TIDMHLS
RNS Number : 4251I
Helesi PLC
14 June 2011
14 June 2011
Helesi PLC
("Helesi", "the Company" or "the Group")
Final Results for the year to 31 December 2010
Helesi PLC (AIM: HLS), the Greece, Italy and Cyprus based waste
management products manufacturer and services supplier announces
final results for the year to 31 December 2010.
CHAIRMAN'S STATEMENT
I took over as Non-Executive Chairman on 29 September 2010, in
succession to Dimitri Goulandris who had taken the role after the
death of Roger Parsons in 2009. My appointment came along with a
volatile market environment, Greece being hit from the economic
crisis, and the Group suffering losses for the first time.
Whilst the Group continues to have strong growth prospects, my
immediate focus is to drive cash generation, to restructure debt
and to reposition operations to enable the Company to return to
growth once a more stable environment has been restored.
Outlook
We expect 2011 to be another difficult year as Greece deals with
many structural changes to emerge from recession and as demand in
the rest of the world normalizes. We continue to be focused on
managing our cost base and our receivables to ensure that we
generate as much cash as possible.
Dimitri Kainaros
Non-Executive Chairman
CHIEF EXECUTIVE'S REVIEW OF OPERATIONS
The torrid economic environment and the Greek market Crisis
during the year, affected Helesi's operations. The worldwide
recession did not allow the reduction of our level of borrowings as
planned. Greek State receivables continue to be late in arriving.
However the agreed Greek Government grants were received in full,
the Italian State also paid EUR3.8 million as part of the third
installment of the subsidy and only EUR1.7 million are outstanding.
This has meant that net debt stood at EUR62.8 million compared to
the previous year higher levels of EUR71.7 million. We estimate a
significant part of Greek State receivables and the remaining
Italian grants will be collected within 2011, and allow further
reduction of net debt levels.
Results
Group sales revenues decreased by 32% in 2010 to EUR50.1 million
(2009: EUR73.9 million) due to weak demand across all geographical
markets Helesi operates and due to a halt of the Greek Market in
the second half of 2010. The extensive restructuring in some parts
of the Greek public sector imposed by the EU/IMF support package,
postponed the announcement of new projects. EBITDA dropped at
EUR2.7 million (2009: EUR12.7 million). After increased costs and
depreciation largely relating to the additional capacity created by
the investment program, this resulted in losses before interest and
taxation of EUR1.9 million (2009: profit EUR8.9 million). The
continuing high levels of debt throughout the year, resulted to
cost of financing of EUR4 million (2009: EUR4.5 million).
Consequently a loss before tax was realized of EUR5.9 million
(2009: profit EUR4.4 million). Net losses after tax stood at EUR
5.1 million (2009: profit EUR2.8 million). Additional information
about the Group's borrowings and financial position are further
described in notes 2 and 18.
Dividend
No dividend will be paid.
Operations
Due to the experience of budgetary constraints of Helesi clients
across all geographical regions, the sales mix of our revenues has
changed. In 2010, revenues were split 55%, 30%,15% in terms of
Plastic Products (principally bins and pallet boxes), Vehicles and
Services. This compares with 43%, 46%,11% in 2009 and reflects
slowdown in sales in Vehicles. The changing in sales mix, has
slightly effected EBITDA margins which resulted at 18.7% in 2010
(2009: 17.1%).
Plastic Products
Utilisation rates across all production sites were below 50% of
the actual capacity. The world recession resulted in volume
reduction which combined with slightly lower price levels affected
the top line of Group sales.
Waste Management Services
Services Revenue reflect the budgetary restriction the Greek
municipalities were facing throughout the year. In addition, the
year's results reflect only the last quarter revenue contribution
from the waste transfer station for a 10 year contract in Cyprus.
This is because the Waste transfer Stations started operations at
mid August 2010. Although the construction of one of the two
stations is complete, the construction of the second station has
not proceeded according to plan. The delay was due to the change of
the location of the station, as the local community nearby the
original site is opposed to its construction. In accordance with
the contract the Group is entitled to significant compensation for
delays and non-performance based upon criteria. Encouragingly the
authorities have now indicated a new location, and the intention is
to operate three stations instead of one station until the
construction of the second station is complete.
Waste management Vehicles and Equipment
Helesi has the critical scale necessary to become a leading
player in the high margin supply and distribution of specialist
waste collection vehicles both in Greece and Cyprus. This new scale
was illustrated with the fulfillment of large contracts in 2009.
However the EU/IMF mandatory structural reform of the Greek
Municipalities under a program named "Kallikratis" postponed the
announcement of new projects.
Board
In September, we announced the appointment of Dimitri Kainaros
as non-executive Chairman in succession to Dimitri Goulandris.
Dimitri is an external consultant for the Greek Ministry of
Development, responsible for the assessment and supervision of
investment projects related to EU Co-financed Development Programs.
Previously, Dimitri held the position of General Director of the
Hellenic Arms Industry. Currently he holds the position of CEO at
Veltion Ltd, a position he has held for five years.
Outlook
As global recession becomes slowly more distant, the impact of
the Greek Market crisis will be more evident in 2011. Helesi will
continue to react on market development and build a new operating
profile for the future. The management is ready to utilize its
capacity in Municipal Waste Collection benefiting from new
legislation changes in the Greek Waste Services Sector. Helesi is
repositioning itself participating in tenders of BOT projects for
Waste Treatment Plants, joining forces with key market players.
Managements' strong focus is on international sales of plastic
products aiming to mitigate the risks of the Greek market. The
principal focus on cash collection and management remains. Net debt
will be reduced to lower levels as Greek State receivables are
collected.
Sakis Andrianopoulos
Chief Executive Officer
The full text of the Independent Auditor's Report tothe Members
of Helesi PLC as it appears in the Financial Statements of the
Company for the year ended 31 December 2010 is set out below.
Report on the Financial Statements and the Consolidated
Financial Statements
We have audited the accompanying financial statements and the
consolidated financial statements of Helesi PLC (the "Company") and
its subsidiaries ('the Group') on pages 12 to 46, which comprise
the statement of financial position and the consolidated statement
of financial position of the Company and the Group as at 31
December 2010, and the respective statements of comprehensive
income, changes in equity and cash flows for the year then ended,
and a summary of significant accounting policies and other
explanatory information.
Board of Directors' Responsibility for the Financial Statements
and the Consolidated Financial Statements
The Board of Directors is responsible for the preparation of
financial statements and consolidated financial statements that
give a true and fair view in accordance with International
Financial Reporting Standards as adopted by the European Union (EU)
and the requirements of the Cyprus Companies Law, Cap. 113, and for
such internal control as the Board of Directors determines is
necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements and consolidated financial statements based on our
audit. We conducted our audit in accordance with International
Standards on Auditing. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements and
consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements and
the consolidated financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements and the
consolidated financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the entity's preparation of financial
statements and consolidated financial statements that give a true
and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal
control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by the Board of Directors as well as evaluating the
overall presentation of the financial statements and the
consolidated financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements and the consolidated
financial statements give a true and fair view of the financial
position of Helesi PLC and its subsidiaries as at 31 December 2010,
and of its financial performance and their cash flows for the year
then ended in accordance with International Financial Reporting
Standards as adopted by the EU and the requirements of the Cyprus
Companies Law, Cap. 113.
Emphasis of Matter
Without qualifying our opinion, we draw attention to note 2 to
the consolidated financial statements which indicates that the
Group's current liabilities exceed its current assets by EUR14.2
million. The Group also incurred a loss of EUR5.1 million for the
year ended 31 December 2010. The Group's ability to continue as a
going concern is dependent upon receiving the continuing support of
domestic and other financial institutions. These factors together
with the continuing financial crisis of the Greek economy and
public sector indicate the existence of a material uncertainty that
may cast significant doubt about the Group's ability to continue as
a going concern.
Report on Other Legal and Regulatory Requirements
Pursuant to the requirements of the Law of 2009 on Statutory
Audits of Annual and Consolidated Accounts, we report the
following:
-- We have obtained all the information and explanations we
considered necessary for the purposes of our audit.
-- In our opinion, proper books of account have been kept by the
Company.
-- The Company's financial statements and consolidated financial
statements are in agreement with the books of account.
-- In our opinion and to the best of our information and
according to the explanations given to us, the financial statements
and consolidated financial statements give the information required
by the Cyprus Companies Law, Cap. 113, in the manner so
required.
-- In our opinion, the information given in the report of the
Board of Directors on page XX is consistent with the financial
statements and the consolidated financial statements.
Pursuant to the requirements of the Directive DI190-2007-04 of
the Cyprus Securities and Exchange Commission, we report that a
corporate governance statement has been made for the information
relating to paragraphs (a), (b), (c), (f) and (g) of article 5 of
the said Directive, and it forms a special part of the Report of
the Board of Directors.
Other Matter
This report, including the opinion, has been prepared for and
only for the Company's members as a body in accordance with Section
34 of the Law of 2009 on Statutory Audits of Annual and
Consolidated Accounts and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other
purpose or to any other person to whose knowledge this report may
come to.
Panicos Constantinou
Certified Public Accountant and
Registered Auditor for and on
behalf of
BDO Ltd
Certified Public Accountants (CY)
and Registered Auditors
Nicosia, 10 June 2011
Statement of comprehensive income
The Group
31 December 31 December
Notes 2010 2009
EUR000 EUR000
Sales revenue 3 50.085 73.998
Other revenue 4 1.232 1.228
Changes in inventories of finished
goods (1.296) 2.371
Cost of materials used (25.882) (44.125)
Personnel-related costs 5 (8.216) (7.750)
Directors' emoluments 27 (287) (295)
Depreciation charges 6 (4.664) (3.770)
Other operating expenses 7 (12.895) (12.722)
Cost of financing, net 8 (4.016) (4.530)
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(Loss) / Profit before taxes (5.939) 4.405
Income taxes 9 856 (1.539)
------ ------
(Loss) / Income of the year (5.083) 2.866
------ ------
EBITDA 2.740 12.705
Currency translation adjustments 79 711
Total comprehensive (loss) / income (5.161) 3.577
------ ------
Basic and diluted earnings per share
(in euro) 25 (0.13) 0.08
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Statement of financial position as at 31.12.2010
The Group
--------------------------
31 December 31 December
Notes 2010 2009
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(as restated)
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Assets
Non current assets EUR000 EUR000
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Property Plant and Equipment 12 80.853 78.637
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Goodwill 13 12.559 12.559
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Other intangible assets 13 1.413 799
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Other long-term assets 14 13 80
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Investment in subsidiaries - -
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------ ------
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Total non current assets 94.838 92.075
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Current assets
----------- -------------
Inventories 15 8.851 11.948
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Trade and other receivables 16 36.568 53.105
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Cash and cash equivalents 17 1.002 1.411
----------- -------------
------ ------
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Total current assets 46.421 66.464
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------ ------
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Total assets 141.259 158.539
----------- -------------
------ ------
----------- -------------
Share capital 23 (3.981) (3.981)
----------- -------------
Share premium 23 (33.641) (33.641)
----------- -------------
Capital reserves 24 (9.981) (9.981)
----------- -------------
Currency translation adjustments 24 1.029 950
----------- -------------
Retained earnings (3.081) (8.163)
----------- -------------
------ ------
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Total equity (49.655) (54.816)
----------- -------------
Non current liabilities
----------- -------------
Long-term borrowings 18 (29.613) (26.129)
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Employee benefits 21 (150) (115)
----------- -------------
Deferred tax liabilities 26 (1.152) (2.590)
----------- -------------
------ ------
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Total non current liabilities (30.915) (28.834)
----------- -------------
Current liabilities
----------- -------------
Trade and other payables 20 (25.447) (26.915)
----------- -------------
Current tax payable (998) (958)
----------- -------------
Short-term borrowings 18 (34.244) (47.016)
----------- -------------
------ ------
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Total current liabilities (60.689) (74.889)
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------ ------
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Total liabilities (91.604) (103.723)
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------ ------
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Total liabilities and equity (141.259) (158.539)
Statement of changes in equity
The Group
Currency
Share Share Capital translation Retained
Capital premium Reserves adjustments earnings Total
'EUR 000
Balances, as at 31
December 2008 3.278 29.950 8.903 (1.661) 6.375 46.845
Total comprehensive
income for the year - - - 712 2.866 3.578
New shares issued 703 3.691 - - - 4.394
Transferred to capital
issued - - 1.078 - (1.078) -
------ ------ ------ ------ ------ ------
Balances, as at 31
December 2009 3.981 33.641 9.981 (950) 8.163 54.816
------ ------ ------ ------ ------ ------
Balances, as at 31
December 2009 3.981 33.641 9.981 (950) 8.163 54.816
Total comprehensive
loss for the year - - - (79) (5.082) (5.161)
------ ------ ------ ------ ------ ------
Balances, as at 31
December 2010 3.981 33.641 9.981 (1.029) 3.081 49.655
------ ------ ------ ------ ------ ------
Statements of cash flows
The Group
31 December 31 December
2010 2009
Cash flows related to operating activities EUR000 EUR000
(Loss)/ profit before taxes (5.939) 4.405
Adjustments in respect of non-cash transactions: - -
Depreciation of fixed assets 4.664 3.770
Interest expense, net 4.016 4.530
Profit/loss from sale units 549 52
Employee retirement benefits 31 31
Other adjustments (229) 645
------ ------
3.092 13.433
Decrease (increase) in inventories 3.097 6.733
Decrease (increase) in receivables 7665 (2.580)
Increase (decrease) in payables (5.296) (11.647)
------ ------
8.558 5.939
Interest received (paid) (4.132) (4.596)
Income taxes paid (1.188) (939)
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Net operating cash inflows (outflows) 3.238 404
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Cash flows related to investing activities
Acquisition of tangible fixed assets (5.228) (17.640)
Disposal of tangible fixed assets 1.387 348
Investment grants received 10.143 7.987
Acquisition of intangible fixed assets (807) (480)
Interest received 117 66
Acquisition of subsidiaries net of cash acquired - -
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Net investment cash inflows (outflows) 5.612 (9.719)
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Cash flows related to financing activities
Proceeds of new shares issued - 4.395
Loans contracted (repaid) (9.281) 3.942
Finance lease payments (8) -
Loan repaid by (granted to) Helesi AE - -
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Net financing cash inflows (outflows) (9.289) 8.337
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Increase (decrease) of cash balances (439) (978)
Cash balances, at the beginning of the period 1.411 2.360
Effect of currency translation adjustments 30 29
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Cash balances, at the end of the period 1.002 1.411
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Notes
1. Basis of preparation
Helesi PLC is a publicly listed company registered in Cyprus,
which serves as the ultimate holding company of the Group. Its
registered office is located at the Tseri Industrial Zone, near
Nicosia. The Company was incorporated in Cyprus, in May 2006, as
part of a Group restructuring process, entailing the exchange of
Helesi AE shares for Helesi PLC shares, in anticipation of the
admission of the Group to trading on AIM, which materialised in
November 2006.
Helesi PLC holds 100% of Helesi SA, the Group's principal
operating entity. Helesi SA is an anonymos eteria (corporation)
registered in Greece. The full, formal name of the Helesi AE is
Hellenic Industrial Environmental Systems SA (Helliniki Viomichania
Perivallontikon Systimaton Anonymi Emporiki - Viomichaniki Eteria).
Helesi SA was established in 1997, its registered office is located
at 19 Agiou Ioannou Street, Aegeo, GR-25100, Greece and its
administrative offices are located at Industrial Park of
Markopoulo, Location Ntorovateza GR-19003 Attiki Greece. The
Company is primarily engaged in the production and trading of
injection-moulded refuse containers and in the recycling of rubber
tyres, at a production plant located at Komotini, Northern Greece.
In the course of 2007, Helesi SA merged with Perivallontiki
Environmental Services SA (a wholly owned subsidiary of Helesi PLC
at the time) and during the course of the same year with the
Vehicles Division of Perivallontiki AE. As a result of these
transactions Helesi SA also provides waste management services and
special waste management vehicles.
On 3 January 2008, Helesi PLC acquired Perivallontiki AZ Ltd and
Helesi Trans Ltd, which were wholly owned subsidiaries of
Perivallontiki A.E. Perivallontiki AZ Ltd is a company incorporated
in Cyprus, engaged in the distribution of Helesi products in
Cyprus. Helesi Trans Ltd is also a company incorporated in Cyprus,
engaged in the provision of international transportation services,
mainly to the group. The consideration paid for acquiring the
shares of these two entities amounted, in total, to EUR 952
thousand. The existing minority interests were also acquired for
EUR 28 thousand. The acquisition cost of these two entities was
impaired in 2010 by EUR490thousand in total. The impairment was
EUR275 thousand for Perivallontiki AZ Ltd and EUR215 thousand for
Helesi Trans Ltd.
Helesi UK Limited is a wholly-owned subsidiary of Helesi SA,
registered in England, whose registered address is Units 14-17 Iron
Park Works, Bowling Back Lane, Bradford, England. Helesi UK
Limited, which was incorporated on 4 February 2004, is primarily
engaged in the production and trading of injection-moulded refuse
containers. In 2010 Helesi UK Limited sold the business and some of
the assets which constitute Helesi's UK based two-wheeled bin
manufacturing operations, to Straight Plc. The company does not
operate the facility in Bradford North UK any longer.
Early in 2009 Helesi commenced the waste management of the
Western Macedonia area under a profit sharing agreement with
Mesogios AE, in which Mesogios AE is entitled to a share of 40% of
the profits generated. The Group is in 60% control of the
operations and is responsible for its financing and accordingly has
recognised 60% of revenues and related costs in the Consolidated
Financial Statements.
Helesi Italia srl is also a wholly-owned subsidiary of Helesi
SA, registered in Italy, whose registered address is via Giovanni
XXIII, N.106, Capri, Modena, Italy. By the first half of 2009,
Helesi Italia completed the construction of its factory and
commenced its operations.
The consolidated financial information of Helesi PLC includes
Helesi SA, Helesi UK Ltd, Helesi Italia srl, Perivallontiki AZ Ltd
,Helesi Trans Ltd and JV Mesogios S.A.The financial statements of
Helesi PLC will also be sent to the shareholders. Helesi PLC is
referred to as "The Company".
Intragroup balances and intragroup transactions as well as the
Helesi PLC Group profits that have arisen on intragroup
transactions and have not been realised (at Helesi PLC Group level)
as yet, are eliminated on consolidation.
The assets and the liabilities of foreign operations are
converted into Euros at the rates of exchange prevailing on the
balance sheet date, while the revenues and costs of foreign
operations are converted into Euros at rates which tend to
approximate the rates prevailing on the dates the transactions are
entered into. The currency translation gains or losses that arise
from the restatement of assets and liabilities of foreign
operations are taken directly to equity and are reported in the
"currency translation adjustments".
The financial statements have been compiled on the basis of the
International Financial Reporting Standards (IFRS) that have been
adopted by the European Union. The financial statements have been
compiled on the basis of historical cost and the amounts reported
therein are stated in Euro thousand.
These financial statements have been approved for publication by
the Board of Helesi PLC, at its meeting held on 10(th) June
2011.
Helesi PLC Group structure
The Helesi PLC Group comprises the following entities:
Entity Country of Incorporation Equity Interest
Helesi PLC Cyprus Holding entity
Helesi SA* Greece 100%
100% via Helesi
Helesi UK Ltd United Kingdom SA
99,99% via Helesi
Helesi Italia srl* Italy SA
AZ Perivallontiki
Ltd Cyprus 100%
Helesi Trans Ltd Cyprus 9%
JV Perivallontiki Mesogeios SA Greece 60%
(*) Entities with production facilities
2. Accounting polices
Adoption of new and revised IFRSs
As from 1 January 2010, the Company adopted all the following
IFRSs and International Accounting Standards (IAS), which are
relevant to its operations. The adoption of these Standards did not
have a material effect on the financial statements.
At the date of approval of these financial statements the
following accounting standards were issued by the International
Accounting Standards Board but were not yet effective:
(i) Adopted by the European Union
New standards
-- IAS 24 (revised): "Related Party Disclosures" (effective
for annual periods beginning on or after 1 January 2011).
Amendments
IFRS Interpretations Committee
-- Amendment to IFRS 1 "Limited Exemption from Comparative IFRS
7 Disclosures for First Time Adopters" (effective for annual
periods beginning on or after 1 July 2010).
-- Amendments to IAS 32 "Financial Instruments: Presentation
-- Classification of rights issues" (effective for annual periods
beginning on or after 1 February 2010).
The amendments to IAS 32 address the classification of certain
rights issues denominated in a foreign currency as either an
equity instrument or as a financial liability.
-- Improvements to IFRSs issued in 2010 (except for the amendments
to IFRS 3(2008), IFRS 7, IAS 1 and IAS 28) (effective for annual
periods beginning on or after 1 July 2010 and 1 January 2011,
as appropriate)
-- Improvements to IFRSs issued in May 2010 (effective for annual
periods beginning on or after 1 July 2010)
New IFRICs
-- Amendment to IFRIC 14 "The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their interaction" -- Prepayments
of a Minimum Funding Requirement (effective for annual periods
beginning on or after 1 January 2011).
-- IFRIC 19: "Extinguishing Financial Liabilities with Equity
Instruments" (effective for annual periods beginning on or after
1 July 2010).
(ii) Not adopted by the European Union
New standards
-- IFRS 9 "Financial Instruments" issued in
November 2009 and amended in October 2010 introduces
new requirements for the classification and
measurement of financial assets and financial
liabilities and for derecognition. (effective for
annual periods beginning on or after 1 January
2013). -- IFRS 9 requires all recognised financial
assets that are within the scope of IAS 39
"Financial Instruments: Recognition and
Measurement" to be subsequently measured at
amortised cost or fair value. Specifically, debt
investments that are held within a business model
whose objective is to collect the contractual cash
flows, and that have contractual cash flows that are
solely payments of principal and interest on the
principal outstanding are generally measured at
amortised cost at the end of subsequent accounting
periods. All other debt investments and equity
investments are measured at their fair values at the
end of subsequent accounting periods. -- The most
significant effect of IFRS 9 regarding the
classification and measurement of financial
liabilities relates to the accounting for changes in
fair value of a financial liability (designated as
at fair value through profit or loss) attributable
to changes in the credit risk of that liability.
Specifically, under IFRS 9, for financial
liabilities that are designated as at fair value
through profit or loss, the amount of change in the
fair value of the financial liability that is
attributable to changes in the credit risk of that
liability is recognised in other comprehensive
income, unless the recognition of the effects of
changes in the liability's credit risk in other
comprehensive income would create or enlarge an
accounting mismatch in profit or loss. Changes in
fair value attributable to a financial liability's
credit risk are not subsequently reclassified to
profit or loss. Previously, under IAS 39, the entire
amount of the change in the fair value of the
financial liability designated as at fair value
through profit or loss was recognised in profit or
loss.
The Board of Directors anticipates that IFRS 9 that will be
adopted in the Company's financial statements for the annual
period beginning 1 January 2013 and that the application of the
new Standard will have a significant impact on amounts reported
in respect of the the Company's financial assets and financial
liabilities. However, it is not practicable to provide a
reasonable estimate of that effect until a detailed review has
been completed.
Amendments
-- Amendments to IAS 12 -- "Deferred tax": Recovery of
Underlying Assets: (effective for annual periods beginning on
or after 1 January 2012).
-- Amendments to IFRS 1 - Severe Hyperinflation and Removal of
Fixed Dates for First--Time Adopters (effective for annual
periods beginning on or after 1 July 2011).
-- IFRS 7 (Amendment) Financial Instruments: Disclosures --
Transfers of Financial Assets (effective for annual periods
beginning on or after 1 July 2011) The amendments to IFRS 7
increase the disclosure requirements for transactions involving
transfers of financial assets. These amendments are intended to
provide greater transparency around risk exposures when a
financial asset is transferred but the transferor retains some
level of continuing exposure in the asset. The amendments also
require disclosures where transfers of financial assets are not
evenly distributed throughout the period.
The Board of Directors expects that the adoption of these
standards in future periods will not have a material effect on the
financial statements of the Company.
Going concern
The financial statements are prepared under the going concern
assumption. As at the balance sheet date, the Group's current
liabilities exceed its current assets by an amount of EUR14.2
million. Furthermore the Group incurred a loss for the year of
EUR5.1 million caused by the budgetary restriction of the Greek
municipalities and extensive restructuring of the Greek public
sector imposed by the EU/IMF support package that resulted from the
Greek financial crises.
As previously disclosed, the Group was in breach of its loan
covenants in 2010 and is expected to be in breach in 2011 also. The
Group has received waivers relating to these breaches in 2010. The
Group projections and budget for 2011 reflect sustainable net
operating cash-flow. However the Group relies on its long term
relationships with domestic banks. The budget assumes that the
Group will receive the tail of EUR1.7 million Italian State Grants
and the EUR7 million Greek State receivables funded by the
"Theseus" program in the second half of 2011. Their collection will
instantly reduce net debt levels and will allow the banks to
provide additional headroom. It also assumes that the Group will
receive waivers for its loan covenant breaches in 2011 as well.
The management's view is that Helesi does not face a high
collection risk despite the prolongation of Greek State due
receivables, and the Group will be able to meet its liabilities.
Group receivables are safeguarded against defaults as primary
customers are government bodies with the higher level of
credibility compared to the rest of the corporate world. Helesi's
management doubts that Greece will undergo a forced debt
restructuring. It is becoming obvious that the choice for
policy-makers over the question of Greek government financing is a
simple one between bond market restructuring and further
EU/IMF-sponsored aid, as Greece is likely to run out of funds in
2012. Many policy-makers appear keen to pass up any form of
restructuring. A second aid plan might be challenging to justify on
a political level, since in a sense it proves Greece's insolvency.
However the consequences of debt or bond restructuring, if it were
to occur, on the Greek Banking System and the Greek economy as a
whole are unpredictable and could adversely affect the Group's
ability to meet its budget for 2011 and adversely impact the
Group's ability to meet its obligations as they fall due and to
continue as a going concern. In such event the Group would be
unable to realise the carrying value of its property, plant and
equipment, whose values on a forced sale basis may be lower than
their fair values, and goodwill and intangibles would be written
off as their carrying values largely represent their values in
use.
Fixed assets
Fixed assets are reported in the financial information at
acquisition cost, after deduction of (a) the government grants
received that partially cover their acquisition cost, (b)
accumulated depreciation and, if applicable, (c) any permanent
impairment.
The costs incurred for the replacement of substantial component
parts of fixed assets are capitalised. The remaining costs that are
incurred subsequent to the installation of fixed assets are
capitalised only if they enhance the future economic benefits that
will be derived through the use of the affected assets. All other
costs and expenses that are incurred for the maintenance, repair
etc. of fixed assets are charged to operations at the time they are
incurred.
Depreciation is computed and charged to operations on the basis
of the straight-line method, over the estimated useful life of the
fixed assets. Land is not depreciated. The estimated useful life of
each category of assets, is as follows:
Buildings, installations and infrastructural 20-40 Years
works
Landscaping 5 Years
Industrial machinery and equipment 15-20 Years
Other installations and equipment 4-8 Years
Furniture and other equipment 4-8 Years
Vehicles 4-8 Years
The intangible fixed assets acquired by the Helesi PLC Group are
reported at their acquisition cost reduced by accumulated
amortisation and, if applicable, by any permanent impairment of
their value. The costs associated with internally generated
goodwill are charged to operations in the period in which they are
incurred.
The amortisation of intangible fixed assets, comprising computer
software, is charged to operations on the basis of the
straight-line method, over their estimated useful life. The
estimated useful life of computer software is 5 - 8 years.
Capitalisation of Development Costs
The Helesi PLC 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
development 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 development 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.
Participation in joint ventures
Joint Ventures are proportionally consolidated in the group's
financial statements.
Inventories
Inventories are reported at the lower of their purchase or
production cost and their corresponding net realisable value. Net
realisable value is the estimated re-sale value of the inventories,
reduced by the cost of disposal. The cost of inventories is
quantified on the basis of the weighted average method and is
inclusive of the costs associated with their acquisition or
production (in the case of internally produced goods) and the costs
incurred in bringing them to their present location and
condition.
The specialised spare parts of machinery and equipment that are
purchased at the stage of the acquisition of the machinery and
equipment they relate to, are considered to be an integral part of
and are depreciated along with the assets they are destined to
support, while the replacements of such spare parts are expensed at
the time of their purchase. In contrast, maintenance materials and
general-use spare parts are included in inventories and are
expensed as and when they are used.
Trade and other receivables
Receivables are reported net of the amounts that are deemed to
be doubtful of collection.
Cash and cash equivalents
Cash is inclusive of cash equivalents, such as current account
balances and short-term deposits. Bank overdrafts repayable on
demand that form part of the cash management system of the Helesi
PLC Group, are reported, in the statement of cash flows, as forming
part of cash balances.
Transactions in foreign currencies
The transactions that are denominated in foreign currencies are
stated in the functional currency of each entity forming part of
the Helesi PLC Group, on the basis of the exchange rates ruling on
the date of the transaction. On the balance sheet date, monetary
assets and liabilities that are denominated in foreign currencies
are re-stated in the reporting currency on the basis of the
exchange rates ruling on this date. The gains and losses arising on
restatement are taken to operations.
In contrast, the currency translation adjustments that arise in
the consolidation process, on the conversion of the financial
statements of subsidiaries that are compiled in currencies other
than the Group's reporting currency, are reflected directly in
shareholders' equity.
Dividends
Dividends payable are reported as a liability at the time that
they are declared as payable by the shareholders in general
meeting.
Employee retirement benefits
The obligations of the Helesi PLC Grouptowards its employees,
who are based in Greece, for the payment of certain benefits at the
stage of retirement that are dependent on the length of service,
are quantified and reported by reference to the accrued, as at the
date of the balance sheet, benefit that is anticipated to be paid
to each employee in the future, discounted to its present value,
having regard to the anticipated time of payment. The discount rate
used is equal to the yield, as at the balance sheet date, of Greek
Government bonds.
Provisions
Provisions are set up when the Helesi PLC Group has a legal or
constructive obligation, in relation to a past event, and it is
deemed likely that the settlement of the obligation will absorb
resources embodying economic benefits.
Financial instruments
The basic financial instruments used by the Helesi PLC Group are
cash, bank deposits, short-term receivables and payables and
certain other forms of financing. Given the short-term nature of
these instruments, Helesi PLC Group management believes that their
fair value is essentially identical to the value at which they are
reported in the accounting records of the Helesi PLC Group.
Furthermore, Helesi PLC Group management believes that the interest
rates paid in relation to the contracted loans are equivalent to
the current fair market rates and, consequently, there are no
grounds for adjusting the value at which these obligations are
reported. The Helesi PLC Group does not use any financial
derivatives.
Revenues
Sale of goods and services
The revenue derived from the sale of goods is recognised
(reported in the statement of comprehensive income) at the stage
when the basic risks and benefits associated with the ownership of
the goods, are transferred to the buyer. The revenue derived from
the rendering of services is recognised (reported in the statement
of comprehensive income) on the basis of the stage of completion of
the project, at the date of the balance sheet. Revenue is not
recognised, if there is substantial uncertainty as to the
likelihood of collecting the consideration agreed upon or the
possible return of the goods.
Government grants
Government grants are accounted for when there is reasonable
certainty that they will be collected and the Helesi PLC Group is
in a position to conform to the terms and conditions imposed for
their collection. The grants that are intended to partly finance
the acquisition of fixed assets are deducted from the cost of the
acquisition of the related assets. The grants, which aim at
compensating the business for expenses incurred, are reported as
income of the period in which the subsidised expenses are
charged.
Expenses
Payroll Costs
Payroll costs are charged to operations as incurred, except for
the element of these costs that is associated with the development
of new products or new components of existing products, which may
be capitalised, if appropriate.
Operating leases
The payments effected under operating leases are charged to
operations in line with the usage of the leased asset.
Finance leases
Finance leases are treated as financing arrangements, resulting
in the leased assets being reported as assets of the Helesi PLC
Group (and depreciated accordingly) with a corresponding liability
being reported towards the lessor or the lessors. The cost of
financing is taken to operations as an expense, as it accrues.
Cost of financing
The net cost of financing comprises interest paid or accrued on
contracted loans as well as on finance leases, calculated on the
basis of the real interest rate, less interest income generated by
the short-term investment of surplus cash funds. Exceptionally, the
cost of financing the construction of fixed assets is treated as a
component part of the cost of these assets, provided that the
conditions set for such capitalisation are satisfied.
Income taxes
The income tax charge in the period comprises the current tax
charge and the deferred tax element, that is the tax (or the tax
relief), which is associated with revenues (or costs) that are
reported, for accounting purposes, in the current period but will
generate a tax burden or relief in future accounting periods.
Income tax charges are shown in the statement of earnings, except
for the tax, which relates to transactions taken directly to
equity. This tax is also taken directly to equity.
The current tax charge is quantified by reference to the taxable
income of the period of each entity forming part of the Helesi PLC
Group, on the basis of the nominal rates of tax applicable as at
the balance sheet date, plus any additional taxes likely to be
imposed on the examination of the tax returns filed. In the case
that different tax rates apply to distributed and retained
earnings, the quantification of the current tax is based on the
rates applicable to each category and by reference to the
corresponding amounts. This inevitably results in the
differentiation of the effective tax rate over time, depending on
the policy followed by the Helesi PLC Group with respect to the
distribution or the non-distribution of profits.
The deferred tax charge is quantified by the application of the
relevant tax rates on the differences between the accounting and
tax base of assets and liabilities, to the extent that such
differences comprise timing differences that are anticipated to
reverse in the future.
A deferred tax asset is recognised, only to the extent that is
likely that taxable profits will be generated in the future,
sufficient to absorb the tax relief obtained through the
recognition of the deferred tax asset. A deferred tax asset is
appropriately reduced to the extent that it becomes uncertain
whether the anticipated future tax relief will, in fact, be
secured.
Segmental analysis
A "segment" is defined as a separate and distinct group of
business activities with common characteristics as to the nature of
the activities and the business risk associated with such
activities (business segment). A corresponding distinction is made
on the basis of the business environment within which the
activities are undertaken (geographic segment). Up to 31 December
2006, the Helesi PLC Group had only one substantial business
activity segment, namely that of the production and sale of
injection-moulded refuse containers (bins). However, as a result of
the business combinations that were effected in the course of 2007,
management is of the opinion that two distinct business segments
have emerged: the environmental products segment and the
environmental services segment. As a consequence, these two
business segments are recognised for business segmental reporting
purposes.
The business activities of the Helesi PLC Group can be
distinguished between the production, marketing and distribution of
environment-related products and environment-related services. At
present, the Helesi PLC Group has two production and trading units
- one in Greece and one in Italy, and one trading unit in the
United Kingdom, under the corporate umbrellas of Helesi Sa, Helesi
Italia Srl and Helesi UK Ltd, respectively. The financial results
and the financial position of these two business and geographic
segments are summarised in note 10 to the financial information.
The third-party transactions and balances of Helesi PLC, Helesi
Trans, AZ Perivallontiki, JV Perivallontiki-Mesogeios and Helesi
Italia srl, which are not eliminated on consolidation, still
comprise relatively immaterial amounts that are included in the
Greek segment.
On the basis of business risks and, in general, the economic
environment of each country in which Helesi PLC Group customers are
based, an analysis is provided in note 10 of (a) the value of sales
and (b) the value of the trade receivables outstanding at each year
end.
For the purposes of this analysis, a distinction is made between
the following geographic segments: Greece, United Kingdom, Italy,
rest of European Union, Other (non-EU) states.
3. Sales revenue
The Group
2010 2009
EUR 000 EUR 000
Sales of plastic products 28.243 31.623
Sales of vehicles 14.459 34.413
Fees for services rendered 7.383 7.962
-------- --------
50.085 73.998
-------- --------
4. Other revenue
The Group
2010 2009
EUR 000 EUR 000
Government grants 522 417
Recharging of transportation
costs 140 169
Gain from disposal of tangible
assets 437 172
Other revenues 133 470
-------- --------
1.232 1.228
-------- --------
5. Persons employed and related costs
The Group
31 December 31 December
2010 2009
Number Number
Number of persons employed
(at year end) 353 348
-------- --------
2010 2009
EUR000 EUR000
Salaries and wages (6.606) (6.658)
Social insurance costs (1.695) (1.624)
Other personnel costs (117) (76)
Employment termination benefits (148) (30)
Payroll costs capitalised 350 638
-------- --------
(8.216) (7.750)
-------- --------
Cost per employee (in Euro) 23.275 22.270
-------- --------
6. Analysis of depreciation charges
The Group
2010 2009
EUR000 EUR000
Buildings and building installations (670) (355)
Plant and machinery (2.958) (2477)
Vehicles (659) (647)
Furniture and other equipment (227) (140)
Computer software (150) (151)
-------- --------
(4.664) (3.770)
-------- --------
7. Other operating expenses
The Group
2010 2009
Transportation expenses (2.848) (3.160)
Electricity (1.051) (1.599)
Telecommunication (192) (185)
Rental expenses (367) (499)
Exhibition and advertising
expenses (237) (253)
Travel expenses (408) (505)
Repair and maintenance (1.050) (985)
Insurance expenses (259) (306)
Other taxes (382) (538)
Work subcontracted to third
parties (3.411) (3.063)
Bad debts provision (700) (336)
Other (2.019) (1.416)
Impairment adjustments - -
Capitalised costs 29 123
-------- --------
Total (12.895) (12.722)
-------- --------
8. Cost of financing
The Group
2010 2009
EUR000 EUR000
Interest charges on bank
loans (3.702) (3.647)
Finance lease charges (1) -
Cost of letters of credit,
letters of guarantee and
similar instruments (429) (949)
-------- --------
(4.132) (4.596)
Interest income 116 66
-------- --------
Net financing costs (4.016) (4.530)
-------- --------
9. Income taxes
The Group
2010 2009
EUR000 EUR000
(Loss) / Profit, before
taxes, per the statement
of earnings (5.939) 4.405
-------- --------
Income taxes, at the nominal
tax rate 1.510 (1.055)
Taxes on permanent differences
between accounting and
taxable profits (159) (166)
Effect of tax losses carried
forward (425) (388)
Group relief - -
Income not subjected to
taxation - 324
Extra ordinary tax (514) (370)
Tax relief (Charge) due
to the reduction (increase)
of the tax rate 444 116
Adjustments in prior year
expenses - -
-------- --------
Total tax charge (856) (1.539)
-------- --------
Current tax charge 575 (662)
Deferred tax charge (1.431) (877)
-------- --------
Total tax charge (856) (1.539)
-------- --------
The fact that, in certain cases, revenues and expenses are
recognised for accounting purposes in a different period than the
period in which these income items are taxed or expense items
provide tax relief requires the recognition of deferred tax assets
and liabilities.
The nominal tax rate applicable to Helesi PLC is 10%. However,
the dividends payable to natural persons, who are tax residents of
Cyprus, are subject to a withholding tax of 15%.
The tax relief that is associated with profits that are not
taxed or are taxed at reduced rates primarily emanates from the
profits derived from the Greek activities of the Helesi PLC Group.
In Greece, the taxation of certain forms of income may be deferred
indefinitely, provided that the said income is transferred to
reserves and its distribution is, likewise, deferred.
This year, Greek authorities levied by law 3808/2009 to impose
an income tax resembling charge, called Social Responsibility
Contribution similar to the previous year. For this reason, the
Greek company was burdened with this special tax assessment with an
amount of about EUR 514 thousand (2009: EUR370 thousand).
The tax returns of the entities forming part of the Helesi PLC
Group, for certain years, have not been examined by the tax
authorities as yet. As a consequence, it is possible that
additional taxes may be assessed at the time of such an
examination. These financial statements reflect a provision in
respect of this contingent liability, based on management's best
estimate of the amount that is likely to be assessed.
10. 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.
The Group 2010
Environmental Environmental Helesi PLC
products services Group
EUR000 EUR000 EUR000
Third-party sales 42.521 7.564 50.085
Other third-party revenues 1.133 99 1.232
--------- --------- ---------
Total revenues 43.654 7.663 51.317
Cost of Sales (26.862) (316) (27.178)
Personnel-related costs (4.995) (3.221) (8.216)
Directors' emoluments (287) - (287)
Depreciation charges (4.053) (611) (4.664)
Other operating expenses (9.819) (3.076) (12.895)
Intersegment expenses - - -
--------- --------- ---------
Segmental loss, before finance
charges (2.362) 439 (1.923)
Cost of financing (3.515) (501) (4.016)
--------- --------- ---------
Segmental loss, before taxes (5.877) (62) (5.939)
Elimination of intersegmental
profits - - -
--------- --------- ---------
Loss from ordinary activities - - -
Income taxes 841 15 856
--------- --------- ---------
Net loss, after taxes (5.036) (47) (5.083)
--------- --------- ---------
The Group 2009
Environmental Environmental Helesi PLC
products services Group
EUR000 EUR000 EUR000
Third-party sales 66.036 7.962 73.998
Other third-party revenues 1.138 90 1.228
--------- --------- ---------
Total revenues 67.174 8.052 75.226
Cost of Sales (41.754) - (41.754)
Personnel-related costs (4.485) (3.265) (7.750)
Directors' emoluments (295) - (295)
Depreciation charges (3.245) (525) (3.770)
Other operating expenses (10.096) (2.626) (12.722)
Intersegment expenses - - -
--------- --------- ---------
Segmental profit, before
finance charges 7.299 1.636 8.935
Cost of financing (4.043) (487) (4.530)
--------- --------- ---------
Segmental profit, before
taxes 3.256 1.149 4.405
Elimination of intersegmental
profits - - -
--------- --------- ---------
Profit from ordinary activities 3.256 1.149 4.405
Income taxes (1.137) (402) (1.539)
--------- --------- ---------
Net profit, after taxes 2.119 747 2.866
--------- --------- ---------
The Group 31 December 2010
Environmental Environmental Helesi PLC
products services Group
EUR000 EUR000 EUR000
Total assets 131.596 9.663 141.259
Total liabilities to third
parties (88.098) (3.506) (91.604)
--------- --------- ---------
Net assets 43.498 6.157 49.655
--------- --------- ---------
The Group 31 December 2009
Environmental Environmental Helesi PLC
products services Group
EUR000 EUR000 EUR000
Total assets 146.790 11.749 158.539
Total liabilities to third
parties (99.165) (4.558) (103.723)
--------- --------- ---------
Net assets 47.625 7.191 54.816
--------- --------- ---------
The Helesi PLC Group operates now two production units - one in
Greece and one in Italy, under the corporate umbrellas of Helesi SA
and 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.
2010
Elimination
of
intersegment Helesi
Greece UK Italy transactions PLC Group
EUR000 EUR000 EUR000 EUR000 EUR000
Third-party sales 39.434 2.412 8.239 - 50.085
Intersegment sales 4.067 487 317 (4.871) 0
------ ------ ------ ------ ------
Total sales 43.501 2.899 8.556 (4.871) 50.085
Other third-party
revenues 823 231 178 - 1232
Intersegment other
revenues - - - 0
Total revenues 44.324 3.130 8.734 (4.871) 51.317
------ ------ ------ ------ ------
Cost of Sales (16.167) (5.429) (5.582) - (27.178)
Cost of
intersegment use
of materials (3.660) (438) (285) 4.383 0
Personnel-related
costs (7.015) (218) (983) - (8.216)
Directors'
emoluments (287) - - (287)
Depreciation
charges (4.079) (37) (548) - (4.664)
Other operating
expenses (10.136) (689) (2.070) - (12.895)
------ ------ ------ ------ ------
Segmental loss,
before finance
charges 2.980 (3.681) (734) (488) (1.923)
Cost of financing (3.878) (6) (132) - (4.016)
------ ------ ------ ------ ------
Segmental loss,
before taxes (898) (3.687) (866) (488) (5.939)
Elimination of
intersegmental
profits (456) 0 (32) 488 0
------ ------ ------ ------ ------
Loss, before taxes (1.354) (3.687) (898) 0 (5.939)
Income taxes 693 0 163 - 856
------ ------ ------ ------ ------
Net loss, after
taxes (661) (3.687) (735) 0 (5.083)
The Group 2009
Elimination
of intersegment Helesi PLC
Greece UK Italy transactions Group
EUR000 EUR000 EUR000 EUR000 EUR000
Third-party sales 59.185 6.780 8.033 73.998
Intersegment sales 9.309 141 391 (9.841) -
------ ------ ------ ------ ------
Total sales 68.494 6.921 8.424 (9.841) 73.998
Other third-party
revenues 943 172 113 1.228
Intersegment other
revenues 27 (27)
Total revenues 69.437 7.093 8.564 (9.868) 75.226
------ ------ ------ ------ ------
Cost of Sales (30.649) (5.073) (6.032) - (41.754)
Cost of intersegment
use of materials (8.374) (127) (352) 8.853 -
Personnel-related
costs (6.351) (576) (823) - (7.750)
Directors'
emoluments (295) - (295)
Dep reciation
charges (2.927) (518) (325) - (3.770)
Other operating
expenses (9.590) (1.227) (1.905) - (12.722)
------ ------ ------ ------ ------
Segmental profit,
before finance
charges 11.251 (428) (873) (1.015) 8.935
Cost of financing (3.701) (550) (279) - (4.530)
------ ------ ------ ------ ------
Segmental profit,
before taxes 7.550 (978) (1.152) (1.015) 4.405
Elimination of
intersegmental
profits (935) (14) (66) 1.015 -
------ ------ ------ ------ ------
Profit, before taxes 6.615 (992) (1.218) - 4.405
Income taxes (1.714) (27) 202 - (1.539)
------ ------ ------ ------ ------
Net profit, after
taxes 4.901 (1.019) (1.016) - 2.866
------ ------ ------ ------ ------
31 December 2010
Elimination
of Helesi
intersegment PLC
Greece UK Italy balances Group
EUR000 EUR000 EUR000 EUR000 EUR000
Intersegment
investments 5.046 - - (5.046) 0
Intersegment
receivables/payables 12.882 (3.211) (9.671) - 0
Total other assets 119.504 671 21.084 - 141.259
Total liabilities to
third parties (86.763) 3.210 (8.051) - (91.604)
------ ------ ------ ------ ------
Net assets 50.669 670 3.362 (5.046) 49.655
------ ------ ------ ------ ------
The Group 31 December 2009
Elimination
of Helesi
intersegment PLC
Greece UK Italy balances Group
EUR000 EUR000 EUR000 EUR000 EUR000
Intersegment investments 5.046 - - (5.046) -
Intersegment
receivables/payables 15.200 (5.728) (9.472) - -
Unrealised intersegment
profits - 50 - (50) -
Total other assets 126.832 3.783 27.924 - 158.539
Total liabilities to
third parties (89.151) (186) (14.386) - (103.723)
------ ------ ------ ------ ------
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 each year 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), is
analysed as follows:
Other
European Helesi
Union PLC
The Group Greece UK Italy states Other Group
(non-EU)
states
EUR000 EUR000 EUR000 EUR000 EUR000 EUR000
2010
Value of sales 28.187 2.538 8.206 9.011 2.143 50.085
------ ------ ------ ------ ------ ------
Trade receivables,
at year end 24.825 591 8.459 2.183 510 36.568
------ ------ ------ ------ ------ ------
2009
Value of sales 45.966 7.061 8.483 9.032 3.456 73.998
------ ------ ------ ------ ------ ------
Trade receivables,
at year end 30.122 1.552 14.184 6.894 353 53.105
------ ------ ------ ------ ------ ------
11. Interest in joint ventures
In the year 2007, Helesi SA acquired the 70% of the joint
venture in Cyprus with the purpose of construction and operation of
two transhipment stations in Cyprus. In the beginning of 2008, the
company purchased the other 30% for an amount of 700 EUR thousand.
These two distinguished stages of the project, construction and
operation, have been recognised at their fair value. The stage of
construction is in progress and the 75% is estimated to have been
completed on 31 December. Income and expenses related to the stage
of construction have been recognised in the present financial
statements by the percentage mentioned above. On 31 December 2010
the total assets are EUR2.744 thousand and the total liabilities
are EUR2.378 thousand. In August 2010 one of the two stations
commenced operations. During the construction period of the second
station, Helesi agreed with the Cypriot State to operate three
waste transfer stations at the area of Larnaca. On 31 December 2010
the revenues from operations are EUR359 thousand. The Gross Profit
from operations is EUR295 thousand.
Additionally during 2009, Helesi SA and Mesogeios SA formed JV
Perivallontiki - Mesogeios with purpose the waste management of
West Macedonia Perfecture. Helesi participation is 60%. Revenues
for the current financial year are EUR1.187 thousand and net profit
after tax was EUR20 thousand. On 31 December 2010 the total assets
are EUR352 (2009: EUR 5 thousand) thousand and the total
liabilities are EUR319 thousand (2009: 127 thousand). The JV has
been proportionally consolidated in the group statements.
12. Tangible fixed assets
Assets under
Buildings and Furniture construction
building Plant and and other or
The Group Land installations machinery Vehicles equipment installation Total
EUR000 EUR000 EUR000 EUR000 EUR000 EUR000 EUR000
At cost or
valuation
As at 31 December
2008 2.914 9.285 25.754 5.126 938 31.981 75.998
------ ------ ------ ------ ------ ------ ------
Effect of currency
translation - - 150 2 (65) - 87
Additions 2009 - 7.960 11.287 124 383 (4.941) 14.812
Disposals 2009 (88) (5) (261) (357) (5) - (716)
Transfers (217) 3.747 19.957 23 (22) (24.345) 856
------ ------ ------ ------ ------ ------ ------
As at 31 December
2009 2.609 20.987 56.887 4.918 1.229 2.695 89.326
Reclassifications
from intangible
assets 0 250 782 0 0 0 1.032
As at 31 December
2009
(as restated) 2.609 21.237 57.669 4.918 1.229 2.695 90.357
------ ------ ------ ------ ------ ------ ------
Effect of currency
translation - - 61 1 (3) - 59
Additions 2010 - 1.687 4.095 262 260 2.246 8.550
Disposals 2010 - - (3.180) (127) - - (3.307)
Transfers - 954 (1.506) - - 552 -
------ ------ ------ ------ ------ ------ ------
As at 31 December
2010 2.609 23.878 57.139 5.054 1.486 5.493 95.659
------ ------ ------ ------ ------ ------ ------
Accumulated
depreciation
As at 31 December
2008 - (1.062) (4.870) (2.094) (298) - (8.324)
------ ------ ------ ------ ------ ------ ------
Effect of currency
translation - - (38) (2) 11 - (29)
Depreciation
charges 2009 - (355) (2.477) (647) (140) (3.619)
Disposals 2009 - - 47 268 1 - 316
Transfers - (15) (49) 1 (1) - (64)
------ ------ ------ ------ ------ ------ ------
As at 31 December
2009 - (1.417) (7.338) (2.4743) (427) - (11.656)
Reclassifications
per intangible
assets - (15) (49) - - - (64)
As at 31 December
2009 - (1.432) (7.387) (2.474) (427) - (11.720)
(as restated) ------ ------ ------ ------ ------ ------ ------
Effect of currency
translation - - 60 (1) (1) - 58
Depreciation
charges 2010 - (670) (2.958) (659) (228) - (4.515)
Disposals 2010 - - 1.265 106 - - 1.371
------ ------ ------ ------ ------ ------ ------
As at 31 December
2010 - (2.102) (9.020) (3.028) (656) - (14.806)
------ ------ ------ ------ ------ ------ ------
Net book values
As at 31 December
2010 2.609 21.776 48.119 2.026 830 5.493 80.853
As at 31 December
2009 2.609 19.805 50.282 2.444 802 2.695 78.637
------ ------ ------ ------ ------ ------ ------
In 2009, an amount of EUR1.051 thousand was misclassified as
acquisition cost of intangible assets with depreciation charges
amounting to EUR82 thousand. In 2010, this cost has been
reclassified as tangible fixed asset with acquisition cost of
EUR1.032 thousand and depreciation charges of EUR64 thousand. The
reclassification did not have an effect on profits of 2009.
The cost of the acquisition of tangible fixed assets is reported
net of the grants received for partly financing their purchase. The
full purchase cost of these assets and the related grants that have
been utilised to partially finance their acquisition is reflected
in the following table:
Reported
Full purchase Investment acquisition
The Group cost grants costs
EUR000 EUR000 EUR000
2010
Land 2.609 - 2.609
Buildings and building
installations 32.581 (8.703) 23.878
Plant and machinery 98.633 (41.494) 57.139
Vehicles 6.051 (997) 5.054
Furniture and other equipment 1.902 (416) 1.486
Assets under construction 5.493 - 5.493
------ ------ ------
147.269 (51.610) 95.659
------ ------ ------
2009
Land 2.609 - 2.609
Buildings and building
installations (as restated) 30.895 (9.658) 21.237
Plant and machinery (as
restated) 97.990 (40.321) 57.669
Vehicles 5.915 (997) 4.918
Furniture and other equipment 1.645 (416) 1.229
Assets under construction 2.695 - 2.695
------ ------ ------
141.749 (51.392) 90.357
------ ------ ------
In 2010, the development costs that have satisfied the
capitalisation criteria set, amounted to EUR380, while for 2009 was
EUR761 thousand. These costs comprised (in EUR'000):
2010 2009
Personnel related costs 351 638
Miscellaneous other expenses 29 123
------ ------
380 761
------ ------
As at 31 December 2010 and 2009, there were mortgages and other
charges on the property of the Helesi PLC Group, as a form of
security for the financing facilities placed at the disposal of the
Helesi PLC Group and for guarantees given in favour of the Helesi
PLC Group, which amounted, in aggregate, to EUR52 million and EUR33
million, respectively. In the course of 2010, new charges of EUR19
million were added.
13. Intangible fixed assets
Computer
The Group software Goodwill Total
EUR000 EUR000 EUR000
At cost or valuation
As at 1st January
2009 888 12.559 13.447
Effect of currency
translation 5 - 5
Additions 2009 244 - 244
Transfers 856 - 856
------ ------ ------
As at 31st December
2009 1.993 12.559 14.552
------ ------ ------
Reclassification to
tangible assets (1.051) 0 (1.051)
Effect of currency
translation 3 - 3
Additions 2010 807 - 807
Transfers (46) - (46)
------ ------ ------
As at 31st December
2010 1.706 12.559 14.265
------ ------ ------
Accumulated depreciation
As at 1st January
2009 (54) - (54)
Depreciation charges
2009 (151) - (151)
Transfers (21) - (21)
------ ------ ------
As at 31 December
2009 (226) - (226)
------ ------ ------
Reclassification to
tangible assets 82 0 82
As of January 1(st) (143) - (143)
Depreciation charges
2010 (150) - (150)
------ ------ ------
As at 31 December
2010 (293) - (293)
------ ------ ------
Net book values
As at 31 December
2010 1.413 12.559 13.972
As at 31 December
2009 799 12.559 13.358
(as restated)
The carrying value of EUR12.5 million of goodwill which arose on
the acquisition of the vehicles division is assessed annually for
impairment based on management's forecasts to perpetuity. Helesi's
management reviewed a five year earnings forecast of the vehicles
distribution division based on past experience, the Greek market
cyclicality and the effect of state structural reforms currently
taking place. Future earnings were discounted at the Weighted
Average Cost of Capital. Helesi applied a cumulative average growth
rate of 15% to extrapolate the cash flow projections for the five
year period.
14. Other long-term assets
Other long-term assets primarily comprise guarantee deposits
given in relation to operating leases.
15. Inventories
The Group The Company
31 December 31 December 31 December 31 December
2010 2009 2010 2009
EUR000 EUR000 EUR000 EUR000
Vehicles 2.267 1.974 - -
Manufactured goods 3.853 4.832 - -
Raw and packaging
materials 2.731 5.142 - -
------ ------ ------ ------
8.851 11.948 - -
------ ------ ------ ------
16. Trade and other receivables
The Group
31 December 31 December
2010 2009
EUR000 EUR000
Trade receivables 27.725 33.366
Receivables doubtful
of collection (993) (1.114)
------ ------
26.732 32.252
Advances to suppliers 2.664 3.370
State receivables
(including VAT,grants
and refundable taxes) 4.046 13.419
Blocked deposit accounts 30 -
Other receivables 3.096 4.064
------ ------
36.568 53.105
------ ------
The provision for bad debts was increased by EUR700 thousand
(2009: EUR336 thousand) out of which EUR821thousand were utilized.
The past due receivables that have not been impaired amount to
EUR12,1 million and are past due 3 months more or less from the
contractual maturity. Management considers that these receivables
will be collected in full.
The ageing analysis of trade receivables is as follows:
The Group
31December 31December
2010 2009
Period
Up to 6 months 11.831 20.950
6 to 9 months 2.471 5.769
9 to 12 months 2.080 753
Over 12 months 10.350 5.780
------ ------
26.732 32,252
------ ------
17. Cash and cash equivalents
Cash and cash equivalents comprise notes held by the Helesi PLC
Group as well as bank deposits available on demand.
18. Borrowings
The loans contracted by the Helesi PLC Grouphave been advanced
by Greek and Italian banks and are denominated in Euros. The
amounts that are repayable within one year of the balance sheet
date are reported as short-term liabilities while the amounts that
are repayable at a subsequent stage, are reported as long-term
obligations. The loans of the Helesi PLC Group are analysed as
follows:
The Group
31 December 31 December
2010 2009
EUR000 EUR000
Short-term borrowings
Bank loans (30.060) (41.362)
Short-term portion of
long-term loans (4.175) (5.646)
Finance lease obligations (9) (8)
------ ------
(34.244) (47.016)
------ ------
Long-term borrowings
Debenture loan (29.607) (26.115)
Finance lease obligations (6) (14)
------ ------
(29.613) (26.129)
------ ------
Depending on the date of maturity, long-term borrowings are
analysed as follows:
The Group
31 December 31 December
2010 2009
EUR000 EUR000
Long-term borrowing repayable
in:
1 to 2 years (6.335) (6.295)
2 to 5 years (19.272) (14.372)
Over 5 years (4.006) (5.462)
------ ------
(29.613) (26.129)
------ ------
The following are the contractual maturity of bank loans
including interest payment:
The Group
31 December 31 December
2010 2009
EUR000 EUR000
1 to 2 years (8.444) (7.673)
2 to 5 years (22.630) (16.852)
Over 5 years (4.271) (6.332)
------ ------
(35.345) (30.857)
------ ------
The credit downgrade of the Greek State in 2010 was followed by
a credit downgrade of the local banks. The increased cost of
borrowing for the local banks was passed on to Helesi. Consequently
the weighted average cost of borrowing for 2010 increased to 5.8% (
2009: 4%).
At the second half of 2010 the Greek Subsidiary Helesi SA
renegotiated successfully EUR31 million of debt. Helesi rescheduled
EUR6.5 million of debenture loans with Piraeus Bank expiring at
2015. A new balloon loan of EUR2.1 million was issued to refinance
existing short term debt, expiring at 2015. Additionally EUR4.1
million and EUR5 million of debenture loans were rescheduled with
Alpha Bank, with 1 year grace period expiring at 2013 and 2015
respectively. FBB agreed to extend the maturity of a EUR2 million
long term loan, expiring at 2013. Bank of Cyprus approved the
extension of the maturity of EUR4.3 million up to 2017,
rescheduling payments with 1 year grace period. Panellinia Bank
agreed for EUR1 million of debt expiring in 2010 to be rescheduled
into balloon payments expiring at December 2011. Finally, at the
first quarter of 2011, RBS agreed to extend EUR4 million of
debenture loans and EUR2 million of short term debt up to 2016 with
a grace period until 31 December 2011.
The contractual cash flows after the debt reschedule are the
following:
The Group
EUR000
0-3 months 465
4-12 months 5.231
1-5 years 31.392
More than 5 years 4.006
In 2010 the Group provided a pledge on its fixed assets in the
amount of EUR19 million as additional security.
On 31 December 2010 the Greek subsidiary, Helesi SA was in
breach of covenants related to a total amount of EUR24.2 million of
long term debt. Waivers have been received in respect of all of
these covenants.
19. Financing risks
Currency risk
The Helesi PLC Group is exposed to foreign currency risk by its
subsidiary in UK. Sales and receivables of Helesi UK Ltd, are
denominated in Pounds Sterling. Receivables on 31 December 2010 and
2009 were EUR352 thousand and EUR1.071thousand respectively. A
change of exchange rate by +/- 10% would increase/reduce the profit
of the Group by EUR 41thousand and EUR 95thousand respectively.
Credit risks
The Helesi PLC Group has a clearly defined policy, which is
followed consistently. The exposure to credit risks is monitored
and assessed on a regular basis, thus ensuring that the credit
given does not exceed the authorised credit limits of each
customer. As at 31 December 2010 and 2009, receivables, amounting
to EUR257 thousand and EUR 50 thousand, respectively, were secured
by letters of credit, letters of guarantee, state guarantees and
distributor guarantees.
The maximum exposure of the Helesi PLC Group to credit risk,
assuming that all customers will fail to honour their obligations,
is the amount reported under receivables, less the aforementioned
amounts of the guarantees secured.
Interest rate risks
Most of the interest-bearing receivables and payables of the
Helesi PLC Group are linked to floating interest rates that are
adjusted in line with interest-rate market fluctuations. The Helesi
PLC Group does not use financial derivatives.
Liquidity risk
Liquidity risk arises from the differences in the timing of the
maturity of payables and receivables. The liquidity risk is
increased due to the high bank borrowing of the Group and the delay
in the collection of receivables.
Cash flow risk
Group's borrowings are linked to floating interest rates, and as
a consequence the Group is exposed to cash flow risk from changes
in interest rates. A change (increase/decrease) of the interest
rate by 100 basis points at 31.12.2010 would have resulted to the
change (increase/ decrease) of the after taxes Group's profit by
EUR685 thousand (2009: EUR712 thousand).
Fair value estimation
The carrying amounts and fair values of certain financial assets
and liabilities are as follows:
Carrying amounts Fair values
31 December 31 December 31 December 31 December
2010 2009 2010 2009
EUR000 EUR000 EUR000 EUR000
Financial assets
Cash and cash
equivalents 1.002 1.411 1.002 1.411
Financial assets 36.568 53.105 36.568 53.105
Financial liabilities
Trade payables (25.447) (26.915) (25.447) (26.915)
Current borrowings (34.244) (47.016) (34.244) (47.016)
20. Trade and other payables
The Group
31 December 31 December
2010 2009
EUR000 EUR000
Trade creditors (22.933) (24.630)
Accrued expenses (479) (433)
Social security contributions
payable (383) (418)
Payable salaries (479) (304)
Liabilities due to related
parties - -
Taxes (other than income
tax) payable (487) (702)
Other payables (686) (428)
------ ------
(25.447) (26.915)
------ ------
21. Employee benefits
The obligation of the Helesi PLC Group towards its employees
based in Greece, to provide them with certain future benefits
depending on their length of service is quantified and reported on
the basis of the accrued entitlement, as at the date of the balance
sheet, that is anticipated to be paid, discounted to its present
value by reference to the anticipated time of payment. The discount
rate used is broadly equal to the yield of Greek Government bonds.
The movement of the account of employee benefits, in the years 2010
and 2009 was as follows:
The Group
EUR000
Provision as at 31 December 2008 (84)
Charge for the year in respect of
employment termination benefits (74)
Amounts actually disbursed 43
------
Provision as at 31 December 2009 (115)
------
Charge for the year in respect of
employment termination benefits (165)
Amounts actually disbursed 130
------
Provision as at 31 December 2010 (150)
------
22. Government grants
Government grants relate to Helesi SA and Helesi Italia srl and
have been granted in relation to investments in fixed tangible
assets, effected in the period from 2000 to 2010 or currently under
construction. The reported value of the acquired fixed tangible
assets has been reduced by the grants received and receivable for
the purposes of partially financing their acquisition cost.
Depending on the provisions of the law, under which the grants were
advanced, certain restrictions apply as to the transfer of the
ownership of the subsidised assets and to changes of the legal
status of the entity to which the grants were advanced. The
inspections carried out by the supervisory authorities, to date,
have not disclosed cases of non-compliance with these restrictions
that had not been approved, in advance.
The amount of government grants received and receivable, for the
purposes of financing the purchase of fixed assets, is reported
under the note covering fixed tangible assets. The resultant
reduction of the depreciation charges that would have, otherwise,
burdened the operations of the Helesi PLC Group is quantified in
the following table:
The Group EUR000
Effective reduction of the value of tangible fixed
assets, as at 31 December 2008 (48.203)
New grants secured in 2009 800
Effective reduction of the depreciation charges,
in 2009 1.576
-----
Effective reduction of the value of tangible fixed
assets, as at 31 December 2009 (45.827)
------
Effective reduction of the value of tangible fixed
assets, as at 31 December 2009 (45.827)
New grants secured in 2010 (413)
Effective reduction of the depreciation charges,
in 2010 1.778
-----
Effective reduction of the value of tangible fixed
assets, as at 31 December 2010 (44.462)
------
23. Share capital and share premium
Company'sauthorised share capital is divided into 60.000.000
shares (2009: 60.000.000 shares) of a nominal value of EUR0.10
each.
Company's issued share capital is divided into 39,805,754 shares
(2009:39.805.754 shares) of a nominal value of EUR0.10 each.
By the decision of the General Shareholders Meeting, dated 7
April 2009 and the Extraordinary General Shareholders Meeting dated
22 June 2009 the share capital of Helesi PLC increased by
EUR703,125 through the issuance of 7,031,249 new ordinary shares at
a price of 0,64 Euro per share. The total of both increases was
contributed by the company TECMEC SA. Costs of issuance amount to
EUR105,000 have been deducted from the share premium reserve.
The share premium generated on the exchange of the Helesi SA
shares for Helesi PLC shares of EUR15,753 thousand plus the share
premium raised on the admission to AIM of EUR16,093 thousand has
been reduced by the AIM admission costs of EUR2,301 thousand less
the tax relief generated by these costs of EUR405 thousand, i.e. by
a net amount of EUR1,896 thousand.
In September 2006, a Share Option Plan was introduced, entailing
the granting of options to acquire shares of Helesi PLC, at
specified exercise prices and within a specified period of time
exceeding three but not exceeding seven years, to directors and key
employees of the Group. The options, which may be granted under
this Plan, may cover a maximum of 10% of the issued and outstanding
shares of Helesi PLC. The operation of this Plan could have a
dilutive effect on the issued and outstanding shares of Helesi PLC.
The dilutive effect is a function of (a) the number of shares that
may be acquired through the exercise of such rights, (b) the
exercise price at which the options are granted, (c) the market
price of the shares thus acquired and (d) the overall market
capitalisation of the Company.
618,100 share options have been granted, under this Plan, to
certain directors and key-managers of the Group. These options,
which represent 1.5% of the issued and outstanding shares of Helesi
PLC, mature over a period of three years and have an exercise price
that is equal to the price at which the shares were listed on IPO
(EUR1.71 per share). The exercise of the options is conditional on
the attainment of certain overall financial targets of the
Group.
According to the Register of shareholders of Helesi PLC, as at
31 December 2010 the shareholders holding shares of Helesi PLC
exceeding 3% of the total number of issued and outstanding shares
and the shareholders who serve the Helesi PLC Group as members of
its management, were the following:
Athanasios Andrianopoulos 15,73%
Christina Thanasoulia (wife of
A. Andrianopoulos) 11,97%
Tecmec SA 22,69%
National Bank of Greece 8,81%
Emmanouil Anyfantakis 5,90%
Lazard Asset Management 3,87%
Dimitrios Karaiskos 3,80%
Hansa Capital 3,79%
----------------------------------------------- -------
Certain other members of Helesi PLC Groupmanagement hold shares
in Helesi PLC but in no case do such holdings exceed 1%.
24. Reserves
The corporate restructuring process has, in effect, rendered
"non-distributable" all the pre-restructuring reserves and retained
earnings of the Group. A substantial part of the pre-structuring
reserves of Helesi SA were, in any event, non-distributable either
because they had, by law, been taken to capital reserves or because
they had been allocated to untaxed reserves for the purposes of
deferring the payment of the taxes (that would have been,
otherwise, payable) on the profits so transferred.
The post-restructuring profits that have been taken to reserves,
mainly by the Greek entities forming part of the Helesi Group,
either by the operation of law or on the basis of provisions of
Greek tax legislation, which permit the indefinite deferral of the
incidence of taxation on otherwise taxable profits (as a form of an
investment incentive, on condition that the said profits are
re-invested in the business) are reported under "capital reserves".
The tax thus deferred is precipitated by the disposal of the assets
acquired, within a period of 5 years of their acquisition, or
whenever the untaxed reserves are distributed. The tax liability
that will precipitate on the distribution of these reserves,
estimated, as at 31 December 2010, at EUR 4.3 million, shall be
recognised as and when a decision to distribute these reserves, or
part thereof, is taken.
The currency translation adjustments that arise in the
consolidation process, on the conversion of the financial
statements of Helesi UK Ltd from Pounds Sterling into Euro, are
reflected directly in shareholders' equity and are reported under
the caption "currency translation adjustments".
25. Earnings per share and 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
31 December 31 December 31 December 31 December
The Group 2010 2009 2010 2009
EUR000 EUR000 EUR000 EUR000
Net profit attributable
to the shareholders (in
Euro thousand) (5.082) 2.866 (5.082) 2.866
Weighted average number
of issued shares (in
thousands) 39.806 37.109 39.806 37.109
------ ------ ------ ------
Earnings per share (in
EUR) (0.13) 0.08 (0.13) 0.08
------ ------ ------ ------
For 2010, the Board of Directors has decided not to propose
dividend, taking into account the financial environment.
26. Deferred tax assets and liabilities
Deferred tax assets and liabilities are quantified at the level
of each separate entity forming part of the Helesi PLC Groupand, to
the extent that deferred tax assets and deferred tax liabilities
arise, they are off set against each other. The deferred tax assets
and liabilities emanate from the following causes:
The Group
2010 2009
EUR000 EUR000
Tax impact of the differentiation
of the accounting and the
tax depreciation rates (3.960) (2.930)
Anticipated tax burden on
the disposal of revalued
land - (28)
Providing for doubtful receivables,
while tax relief entails
a write-off 191 191
Reducing the value of stocks
to eliminate the effect
of tax depreciation 71 78
Tax relief from taxable
losses 2.081 -
Miscellaneous timing differences
between accounting profits
and taxable income 465 99
------ ------
Income taxes, which will
burden future accounting
periods (1.152) (2.590)
------
27. Related party transactions and balances
The transactions of the Helesi PLC Group, in the year 2010 and
2009, with and the receivables from and payables to related
parties, as at 31 December 2010 and 2009, are analysed as
follows:
Purchases Receivable Payable
The Group Sales to from from to
EUR000 EUR000 EUR000 EUR000
2010
TECMEC AE 241 3.787 4.091
2009
TECMEC AE 107 2.469 716 -
The compensation of the members of the Board of Directors and
certain other key management personnel executives, in the years
2010 and 2009, was as follows:
The Group
2010 2009
EUR000 EUR000
Dimitrios Goulandris
Chairman (60) (41)
Athanassios Andrianopoulos,
CEO (70) (77)
Christina Thanassoulia
(Deputy CEO) (35) (39)
Apostolos Binomakis-
Non executive member (40) (57)
Frithjof Platou - Non
executive member - (20)
Elena Paraskeva - Non
executive member (25) (25)
Ioannis Riskakis - Executive
member (57) (36)
------ ------
(287) (295)
------ ------
28. Commitments and 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 Law 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
the new tax law at the end of this year 20%. 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.
The Helesi PLC Group is contractually committed under operating
leases for the leasing of office space and warehouses and of
certain production facilities in the UK, as follows:
Within Within 2-5
1 year years
EUR000 EUR000
Office premises 17 36
Production facilities - 117
------ ------
17 153
------ ------
The banks cooperating with the Group have provided guarantees in
favour of third parties amounting to EUR 12.880 thousand.
29. Audit fee
The audit fees for the whole of the Helesi Group, for the year
ended 31 December 2010 amounted to EUR100 thousand (2009:
EUR103thousand). The audit fees charged by Group auditors for the
year ended 31 December 2010 amounted to EUR31 thousand (2009: EUR31
thousand). There were no other fees charged by the Group's
auditors.
30. Post balance sheet events
On 1(st) June Apostolos Binomakis, non-executive member of the
board resigned to pursue his full-time business interests. On
14(th) June the board appointed George Papaggelis as a
non-executive director.
Except as disclosed in Note 18, there were no material events
after the reporting period which have a bearing on the
understanding of the financial statements.
For further information please visit www.helesi.com or
contact:
Helesi PLC + 30 22990 82700
Sakis Andrianopoulos, Chief Executive,
Ioannis Tolias, Finance Director itolias@helesi.com
Panmure Gordon +44 (0) 20 7459 3600
Andrew Godber
Katherine Roe
Tavistock Communications + 44 (0) 20 7920 3150
Simon Hudson shudson@tavistock.co.uk
Lydia Eades leades@tavistock.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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