Management Reports • May 19, 2016
Management Reports
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CLR Investment Fund Public Ltd (the "Company"), pursuant to the relevant regulations of the Cyprus Stock Exchange and the Cyprus Securities and Exchange Commission and in order to fully inform shareholders and investors, announces the Interim Management Statement of the Group (the "Group") (whereby Group means the Company and the undertakings under its control) for the period from 1 January to 12 May 2016, pursuant to Article 11 of the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 2007 (Law no. 190(1) of 2007).
The Interim Management Statement has not been audited by the external auditors of the Company, presents an overview of the financial situation and performance of the Group and explains the material events of the period under review.
The Group's main activities, which have remained the same as last year, consist in investments in securities listed on the Cyprus Stock Exchange ("CSE") and the Athens Stock Exchange ("ASE"), in strategic investments and participations in private companies.
During the period under review, the Group recorded an unrealised profit from the revaluation of financial assets at fair value through profit and loss of approximately €371 thousand (2015: profit of €99 thousand), due to the increase in the investment portfolio on the CSE. The Group did not realise any profit or loss from the liquidation of listed shares (2015: €0).
During the period under review, the Group did not have any income from interest and dividends (2015: €0).
During the period under review, the Group's administrative expenses slightly decreased and amounted to €43 thousand compared to €44 thousand in the corresponding period of 2015. These mainly include CSE subscriptions and charges (approximately €18 thousand) as well as various other professional fees.
The finance costs during the period under review fell slightly to approximately €14 thousand compared to approximately €15 thousand in the corresponding period of last year.
As a result of the above and after a tax charge of approximately €46 thousand, which pertains exclusively to interest on tax debts of previous years, the Group's profit for the period from 1 January to 12 May 2016 amounted to approximately €268 thousand (2015: loss of €12 thousand).
During the period under review, there has been no income, profits or losses from non-recurring activities and/or activities other than the Group's main activities.
As also stated in the Group's audited consolidated financial statements for the year ended 31 December 2015, the debt of €9,065,908 by Piraeus Bank S.A. to the subsidiary company Europrofit Capital Investors Public Co remains pending. The Athens Court of First Instance completed the hearing of the case on 8 October 2014. On 20 November 2015, the subsidiary company was notified of the decision by which the action against Piraeus Bank S.A. was dismissed. The company is considering all possible options in consultation with its legal counsels.
On 3 November 2011, the Tax Tribunal issued its decision on the Company's objection regarding the additional taxes issued by the Tax Authorities for the years 2000 to 2002. On 6 March 2013, the Supreme Court set aside the Tax Tribunal's decision against the Company on the grounds that the persons appointed as members of the Tax Tribunal did not meet the qualifications required by the Law. On 19 March 2015, the Tax Tribunal, under its new composition, following a proper investigation and having considered all information, facts and events of the case before it, unanimously decided to request the Company to provide adequate guarantee for the entire amount of the disputed tax of €3,701,799 as a requirement in order to examine the Hierarchical Appeal. With a letter dated 5 May 2015, the Tax Tribunal informed the Company of its decision and invited it to produce the said guarantee within 30 days from the date of receipt of its letter, otherwise the Hierarchical Appeal would be rejected. On 12 June 2015, the Company filed an appeal to the Supreme Court for the setting aside of the above decision of the Tax Tribunal. The Board of Directors is awaiting further developments.
The Annual General Meeting of the Company will be held on Wednesday, 15 June 2016, at 10.00 a.m., at the Company's registered office, 26 Lord Byron Avenue, Laiki Capital House, 1096 Nicosia.
The Company's Board of Directors is not in a position to predict all developments which could have an impact on the Cyprus economy, as well as on the two important legal cases referred to above, and consequently the effect they could have on the future financial performance, cash flows and financial position of the Group. Due to the uncertain economic environment, any forecast on the future financial performance of the Group would be risky. Nonetheless, the Board of Directors continues its efforts to optimise the use of the Group's investments.
A detailed statement of the Group's financial results will be announced in the half-yearly results of 2016.
By order of the Board of Directors
Maria Ioannou Achillides Secretary
Nicosia, 19 May 2016
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