | - |
| amortisation and profit | | | | | | |
| ?n disposals | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Finance cost, net | 1.781 | 2.384 | 4.530 | 1 | 1 | 3 |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Employee benefits | (13) | (14) | 52 | - | - | - |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Profit from sales unit | (168) | - | 31 | - | - | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Other adjustments | (48) | 469 | 645 | - | - | - |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | 2.857 | 7.388 | 13.433 | 33 | 227 | 217 |
+-------------------------+---------+----------+----------+--------+---------+---------+
| (Increase)/ decrese in | 978 | 4.206 | 6.733 | - | - | - |
| inventories | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| (Increase)/ decrese in | (514) | (1.191) | (2.580) | 8 | (38) | 2 |
| receivables | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Increase /(decrease) in | (3.499) | (8.746) | (11.647) | (36) | (3.802) | (3.768) |
| payables | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | (178) | 1.657 | 5.939 | 5 | (3.613) | (3.549) |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Interest paid | (1.812) | (2.386) | (4.596) | (1) | (1) | (3) |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Income tax paid | (458) | (62) | (939) | - | - | (33) |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Net operating cash | (2.448) | (791) | 404 | 4 | (3.614) | (3.585) |
| inflows (outflows) | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Cash flows related to | | | | | | |
| investing activities | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Purchase of property | (3.777) | (11.682) | (17.640) | - | - | - |
| plant and equipment | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Proceeds from sale of | 2.082 | 228 | 348 | - | - | - |
| property plant and | | | | | | |
| equipment | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Investment grants | 2.010 | 3.884 | 7.987 | - | - | - |
| received | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Purchase of intangible | (77) | (50) | (480) | - | - | - |
| assets | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Interest received | 31 | 2 | 66 | - | - | - |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Acquisition of shares | - | - | - | - | (800) | (800) |
| in subsidiary | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Net investment cash | 269 | (7.618) | (9.719) | 0 | (800) | (800) |
| inflows (outflows) | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Cash flows related to | | | | | | |
| financing activities | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Issuance of new shares | - | 4.421 | 4.395 | - | 4.421 | 4.395 |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Loans contracted | 1.374 | 5.845 | 3.920 | - | - | - |
| (repaid) | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Finance lease payments | (2) | - | 22 | - | - | - |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Net financing cash | 1.372 | 10.266 | 8.337 | 0 | 4.421 | 4.395 |
| inflows (outflows) | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Net decrese /increase | (807) | 1.857 | (978) | 4 | 7 | 10 |
| in cash and cash | | | | | | |
| equivalents | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Cash and cash | 1.411 | 2.360 | 2.360 | 13 | 4 | 4 |
| equivalents, at the | | | | | | |
| beginning of the period | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Effect of currency | 30 | 50 | 29 | - | - | - |
| translation adjustments | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| Cash and cash | 634 | 4.267 | 1.411 | 17 | 11 | 14 |
| equivalents, at the end | | | | | | |
| of the period | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-------------------------+---------+----------+----------+--------+---------+---------+
| | | | | | | |
+-------------------------+---------+----------+----------+--------+---------+---------+
| The attached notes form an integral part of this interim |
| financial information |
+-------------------------+---------+----------+----------+--------+---------+---------+
Notes to the Interim Condensed Financial Statements
1. Accounting Policies
These interim financial statements have been compiled and are presented in
accordance with IAS 34 Interim Financial Reporting. The accounting policies
used in the preparation of the interim financial statements are consistent with
those used in the compilation of the audited financial statements for the year
ended 31 December 2009 and the six months ended 30 June 2009.
Costs that occur evenly during the financial year are anticipated or deferred in
the interim financial statements, only if it would be appropriate to anticipate
or defer such costs at the end of the financial year.
Income tax expense is recognised based on the best estimate of the weighted
average annual income tax rate expected for the full financial year.
2. New Activities
Helesi Plc sold the business and some of the assets of Helesi UK Ltd, which
constitute Helesi's UK based two-wheeled bin manufacturing operations, to
Straight Plc. The consideration payable by Straight is a total of EUR1.7 million
in cash and consists of an initial payment of EUR0.9 thousand on completion with
the balance paid in 10 equal monthly instalments commencing on 30th April 2010.
The proceeds of the sale were used for the reduction of the group's short term
debt obligations.
In addition Helesi has entered into a strategic alliance with Straight in the UK
and Ireland under which Straight will pay Helesi an ongoing process fee for the
use of its brand on jointly branded products, Straight will also become the
exclusive UK and Irish distributor and licensee for other Helesi products
including plastic 4-wheeled bins. Both companies expect to work together on the
development of new products.
3. Capital Structure
The Helesi PLC Group operates an employee share options scheme (ESOS) under
which employees of any of the entities forming part of the Group may be given
the option to purchase shares of Helesi PLC. These options are exercisable not
earlier than three years and not later than seven years after the grant date, at
an exercise price which is specified, in Euros, at the time of granting the
options.
The Board of Directors is empowered to grant options on a maximum of 10% of the
outstanding shares. As at 30 June 2009 and 31 December 2008, the options
granted under this scheme, which were outstanding, covered a total of 618,100
shares.
The terms under which these options were granted, in the year ended 31 December
2007, are described in the notes to the audited financial statements as of 31
December 2008.
4. Economic Environment
The downgrade of the Greek State has resulted in a liquidity crisis and fall in
consumer and business confidence. The Greek state has been forced to implement
austerity measures that include Greek budget cuts and the postponement of public
sector projects. Banks have generally ceased providing new finance to Greek
businesses during 2010 and some foreign banks operating in Greece have been
instructed not to undertake "state risk". These factors have resulted in fall in
revenues, deteriorating cash flows and increased finance costs.
5. Going concern
As at 30 June 2010 the Group's current liabilities exceed its current assets by
EUR12,830K (31 December 2009: EUR8,422K) and the Group was in breach of various of
its loan covenants. The Group is presently re-negotiating the maturity of its
debenture loans and as at the date of this report has already received approval
from three banks rescheduling the repayment of approximately EUR6 million which
was due for repayment during 2010 and 2011. Management considers the going
concern assumption to be appropriate having regard to its business plan which
anticipates an increase in revenues from municipal projects in 2011 and the
collection of already delayed government grants due. However management cannot
predict the full consequences in any significant further deterioration of the
Greek economy or further downgrades in the Greek State.
6. Earnings per Share
The basic earnings per share in a given period are calculated by dividing the
net profit attributable to the Group by the weighted average number of issued
and outstanding shares in that period.
The calculation of the diluted earnings per share takes into consideration the
options on shares granted to employees of the Group. The equivalent of these
share options to shares is quantified by
reference to the exercise price of the options granted and the average listed
price (in the accounting period reported upon) of the shares on which the
options have been granted.
7. Segmental Analysis
As from 2007, the Helesi PLC Group recognises two business segments: the
environmental products segment and the environmental services segment. The
financial results and the financial position of these two business segments are
set out below
+--------------------+---------------+---------------+----------+
| | First half of 2010 |
+--------------------+------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+--------------------+---------------+---------------+----------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------+---------------+---------------+----------+
| Third-party sales | 21.241 | 3.638 | 24.879 |
+--------------------+---------------+---------------+----------+
| Other third-party | 792 | 59 | 851 |
| revenues | | | |
+--------------------+---------------+---------------+----------+
| | ------ | ------ | ------ |
+--------------------+---------------+---------------+----------+
| Total revenues | 22.033 | 3.697 | 25.730 |
+--------------------+---------------+---------------+----------+
| Cost of materials | (12.868) | - | (12.868) |
| and accessories | | | |
| used | | | |
+--------------------+---------------+---------------+----------+
| Personnel-related | (2.498) | (1.712) | (4.210) |
| costs | | | |
+--------------------+---------------+---------------+----------+
| Depreciation and | (2.057) | (290) | (2.347) |
| amortisation | | | |
+--------------------+---------------+---------------+----------+
| Third-party costs | (4.122) | (1.444) | (5.566) |
| and expenses | | | |
+--------------------+---------------+---------------+----------+
| Intersegment | - | - | - |
| expenses | | | |
+--------------------+---------------+---------------+----------+
| | ------ | ------ | ------ |
+--------------------+---------------+---------------+----------+
| Segmental profit, | 488 | 251 | 739 |
| before finance | | | |
| charges | | | |
+--------------------+---------------+---------------+----------+
| | ------ | ------ | ------ |
+--------------------+---------------+---------------+----------+
+--------------------+---------------+---------------+----------+
| | First half of 2009 |
+--------------------+------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+--------------------+---------------+---------------+----------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------+---------------+---------------+----------+
| Third-party sales | 35.543 | 3.674 | 39.217 |
+--------------------+---------------+---------------+----------+
| Other third-party | 684 | 53 | 737 |
| revenues | | | |
+--------------------+---------------+---------------+----------+
| | ------ | ------ | ------ |
+--------------------+---------------+---------------+----------+
| Total revenues | 36.227 | 3.727 | 39.954 |
+--------------------+---------------+---------------+----------+
| Cost of materials | (23.016) | - | (23.016) |
| and accessories | | | |
| used | | | |
+--------------------+---------------+---------------+----------+
| Personnel-related | (2.397) | (1.583) | (3.980) |
| costs | | | |
+--------------------+---------------+---------------+----------+
| Depreciation and | (1.456) | (190) | (1.646) |
| amortisation | | | |
+--------------------+---------------+---------------+----------+
| Third-party costs | (4.446) | (1.474) | (5.920) |
| and expenses | | | |
+--------------------+---------------+---------------+----------+
| Intersegment | 102 | (102) | - |
| expenses | | | |
+--------------------+---------------+---------------+----------+
| | ------ | ------ | ------ |
+--------------------+---------------+---------------+----------+
| Segmental profit, | 5.014 | 378 | 5.392 |
| before finance | | | |
| charges | | | |
+--------------------+---------------+---------------+----------+
| | ------ | ------ | ------ |
+--------------------+---------------+---------------+----------+
+-------------------+---------------+---------------+-----------+
| | 30 June 2010 |
+-------------------+-------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+-------------------+---------------+---------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 |
+-------------------+---------------+---------------+-----------+
| Total Assets | 150.811 | 5.369 | 156.180 |
+-------------------+---------------+---------------+-----------+
| Total Liabilities | (97.772) | (4.906) | (102.678) |
| to third parties | | | |
+-------------------+---------------+---------------+-----------+
| | ------ | ------ | ------ |
+-------------------+---------------+---------------+-----------+
| Net Assets | 53.039 | 463 | 53.502 |
+-------------------+---------------+---------------+-----------+
| | ------ | ------ | ------ |
+-------------------+---------------+---------------+-----------+
| | | | |
+-------------------+---------------+---------------+-----------+
| | 30 June 2009 |
+-------------------+-------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+-------------------+---------------+---------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 |
+-------------------+---------------+---------------+-----------+
| Total Assets | 158.364 | 5.396 | 163.760 |
+-------------------+---------------+---------------+-----------+
| Total Liabilities | (111.682) | 2.480 | (109.202) |
| to third parties | | | |
+-------------------+---------------+---------------+-----------+
| | ------ | ------ | ------ |
+-------------------+---------------+---------------+-----------+
| Net Assets | 46.682 | 7.876 | 54.558 |
+-------------------+---------------+---------------+-----------+
| | ------ | ------ | ------ |
+-------------------+---------------+---------------+-----------+
The Helesi PLC Group operates now two production units - one in Greece and
one in Italy, under the corporate umbrellas of Helesi SAand Helesi Italia srl,
respectively. The third production unit in UK has stop production in March 2010.
The financial results and the financial position of these operations are set out
below.
+--------------------+----------+---------+---------+--------------+----------+
| | First half of 2010 |
+--------------------+--------------------------------------------------------+
| | Greece | UK | ?? | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | transactions | |
+--------------------+----------+---------+---------+--------------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------+----------+---------+---------+--------------+----------+
| Third-party sales | 19.128 | 2.345 | 3.406 | - | 24.879 |
+--------------------+----------+---------+---------+--------------+----------+
| Intersegment sales | 2.562 | 418 | 77 | (3.057) | 0 |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
| Total sales | 21.690 | 2.763 | 3.483 | (3.057) | 24.879 |
+--------------------+----------+---------+---------+--------------+----------+
| Other third-party | 490 | 355 | 6 | - | 851 |
| revenues | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Intersegment other | 349 | 70 | 44 | (463) | 0 |
| revenues | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
| Total other | 839 | 425 | 50 | (463) | 851 |
| revenues | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Total revenues | 22.529 | 3.188 | 3.533 | (3.520) | 25.730 |
+--------------------+----------+---------+---------+--------------+----------+
| Cost of materials | (8.538) | (2.299) | (2.081) | 0 | (12.918) |
| used | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Cost of | (2.306) | (376) | (69) | 2.801 | 50 |
| intersegment use | | | | | |
| of materials | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Third-party costs | (10.428) | (703) | (1.608) | 616 | (12.123) |
| and expenses | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
| Segmental profit / | 1.257 | (190) | (225) | (103) | 739 |
| (loss) before | | | | | |
| finance charges | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
+--------------------+----------+---------+---------+--------------+----------+
| | First half of 2009 |
+--------------------+--------------------------------------------------------+
| | Greece | UK | IT | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | transactions | |
+--------------------+----------+---------+---------+--------------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------+----------+---------+---------+--------------+----------+
| Third-party sales | 31.824 | 4.318 | 3.075 | - | 39.217 |
+--------------------+----------+---------+---------+--------------+----------+
| Intersegment sales | 4.484 | 69 | 128 | (4.681) | 0 |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
| | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Total sales | 36.308 | 4.387 | 3.203 | (4.681) | 39.217 |
+--------------------+----------+---------+---------+--------------+----------+
| Other third-party | 522 | - | 215 | - | 737 |
| revenues | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Intersegment other | - | - | 27 | (27) | 0 |
| revenues | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
| Total other | 522 | 0 | 242 | (27) | |
| revenues | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Total revenues | 36.830 | 4.387 | 3.445 | (4.708) | 39.954 |
+--------------------+----------+---------+---------+--------------+----------+
| Cost of materials | (18.144) | (2.881) | (2.460) | - | (23.485) |
| and accessories | | | | | |
| used | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Cost of | (4.035) | (62) | (140) | 4.708 | 471 |
| intersegment use | | | | | |
| of materials | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| Third-party costs | (9.261) | (1.155) | (1.132) | - | (11.548) |
| and expenses | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
| Segmental profit / | 5.390 | 289 | (287) | 0 | 5.392 |
| (loss) before | | | | | |
| finance charges | | | | | |
+--------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+--------------------+----------+---------+---------+--------------+----------+
+---------------------+----------+---------+---------+--------------+----------+
| | Year 2009 |
+---------------------+--------------------------------------------------------+
| | Greece | UK | Italy | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | transactions | |
+---------------------+----------+---------+---------+--------------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+---------------------+----------+---------+---------+--------------+----------+
| Third-party sales | 59.185 | 6.780 | 8.033 | - | 73.998 |
+---------------------+----------+---------+---------+--------------+----------+
| Intersegment sales | 9.309 | 141 | 391 | (9.841) | 0 |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
| Total sales | 68.494 | 6.921 | 8.424 | (9.841) | 73.998 |
+---------------------+----------+---------+---------+--------------+----------+
| Other third-party | 943 | 172 | 113 | - | 1.228 |
| revenues | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Intersegment other | - | - | 27 | (27) | - |
| revenues | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
| Total revenues | 69.437 | 7.093 | 8.564 | (9.868) | 75.226 |
+---------------------+----------+---------+---------+--------------+----------+
| Cost of materials | (30.649) | (5.073) | (6.032) | - | (41.754) |
| and accessories | | | | | |
| used | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Cost of | (8.374) | (127) | (352) | 8.853 | 0 |
| intersegment use of | | | | | |
| materials | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Personnel-related | (6.351) | (576) | (823) | - | (7.750) |
| costs | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Directors' fees | (295) | - | - | - | (295) |
+---------------------+----------+---------+---------+--------------+----------+
| Depreciation and | (2.927) | (518) | (325) | - | (3.770) |
| amortisation | | | | | |
| expense | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Other operating | (9.590) | (1.227) | (1.905) | - | (12.722) |
| expenses | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
| Segmental profit / | 11.251 | (428) | (873) | (1.015) | 8.935 |
| (loss) before | | | | | |
| finance charges | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Cost of | (3.701) | (550) | (279) | - | (4.530) |
| financing | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
| Segmental profit | 7.550 | (978) | (1.152) | (1.015) | 4.405 |
| (loss), before | | | | | |
| taxes | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Elimination of | (935) | (14) | (66) | 1.015 | 0 |
| intersegmental | | | | | |
| profits | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
| Profit (loss), | 6.615 | (992) | (1.218) | 0 | 4.405 |
| before tax | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| Income tax | (1.714) | (27) | 202 | - | (1.539) |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
| Net profit | 4.901 | (1.019) | (1.016) | 0 | 2.866 |
| /(loss), after tax | | | | | |
+---------------------+----------+---------+---------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ |
+---------------------+----------+---------+---------+--------------+----------+
+----------------------+----------+---------+----------+--------------+-----------+
| | 30 June 2010 |
+----------------------+----------------------------------------------------------+
| | Greece | UK | ?? | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | balances | |
+----------------------+----------+---------+----------+--------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+----------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 5.046 | - | - | (5.046) | 0 |
| investments | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 14.401 | (4.828) | (9.573) | - | 0 |
| receivables/payables | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Unrealised | - | - | - | - | 0 |
| intersegment | | | | | |
| profits | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Total other assets | 127.826 | 2.928 | 25.426 | - | 156.180 |
+----------------------+----------+---------+----------+--------------+-----------+
| Total liabilities | (90.249) | (284) | (12.145) | - | (102.678) |
| to third parties | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| | ------ | ------ | ------ | ------ | ------ |
+----------------------+----------+---------+----------+--------------+-----------+
| Net assets | 57.024 | (2.184) | 3.708 | (5.046) | 53.502 |
+----------------------+----------+---------+----------+--------------+-----------+
| | ------ | ------ | ------ | ------ | ------ |
+----------------------+----------+---------+----------+--------------+-----------+
+----------------------+----------+---------+----------+--------------+-----------+
| | 30 June 2009 |
+----------------------+----------------------------------------------------------+
| | Greece | UK | IT | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | balances | |
+----------------------+----------+---------+----------+--------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+----------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 5.046 | - | - | (5.046) | 0 |
| investments | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 14.624 | (6.816) | (7.808) | - | 0 |
| receivables/payables | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Unrealised | - | 50 | - | (50) | 0 |
| intersegment | | | | | |
| profits | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Total other | 148.635 | 6.560 | 8.565 | - | 163.760 |
| assets | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Total | (98.065) | (758) | (10.379) | - | (109.202) |
| liabilities to | | | | | |
| third parties | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| | ------ | ------ | ------ | ------ | ------ |
+----------------------+----------+---------+----------+--------------+-----------+
| Net assets | 70.240 | (964) | (9.622) | (5.096) | 54.558 |
+----------------------+----------+---------+----------+--------------+-----------+
| | ------ | ------ | ------ | ------ | ------ |
+----------------------+----------+---------+----------+--------------+-----------+
+----------------------+----------+---------+----------+--------------+-----------+
| | 31 December 2009 |
+----------------------+----------------------------------------------------------+
| | Greece | UK | Italy | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | balances | |
+----------------------+----------+---------+----------+--------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+----------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 5.046 | - | - | (5.046) | 0 |
| investments | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 15.200 | (5.728) | (9.472) | - | 0 |
| receivables/payables | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Unrealised | - | 50 | - | (50) | 0 |
| intersegment | | | | | |
| profits | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Total other | 126.832 | 3.783 | 27.924 | - | 158.539 |
| assets | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| Total | (89.151) | (186) | (14.386) | - | (103.723) |
| liabilities to | | | | | |
| third parties | | | | | |
+----------------------+----------+---------+----------+--------------+-----------+
| | ------ | ------ | ------ | ------ | ------ |
+----------------------+----------+---------+----------+--------------+-----------+
| Net assets | 57.927 | (2.081) | 4.066 | (5.096) | 54.816 |
+----------------------+----------+---------+----------+--------------+-----------+
| | ------ | ------ | ------ | ------ | ------ |
+----------------------+----------+---------+----------+--------------+-----------+
The third-party sales and the value of the related trade receivables outstanding
at period-end, on the basis of the location at which the customers operate
(inclusive of the balances that are doubtful of collection and have been
provided for), are analysed as follows:
+-----------------+--------+---------+--------+----------+----------+--------+
| | Greece | United | Italy | Other | Other | Group |
| | | Kingdom | | European | (non-EU) | |
| | | | | Union | states | |
| | | | | states | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+-----------------+--------+---------+--------+----------+----------+--------+
| First half of | | | | | | |
| 2010 | | | | | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| Value of sales | 12.687 | 3.321 | 3.775 | 3.085 | 2.011 | 24.879 |
+-----------------+--------+---------+--------+----------+----------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-----------------+--------+---------+--------+----------+----------+--------+
| Trade | 31.542 | 2.371 | 12.011 | 5.289 | 555 | 51.768 |
| receivables, at | | | | | | |
| period end | | | | | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-----------------+--------+---------+--------+----------+----------+--------+
| First half of | | | | | | |
| 2009 | | | | | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| Value of sales | 23.730 | 4.541 | 3.298 | 5.356 | 2.292 | 39.217 |
+-----------------+--------+---------+--------+----------+----------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-----------------+--------+---------+--------+----------+----------+--------+
| Trade | 35.815 | 2.751 | 10.787 | 5.237 | 559 | 55.149 |
| receivables, at | | | | | | |
| period end | | | | | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-----------------+--------+---------+--------+----------+----------+--------+
| Year 2009 | | | | | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| Value of sales | 45.966 | 7.061 | 8.483 | 9.032 | 3.456 | 73.998 |
+-----------------+--------+---------+--------+----------+----------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-----------------+--------+---------+--------+----------+----------+--------+
| Trade | 30.122 | 1.552 | 14.184 | 6.894 | 353 | 53.105 |
| receivables, at | | | | | | |
| year end | | | | | | |
+-----------------+--------+---------+--------+----------+----------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+-----------------+--------+---------+--------+----------+----------+--------+
8. Persons Employed and Related Costs
+--------------------+---------+---------+----------+--------+--------+----------+
| | The Group | The Company |
+--------------------+------------------------------+----------------------------+
| | 30 | 30 | 31 | 30 | 30 | 31 |
| | June | June | December | June | June | December |
| | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 |
+--------------------+---------+---------+----------+--------+--------+----------+
| | Number | Number | Number | Number | Number | Number |
+--------------------+---------+---------+----------+--------+--------+----------+
| | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| Number of persons | 295 | 328 | 348 | 9 | 9 | 4 |
| employed (at | | | | | | |
| period end) | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+--------------------+---------+---------+----------+--------+--------+----------+
| | First | First | Year | First | First | Year |
| | half | half | 2009 | half | half | 2009 |
| | of | of | | of | of | |
| | 2010 | 2009 | | 2010 | 2009 | |
+--------------------+---------+---------+----------+--------+--------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------+---------+---------+----------+--------+--------+----------+
| | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| Salaries and wages | (3.482) | (3.430) | (6.658) | (139) | (127) | (71) |
+--------------------+---------+---------+----------+--------+--------+----------+
| Social security | (815) | (744) | (1.624) | (13) | (9) | (4) |
| costs | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| Other personnel | (87) | (41) | (76) | - | - | - |
| costs | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| Employment | (16) | (15) | (30) | - | - | - |
| termination | | | | | | |
| benefits | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| Employment related | 190 | 250 | 638 | - | - | - |
| costs, capitalised | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+--------------------+---------+---------+----------+--------+--------+----------+
| | (4.210) | (3.980) | (7.750) | (152) | (136) | (75) |
+--------------------+---------+---------+----------+--------+--------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+--------------------+---------+---------+----------+--------+--------+----------+
| Cost per employee | 14.915 | 12.896 | 24.103 | 16.889 | 15.111 | 18.750 |
| (in Euro) | | | | | | |
+--------------------+---------+---------+----------+--------+--------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+--------------------+---------+---------+----------+--------+--------+----------+
9. Income Taxes
+------------------+---------+--------+---------+--------+--------+--------+
| | The Group | The Company |
+------------------+----------------------------+--------------------------+
| | First | First | Year | First | First | Year |
| | half | half | | half | half | |
| | of | of | 2009 | of | of | 2009 |
| | 2010 | 2009 | | 2010 | 2009 | |
+------------------+---------+--------+---------+--------+--------+--------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+------------------+---------+--------+---------+--------+--------+--------+
| | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Profit, before | (1.042) | 3.008 | 4.405 | 32 | 227 | 214 |
| taxes, per the | | | | | | |
| statement of | | | | | | |
| earnings | | | | | | |
| | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+------------------+---------+--------+---------+--------+--------+--------+
| Income taxes, at | 230 | (731) | (1.055) | (3) | (23) | (21) |
| the nominal tax | | | | | | |
| rate | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Taxes on | (86) | - | (166) | - | - | (6) |
| permanent | | | | | | |
| differences | | | | | | |
| between | | | | | | |
| accounting and | | | | | | |
| taxable profits | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Effect of tax | (188) | - | (388) | | | 20 |
| losses carried | | | | | | |
| forward | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Income not | | 282 | 324 | - | - | |
| subjected to | | | | | | |
| taxation | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Extra ordinary | (513) | - | (370) | | | - |
| tax | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Tax relief due | 158 | - | 116 | - | - | - |
| to reduction of | | | | | | |
| the tax rate | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Tax relief | - | 25 | - | - | - | - |
| associated with | | | | | | |
| profits the | | | | | | |
| taxation of | | | | | | |
| which is | | | | | | |
| indefinitely | | | | | | |
| deferred | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+------------------+---------+--------+---------+--------+--------+--------+
| Total tax charge | (399) | (424) | (1.539) | (3) | (23) | (7) |
+------------------+---------+--------+---------+--------+--------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+------------------+---------+--------+---------+--------+--------+--------+
| Current tax | (577) | (139) | (662) | (3) | (23) | (7) |
| charge | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| Deferred tax | 178 | (285) | (877) | - | - | - |
| charge | | | | | | |
+------------------+---------+--------+---------+--------+--------+--------+
| | ------ | ------ | ------ | ------ | ------ | ------ |
+------------------+---------+--------+---------+--------+--------+--------+
| Total tax charge | (399) | (424) | (1.539) | (3) | (23) | (7) |
+------------------+---------+--------+---------+--------+--------+--------+
10. Property, plant and equipment
The Group
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | Land | Buildings | Plant | Vehicles | Furniture | Assets | Total |
| | | and | and | | and other | under | |
| | | building | machinery | | equipment | constr. | |
| | | installations | | | | or | |
| | | | | | | installation | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| At cost or | | | | | | | |
| valuation | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 31 | 2.914 | 9.285 | 25.754 | 5.126 | 938 | 31.981 | 75.998 |
| December 2008 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Effect of | - | - | 150 | 2 | (65) | - | 87 |
| currency | | | | | | | |
| translation | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Additions | - | 7.960 | 11.287 | 124 | 383 | (4.941) | 14.813 |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Disposals | (88) | (5) | (261) | (357) | (5) | - | (716) |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Transfer | (217) | 3.747 | 19.957 | 23 | (22) | (24.345) | (857) |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 31 | 2.609 | 20.987 | 56.887 | 4.918 | 1.229 | 2.695 | 89.325 |
| December 2009 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Effect of | | - | 77 | 1 | 2 | | 80 |
| currency | | | | | | | |
| translation | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Additions | - | 123 | 3.444 | 256 | 197 | 753 | 4.773 |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Disposals | - | - | (3.233) | (110) | - | - | (3.343) |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 30 June | 2.609 | 21.110 | 57.175 | 5.065 | 1.428 | 3.448 | 90.835 |
| 2010 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Accumulated | | | | | | | |
| depreciation | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 31 | - | (1.062) | (4.870) | (2.094) | (298) | - | (8.324) |
| December 2008 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Effect of | - | - | (38) | - | 9 | - | (29) |
| currency | | | | | | | |
| translation | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Depreciation | - | (355) | (2.477) | (647) | (140) | - | (3.619) |
| charge | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Disposals | - | - | 47 | 268 | 1 | - | 316 |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 31 | 0 | (1.417) | (7.338) | (2.473) | (428) | 0 | (11.656) |
| December 2009 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Effect of | - | - | 60 | (1) | | - | 59 |
| currency | | | | | | | |
| translation | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Depreciation | - | (321) | (1.436) | (333) | (115) | - | (2.205) |
| charge | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Disposals | - | - | 1.339 | 90 | - | - | 1.429 |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 30 June | 0 | (1.738) | (7.375) | (2.717) | (543) | 0 | (12.373) |
| 2010 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| Net book | | | | | | | |
| values | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 30 June | 2.609 | 19.372 | 49.800 | 2.348 | 885 | 3.448 | 78.463 |
| 2010 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 30 June | 2.825 | 12.118 | 42.137 | 2.649 | 566 | 14.584 | 74.879 |
| 2009 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| As at 31 | 2.609 | 19.570 | 49.549 | 2.445 | 801 | 2.695 | 77.670 |
| December 2009 | | | | | | | |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
| | ------ | ------ | ------ | ------ | ------ | ------ | ------ |
+---------------+--------+---------------+-----------+----------+-----------+--------------+----------+
11. Interest-bearing loans and borrowings
The bank loans and other bank financing facilities (including the debenture
loan) contracted by the Helesi PLC Group are analysed as follows:
+--------------------+-------------+-------------+-----------+
| 30 June 2010 | Short-term | Long-term | Scheduled |
| | liabilities | liabilities | repayment |
+--------------------+-------------+-------------+-----------+
| | EUR'000 | EUR'000 | (to |
| | | | year) |
+--------------------+-------------+-------------+-----------+
| | | | |
+--------------------+-------------+-------------+-----------+
| Debenture loan | 7.853 | 23.966 | 2010-2017 |
+--------------------+-------------+-------------+-----------+
| Short term bank | 42.700 | - | 2010-2011 |
| loans | | | |
+--------------------+-------------+-------------+-----------+
| | ------ | ------ | |
+--------------------+-------------+-------------+-----------+
| | 50.553 | 23.966 | |
+--------------------+-------------+-------------+-----------+
+--------------------+-------------+-------------+-----------+
| 30 June 2009 | Short-term | Long-term | Scheduled |
| | liabilities | liabilities | repayment |
+--------------------+-------------+-------------+-----------+
| | EUR'000 | EUR'000 | (to |
| | | | year) |
+--------------------+-------------+-------------+-----------+
| | | | |
+--------------------+-------------+-------------+-----------+
| Debenture loan | 3.731 | 29.041 | 2010-2017 |
+--------------------+-------------+-------------+-----------+
| Short term bank | 42.276 | - | 2009-2010 |
| loans | | | |
+--------------------+-------------+-------------+-----------+
| | ------ | ------ | |
+--------------------+-------------+-------------+-----------+
| | 46.007 | 29.041 | |
+--------------------+-------------+-------------+-----------+
+------------------+-------------+-------------+-----------+
| 31 December 2009 | Short-term | Long-term | Scheduled |
| | liabilities | liabilities | repayment |
+------------------+-------------+-------------+-----------+
| | EUR'000 | EUR'000 | (to |
| | | | year) |
+------------------+-------------+-------------+-----------+
| | | | |
+------------------+-------------+-------------+-----------+
| Debenture loan | 5.646 | 26.115 | 2009-2017 |
+------------------+-------------+-------------+-----------+
| Short term bank | 41.362 | - | 2009 |
| loans | | | |
+------------------+-------------+-------------+-----------+
| Finance lease | 8 | 14 | |
| obligation | | | |
+------------------+-------------+-------------+-----------+
| | ------ | ------ | |
+------------------+-------------+-------------+-----------+
| | 47.016 | 26.129 | |
+------------------+-------------+-------------+-----------+
The interest charges generated in relation to the above loans, in the six month
period ended 30 June 2010, amounted to EUR1.781 thousand (6m 2009 : EUR 2.384). On
30 June 2010, bank borrowings are secured by fixed charges over the company's
property plant and equipment for on amount of EUR 34,4 million (31 Dec 2009 : EUR33
million).
12. Earnings per share and proposed dividends
Earnings per share are calculated by dividing the profit attributable to the
shareholders of Helesi PLC by the weighted average number of issued and
outstanding shares in the accounting period covered by the financial statements.
+------------------------+----------+----------+-+----------+---------+----------+
| | Basic EPS | | Diluted EPS |
+------------------------+---------------------+------------+--------------------+
| The Group | 30 June | 30 June | | 30 June | 30 June |
| | 2010 | 2009 | | 2010 | 2009 |
+------------------------+----------+----------+-+--------------------+----------+
| | EUR000 | EUR000 | | EUR000 | EUR000 |
+------------------------+----------+----------+-+--------------------+----------+
| | | | | | |
+------------------------+----------+----------+-+--------------------+----------+
| Net profit | (1.441) | 2.584 | | (1.441) | 2.584 |
| attributable to the | | | | | |
| shareholders (in Euro | | | | | |
| thousand) | | | | | |
+------------------------+----------+----------+-+--------------------+----------+
| Weighted average | 39.806 | 34.413 | | 39.806 | 35.031 |
| number of issued | | | | | |
| shares (in thousand | | | | | |
| pieces) | | | | | |
+------------------------+----------+----------+-+--------------------+----------+
| | ------ | ------ | | ------ | ------ |
+------------------------+----------+----------+-+--------------------+----------+
| Earnings/( loss) per | (0,036) | 0,075 | | (0,036) | 0,074 |
| share (in EUR) | | | | | |
+------------------------+----------+----------+-+--------------------+----------+
| | ------ | ------ | | ------ | ------ |
+------------------------+----------+----------+-+--------------------+----------+
| | | | | | | |
+------------------------+----------+----------+-+----------+---------+----------+
13. Research & Development (R & D)
The Helesi Group invests substantial amounts in research and development and, in
particular, in the development of new moulds and techniques that are
instrumental in the lowering of costs and in attaining higher levels of
operational efficiency. Such developments costs are capitalised if, and only if,
the following conditions are satisfied:
(a) the technical feasibility of completing the work undertaken (so that it will
be available for use) is evident;
(b) the commitment and ability to complete such work and use its outcome exists;
(c) the generation of future economic benefits through the use of such R & D
work is highly probable;
(d) the necessary technical, financial and other resources to complete the
development work and to place it into use are available;
(e) the ability to measure reliably the expenditure attributable to such
development work exists.
The development costs that have satisfied these criteria are analysed as follows
:
+-------------------+----------+--------+----------+--------+----------+--------+
| | | First | | First | | Year |
| | | half | | half | | |
+-------------------+----------+--------+----------+--------+----------+--------+
| | | 2010 | | 2009 | | 2009 |
+-------------------+----------+--------+----------+--------+----------+--------+
| | | EUR'000 | | EUR'000 | | EUR'000 |
+-------------------+----------+--------+----------+--------+----------+--------+
| Personnel related | | 190 | | 182 | | 638 |
| costs | | | | | | |
+-------------------+----------+--------+----------+--------+----------+--------+
| Third parties | | - | | 3 | | - |
+-------------------+----------+--------+----------+--------+----------+--------+
| Miscellaneous | | 17 | | 15 | | 123 |
| other expenses | | | | | | |
+-------------------+----------+--------+----------+--------+----------+--------+
| | | ------ | | ------ | | ------ |
+-------------------+----------+--------+----------+--------+----------+--------+
| | | 207 | | 200 | | 761 |
+-------------------+----------+--------+----------+--------+----------+--------+
14. Related party transactions and balances
The transactions of the Helesi PLC Group, in the period 30 June 2010 and the
year 2009, with and receivables from and payables to related parties, as at 30
June 2010 and 31 December 2009, are analysed as follows:
+--------------+--------+-----------+----------------------------------+--------+---------+
| The Group | Sales | Purchases | Receivable from | Payable |
| | to | from | | to |
+--------------+--------+-----------+-------------------------------------------+---------+
| | | EUR000 | EUR000 | EUR000 |
| | EUR000 | | | |
+--------------+--------+-----------+-------------------------------------------+---------+
| TECMEC A.E | | | | |
+--------------+--------+----------------------------------------------+--------+---------+
| 30 June 2010 | 83 | 2.489 | 1.874 | - |
+--------------+--------+-----------+-------------------------------------------+---------+
| | | | | |
+--------------+--------+-----------+-------------------------------------------+---------+
| 31 December | 107 | 2.469 | 716 | |
| 2009 | | | | - |
+--------------+--------+-----------+----------------------------------+--------+---------+
The compensation of the members of the Board of Directors and certain other key
management personnel executives for the group for the first half 2010 and year
2009 was as follows:
+------------------+-------+-------+-------+-------+
| | The Group | The Company |
+------------------+---------------+---------------+
| | First | | First | |
| | half | 2009 | half | 2009 |
| | of | | of | |
| | 2010 | | 2010 | |
+------------------+-------+-------+-------+-------+
| | EUR000 | EUR000 | EUR000 | EUR000 |
+------------------+-------+-------+-------+-------+
| Dimitrios | (40) | (41) | (40) | (41) |
| Goulandris | | | | |
+------------------+-------+-------+-------+-------+
| Athanassios | (32) | (77) | (32) | (77) |
| Andrianopoulos | | | | |
+------------------+-------+-------+-------+-------+
| Christina | (16) | (39) | (16) | (39) |
| Thanassoulia | | | | |
+------------------+-------+-------+-------+-------+
| Apostolos | (20) | (57) | (20) | (29) |
| Binomakis | | | | |
+------------------+-------+-------+-------+-------+
| Frithjof Platou | - | (20) | - | (20) |
+------------------+-------+-------+-------+-------+
| Elena Paraskeva | (13) | (25) | (13) | (25) |
+------------------+-------+-------+-------+-------+
| Ioannis | (26) | (36) | (26) | (36) |
| Riskakis | | | | |
+------------------+-------+-------+-------+-------+
| | (147) | (295) | (147) | (267) |
+------------------+-------+-------+-------+-------+
15. Contingencies
The construction of one of the two waste transfer stations in Cyprus has not
proceeded according to the contract with the Cyprus government as the local
community of the original site strongly opposes its construction. In accordance
with the contract, the Group is entitled to significant compensation for delays
and non-performance based upon a number of criteria. The Group is presently
negotiating the level of compensation that will be finally paid with the
appropriate authorities, but no provision has been made in these financial
statements as the final figure cannot be determined with any degree of accuracy
at the present time and will depend upon whether or not an alternative site will
be found and the estimated time required to be able to start its construction
and operation. Income from compensation will be realised as these uncertainties
are resolved.
The recently enacted L. 3480/2010 is bringing about drastic changes in the
corporate tax environment of Greece. In particular, the new tax law introduces
essentially two corporate tax rates for the profits of Greek companies depending
on whether profits are distributed or not. If the Company's profits are not
distributed, then the applicable corporate tax rate is 24% for the profits of
fiscal year starting on January 1 2010 up to December 31 2010 and is gradually
reduced by one percentage point each year to reach 20% for the profits of fiscal
years starting on January 1 2014. On the other hand, if the Company's profits
are distributed, then the corporate tax rate is 40% and is imposed on the
Company's profits, which arise in fiscal years starting from December 31 2010
onwards, while no withholding tax is imposed on the dividends distributed
16. Post Balance Sheet Events
Helesi commenced the operation of one of the two waste transfer stations located
in Cyprus at the area of Skarinou. A new location for the erection of the second
station has been selected by the Cyprus government at the area of Ormidia.
During the construction period of the second station, Helesi will temporarily
operate three waste transfer stations near Larnaca.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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