P.G. Economides Properties PLC

Interim Report • Oct 10, 2023

MANAGEMENT ACCOUNTS Period from 1 January 2023 to 30 June 2023

MANAGEMENT ACCOUNTS

Period from 1 January 2023 to 30 June 2023

CONTENTS

Board of Directors and other officers
Management Report	2
Declaration of the members of the Board of Directors and the company officials responsible for the preparation of the management accounts	3
Statement of profit or loss and other comprehensive income	$\overline{4}$
Statement of financial position	5
Statement of changes in equity	6
Notes to the management accounts	7 - 9

PAGE

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Peter G. Economides Androula Zavou Economides
Company Secretary:	Totalserve Management Ltd
Independent Auditors:	Ekkeshis Ierodiakonou Ltd Certified Public Accountants and Registered Auditors 39 Themistocles Dervis Str. Off. 102 1066, Nicosia
Registered office:	17 Gr. Xenopoulou Str. 3106, Limassol Cyprus
Registration number:	HE27549

MANAGEMENT REPORT

The Board of Directors presents its report and audited management accounts of the Company for the period from 1 January 2023 to 30 June 2023.

Principal activities and nature of operations of the Company

The principal activity of the Company, which are unchanged from last year, is the development of land. On 10 November 2020 the Company obtained a licence for its shares to be listed to the Emerging Companies Market.

Change of Company name

On 15 July 2020, the Company changed its name from P.G. Economides Properties Ltd to P.G. Economides Properties Plc.

Review of current position, future developments and performance of the Company's business

The Company's development to date, financial results and position as presented in the management accounts are not considered satisfactory and the Board of Directors is making an effort to reduce the Company's losses.

Share capital

There were no changes in the share capital of the Company during the period under review.

Implementation and compliance to the Code of Corporate Governance

The Company recognises the importance of implementing sound corporate governance policies, practices and procedures. As a company listed on the Cyprus Stock Exchange (CSE), P.G. Economides Properties Plc has adopted CSE's Corporate Governance Code and applies its principles.

In March 2006 the CSE issued a revised Code of Corporate Governance. The Company complies with all the provisions of the revised Code

Board of Directors

The members of the Company's Board of Directors as at 30 June 2023 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the period from 1 January 2023 to 30 June 2023.

In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.

There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.

Independent Auditors

The Independent Auditors, Ekkeshis Ierodiakonou Ltd, have expressed their willingness to continue in office and a resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting.

By order of the Board of Directors,

Totalserve Management Ltd Secretary

Nicosia, ................... 2023

DECLARATION OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THE COMPANY OFFICIALS RESPONSIBLE FOR THE PREPARATION OF THE MANAGEMENT ACCOUNTS

In accordance with Article 9 sections (3c) and (7) of the Transparency Requirements (Traded Securities in Regulated Markets) Law 2007 (N 190 (I)/2007) ("the Law") we, the members of the Board of Directors and the Company official responsible for the management accounts of P.G. Economides Properties Plc (the "Company") for the period from 1 January 2023 to 30 June 2023, on the basis of our knowledge, declare that:

(a) The management accounts of the Company which are presented on pages 4 to 9:

(i) have been prepared in accordance with the applicable International Financial Reporting Standards as adopted by the European Union and the provisions of Article 9, section (4) of the law, and

(ii) provide a true and fair view of the particulars of assets and liabilities, the financial position and profit or loss of the Company and the entities included in the management accounts as a whole and

b) The management report provides a fair view of the developments and the performance as well as the financial position of the Company as a whole, together with a description of the main risks and uncertainties which they face.

Members of the Board of Directors:

Peter G. Economides

Androula Zavou Economides

Responsible for drafting the financial statements

Peter G. Economides (Financial Manager)

Nicosia, .................. 2023

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Period from 1 January 2023 to 30 June 2023

	Note	30/06/2023 €	2022 €
Administration expenses		(4, 240)	(21, 611)
Operating loss		(4, 240)	(21, 611)
Finance costs Net finance costs	3	(200) (200)	(408) (408)
Loss before tax		(4, 440)	(22, 019)
Tax	$\overline{4}$		(56)
Net loss for the period/year		(4, 440)	(22,075)
Other comprehensive income
Total comprehensive income for the period/year		(4, 440)	(22,075)

The notes on pages 7 to 9 form an integral part of these management accounts.

STATEMENT OF FINANCIAL POSITION

30 June 2023

	Note	30/06/2023 €	2022 €
ASSETS
Current assets Inventories Receivables Cash at bank and in hand	5 6 7	18,477,894 85,934 79	18,301,936 85,364 1,054
		18,563,907	18,388,354
Total assets		18,563,907	18,388,354
EQUITY AND LIABILITIES
Equity Share capital Accumulated losses Total equity	8	11,934,065 (119, 152) 11,814,913	11,934,065 (114, 712) 11,819,353
Non-current liabilities Borrowings	9	5,215,810 5,215,810	5,304,891 5,304,891
Current liabilities Trade and other payables Borrowings	10 9	1,079,916 453,268 1,533,184	810,842 453,268 1,264,110
Total liabilities		6,748,994	6,569,001
Total equity and liabilities		18,563,907	18,388,354

The notes on pages 7 to 9 form an integral part of these management accounts.

STATEMENT OF CHANGES IN EQUITY

Period from 1 January 2023 to 30 June 2023

	Share capital €	Accumulated losses €	Total €
Balance at 1 January 2022	11,934,065	(92,637)	11,841,428
Comprehensive income Net loss for the year		(22.075)	(22,075)
Total comprehensive income for the year Capitalisation of reserves		(22, 075)	(22, 075)
Balance at 31 December 2022	11,934,065	(114, 712)	11,819,353
Balance at 31 December 2022/ 1 January 2023	11,934,065	(114, 712)	11,819,353
Comprehensive income Net loss for the period		(4, 440)	(4, 440)
Total comprehensive income for the period		(4,440)	(4, 440)
Balance at 30 June 2023	11,934,065	(119, 152)	11,814,913

The notes on pages 7 to 9 form an integral part of these management accounts.

NOTES TO THE MANAGEMENT ACCOUNTS Period from 1 January 2023 to 30 June 2023

1. Segmental analysis

30/06/2023	Total €	Total €
Profit before tax Assets Liabilities	(4, 440) 18,563,907 6,748,994	(4, 440) 18,563,907 6,748,994
2022	Total	Total
Profit before tax Assets Liabilities	€ (22, 019) 18,388,354 6,569,001	€ (22, 019) 18,388,354 6,569,001
2. Expenses by nature
	30/06/2023 €	2022 €
Auditors' remuneration Other expenses	4,240	1,500 20,111
Total expenses	4,240	21,611
3. Finance costs
	30/06/2023 €	2022 €
Sundry finance expenses	200	408
Finance costs	200	408
4. Tax
	30/06/2023 €	2022 €
Defence contribution - prior years		56
Charge for the period/year		$\frac{56}{5}$

The tax recognised in the profit or loss represents a reasonable estimate of the tax that will arise with respect to the results of the period from 1 January 2023 to 30 June 2023.

NOTES TO THE MANAGEMENT ACCOUNTS Period from 1 January 2023 to 30 June 2023

5. Inventories

	30/06/2023	2022
Assets for resale	18,477,894	18,301,936
	18,477,894	18,301,936

During 2019, the value of €17,592.772 (plus capitalised interest for 2019 of €163,754), previously recognised as assets held for sale, has been reclassified to inventory, since there is change in the intention of the Board, which intends to develop and sell a planned project of its own land in the future. The Company actively started activities for development of its land including obtaining relevant permits for the planned project and undertaking feasibility studies of its business plan etc.

On the basis of assessment by external parties, the Company is also considering to invite investors to participate in the Company in order to develop the project as a whole and sell it as a project.

During the period the interest amount of €175,958 (2022: €210,081) was capitalised.

Assets are stated at the lower of cost and net realisable value.

6. Receivables

	2022
	€
85,934	85,364
85,934	85,364

7. Cash at bank and in hand

Cash balances are analysed as follows:

	30/06/2023	2022
		€
Cash at bank and in hand	70	054
	70	054

8. Share capital

	2023 Number of shares	2023 €	2022 Number of shares	2022 €
Authorised Ordinary shares of $E1$ each	12,000,000	12,000,000	12,000,000	12,000,000
Issued and fully paid Balance at 1 January	11,934,065	11,934,065	11,934,065	11,934,065
Balance at 30 June/31 December	11,934,065	11,934,065	11,934,065	11,934,065

NOTES TO THE MANAGEMENT ACCOUNTS Period from 1 January 2023 to 30 June 2023

1. Borrowings

	30/06/2023 €	2022 €
Current borrowings Bank loans	453,268	453,268
Non-current borrowings Bank loans	5,215,810	5,304,891
Total	5,669,078	5,758,159
.

10. Trade and other payables

	30/06/2023	2022
		€
Trade payables	10,075	-
Shareholders' current accounts - credit balances	1,069,841	809,341
Accruals		1,501
	1,079,916	810,842

11. Participation of Directors in the company's share capital

The percentage of share capital of the Company held directly or indirectly by each member of the Board of Directors (in accordance with Article (4) (b) of the Directive DI 190-2007-04), as at 30 June 2023 were as follows:

	31 December
30 June 2023	2022
number of	number of
shares	shares
Androula Zavou Economides

The shareholding interest of Mrs Androulla Zavou Economides includes her direct participation with a percentage of $\epsilon$ 1.

12. Shareholders holding more than 5% of share capital

The persons holding more than 5% of the share capital as at 30 June 2023 were as follows:

		31 December
	30 June 2023	2022
	$\frac{O}{O}$	$\frac{0}{0}$
P.G. Economides Holdings Ltd	99.99	99.99

The shareholding interest of P.G. Economides Holdings Ltd includes his direct participation with a percentage of €11,934,053 99.99%.

13. Significant agreements with management

At the end of the year, no significant agreements existed between the Company and its Management.

DETAILED INCOME STATEMENT

Period from 1 January 2023 to 30 June 2023

		30/06/2023	2022
	Page	€	€
Revenue
Operating expenses
Administration expenses	11	(4,240)	(21, 611)
Operating loss		(4, 240)	(21, 611)
Finance costs	12	(200)	(408)
Net loss for the period/year before tax		(4,440)	(22, 019)

SELLING AND DISTRIBUTION EXPENSES Period from 1 January 2023 to 30 June 2023

	30/06/2023	2022
	€	€
Administration expenses
Sewage expenses		2,753
Annual levy	350	350
Electricity		1,406
Water supply and cleaning		200
Sundry expenses		77
Subscriptions and contributions		208
Auditors' remuneration		1,500
Other professional fees	3,850	15,050
Fines		27
Revenue stamps	40	40
	4,240	21,611

FINANCE COSTS

Period from 1 January 2023 to 30 June 2023

	30/06/2023 €	2022 €
Finance costs
Sundry finance expenses
Bank charges	200	408
	200	408