Annual / Quarterly Financial Statement • Jun 13, 2017
Annual / Quarterly Financial Statement
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True translation into English from the original set of financial statements which was prepared and audited in Greek and signed off on 28 April 2017.
In the event that the Greek version of this set of financial statements and a translation of it into a language other than Greek differ, the Greek version shall prevail.
| Page | |
|---|---|
| Board of Directors and other officers | 1 |
| Declaration of Directors and other responsible officers of the Company for the preparation of the financial statements |
2 |
| Management Report | 3 – 7 |
| Independent auditor's report | 8 – 15 |
| Consolidated income statement | 16 |
| Consolidated statement of comprehensive income | 17 |
| Company's income statement and statement of comprehensive income |
18 |
| Consolidated balance sheet | 19 |
| Company's balance sheet | 20 |
| Consolidated statement of changes in equity | 21 |
| Company's statement of changes in equity | 22 |
| Consolidated statement of cash flows | 23 |
| Company's statement of cash flows | 24 |
| Notes to the financial statements | 25 – 67 |
George St. Galatariotis, Executive Chairman Costas St. Galatariotis, Director Stavros G. St. Galatariotis, Director Michalis Christoforou, Director Tasos Anastasiou, Director
Elena Stylianou
197 Makarios III Avenue Gala Tower CY-3030 Limassol Cyprus
PriceWaterhouseCoopers Ltd City House Karaiskaki 6 3032 Limassol
197 Makarios III Avenue Gala Tower CY-3030 Limassol Cyprus
In accordance with Article 9 sections (3)(c) and (7) of the Transparency Requirements (Traded Securities in Regulated Markets) Law of 2007 to 2014 ("Laws"), we, the members of the Board of Directors and the other responsible officers of the Company for the preparation of the consolidated and separate financial statements of K + G Complex Public Company Limited for the year ended 31 December 2016, confirm that to the best of our knowledge:
| Name and surname | Signature |
|---|---|
| George St. Galatariotis (Executive Chairman) | |
| Costas St. Galatariotis (Director) | |
| Stavros G. St. Galatariotis (Director) | |
| Michalis Christoforou (Director) | |
| Tasos Anastasiou (Director) |
| Name and surname | Position | Signature |
|---|---|---|
| Elena Stylianou | Financial Manager |
Limassol, 28th April 2017
1 The Board of Directors of Κ + G Complex Public Company Limited (the "Company"), and its subsidiary company collectively referred to as the 'Group', presents to its members its Annual Report together with the audited consolidated and separate financial statements of the Group and the Company for the year ended 31 December 2016.
2 The principal activities of the Company and the Group, which are unchanged from last year, are the following:
3 There has been no change in the structure of the Company's Group during the year. The Company / Group does not intend to make any redemption or merger.
4 During the year ended December 31, 2016, the Group's turnover increased by 222%, from €1.379 thousand to €4.436 thousand due to increase in plots sales. Due to increase in turnover, both gross profit and operating profit increased significantly. The Group's net profit for the year ended December 31, 2016 amounted to €4.920 thousand compared to €200 thousand in 2015. The net profit for the year is significantly improved due to increase in operating profit as explained above plus to the significantly improved results from its associated company The Cyprus Cement Public Company Limited. On 31 December 2016 the Group's total assets were €102.899 thousand (2015: €102.616 thousand) and the total equity were €86.891 thousand (2015: €81.986 thousand).
5 During the year ended December 31, 2016, the Company increased its turnover by 205%, from €1.379 thousand to €4.200 thousand due to increase in plots sales. Due to increase in turnover, both gross profit and operating profit increased significantly. As a result, the Company's net profit for the year ended December 31, 2016 amounted to €2.536 thousand compared to a loss of €152 thousand in 2015. On 31 December 2016 the total assets of the Company were €51.655 thousand (2015: €53.506 thousand) and the total equity were €33.190 thousand (2015: €30.654 thousand).
6 The financial position, development and performance of the Company and the Group as presented in these financial statements are considered as expected.
7 The Company / Group takes into account and complies with all health, safety and environmental regulations that affect the operations in which the Company / Group operates. In this context, the Board of Directors monitors on an ongoing basis non-financial Key Performance Indicators in relation to health, safety and environmental regulations. Until now, the Company / Group has not violated any of the aforementioned regulations. The Company / Group is not involved in any legal, governmental or arbitral proceedings that will result in any material obligations to the Company / Group. This is in line with the general culture and vision of the Company / Group.
8 The principal risks and uncertainties faced by the Group and the Company are disclosed in Notes 1, 3 , 4 and 28 of the financial statements. The activities of the Company / Group are affected by various risks and uncertainties related to the construction and tourism industry as well as the economic crisis that has prevailed over the last three years in Cyprus. These activities are influenced by a number of factors including, but not limited to, the following:
9 The Company / Group monitors these risks through various mechanisms and adjusts its strategy accordingly to limit as far as possible the impact of these risks.
10 The Group's / Company's operations expose it to a variety of financial risks: market risk (including cash flow risk), credit risk and liquidity risk.
11 The Company's and the Group's risk management program focuses on the unpredictability of the financial markets and aims to reduce the potential adverse effects on the financial performance of the Company and the Group. Risk management is conducted by the Management.
12 The interest rate risk of the Group / Company is derived from interest-bearing and long-term borrowings. Floating rate assets and borrowings expose the Group / Company to cash flow interest rate risk.
13 At December 31, 2016, the Group's assets and liabilities bearing a floating rate amounted to €9.878 thousand and €15.638 thousand respectively. The Company's assets and liabilities bearing a floating rate amounted to €9.878 thousand and €18.445 thousand respectively on 31 December 2016. The Group's / Company's management monitors the fluctuations in interest rates on a continuous basis and acts accordingly. The Group / Company does not apply hedge accounting for cash flow interest rate risk.
14 Credit risk arises from deposits with banks and financial institutions as well as from exposure to credits from sales to customers and balances with related companies, including outstanding receivables and binding transactions. The Management does not expect any damages from non-fulfilment of obligations on behalf of these parties.
15 For banks and financial institutions, only organizations that are rated by independent parties are accepted. The Management estimates the customer's credit quality, taking into account his financial situation, past experience and other factors.
16 The Group's / Company's credit risk at 31 December 2016 arises from trade and other receivables of €531 thousand / €44 thousand, loans and other receivables from related companies amounting to €9.911 thousand / €9.911 thousand and bank balances of €21 thousand / €21 thousand.
17 The Management controls current liquidity on the basis of expected cash flows. Prudent liquidity risk management involves the management of sufficient cash and the availability of finance through a sufficient amount of blocked credit facilities. The Group / Company Management believes that it is successful in managing the Group / Company exposure to liquidity risk.
18 The Board of Directors does not expect any significant changes or developments in the operations of the Group and the Company in the foreseeable future.
19 The results of the Group and the Company for the year are set out on pages 16, 17 and 18. The net profit for the year for the Group and the Company is carried to reserves.
20 There were no changes in Company's share capital.
21 The members of the Board of Directors as at 31 December 2016 and at the date of this report are shown on page 1. All of them were members of the Board of Directors throughout the year 2016.
22 In accordance with the Company's Articles of Association Messrs. Costas Galatariotis and Michalis Christoforou retire at the next General Meeting and, being eligible, offer themselves for re election.
23 There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.
24 The Board of Directors has not adopted the provisions of the Corporate Governance Code. The Company is not obliged to adopt the provisions of the code as its titles are traded at the Alternative Market of the Cyprus Stock Exchange. The main reason for the non adoption of the Corporate Governance Code is that the costs to be incurred by the adoption of the Corporate Governance Code would be disproportionately higher than any anticipated benefits that may be derived from its adoption.
25 The Board of Directors, is responsible, for the establishment of sufficient internal control procedures and risks control mechanisms, for the drafting, preparation, content and publication of all periodical information that is required for listed companies. The responsible person for the preparation of the financial statements is the Financial Manager.
26 According to Article 46 of the Auditors and Statutory audit and consolidated accounts Laws of 2009 and 2016, the Company has assigned the tasks of the Audit Committee to the Board of Directors as a body.
27 The Company has not issued any titles with special control rights and there are no restrictions on voting rights.
28 The appointment and replacement of the members of the Board of Directors is done at its Annual General Meeting in accordance with the provisions of the Company's Articles of Association. The Company's Articles of Association provides that the Board of Directors has the power to appoint, at any time, any person as Director and such person that is appointed by the Board of Directors will hold his office until the next Annual General Meeting of the Company.The Company's Articles of Association can be modified by the passing of a special resolution at an Extraordinary General Meeting of the shareholders.
29 The Board of Directors, subject to approval by the Company's shareholders, can proceed with the issue or the purchase of the Company's shares. The issue of any new shares is further subject to the provisions of the Company's Articles of Association, the prevailing law and the principle of fair treatment to all existing shareholders.
30 The Board of Directors consists of 5 members and meetings are convened at regular intervals. The Board of Directors approves the Company's and Group's strategy and supervises the adoption and realization of the Company's and Group's strategic development.
31 The shareholders who held more than 5% of the issued share capital of the Company with voting rights on 28 April 2017, are as follows:
% holding
C.C.C. Holdings & Investments Limited 83,81
Directors' interest in the Company's share capital
32 The beneficial interest in the Company's share capital held by each Director, their spouse, children and companies in which they hold directly or indirectly at least 20% of the shares with voting rights in a general meeting, at 31 December 2016 and on 28 April 2017 was as follows:
| Interest at 28 April |
Interest at 31 December |
|
|---|---|---|
| 2017 | 2016 | |
| % | % | |
| George St. Galatariotis (1) | 83,81 | 83,81 |
| Costas St. Galatariotis (1) | - | - |
| Stavros G. St. Galatariotis (1) | - | - |
| Michalis Christoforou | - | - |
| Tasos Anastasiou | ` |
(1) The participation percentage share held by Mr George St. Galatariotis includes his indirect participation resulting from family relationships between himself and Stavros G. St. Galatariotis and Costas St. Galatariotis and their indirect participation in C.C.C. Holdings & Investments Limited.
33 Other than the transactions and the balances with the Directors and related parties referred to in Note 27 of the financial statements, there were no other significant contracts with the Company, or its subsidiaries at 31 December 2016 in which the Directors or related parties had a material interest. Related persons include the spouse, minor children and companies in which Directors hold directly or indirectly at least 20% of the voting rights in a general meeting.
34 There were no material post balance sheet events, which have a bearing on the understanding of the financial statements.
35 The Company and Group did not operate through any branches during the year.
36 The independent auditors, Messrs PricewaterhouseCoopers Limited, have expressed their willingness to continue in office. A resolution for their appointment and authorizing the Board of Directors to fix their remuneration will be submitted at the Annual General Meeting.
Limassol, 28th April 2017
To the Members of K+G Complex Public Company Limited
In our opinion, the accompanying consolidated financial statements of K+G Complex Public Company Limited ("the Company") and its subsidiaries (together "the Group") and the separate financial statements of the Company give a true and fair view of the consolidated and separate financial position of the Group and the Company as at 31 December 2016, and of the consolidated and separate financial performance and the consolidated and separate cash flows of the Group and the Company respectively for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.
We have audited the consolidated and separate financial statements which are presented in pages 16 to 67 which comprise:
The financial reporting framework that has been applied in the preparation of the consolidated and separate financial statements is International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
PricewaterhouseCoopers Ltd, City House, 6 Karaiskakis Street, CY-3032 Limassol, Cyprus P O Box 53034, CY-3300 Limassol, Cyprus T: +357 25 - 555 000, F:+357 - 25 555 001, www.pwc.com.cy
PricewaterhouseCoopers Ltd is a private company registered in Cyprus (Reg. No.143594). Its registered office is at 3 Themistocles Dervis Street, CY-1066, Nicosia. A list of the company's directors, including for individuals the present and former (if any) name and surname and nationality, if not Cypriot and for legal entities the corporate name, is kept by the Secretary of the company at its registered office. PwC refers to the Cyprus member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Cyprus. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated and separate financial statements. In particular, we considered where the Board of Directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we considered the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the consolidated and separate financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated and separate financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the consolidated and separate financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the consolidated and separate financial statements as a whole.
| Overall materiality | € 1.029.000 for the audit of the consolidated financial statements and € 516.500 for the audit of the separate financial statements |
|---|---|
| How we determined it | 1% of total assets |
| Rationale for the materiality benchmark applied |
We have selected total assets as the benchmark, because in our view, it is the benchmark that is most commonly used by the users and it is a generally accepted benchmark, which is within the range of acceptable quantitative materiality thresholds in auditing standards. |
We agreed with those charged with governance that we would report to them individual misstatements identified during our audit above € 51.400 for the audit of the consolidated financial statements and € 25.800 for the audit of the separate financial statements as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
K+G Complex Public Company Limited is the parent entity of the Group. The financial information of this Group is included in the consolidated financial statements of K+G Complex Public Company Limited.
Considering our ultimate responsibility for the opinion on the Group financial statements we are responsible for the direction, supervision and performance of the group audit. In this context, we tailored the scope of our audit and determined the nature and extent of the audit procedures for the components of the Group to ensure that we perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the significance and/or risk profile of the group entities or activities, the accounting processes and controls, and the industry in which the Group operates. l in telling the story of the audit.]
The Group's operations are made up of operating businesses situated in Cyprus. For financial reporting purposes, the Group is structured into reporting units, comprising the Company and its subsidiaries.
In establishing the overall approach to the group audit, we determined the scope of work that needed to be performed for each reporting unit and whether this would be performed by us, as the group engagement team, or component auditors from other non-network firms, operating under our instructions. Accordingly, for the material reporting units which were selected either due to their size, or their risk characteristics, we performed a full scope audit of their financial information. For the remaining reporting units of the Group, specified procedures over specific financial statement lines were performed so as to ensure we obtain sufficient audit evidence on individual financial statement line items.
By performing the procedures above at components, combined with the additional procedures at group level, we have obtained sufficient and appropriate audit evidence regarding the financial information of the Group as a whole to provide a basis for our audit opinion on the consolidated financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. There were no Key Audit Matters in our audit of the separate financial statements of the Company.
| Key Audit Matter | How our audit addressed the Key Audit Matter |
|---|---|
| Investments in associates For more information refer to Note 17 of the financial statements. |
We discussed with the Management and evaluated the data, assumptions, valuation methodology and calculations made by the Group's Management for the estimation of the fair value of the land for development and the available-for-sale financial |
| We focused on this matter because of the size of the carrying amount of the investment in associates of € 86.695 thousands compared to the total assets of the Group, given that the Group's profit is significantly affected by the share of the associate's profit as well as by the main features that affect the above. |
assets. Internal experts of our network, with the required knowledge and skills, have been involved to support us in our assessment of the fair value of the property as performed by the Management which is based on data and assumptions of high degree of |
| In particular, the major features that have affected the carrying amount of the investment are as follows: |
subjectivity, especially in relation to the separation of property in notional zones and in our assessment of the fair value measurement of available-for-sale financial assets based on data and assumptions of high subjectivity. |
| • The fair value of the land for development due to the size of the fair value of the land for development, the complexity and the high degree of subjectivity in estimating the fair value of the property. |
More specifically, with the support of internal experts of our network, we examined the calculations as performed by the Group's Management and the technical and mathematical |
| • The fair value of available-for-sale financial assets because of the size of the fair value of available-for-sale financial assets and because of the complexity and high degree of subjectivity involved in estimating the fair value of the investment. |
accuracy of the valuation model. We also assessed the reasonableness of the significant assumptions made by the management by comparing them with observable market data. |
The Board of Directors is responsible for the other information. The other information comprises the Management report. Other information does not include the consolidated and separate financial statements and our auditor's report thereon.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Board of Directors is responsible for the preparation of the consolidated and separate financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union 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 consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the Board of Directors is responsible for assessing the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's and Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Pursuant to the additional requirements of the Auditors and Statutory Audits of Annual and Consolidated Accounts Laws of 2009 to 2016, we report the following:
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 Auditors and Statutory Audits of Annual and Consolidated Accounts Laws of 2009 to 2016 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.
The engagement partner on the audit resulting in this independent auditor's report is Mr Elias M. Theodorou.
Elias M. Theodorou Certified Public Accountant and Registered Auditor For and on behalf of
PricewaterhouseCoopers Limited Certified Public Accountants and Registered Auditors
Limassol, 28 April 2017
| Note | 2016 €000 |
2015 €000 |
|
|---|---|---|---|
| Sales Cost of sales |
6 8 |
4.436 (988) |
1.379 (393) |
| Gross profit | _____ 3.448 |
_____ 986 |
|
| Administrative expenses Selling and marketing expenses Other income |
7 | (487) (187) 647 |
(472) (177) 517 |
| Operating profit Finance costs Share of profit of investment in associates |
11 17 |
_____ 3.421 (718) 2.315 |
_____ 854 (897) 243 |
| Profit before tax Tax |
12 | _____ 5.018 (98) |
_____ 200 - |
| Profit for the year | _____ 4.920 |
_____ 200 |
|
| Profit per share (cents per share): - Basic and fully diluted |
13 | =========== 3,83 =========== |
=========== 0,16 =========== |
| Note | 2016 €000 |
2015 €000 |
|
|---|---|---|---|
| Profit for the year | 4.920 | 200 | |
| Other comprehensive income Items that will not be reclassified to profit or loss Share of movement of reserves of associates |
17 | _ (15) _ |
_ (630) _ |
| Total comprehensive income/(loss) for the year | 4.905 ======== |
(430) ======== |
The items in the above statement are presented after deducting the tax. The Tax related to each item in the statement of comprehensive income is presented in Note 12.
| Note | 2016 €000 |
2015 €000 |
|
|---|---|---|---|
| Sales Cost of sales |
6 8 |
4.200 (826) |
1.379 (393) |
| Gross profit | _____ 3.374 |
_____ 986 |
|
| Administrative expenses Selling and marketing expenses Other income |
7 | (472) (187) 742 |
(462) (177) 515 |
| Operating profit Finance costs |
11 | __ 3.457 (846) __ |
__ 862 (1.014) __ |
| Profit/(loss) before tax Tax |
12 | 2.611 (75) _____ |
(152) - _____ |
| Total Profit/(loss) and comprehensive Income/(loss) for the year |
2.536 =========== |
(152) =========== |
| Note | 2016 €000 |
2015 €000 |
|
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 16 | - | 21 |
| Investments in associates Non-current receivables |
17 19 |
86.704 2.793 |
84.403 4.504 |
| __ 89.497 __ |
__ 88.928 __ |
||
| Current assets | |||
| Inventories | 20 | 5.639 | 6.592 |
| Current receivables | 21 | 7.649 | 7.003 |
| Tax refundable | 93 | 93 | |
| Cash and cash equivalents | 22 | 21 _____ |
- _____ |
| 13.402 _____ |
13.688 _____ |
||
| Total assets | 102.899 | 102.616 | |
| Equity and liabilities | =========== | =========== | |
| Capital and reserves | |||
| Share capital | 23 | 21.860 | 21.860 |
| Share premium | 23 | 1.757 | 1.757 |
| Reserve of changes in equity of associates | (8.276) | (8.261) | |
| Reserve arising on translation of share capital into Euro Retained earnings |
86 71.464 |
86 66.544 |
|
| Total equity | _____ 86.891 |
_____ 81.986 |
|
| _____ | _____ | ||
| Non-current liabilities Borrowings |
24 | 15.206 | 17.825 |
| Deferred income tax liabilities | 25 | 20 | 20 |
| _____ 15.226 |
_____ 17.845 |
||
| Current liabilities | _____ | _____ | |
| Trade and other payables | 26 | 350 | 536 |
| Borrowings Tax liabilities |
24 | 432 - |
2.248 1 |
| _____ 782 |
_____ 2.785 |
||
| Total liabilities | _____ 16.008 |
_____ 20.630 |
|
| Total equity and liabilities | _____ 102.899 |
_____ 102.616 |
|
| =========== | =========== |
On 28th April 2017 the Board of Directors of K + G Complex Public Company Limited authorised these financial statements for issue.
George St. Galatariotis, Executive Chairman
Costas St. Galatariotis, Director
| Assets Non current assets Property, plant and equipment 16 - 21 Investments in subsidiaries 18 3.000 3.000 Investments in associates 17 32.954 32.953 Non-current receivables 19 2.793 4.504 __ _ 38.747 40.478 __ _ Current assets Inventories 20 5.639 6.437 Trade and other receivables 21 7.162 6.505 Tax refundable 86 86 Cash and cash equivalents 22 21 - __ _ 12.908 13.028 __ _ Total assets 51.655 53.506 =========== =========== Equity and liabilities Capital and reserves Share capital 23 21.860 21.860 Share premium 23 1.757 1.757 Reserve arising on translation of share capital into Euro 86 86 Retained earnings 9.487 6.951 __ 33.190 30.654 _ __ Non current liabilities Borrowings 24 18.019 20.411 _ __ 18.019 20.411 _ __ Current liabilities Trade and other payables 26 20 208 Borrowings 24 426 2.232 Current income tax liabilities - 1 _ __ 446 2.441 _ __ Total liabilities 18.465 22.852 _ _____ Total equity and liabilities 51.655 53.506 =========== =========== |
Note | 2016 €000 |
2015 €000 |
|---|---|---|---|
| _____ | |||
On 28th April 2017 the Board of Directors of K + G Complex Public Company Limited authorised these financial statements for issue.
George St. Galatariotis, Executive Chairman
Costas St. Galatariotis, Director
| Balance at 31 December 2015 | ___ 21.860 ========= |
1.757 ======== |
__ 86 ======== |
__ (8.276) ========= |
___ 71.464 ========= |
___ 86.891 ========= |
|---|---|---|---|---|---|---|
| Total comprehensive income for the year 2015 |
___ - |
_ - _ |
__ - |
__ (15) |
___ 4.920 |
___ 4.905 |
| Other comprehensive income Share of reserves of associates (Note 17) |
- | - | - | (15) | - | (15) |
| Profit for the year | - | - | - | - | 4.920 | 4.920 |
| ___ | __ | __ | __ | ___ | ___ | |
| Balance at 31 December 2015/ | 21.860 | 1.757 | 86 | (8.261) | 66.544 | 81.986 |
| 1 January 2016 | ___ | __ | __ | __ | ___ | ___ |
| Total comprehensive profit for | - | - | - | (630) | 200 | (430) |
| the year 2015 | ___ | __ | __ | __ | ___ | ___ |
| Other comprehensive income Share of reserves of associates (Note 17) |
- ___ |
- __ |
- __ |
(630) __ |
- ___ |
(630) ___ |
| Profit for the year | - | - | - | - | 200 | 200 |
| ___ | __ | __ | __ | ___ | ___ | |
| Balance at 1 January 2015 | 21.860 | 1.757 | 86 | (7.631) | 66.344 | 82.416 |
| ___ | __ | __ | __ | ___ | ___ | |
| Share capital €000 |
Share premium (2) €000 |
Reserve arising on translation of share capital into Euros(2) €000 |
Reserve of changes in equity of associates (2) €000 |
Retained earnings (1) €000 |
Total €000 |
| Reserve arising on |
||||
|---|---|---|---|---|
| Share Capital €000 |
Share premium (2) €000 |
share capital into Euro (2) €000 |
Retained earnings (1) €000 |
Total €000 |
| 21.860 ____ |
1.757 ____ |
86 ____ |
7.103 ___ |
30.806 ____ |
| - | - | - | (152) | (152) |
| - | - | - | (152) | ____ (152) |
| 21.860 ____ |
1.757 ____ |
86 ____ |
6.951 ___ |
_ 30.654 _ |
| - | - | - | 2.536 | 2.536 ____ |
| - | - | - | 2.536 | 2.536 |
| 21.860 | 1.757 | 86 | 9.487 | ____ 33.190 ========== |
| _ _ _ _ ========== |
_ _ _ _ ========== |
translation of _ _ _ _ ========== |
_ _ _ _ ========= |
| Note | 2016 €000 |
2015 €000 |
|
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit before tax | 5.018 | 200 | |
| Adjustments for: Impairment charge /Depreciation of property, plant and equipment |
16 | 21 | 9 |
| Interest expense Interest income |
11 7 |
718 (459) |
897 (513) |
| Share of profit of associates | 17 | (2.315) ____ |
(243) ____ |
| 2.983 | 350 | ||
| Changes in working capital: Inventories |
953 | 371 | |
| Trade and other receivables Trade and other payables |
188 (188) |
290 29 |
|
| ____ | ____ | ||
| Cash generated from operations Tax paid |
3.936 (98) |
1.040 - |
|
| Net cash generated from operating activities | _ 3.838 _ |
_ 1.040 _ |
|
| Cash flows from investing activities | |||
| Loans granted to related parties Repayments of loans from related parties |
27(vii) 27(vii) |
(522) 1.856 |
(92) 428 |
| Investments in deposits with original maturity over three months | - | 60 | |
| Interest received | 5 ____ |
3 ____ |
|
| Net cash generated from investing activities | 1.339 ____ |
399 ____ |
|
| Cash flows from financing activities | |||
| Repayments of bank loan | (2.622) | - | |
| Interest paid | (718) ____ |
(918) ____ |
|
| Net cash used in financing activities | (3.340) ____ |
(918) ____ |
|
| Net increase in cash, cash equivalents and bank overdrafts |
1.837 | 521 | |
| Cash, cash equivalents and bank overdrafts at the | |||
| beginning of the year | (2.248) ____ |
(2.769) ____ |
|
| Cash, cash equivalents and bank overdrafts at the end of the year |
22 | (411) | (2.248) |
| ========== | ========== |
| Note | 2016 €000 |
2015 €000 |
|
|---|---|---|---|
| Cash flows from operating activities Profit/(Loss) before tax |
2.611 | (152) | |
| Adjustments for: | |||
| Impairment charge/depreciation of property, plant and equipment |
16 | 21 | 9 |
| Interest income | 7 | (459) | (511) |
| Interest expense | 11 | 846 | 1.014 |
| Dividends received | 7 | (95) ____ |
- ____ |
| Changes in working capital: | 2.924 | 360 | |
| Inventories | 798 | 371 | |
| Trade and other receivables | 177 | 287 | |
| Trade and other payables | (188) ____ |
33 ____ |
|
| Cash generated from operations | 3.711 | 1.051 | |
| Tax paid | (75) ____ |
- ____ |
|
| Net cash generated from operating activities | 3.711 ____ |
1.051 ____ |
|
| Cash flows from investing activities | |||
| Loans to related parties | 27 (vii) | (522) | (93) |
| Repayments of loans from related parties | 27 (vii) | 1.856 | 429 |
| Investments in deposits with original maturity over three months Interest income |
- 3 |
60 3 |
|
| Net cash generated from investing activities | ___ 1.337 |
____ 399 |
|
| Cash flows from financing activities | ___ | ____ | |
| Loans to related parties | 27 (vi) | 213 | - |
| Repayments of loan from related parties | 27 (vi) | (20) | (9) |
| Repayment of bank loan | (2.622) | - | |
| Interest paid | (718) ____ |
(918) ____ |
|
| Net cash used in financing activities | (3.146) ____ |
(927) ____ |
|
| Net increase in cash, cash equivalents and bank | |||
| overdrafts Cash, cash equivalents and bank overdrafts at the |
1.827 | 523 | |
| beginning of the year | (2.232) | (2.755) | |
| Cash, cash equivalents and bank overdrafts at the end of | ____ | ____ | |
| the year | 22 | (405) ========== |
(2.232) ========== |
K+G Complex Public Company Limited (the "Company") was incorporated in Cyprus in June 1980, as a private limited liability company in accordance with the provisions of the Cyprus Companies Law, Cap. 113, and in May 1981 became a public company. The Company is listed on the Cyprus Stock Exchange. Its registered office of the Company is at 197 Makarios III Avenue, Gala Tower, CY-3030 Limassol, Cyprus.
The principal activities of the Company and the Group, which are unchanged from last year, are the following:
After a long and relatively deep economic recession, the Cyprus economy has recorded a positive growth rate in 2015, which accelerated in 2016. The restrictive measures and capital controls which were in place since March 2013 were lifted in April 2015. Building on the dynamics of economic performance and the strong implementation of the required measures and reforms, Cyprus has left the economic adjustment program in March 2016. Recognizing of the progress achieved on the fiscal front and the economic recovery, as well as the enactment of the foreclosure and insolvency framework, the international credit rating agencies have upgraded the creditworthiness of the Republic of Cyprus and although the assessment is still a "non-investment grade ", the Cypriot government has regained access to capital markets. Prospects for the Cyprus economy remain positive in the medium term, however, there are downside risks to growth forecasts resulting from high levels of non-performing positions, uncertainty in real estate markets, and the likely deterioration of Cyprus's external environment, including the continuation of the Recession in Russia due to the prolonged decline in oil prices of weaker than expected growth in the Eurozone as a result of the deterioration in global economic conditions, slower growth in the United Kingdom and the weakening of the Sterling as a result of uncertainty about the outcome of the referendum on exit The United Kingdom by the European Union, as well as the political uncertainty in Europe with a view to the UK's exit from the European Union and Stressfulness.
This operating environment, could affect (1) the ability of the Company/ the Group to obtain new borrowings or re-finance its existing borrowings at terms and conditions similar to those applied to earlier transactions, (2) the ability of the Company's/ Group's trade and other debtors to repay the amounts due to the Company/ the Group (3) the ability of the Company/ the Group to sell its existing inventories or enter into contracts for the development of new (property) units, (4) the cash flow forecasts of the Company's/ Group's management in relation to the impairment assessment for financial and non-financial assets.
The management of the Company/Group has assessed:
The Group's and the Company's Management is unable to predict all developments which could have an impact on the Cyprus economy and consequently, what effect, if any, they could have on the future financial performance, cash flows and financial position of the Group and the Company.
On the basis of the evaluation performed, the Group's and the Company's management has concluded that no provisions or impairment charges, other than as included in the financial statements, are deemed necessary.
The Group's and the Company's Management believes that it is taking all the necessary measures to maintain the viability of the Group and the Company and the development of its business in the current business and economic environment.
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented in these financial statements unless otherwise stated.
The consolidated financial statements of K + G Complex Public Company Limited and its subsidiaries (together the "Group") and the separate financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), the requirements of the Cyprus Companies Law, Cap. 113.
As of the date of the authorisation of the financial statements, all International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) that are effective as of 1 January 2016 have been adopted by the EU through the endorsement procedure established by the European Commission, with the exception of certain provisions of IAS 39 "Financial Instruments: Recognition and Measurement" relating to portfolio hedge accounting.
The financial statements have been prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company's and the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 4.
During the current year the Company adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2016. This adoption did not have a material effect on the accounting policies of the Company/ the Group.
At the date of approval of these financial statements a number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2016, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Group/ the Company, except the following set out below:
• Amendments to IFRS 15, Revenue from Contracts with Customers (issued on 12 April 2016 and effective for annual periods beginning on or after 1 January 2018)*. The amendments do not change the underlying principles of the Standard but clarify how those principles should be applied. The amendments clarify how to identify a performance obligation (the promise to transfer a good or a service to a customer) in a contract; how to determine whether a company is a principal (the provider of a good or service) or an agent (responsible for arranging for the good or service to be provided); and how to determine whether the revenue from granting a license should be recognised at a point in time or over time. In addition to the clarifications, the amendments include two additional reliefs to reduce cost and complexity for a company when it first applies the new Standard.
* It states standards, interpretations and amendments that have not yet been adopted by the European Union.
At this stage the Company and the Group assess the impact of amendments, new standards and interpretations on the financial statements.
The consolidated financial statements include the financial statements of K + G Complex Public Company Limited (the "Company"), its subsidiary companies, which are collectively referred to as the "Group".
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the following;
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets.
Acquisition-related costs are expensed as incurred.
The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity, and the fair value of any previous equity interest in the acquired entity at the date of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill. If those amounts are less than the fair value of the identifiable net assets of the subsidiary acquired, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss.
Inter-company transactions, balances, income and expenses on transactions between Group companies are eliminated. Profit and losses resulting from inter-company transactions that are recognised in assets are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. When necessary, accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated balance sheet.
When the Group ceases to have control over an entity, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that investment are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group's investment in associates includes goodwill identified on acquisition net of any accumulated impairment losses.
Dividends received or receivable from associate are recognised as a reduction in carrying amount of the investment.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate.
The Group's share of post-acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. The cumulative post acquisition movements are adjusted against the carrying amount of the investment. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary, to ensure consistency with the accounting policies adopted by the Group. Dilution gains and losses arising in investments in associates are recognised in profit or loss.
After application of the equity method, including recognising the associates' losses, the carrying amount of the investment in associate which includes the goodwill arising on acquisition is tested for impairment by comparing its recoverable amount with its carrying amount whenever there is an indication of impairment and recognizes the amount adjacent to 'share of profit/(loss)' of associates in the profit or loss.
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Investments in subsidiaries are measured at cost less impairment. Investments in subsidiaries are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised through profit or loss for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. An impairment loss recognised in prior years is reversed where appropriate if there has been a change in the estimates used to determine the recoverable amount.
Associates are all entities over which the Company has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights.
Investments in associates are measured at cost less impairment. Investments in associates are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised through profit or loss for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. An impairment loss recognised in prior years is reversed where appropriate if there has been a change in the estimates used to determine the recoverable amount.
Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors of the Group (the chief operating decision-maker). The Board of Directors, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the steering committee that makes strategic decisions.
Revenue is measured at fair value of the consideration received or receivable and represents amounts receivable for the sale of goods and services in the ordinary course of the Group's and Company's activities, net of discounts.
The Group and the Company recognise revenue when the amount of revenue can be reliably measured, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the Group's and Company's activities as described below. The Company and the Group base their estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Revenues earned by the Group and the Company are recognised on the following bases:
Sales of completed property are recognized when significant risks and rewards of ownership of the property have been transferred to the customer. This is usually when the Group and the Company has sold or delivered goods to the customer, the customer has accepted the goods and collectability of the related receivable is reasonably assured.
Interest income is recognised using the effective interest method. When a loan or receivable is impaired, the Company/Group reduces the carrying amount to its recoverable amount, being the estimated future cash flows discounted at the original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income on impaired loans and receivables are recognised using the original effective interest rate.
Dividend income is recognised when the right of the Company/Group to receive payment is established. However the investment may need to be tested for impairment as a consequence.
The Company/Group and the employees contribute to the Government Social Insurance Fund based on employees' salaries. The scheme is funded by payments from employees and by the Company/Group. The Company's/Group's contributions are expensed as incurred and are included in staff costs. The Company and the Group has no further payment obligations once the contributions have been paid. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
Items included in the Group's and Company's financial statements are measured using the currency of the primary economic environment in which the Group and Company operate ("the functional currency"). The financial statements are presented in Euro (€), which is the Group's and Company's presentation currency and the Company's functional currency.
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
The current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the country in which the Company/ the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. If applicable tax regulation is subject to interpretation, it establishes provision where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on the Company/ the Group where there is an intention to settle the balances on a net basis.
All property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of property, plant and equipment.
Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their cost to their residual values, over their estimated useful lives. The annual depreciation rates are as follows:
| % | |
|---|---|
| Motor vehicles | 20 |
| Furniture and office equipment | 10 |
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Expenditure for repairs and maintenance of property, plant and equipment is charged to profit or loss of the year in which they were incurred. The cost of major renovations and other subsequent expenditure are included in the carrying amount of the asset or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group/Company and the cost of the item can be measured reliably.
Gains and losses on disposal of property, plant and equipment are determined by comparing proceeds with carrying amount and are recognized in "other gains/(losses) – net" in profit or loss.
Assets that have an indefinite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets, other than goodwill, that have suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.
The Company/Group classifies its financial assets in the following categories: loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and for which there is no intention of trading the receivable. They are included in current assets, except for maturities greater than twelve months after the balance sheet date. These are classified as non-current assets. The Company's loans and receivables comprise "loans receivable", "trade and other receivables" and "cash and bank balances " in the balance sheet.
Regular way purchases and sales of financial assets are recognised on the trade date which is the date on which the Company/the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company/the Group has transferred substantially all risks and rewards of ownership.
Loans and receivables are carried at amortised cost using the effective interest method.
The Company/Group assesses at the balance sheet date whether there is objective evidence that a financial asset or group of financial assets is impaired.
A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation, and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
For loans and receivables category, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the profit or loss. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Company/Group may measure impairment on the basis of an instrument's fair value using an observable market price.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor's credit rating), the reversal of the previously recognised impairment loss is recognised in the profit or loss.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company/Group or the counterparty.
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average cost method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business less applicable variable selling expenses.
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Company/the Group will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or delinquency in payments are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of estimated future cash flows, discounted at the effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in profit or loss within 'selling and marketing costs'. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against 'selling and marketing costs' in profit or loss.
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Share premium is the difference between the fair value of the consideration receivable for the issue of shares and the nominal value of the shares. Share premium account can only be resorted to for limited purposes, which do not include the distribution of dividends, and is otherwise subject to the provisions of the Cyprus Companies Law on reduction of share capital.
Basic earnings per share are calculated as follows: The profits attributable to the Company's shareholders are divided by the weighted average number of ordinary shares issued during the year.
Provisions are recognised when the Company/Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings, using the effective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment (for liquidity services) and amortised over the period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Borrowing costs are interest and other costs that the Company/Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premium relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, finance lease charges and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of that asset, when it is probable that they will result in future economic benefits to the Company/Group and the costs can be measured reliably.
Borrowings are classified as current liabilities, unless the Company/Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.
Financial guarantees are recognized as a financial liability when the guarantee is issued. The liability is initially measured at its fair value and subsequently greater than the amount determined in accordance with IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" and the amount initially recognized less accumulated depreciation, as appropriate.
The fair value of the financial guarantees is determined as the present value of the difference between the net cash flows between the contractual payments under the loan agreement and the payments that would be required without the guarantee or the estimate of the amount that would be payable to third parties for the Of the obligations.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
In the statement of cash flows, cash and cash equivalents include cash in hand and deposits held at call with banks with original maturities of three months or less and bank overdrafts. In the balance sheet bank overdrafts are shown within borrowings in current liabilities.
The Company's and Group's activities expose it to a variety of financial risks: market risk (including cash flow interest rate risk), credit risk and liquidity risk.
The risk management program of the Company and the Group focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company and the Group. Risk management is carried out by the Board of Directors.
Τhe Company and the Group have significant interest bearing assets, which mainly represent cash and cash equivalents which bear interest at market variable rates.
The Company's and Group's interest rate risk arises from interest-bearing assets and long-term borrowings. Borrowings issued at variable rates expose the Company and the Group to cash flow interest rate risk.
The Company's and Group's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.
At 31 December 2016 and 2015, if interest rates on Euro denominated borrowings fluctuated as presented below, with all other variables held constant the post tax profit/loss for the year would have been affected as presented in the table below:
| The Group | The Company | |||
|---|---|---|---|---|
| Interest rate lower/ higher % |
Effect on the profit for the year €000 |
Interest rate lower/ higher % |
Effect on the profit/loss for the year €000 |
|
| 2016 | ||||
| Εuro | 0,5 | 25 | 0,5 | 37 |
| Higher/lower | Lower/higher | |||
| 2015 | ||||
| Εuro | 0,5 | 100 Higher/lower |
0,5 | 113 Lower/higher |
The effect on profit/(loss) for the year after tax charge is a result of higher/lower interest expense on floating rate bank borrowings.
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables with related companies and committed transactions. Refer to Note 15 for further information regarding credit risk.
For banks and financial institutions, only independently rated parties are accepted. See Note 15 for further disclosures on credit risk.
The Management does not expect any losses from non-performance by these counterparties.
The table below analyses the Company's and the Group's financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months (with the exception of borrowings) equal their carrying balances as the impact of discounting is not significant.
| Less | Between | Between | |
|---|---|---|---|
| than | 1 and 2 | 2 to 5 | |
| 1 year | years | years | |
| €000 | €000 | €000 | |
| At 31 December 2015 | |||
| Borrowings Trade and other payables |
2.992 536 ___ |
744 - ___ |
18.258 - ____ |
| 3.528 | 744 | 18.258 | |
| ========= | ========= | ========== | |
| At 31 December 2016 | |||
| Borrowings | 1.038 | 15.559 | - |
| Trade and other payables | 350 | - | - |
| ___ | ___ | ____ | |
| 1.388 | 15.559 | - | |
| ========= | ========= | ========== | |
| The Company | |||
| Less | Between | Between | |
| than | 1 and 2 | 2 to 5 | |
| 1 year | years | years | |
| €000 | €000 | €000 | |
| At 31 December 2015 | |||
| Borrowings Trade and other payables |
3.099 208 ___ |
867 - ___ |
20.855 - ____ |
| 3.307 | 867 | 20.855 | |
| ========= | ========= | ========== | |
| At 31 December 2016 | |||
| Borrowings | 1.164 | 18.383 | - |
| Trade and other payables | 20 | - | - |
| ___ | ___ | ____ | |
| 1.184 | 18.383 | - | |
| ========= | ========= | ========== | |
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Board of Directors maintains flexibility in funding by maintaining availability under committed credit lines.
The Board of Directors monitors rolling forecasts of the Company's and the Group liquidity reserve (comprises undrawn borrowing facility (Note 24) and cash and cash equivalents (Note 22) on the basis of expected cash flow.
The Company and the Group have the following unused credit facilities:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Floating rate: | ||||
| - Within one year | 2.846 | 1.076 | 2.834 | 1.075 |
| =========== | =========== | ========== | ========== |
The facilities that expire within one year are annual facilities that are subject to revision at different dates.
Liquidity risk arising from corporate guarantees with related parties is disclosed in Note 27 (ix) and in the event of default, the minimum time that may be called for repayment is within one year.
The Company's and the Group's objectives when managing capital are to safeguard the Company's/Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders of the Company/Group and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company/Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Company and the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including 'current and non current borrowings' as shown in the balance sheet) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the balance sheet plus net debt.
The gearing ratios at 31 December 2016 and 2015 were as follows:
| Τhe Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Total borrowings (Note 24) Less: cash and cash equivalents |
15.638 | 20.073 | 18.445 | 22.643 |
| (Note 22) | (21) | - | (21) | - |
| Net debt Total equity |
_____ 15.617 86.891 |
_____ 20.073 81.986 |
____ 18.424 33.190 |
_____ 22.643 30.654 |
| _____ | _____ | ____ | _____ | |
| Total capital as defined by the | ||||
| board | 102.508 =========== |
102.059 =========== |
51.614 ========== |
53.297 =========== |
| Gearing ratio | 15% | 20% | 36% | 43% |
The reduction in the gearing ratio during 2016 was mainly the result of repayment of bank debt during the year.
The carrying value less provision for impairment of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate available to the Company/Group for similar financial instruments.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company and the Group make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
High estimates are required to determine the corporate tax provision. For specific transactions and calculations, the determination of final tax is uncertain. The Company / Group recognizes liabilities for anticipated tax issues based on calculations of whether additional tax will arise. Where the final tax effect of these matters differs from the amount initially recognized, the differences affect current and deferred tax assets and liabilities in the period in which the determination was made.
The Company and the Group follows the guidance of IAS 36 "Impairment of assets" in determining whether a non current asset is impaired. The Company and the Group review the carrying value for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
As at 31 December 2016, the Company and the Group assessed whether the investments in subsidiary companies have been impaired, in accordance with the accounting policies disclosed in Note 2. The recoverable amounts of the assets or the cash generating units have been determined based on their fair value. The fair value calculations are based on the fair value of the subsidiary companies' net assets. The recoverable amounts have been compared with the carrying values of the investments as at 31 December 2016. Following the impairment test, the Company and the Group did not recognise any impairment charge for the investments in subsidiary company.
The revenue of Company and the Group, relates to income from the sale of immovable property in Cyprus.
As per management approach in relation to IFRS 8, operating segments are presented in accordance with the internal reporting provided to the Board of Directors (the chief operating decision-maker), which is responsible for allocating resources and assessing performance of the operating segment. All operating segments used by the Group, meet the definition of a reportable segment as per IFRS 8.
The basic operating segments of the Group for which segment information is presented are as follows:
The Board of Directors of the Company assesses the performance of the operating segments based on a measure of losses before interest, taxes, depreciation and amortization (EBITDA). This measurement basis excludes the effects of non-recurring expenditure from the operating segments such as restructuring costs and impairments when the impairment is the result of an isolated, non-recurring event. Interest income and expenditure are not allocated to segments. Other information presented, is accounted as per the financial statements. All the assets of the Group are situated in Cyprus.
The segment information provided to the Board of Directors of the Company/Group for the reportable segments is as follows:
| Development and sale of land €000 |
Holding of investments €000 |
Total €000 |
|
|---|---|---|---|
| Revenue | 4.436 | - | 4.436 |
| Profit before interest, taxes, and depreciation | ========== | ========== | ========== |
| 2.983 | 459 | 3.442 | |
| Total segment assets | ========== | ========== | ========== |
| 6.324 | 96.575 | 102.899 | |
| Total assets include: | ========== | ========== | =========== |
| Investments in associates | - | 86.704 | 86.704 |
| Total segment liabilities | ========== | ========== | ========== |
| 370 | 15.638 | 16.008 | |
| ========== | ========== | ========== |
| Development and sale of land €000 |
Holding of investments €000 |
Total €000 |
|
|---|---|---|---|
| Revenue | 1.379 | - | 1.379 |
| Profit before interest, taxes, and depreciation | ========== | ========== | ========== |
| 352 | 512 | 864 | |
| Total segment assets | ========== | ========== | ========== |
| 6.592 | 96.024 | 102.616 | |
| Total assets include: Investments in associates |
========== - ========== |
========== 84.403 ========== |
=========== 84.403 ========== |
| Total segment liabilities | 20 | 20.610 | 20.630 |
| ========== | ========== | ========== |
Results before interest, taxes, depreciation and amortization differs from the profit before tax as follows:
| 2015 €000 |
2014 €000 |
|
|---|---|---|
| Profit before interest, taxes, and depreciation Depreciation and impairment |
3.442 (21) ____ |
864 (9) ____ |
| Operating profit Finance costs Share of profit of associates |
3.421 (718) 2.315 |
854 (897) 243 |
| Profit before tax | ____ 5.018 ========== |
____ 200 ========== |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Sale of plots and shops | 4.436 ========== |
1.379 ========= |
4.200 ========== |
1.379 ========= |
| Τhe Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Interest income: | ||||
| Bank balances | - | 1 | - | 1 |
| Loans to related companies (Note 27(ii)) | 457 | 508 | 457 | 508 |
| Other receivables | - | 2 | - | - |
| Other interest income | 2 ____ |
2 ____ |
2 ____ |
2 ____ |
| Total interest income | 459 | 513 | 459 | 511 |
| Dividend income (Note 27(iii)) | - | - | 95 | - |
| Other income | 188 | 4 | 188 | 4 |
| ____ 647 |
____ 517 |
____ 742 |
____ 515 |
|
| ========== | ========== | ========== | ========== |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Cost of sales | 988 | 393 | 826 | 393 |
| ======== | ======== | ======== | ======== |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Impairment charge /depreciation of property, plant | ||||
| and equipment (Note 16) | 21 | 9 | 21 | 9 |
| Tax and licences | 13 | 11 | 13 | 12 |
| Legal and professional fees | 4 | 1 | 1 | 1 |
| Management fees (Note 27 (i)) | 351 | 341 | 345 | 335 |
| Selling and distribution expenses | 187 | 177 | 187 | 177 |
| Directors' fees (Note 27 (iv)) | 2 | 2 | 2 | 2 |
| Staff and related costs (Note 10) | 33 | 33 | 33 | 33 |
| Auditor's remuneration | 19 | 18 | 18 | 16 |
| Other expenses | 55.214 | 78.073 | 53.010 | 74.765 |
| Total cost of sales, selling costs and | ____ | ____ | ____ | ____ |
| administrative expenses | 674 ========== |
649 ========== |
659 ========== |
639 ========== |
The total fees charged by the statutory audit firm for the statutory audit of the annual financial statements of the Group / Company for the year ended December 31, 2016 amounted to €19 thousand / €18 thousand (2015: €18 thousand / €16 thousands). There were no other services charged by the statutory audit firm during the year ended 31 December 2015 and 31 December 2016.
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Salaries Employer's contributions |
32 1 ____ |
32 1 ____ |
32 1 ___ |
32 1 ___ |
| Total (Note 27 (iv) | 33 | 33 | 33 | 33 |
| ========== | ========== | ========= | ========= | |
| Average number of staff during the year | 1 | 1 | 1 | 1 |
| ========== | ========== | ========= | ========= |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Interest expense: | ||||
| Bank borrowings and overdrafts | 718 | 897 | 717 | 897 |
| Loan from subsidiary company (Note 27 (ii)) | - ____ |
- ____ |
129 ___ |
117 ___ |
| 718 ========== |
897 ========== |
846 ========= |
1.014 ========= |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Current tax charge: Income Tax |
98 | - | 75 | - |
| Tax charge | ___ | ___ | __ | __ |
| 98 | - | 75 | - | |
| ========= | ========= | ======== | ======== |
The tax on the Group's and the Company's profit/(loss) before tax differs from the theoretical amount that would arise using the applicable tax rate as follows:
| Τhe Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Profit/(loss) before tax | 5.018 ========== |
200 ========== |
2.611 ========== |
(152) ========== |
| Tax calculated at the applicable corporation tax | ||||
| rate of 12,5% | 627 | 25 | 326 | (19) |
| Tax effect of expenses not deductible for | ||||
| tax purposes | 5 | 4 | 5 | 4 |
| Tax effect of allowances and income not subject to tax |
(294) | (32) | (16) | (2) |
| Tax effect of tax losses for which no | ||||
| deferred tax asset was recognised | - | 17 | - | 17 |
| Special contribution for defence | - | - | - | - |
| 10% additional tax | - | 1 | - | - |
| Tax effect from tax losses currying forward | (240) | - | (240) | - |
| Tax effect of Group relief | - | (15) | - | - |
| Tax charge | ____ 98 ========== |
____ - ========== |
___ 75 ========= |
___ - ========= |
The Company/ Group is subject to income tax on taxable profits at the rate of 12,5%.
As from tax year 2012 brought forward losses of only 5 years may be utilised. From 1 January 2009 onwards, under certain conditions, interest may be exempt from income tax and be subject only to special contribution for defence at the rate of 10%; increased to 15% as from 31 August 2011, and to 30% as from 29 April 2013.
In certain cases dividends received from abroad may be subject to special contribution for defence at the rate of 15%; increased to 17% as from 31 August 2011; increased to 20% as from 1 January 2012; reduced to 17% as from 1 January 2014. In certain cases dividends received from 1 January 2012 onwards from other Cyprus tax resident companies may also be subject to special contribution for defence.
Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon etc) are exempt from Cyprus income tax.
Under the Cyprus Tax Law, the Company and its subsidiaries, of which the Company holds directly or indirectly at least 75% of the voting shares; are collectively referred to as the "Group" for tax purposes. A Company of the "Group" can set off its losses with the profits of the other companies of the Group.
The tax (charge)/credit relating to components of other comprehensive income as follows:
| Year ended 31 December | ||||||
|---|---|---|---|---|---|---|
| 2016 | 2015 | |||||
| Tax (charge)/ |
Tax (charge)/ |
|||||
| Before tax €000 |
credit €000 |
After tax €000 |
Before tax €000 |
credit €000 |
Before tax €000 |
|
| Associated companies: Share of other |
||||||
| comprehensive income | (15) ____ |
- _____ |
(15) ____ |
(630) ____ |
- _____ |
(630) ____ |
| Other comprehensive income |
(15) ========== |
- =========== |
(15) ========== |
(630) ========== |
- =========== |
(630) ========== |
| 2016 | 2015 | |
|---|---|---|
| Profit attributable to the equity holders of the Company (€000) | 4.920 | 200 |
| Weighted average number of ordinary shares in issue | =========== 128.586.161 |
=========== 128.586.161 |
| Profit per share - Basic and diluted (cent per share) | =========== 3,83 =========== |
=========== 0,16 =========== |
| Loans and | ||
|---|---|---|
| receivables | Total | |
| €000 | €000 | |
| 31 December 2016 Assets as per consolidated balance sheet |
||
| Non-current receivables | 2.793 | 2.793 |
| Current receivables | 7.649 | 7.649 |
| Cash and bank balances | 21 | 21 |
| Total | _____ 10.463 |
____ 10.463 |
| =========== | ========== | |
| Other financial | ||
| liabilities | Total | |
| €000 | €000 | |
| 31 December 2016 | ||
| Liabilities as per consolidated balance sheet | ||
| Borrowings | 15.638 | 15.638 |
| Trade and other payables | 350 | 350 |
| _____ | ____ | |
| Total | 15.988 | 15.988 |
| =========== | ========== | |
| Loans and | ||
| receivables | Total | |
| €000 | €000 | |
| 31 December 2015 Assets as per consolidated balance sheet |
||
| Non-current receivables | 4.504 | 4.504 |
| Current receivables | 6.815 | 6.815 |
| _____ | ____ | |
| Total | 11.319 | 11.319 |
| =========== | ========== | |
| Other financial | ||
| liabilities | Total | |
| €000 | €000 | |
| 31 December 2016 | ||
| Liabilities as per consolidated balance sheet | ||
| Borrowings | 20.073 | 20.073 |
| Trade and other payables | 536 | 536 |
| _____ | ____ | |
| Total | 20.609 | 20.609 |
| =========== | ========== |
| Loans and | ||
|---|---|---|
| receivables €000 |
Total €000 |
|
| 31 December 2016 | ||
| Assets as per balance sheet | ||
| Non-current receivables | 2.793 | 2.793 |
| Current receivables | 7.162 | 7.162 |
| Cash and bank balances | 21 ____ |
21 ___ |
| Total | 9.976 | 9.976 |
| ========== | ========= | |
| Other financial | ||
| liabilities | Total | |
| €000 | €000 | |
| Liabilities as per balance sheet | ||
| Borrowings | 18.445 | 18.445 |
| Trade and other payables | 20 ____ |
20 ____ |
| Total | 18.465 | 18.465 |
| ========== | ========== | |
| Loans and | ||
| receivables | Total | |
| €000 | €000 | |
| 31 December 2015 | ||
| Assets as per balance sheet | ||
| Non-current receivables | 4.504 | 4.504 |
| Current receivables | 6.317 ____ |
6.317 ___ |
| Total | 10.821 | 10.821 |
| ========== | ========= | |
| Other financial | ||
| liabilities | Total | |
| €000 | €000 | |
| Liabilities as per balance sheet | ||
| Borrowings | 22.643 | 22.643 |
| Trade and other payables | 208 ____ |
208 ____ |
| Total | 22.851 | 22.851 |
| ========== | ========== |
The credit quality of financials assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if applicable) or to historical information about counterparty default rates:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Trade receivables Group 2 |
529 | 495 | 42 | 29 |
| Loans and other receivables Group 1 Group 2 |
9.911 2 |
10.774 50 |
9.911 2 |
10.774 18 |
| ____ 10.442 ========== |
____ 11.319 ========== |
____ 9.955 ========== |
____ 10.821 ========== |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Cash at bank and short term bank deposits (Moody's) |
||||
| Caa3 | 21 ____ |
- ____ |
21 ____ |
- ____ |
| 21 | - | 21 | - | |
| ========== | ========== | ========== | ========== |
Group 1 – Companies within the Group, common control companies and associates with no defaults in the past.
Group 2 – Other receivables with no defaults in the past.
None of the financial assets that are fully performing has been renegotiated in the last year.
None of the loans and other receivables from related parties are overdue or impaired.
| Furniture and office equipment |
Total | |
|---|---|---|
| €000 | €000 | |
| At 1 January 2015 | ||
| Cost | 95 | 95 |
| Accumulated depreciation | (65) ___ |
(65) ___ |
| Net book amount | 30 | 30 |
| ========= | ========= | |
| Year ended 31 December 2015 | ||
| Opening net book amount | 30 | 30 |
| Depreciation charge (Note 9) | (9) | (10.207) |
| Closing net book amount | ___ 21 |
___ 21 |
| At 31 December 2015 | ___ | ___ |
| Cost | 95 | 95 |
| Accumulated depreciation | (74) ___ |
(74) ___ |
| Net book amount | 21 ========= |
21 ========= |
| Year ended 31 December 2016 | ||
| Opening net book amount | 21 | 21 |
| Impairment charge (Note 9) | (21) | (9.423) |
| Closing net book amount | ___ - |
___ - |
| At 31 December 2016 | ___ | ___ |
| Cost | 95 | 95 |
| Accumulated depreciation and impairment charge | (95) | (95) |
| Net book amount | ___ - |
___ - |
| ========= | ========= |
| Furniture and office equipment €000 |
Total €000 |
|
|---|---|---|
| At 1 January 2015 | ||
| Cost | 95 | 95 |
| Accumulated depreciation | (65) __ |
(65) ___ |
| Net book amount | 30 ======== |
30 ========= |
| Year ended 31 December 2015 | ||
| Opening net book amount Depreciation charge (Note 9) |
30 (9) |
30 (9) |
| Closing net book amount | _ 21 _ |
_ 21 _ |
| At 31 December 2016 | ||
| Cost Accumulated depreciation |
95 (74) |
95 (74) |
| Net book amount | ___ 21 |
___ 21 |
| Year ended 31 December 2016 | ========= | ========= |
| Opening net book amount | 21 | 21 |
| Impairment charge (Note 9) | (21) __ |
(21) ___ |
| Closing net book amount | - ======== |
- ========= |
| At 31 December 2016 | ||
| Cost | 95 | 95 |
| Accumulated depreciation and impairment charge | (95) ___ |
(95) ___ |
| Net book amount | - | - |
| ========= | ========= |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| At beginning of year | 84.403 | 84.790 | 32.953 | 32.953 |
| Additions | 1 | - | 1 | - |
| Share of profit after tax | 2.315 | 243 | - | - |
| Share of changes in reserves | (15) | (630) | - | - |
| At end of year | _____ 86.704 =========== |
_____ 84.403 =========== |
____ 32.954 ========== |
____ 32.953 ========== |
Set out below are the associates of the Company as at 31 December 2016, which, in the opinion of the Directors, are material to the Company. The associates listed below have share capital consisting solely of ordinary shares, which are held directly by the Company; the country of incorporation or registration is also their principal place of business.
| Name | Country of incorporation |
% of ownership interest |
Nature of relationship |
Measurement Method in Consolidated Financial statement |
Measurement Method in Company's Financial Statement |
|---|---|---|---|---|---|
| 2016 and 2015 C.C.C. Secretarial Limited |
Cyprus | 20,00 | Note 1 | Equity Method | Cost Method |
| The Cyprus Cement Public Company Ltd |
Cyprus | 32,07 | Note 2 | Equity Method | Cost Method |
Note 1: C.C.C. Secretarial Limited is acting as the secretary of companies and meanwhile providing other administrative services.
Note 2: The main activities of The Cyprus Cement Public Company Limited are the development and sale of land as well as providing strategic investment decisions in companies operating in the hotel and tourism sector and in the sector manufacturing and sale of cement.
As a 31 December 2016, the fair value of the Company's/Group interest in The Cyprus Cement Public Company Limited (the "associate"), which is listed on the Cyprus Stock Exchange, was €14.652 thousand (2015: €15.005 thousand). The market price listed on the stock exchange is not representative since these shares are not traded in an active market.
There are no significant restrictions as a result of borrowing, regulatory requirements or contractual arrangements between investors with significant influence on affiliated companies as to the ability of affiliated companies to transfer money to the Company / the Group in the form of cash dividends or to repay loans or Advances made by the Company / the Group.
(1) The valuation of the Company's management for the investment property was based on the comparative method taking into consideration the selling price of part of the investment property as this was determined under the loan restructuring agreement entered by associated Company, as this was adjusted to represent the fair value of the whole investment property based on the current market conditions.
For the purpose of the comparative method performed by the Company's management for the valuation of the land, the land has been divided into three notional zones considering the physical characteristics of each zone. As a result, the comparative method is based on observable prices for Zone A on which Zone B's and Zone C's prices have been determined.
The area of each notional zone and the price per square meter has been determined by the Company's management as follows;
| Notional Zone | Area (square meters '000/ %) | Price per square meter (€) |
|---|---|---|
| Zone Α | 240 / 21% | 479 |
| Zone Β | 135 / 11% | 240 (1/2 of Zone A's price) |
| Zone C | 801 / 68% | 160 (1/3 of Zone A's price) |
The valuation of the Company's investment property has been classified as level 3 since the valuation techniques used incorporate unobservable inputs.
The table below shows the possible impact of the fair value of the investment property due to a change in the non-observable inputs (level 3).
Information in respect of valuation of investment property using non-observable inputs (Level 3) – 31 December 2016
| Property | Valuation (€000) |
Valuation method |
Non-observable | inputs Change in input | Sensitivity |
|---|---|---|---|---|---|
| Land for development 273.971 In Cyprus |
Comparative method |
Area allocation into notional zones ('000/ |
Zone A – 176/ 15% Zone B – 176/ 15% Zone C – 824/ 70% |
€16.998 thousands decrease |
|
| %) | Zone A – 706/ 60% Zone B – 470/ 40% |
€8.736 thousands decrease |
(2) The fair value of available of sale investment was valued by the Company's management used the discounted cash flow method to measure the value of the residential apartments and the fair value method based on the expected operating profit (Earnings Before Interest and Depreciation, known as EBITDA) for the valuation of the hotel complex.
| Description 31 December 2016 |
Fair value method | Non – observable data | Connection between non – observable data and fair value |
|---|---|---|---|
| Hotel operations: | Fair value method based on operating profit (EBITDA multiple) |
Multiplier: 16 Expected operating profit(EBITDA): €9,6 million |
The higher are the multiplier and the expected operating profit, the higher the fair value |
| Development and sale of luxury apartments: |
Discounted cash flow method |
Expected sale price of residential apartments €10.000 per square meter |
The higher the sale price per square meter is, the greater the fair value. |
Discount rate: 7,08%
The table below shows the possible impact on the fair value of the investment from the change in significant assumptions.
| Change in assumptions | Impact in other comprehensive income |
|---|---|
| Operating profit method (Hotel complex) | 2016 €000 |
| Increase by 10% in the expected operating profit (EBITDA) | 3.597 |
| Decrease by 10% in the expected operating profit (EBITDA) | (3.597) |
| Increase by 1 unit in the multiplier | 2.248 |
| Decrease by 1 unit in the multiplier | (2.248) |
| Discounted cash flow method (Luxury apartments) | |
| Increase by 10% in expected sale price | 1.377 |
| Decrease by 10% in expected sale price | (1.377) |
The fair value of the investment has been classified as level 3 since the valuation techniques used incorporate unobservable inputs.
| C.C.C Secretarial Limited As at 31 December |
The Cyprus Cement Public Company Limited As at 31 December |
Total As at 31 December |
||||
|---|---|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Current Assets Cash and cash equivalents |
- | 1 | 1 | 1.032 | 1 | 1.033 |
| Other current assets |
259 | 275 | 894 | 802 | 1.153 | 1.077 |
| Total current assets | _ 259 _ |
_ 276 _ |
_ 895 _ |
_ 1.834 _ |
_ 1.154 _ |
_ 2.110 _ |
| Financial liabilities (excluding trade payables) Other current |
(77) | (37) | (2.776) | (2.272) | (2.853) | (2.310) |
| liabilities (including trade payables) |
(160) | (236) | (210) | (174) | (370) | (409) |
| Total current liabilities |
_ (237) _ |
_ (273) _ |
__ (2.986) __ |
__ (2.446) __ |
__ (3.223) __ |
__ (2.719) __ |
| Non-current Assets |
14 __ |
33 __ |
352.254 _____ |
346.041 _____ |
352.268 _____ |
346.074 _____ |
| Financial liabilities Other liabilities |
- - __ |
- - __ |
(18.909) (54.125) _____ |
(21.891) (53.566) _____ |
(18.909) (54.125) _____ |
(21.891) (53.566) _____ |
| Total non-current liabilities |
- __ |
- __ |
(73.034) _____ |
(75.457) _____ |
(73.034) _____ |
(75.457) _____ |
| Net assets | 36 __ |
36 __ |
277.129 _____ |
269.972 _____ |
277.165 _____ |
270.008 _____ |
| Net assets distributed to shareholders |
36 ======== |
36 ======== |
270.331 =========== |
263.162 =========== |
270.367 =========== |
263.198 =========== |
| C.C.C. Secretarial Limited As at 31 December |
The Cyprus Cement Public Company Limited As at 31 December |
Total As at 31 December |
||||
|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | €000 | €000 | |
| Revenue | 1.230 | 1.201 | 627 | 576 | 1.857 | 1.777 |
| ____ | ____ | ____ | ____ | ____ | ____ | |
| Depreciation | (16) | (17) | (25) | (17) | (41) | (34) |
| Finance costs | (3) | (4) | (1.080) | (1.193) | (1.083) | (1.197) |
| Profit before tax | ____ | ____ | ____ | ____ | ____ | ____ |
| 10 | 10 | 7.767 | 743 | 7.777 | 753 | |
| Income tax expense |
_ (4) _ |
_ (4) _ |
_ (564) _ |
_ (4) _ |
_ (568) _ |
_ (8) _ |
| Profit for the year | ____ | ____ | ____ | ____ | ____ | ____ |
| 6 | 6 | 7.203 | 739 | 7.209 | 745 | |
| ____ | ____ | ____ | ____ | ____ | ____ |
The information above reflects the amounts presented in the financial statements of the associates (and not the Company's share of those amounts) adjusted for differences in accounting policies between the Company and the associates.
Reconciliation of the condensed financial results are presented at the currying amount of Investments in Associates that are measure using the equity method in the Consolidated Financial Statements of the Group are as follows:
| C.C.C. Secretarial Limited As at 31 December |
The Cyprus Cement Public Company Limited As at 31 December |
Total As at 31 December |
||||
|---|---|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Summarised financial information |
||||||
| Opening net assets 1 January Profit for the |
36 | 30 | 263.162 | 265.368 | 263.198 | 265.398 745 |
| period Other |
6 | 6 | 7.215 | 739 | 7.221 | |
| comprehensive income |
(6) | - | (46) | (2.945) | (52) | (2.945) |
| Closing net assets attributable to shareholders |
___ 36 |
___ 36 |
_____ 270.331 |
_____ 263.162 |
_____ 270.331 |
_____ 263.198 |
| Interests in associates (20%;32,07%) |
___ | ___ | _____ | _____ | _____ | _____ |
| 7 ___ |
7 ___ |
86.697 _____ |
84.396 _____ |
86.704 _____ |
84.403 _____ |
| 2016 €000 |
2015 €000 |
|
|---|---|---|
| At the beginning of the year | 3.000 ____ |
3.000 ____ |
| At the end of the year | 3.000 ========== |
3.000 ========== |
The subsidiary, which is registered in Cyprus, is presented below. Unless otherwise stated, the subsidiary company has a share capital consisting exclusively of ordinary shares held directly by the Company and the percentage of ownership rights it holds is equal to the voting rights held by the Company. The country of incorporation or registration is also its principal place of business.
The details regarding the wholly owned subsidiary undertaking, which unlisted, is as follows:
| Country of | |||
|---|---|---|---|
| Name | Issued share capital | incorporation | Principal activities |
| Galatex Tourist Enterprises Limited | 1 750 000 | Cyprus | Property development |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Non- current receivables Receivables from related companies (Note 27(vii)) |
2.793 ========== |
4.504 ========== |
2.793 ========== |
4.504 ========== |
The fair value of loans receivables from associated companies approximates their carrying amount.
The carrying amounts of the Company's and the Group's non-current receivables are denominated in Euro.
The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of receivable mentioned above. The Company does not hold any collateral as security. None of the non-current receivables is either past due or impaired.
| The Company | |||
|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 |
| €000 | €000 | €000 | €000 |
| 5.639 | 6.437 | 5.639 | 6.437 |
| - ____ |
|||
| 5.639 | 6.592 | 5.639 | 6.437 ========== |
| - _____ |
The Group 155 _____ =========== =========== |
- ____ ========== |
The cost of inventories recognised as expense and included in the cost of sales amounts to €988 thousand (2015: €393 thousand) and €826 thousand (2015: €393 thousand) in Group and Company's result respectively.
Inventories are stated at cost. There were no inventories for which the net book value should decrease to the net realizable value.
The Company's/ Group's borrowings are secured on inventories for the amount of €20 million (Note 24).
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Trade receivables | 529 | 495 | 42 | 29 |
| Loans to related parties (Note 27 (vii)) | 7.085 | 6.251 | 7.085 | 6.251 |
| Receivables from related parties (Note 27 (v)) | 33 | 19 | 33 | 19 |
| Other receivables | 2 | 238 | 2 | 206 |
| ____ 7.649 ========== |
____ 7.003 ========== |
____ 7.162 ========== |
____ 6.505 ========== |
The fair value of trade and other receivables approximates their carrying amount.
Trade receivables that are less than three months past due are not considered impaired. As of 31 December 2016, the Company had trade receivables of €42 thousand (2015: €29 thousand) which were past due but not impaired. The trade receivables of the Group that were past due but not impaired amounted to €529 thousand (2015: €495 thousand). These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Over 3 months | 529 ========= |
495 ========= |
42 ========= |
29 ======== |
The maximum exposure to credit risk at the balance sheet date is the carrying value of each class of receivable mentioned above. The Company does not hold any collateral as security.
The carrying amounts of the trade and other receivables of the Company and the Group are denominated in the following currencies:
| The Group | The Company | ||||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||
| €000 | €000 | €000 | €000 | ||
| Euro | 7.649 ========== |
7.003 ========== |
7.162 ========= |
6.505 ========= |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Cash at bank and in hand | 21 | - | 21 | - |
| ____ | ____ | ____ | ____ | |
| 21 | - | 21 | - | |
| ========== | ========== | ========== | ========== |
Cash, cash equivalents and bank overdrafts include the following for the purposes of the statement of cash flows:
| The Group | The Company | ||||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||
| €000 | €000 | €000 | €000 | ||
| Cash and bank balances | 21 | - | 21 | - | |
| Less: Bank overdrafts (Note 24) |
(432) | (2.248) | (426) | (2.232) | |
| ____ | ____ | ____ | ____ | ||
| (411) | (2.248) | (405) | (2.232) | ||
| ========== | ========== | ========== | ========== |
All cash and cash equivalents are denominated in Euro.
| Number of shares |
Share capital €000 |
Share premium €000 |
Total €000 |
|
|---|---|---|---|---|
| At 1 January 2015/31 December 2015/ | 128.586.161 | 21.860 | 1.757 | 23.617 |
| 31 December 2016 | =========== | =========== | =========== | =========== |
The total authorized number of ordinary shares is 500 000 000 shares (2015: 500 000 000 shares) with a par value of €0,17 per share (2015: €0,17 per share).
All issued shares are fully paid and carry equal voting rights.
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Current | ||||
| Bank overdrafts (Note 22) | 432 | 2.248 | 426 | 2.232 |
| _ 432 _ |
_ 2.248 _ |
_ 426 _ |
_ 2.232 _ |
|
| Non-current | ||||
| Bank borrowings | 15.206 | 17.825 | 15.206 | 17.824 |
| Borrowings from subsidiary company (Note 27 (vi)) |
- ____ |
- ____ |
2.813 _____ |
2.587 _____ |
| 15.206 | 17.825 | 18.019 | 20.411 | |
| Total borrowings | ____ 15.638 ========== |
____ 20.073 ========== |
_____ 18.445 =========== |
_____ 22.643 =========== |
| Maturities on non-current borrowings | ||||
| Between 1 to 2 years | 15.206 | - | 18.019 | - |
| Between 2 to 5 years | - ____ |
17.825 ____ |
- _____ |
20.411 _____ |
| 15.206 | 17.825 | 18.019 | 20.411 | |
| ========== | ========== | =========== | =========== |
Bank loans of €15.206 thousand (2015: €17.824 thousand) are repayable up until July 2018. Loans from subsidiary of €2.813 thousand (2015: €2.587 thousand) are repayable up until 2018, bear interest of 4,70% (2015: 4,75%) and are not secured.
Bank loans of €15.206 thousand (2015: €17.825 thousand) are repayable up until July 2018.
The bank loans and overdrafts of the Company/Group are secured as follows:
The weighted average effective interest rates at the balance sheet date were as follows:
| 2016 % |
2015 % |
|
|---|---|---|
| Borrowings from subsidiary | 4,70 | 4,75 |
| Bank borrowings | 4,00 | 4,17 |
| Bank overdrafts | 4,70 | 5,15 |
The Company's and Group's bank borrowings and bank overdrafts are arranged at floating rates. For borrowings at floating rates the interest rate reprises on a monthly basis exposing the Company and the Group to cash flow interest rate risk.
The exposure of the Company's and Group's borrowings to interest rate changes and the contractual reprising dates at the balance sheet dates are as follows:
| The Group | The Company | ||||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||
| €000 | €000 | €000 | €000 | ||
| 6 months or less | 15.638 ____ |
20.073 ____ |
18.445 ____ |
22.643 ____ |
|
| 15.638 ========== |
20.073 ========== |
18.445 ========== |
22.643 ========== |
The carrying amounts of short term bank overdrafts and bank loans approximate their fair value.
The carrying amounts of the Company's and the Group's borrowings are denominated in the following currencies:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Euro | 15.638 =========== |
20.073 =========== |
18.445 ========== |
22.643 ========== |
The Company and the Group have the following undrawn borrowing facilities:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Floating rate: - Expiring within one year |
2.846 =========== |
1.076 =========== |
2.834 ========== |
1.075 ========== |
The credit facilities which expires within one year, are annual facilities and are subject to review at various dates.
The gross movement on the deferred income tax account is as follows:
| The Group | The Company | ||||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2014 | ||
| €000 | €000 | €000 | €000 | ||
| At beginning/end of year | 20 | 20 | - | - | |
| ======== | ======== | ======== | ======== |
The movement in deferred tax liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:
| Difference in the recognition of gross profits, commissions payable and property tax €000 |
Total €000 |
|
|---|---|---|
| At 1 January 2015/31 December 2015/31 December 2016 | 20 ======== |
20 ======== |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Trade payables | 327 | 326 | 1 | - |
| Other payables and accrued expenses | 23 | 210 | 19 | 208 |
| ___ 350 |
___ 536 |
____ 20 |
____ 208 |
|
| ========= | ========= | ========== | ========== |
The fair value of trade and other payables which are due within one year approximates their carrying amount at the balance sheet date.
The Company is controlled by C.C.C. Holdings & Investments Limited, which is registered in Cyprus and holds 83,81% of the share capital of the Company. The remaining issued share capital is widely held. The ultimate parent company of the Group is George S. Galatariotis & Sons Limited.
The related companies are companies under common control and companies controlled by the Directors of the Company.
The following transactions were carried out with related parties:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2015 | 2014 | |
| €000 | €000 | €000 | €000 | |
| Management services (Note 9) | 351 | 341 | 345 | 335 |
| Selling and marketing costs | 182 | 172 | 182 | 172 |
| ___ 533 |
___ 513 |
___ 527 |
___ 507 |
|
| ========= | ========= | ========= | ========= |
The services are charged from C.C.C. Secretarial Limited and are based on the time spent by its employees on the affairs of the Company and office space allocated to the Company/Group.
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| €000 | €000 | €000 | €000 | |
| Interest payable (Note 11): | ||||
| Subsidiary company | - | - | 129 | 117 |
| ____ - |
____ - |
___ 129 |
___ 117 |
|
| Interest receivable from loans and balances (Note 7): Ultimate parent company, associated company and parent company |
========== 457 ========== |
========== 508 ========== |
========= 457 ========= |
========= 508 ========= |
| Associate company Parent company Ultimate parent company |
145 38 274 |
228 13 267 |
145 38 274 |
228 13 267 |
| ____ 457 ========== |
____ 508 ========== |
____ 457 ========= |
____ 508 ========= |
|
| The Company | |||
|---|---|---|---|
| 2016 | 2015 | ||
| €000 | €000 | ||
| Dividends receivable: | |||
| Subsidiary company | 95 | - | |
| ========== | ========== |
The total remuneration of the key management personnel and Directors was as follows:
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Director Fees (Note 9) Emoluments in their executive |
2 | 2 | 2 | 2 |
| capacity (Note 10) | 33 | 33 | 33 | 33 |
| __ 35 ======== |
__ 35 ======== |
__ 35 ======== |
__ 35 ======== |
| Fees €000 |
Wages and employer's contributions €000 |
Employer's provident fund contributions €000 |
Total €000 |
|
|---|---|---|---|---|
| Year ended 31 December 2016 | ||||
| Executive Directors (1) | 32 | 1 | 2 | 35 |
| Total | _ 32 ======= |
__ 1 ======== |
_ 2 ======= |
___ 35 ========= |
| Year ended 31 December 2015 | ||||
| Executive Directors (1) | 32 | 1 | 2 | 35 |
| Total | _ 32 ======= |
__ 1 ======== |
_ 2 ======= |
___ 35 ========= |
(1) The Director who has a remuneration is Mr. George St. Galatariotis and the Directors who have annual fee for their services are Mr. George St. Galatariotis, Michalis Chrisotoforou, Tasos Anastasiou, Costas Galatariotis and Stavros G. St. Galatariotis amounted to €400 each.
| The Group | The Company | ||||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||
| €000 | €000 | €000 | €000 | ||
| Receivables from related parties (Note 21): Associated companies |
33 | 19 | 33 | 19 | |
| ___ | ___ | ____ | ____ | ||
| 33 | 19 | 33 | 19 | ||
| ========= | ========= | ========== | ========== |
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Borrowings from subsidiary company: | ||||
| At beginning of year | - | - | 2.587 | 2.479 |
| Amounts repaid during the year Loans offset against balance from |
- | - | (20) | (9) |
| dividends received (Note 27 (iii)) | - | - | (95) | - |
| Amounts advanced during the year | - | - | 213 | - |
| Interest charged (Note 11) | - ___ |
- ___ |
129 ____ |
117 ____ |
| At end of year (Note 24) | - ========= |
- ========= |
2.813 ========== |
2.587 ========== |
The loan from the subsidiary entity bears average annual interest at 4,70% (2015: 4,75%), is unsecured and is repayable by 2018.
| The Group | The Company | |||
|---|---|---|---|---|
| 2016 €000 |
2015 €000 |
2016 €000 |
2015 €000 |
|
| Loans granted to the ultimate parent company and associated company and other companies under common control: |
||||
| At beginning of year | 10.755 | 10.611 | 10.755 | 10.611 |
| Loans advanced during the year | 522 | 92 | 522 | 92 |
| Loans settled with related parties | - | (28) | - | (28) |
| Loans repaid during the year | (1.856) | (428) | (1.856) | (428) |
| Interest charged (Note 7) | 457 | 508 | 457 | 508 |
| At end of year (Notes 19 and 21) | ___ 9.878 ========= |
___ 10.755 ========= |
___ 9.878 ========= |
___ 10.755 ========= |
The loan with the associate company amounted to €2.793 thousand (2015: 4.504 thousand), is not secured, bears interest of 4,70% (2015: 4,75%) and is repayable in 2018 (Note 19).
The loan with the ultimate parent company amounted to €6.093 thousand (2015: €5.820 thousand), is secured with corporate guarantee from the related entity, Galatariotis Enterprises Limited, is repayable on demand and bears interest of 4,70% (2015:4,75%).
The loan granted to the parent company, C.C.C. Holdings & Investment Limited amounted to €992 thousand (2015: €431 thousand), is not secured, bears interest of 4,70% (2015: 4,75%) and is repayable on demand.
The parent company C.C.C. Holdings & Investments Limited, has guaranteed a loan provided to the Company/Group for unlimited amount (Note 24).
The Company/Group has corporate guaranteed amounted to €12.000 thousand for loans received from related companies (Note 28).
The Group and the Company is guarantor for loans received from related companies (Note 27 (ix)). The Board of Directors do not except any liability for the Group and the company concerning those guarantees.
There were no material post balance sheet events, which have a bearing on the understanding of the financial statements.
Independent auditor's report on pages 8 to 15.
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