Lordos Hotels (Holdings) Public LTD

Interim / Quarterly Report • Nov 12, 2014

The Company publishes the Interim Management Statement of the first quarter nine months of 2014 pursuant to article 11 of the Transparency Requirements Law 2007 (N.190 (I) of 2007). The statement is based on the nine-month results 2014, which have not been audited by the external auditors of the Company.

A. General description of the financial condition

1. The turnover increased by €695.000 or 8.7% to €8.649.008. This is mostly attributable to the increased reservations of the Golden Bay Hotel.

2. The cost of sales increased by €370.000 or 9% to €4.484.314 due to the increase in the turnover. The percentage of the cost of sales on the turnover 51.8% is within the framework of last year's, which stood at 51.7%

3. The administrative expenses rose by €65.000 or 4.2% to €1.621.985 mostly due to the inclusion of the amount of €57.352 of bad debts, concerning Russian tourist agencies.

4. The other operating expenses increased by €23.000 or 2.8% to €841.991. This increase is linked to the higher occupancy ratios.

5. There was a decrease in the financial expenses by €61.000 or 20.5% to €235.848, mostly due to the drop in borrowing.

6. The pre-tax profit rose by €355.357 to €1.320.559.

7. The net loss after taxation increased by €77.607 to €935.883.

8. The total after-tax profits for the period recorded an increase of €281.207 to €1.193.115:

	From 1/1 to 30/9/2014	From 1/1 to 30/9/2013
	€	€
Turnover	8.649.008	7.953.584
Cost of sales	(4.484.314)	(4.114.192)
Gross profit	4.164.694	3.839.392
Selling expenses	(281.085)	(331.548)
Administrative expenses	(1.621.985)	(1.556.837)
Other operating expenses	(841.991)	(819.321)
Other income	38.925	-
Finance cost – net Share of profit in associated company	(235.848) 97.861	(296.698) 130.542
(Loss)/profit from investments	(12)	(328)
Profit before taxation	1.320.559	965.202

Taxation	(129.176)	(53.353)
Profit for the period	1.191.383	911.849
Other total expenses for the period Readjustment of deferred taxation	1.732	59
Total after-tax profit for the period	1.193.115	911.908
Attributable to: Shareholders of parent company Minority interest	1.114.048 79.067 1.193.115	804.678 107.908 911.908
Net earnings per share attributable to shareholders of parent company (cents)	3,18	2,30

B. Main events and transactions

The results of the Group for the first nine months of 2014 were affected positively, mostly due to the increased reservations in overnight stays.

C. Risk Management

The Group is exposed to risks the most important of which are the credit risk, the interest rate risk and the liquidity. The main risks are analyzed in note 30 of the consolidated financial statements for the year ended December 31, 2013 and are not expected to change in the last quarter of 2014.

The Board of Directors is working towards dealing effectively with the aforementioned risks on the basis of new data.

D. Prospects

Based on the results and the indications for the next of the year, it is expected that the Group will continue to be profitable, with a relatively increase in its profitability compared to last year.