Management Reports • Nov 15, 2016
Management Reports
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K. Kythreotis Holdings Public Ltd ("the Company") was incorporated in Cyprus on 11 December 1970 as a private limited liability company and became a public company on 3 February 2000.
The Company's main activity consists in the production and sale of aggregates for use in the construction industry. It is the Group's holding company, with K. Kythreotis – Skyrodema Ltd and Kythromak (Asphalting) Ltd being its wholly owned subsidiaries. The main activity of K. Kythreotis – Skyrodema Ltd is the production and sale of ready-mix concrete to the construction industry while Kythromak (Asphalting) Ltd is mainly engaged in technical construction projects
For more comprehensive information, investors are advised to read this overview together with the annual financial statements for the year ended 31/12/2015 and the half-yearly financial report for the period ended 30/06/2016.
The quarter ended 30 September 2016 recorded a profit compared to a loss in the corresponding period of last year. The turnover increased by 19% while the gross profit percentage was 15% compared 10% in the corresponding quarter of last year. Profit after tax is 4% of the turnover compared to a loss of 4% in the corresponding quarter of last year.
Changes in the main items of the consolidated profit and loss account
| Quarter ended 30/9/2016 |
Quarter ended 30/9/2015 |
Nine month period ended 30/9/2016 |
Nine month period ended 30/9/2015 |
|
|---|---|---|---|---|
| €'000 | €'000 | €'000 | €'000 | |
| Turnover | 2.250 | 1.895 | 7.146 | 4.905 |
| Cost of sales | (1.919) | (1.708) | (6.113) | (4.756) |
| Gross profit | 331 | 187 | 1.033 | 149 |
| Sales and administrative expenses | (254) | (256) | (834) | (805) |
| Profit / (loss) after taxation |
90 | (85) | 215 | (666) |
| Profit / (loss) per share (cents) | 0,2 | (0,2) | 0,5 | (1,6) |
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K. KYTHREOTIS HOLDINGS PUBLIC LIMITED – Registration No. 3363 – Public Limited Liability Company
Head offices: 38 Griva Dighenis Str., Agios Nicolaos, P.O.Box 54278, 3722 Limassol, Cyprus Tel.: +357 25 581235, FAx: +357 25 585828, Email: [email protected], Website: http://www.kythreotis.com.cy
In the Third Quarter of 2016, the turnover increased by 19%. An increase has been recorded in the sectors of quarrying and ready-mix concrete due to increased demand.
A gross profit of 15% was recorded in the Third Quarter of 2016, compared to 10% in the corresponding quarter of 2015, with an improvement in the sector ready-mix concrete due to the increased turnover, the inelasticity of part of the production cost and the decrease in the gross loss in the sector of technical construction projects, due to the decrease in activity because of unaffordable current prices.
The sales and administrative expenses are at the same levels as in the corresponding quarter of last year.
Profit after taxation is the result of an increase in turnover and the improvement of gross profit as stated above.
The Group's liquidity levels remain satisfactory. The Group continues to repay its current financing liabilities in a consistent manner and has made very limited purchases of new fixed assets.
There have been no non-recurring or extraordinary activities during the period under review.
The issued share capital remained at 42,450,000 ordinary shares of a nominal value of €0.17.
The total shareholders' interest increased by the amount of the profit. The net asset value as at 30/09/2016 was 26.4 cents per share.
The main financial assets of the Group and the Company are cash in bank, investments and trade debtors. The main financial liabilities of the Group and the Company are bank facilities, loans and trade creditors. The main financial risks and uncertainties for the Group and the Company are set out below and the measures taken to address them are explained in the Financial Statements for the year 2015 (Note 26):
Because of the improvement of the economy in the construction sector, the Board of Directors expresses a positive view on the Group's future.
Beyond the Group's ordinary business, there have been no material events and transactions affecting the financial situation of the Company and its subsidiaries.
The Company would like to refer to the announcement of the Committee for the Protection of Competition of 19/07/2016 which states that in has initiated proceedings in order to (re)examine probable a prima facie violations of the Laws of 2008 to 2014 against, amongst others, the Company's subsidiary, K. Kythreotis Skyrodema Ltd.
Other than the ordinary commercial transactions between the Group's companies for the third quarter of 2016 amounting to €219,068 compared to €141,239 in the corresponding quarter of 2015 and the employment contracts of the Executive Directors as described in the Company's Annual Report for 2015, there have been no material transactions of related parties.
Based on the indications and prospects to date in the construction sector, the Group's operating results in the current year are expected to be improved compared to 2015 as a result of improved conditions in the sectors of quarrying and ready-mix concrete.
Limassol 14 November 2016 The Board of Directors of Κ. Kythreotis Holdings Public Limited
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