Rolandos Enterprises Public LTD

Earnings Release • Aug 29, 2014

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the period from 1 January to 30 June 2014

	30/06/2014 €	30/06/2013 €
Revenue	2.273.622	2.150.470
Cost of sales	(1.278.198)	(978.079)
Gross Profit	995.424	1.172.391
Other income	10.618	122.186
Selling and distribution expenses	(253.194)	(591.154)
Administration expenses	(796.845)	(791.209)
Operating loss	(43.997)	(87.786)
Impairment of bank deposits	-	(533.154)
Net finance income	6.125	62.975
Loss before tax	(37.872)	(557.965)
Income tax expenses	(18.391)	(18.015)
Loss for the six month period	(56.263)	(575.980)
Other comprehensive income	-	-
Total comprehensive loss for the six month period	(56.263)	(575.980)
Loss per share attributable to equity holders of the Company (cents)	(0,10)	(1,06)

INTERIM MANAGEMENT STATEMENT

On 29 August 2014, the Board of Directors of Rolandos Enterprises Public Ltd (the "Company") examined and approved the condensed interim consolidated financial statements of the Company and its subsidiaries (the "Group") for the six month period ended on 30 June 2014, which have not been audited by the external auditors of the Group.

The unaudited condensed interim consolidated financial statements for the six month period ended on 30 June 2014 and the interim statement of the Board of Directors have been prepared in accordance with the International Accounting Standard 34 "Interim Financial Reporting" and the requirements of the Cyprus Securities and Cyprus Stock Exchange Law and Regulations.

For the preparation of the unaudited condensed interim consolidated financial statements the same accounting policies have been applied as applied in the annual audited consolidated financial statements of the Group for the year ended 31 December 2013.

Turnover

The turnover of the Group for the first six months of 2014 is €2.273.622 compared to €2.150.470 for the corresponding period of 2013, reporting an increase of 6%.

Administration, selling and distribution expenses

Administration expenses for the first six months of 2014 are €796.845 compared to €791.209 for the corresponding period of 2013, reporting an increase of 1% and selling and distribution expenses for the first six months of 2014 are €253.194 compared to €591.154 for the corresponding 2013 period, reporting a decrease of 57%. The decrease is due to the provision for bad debts recorded in the first 6 months of 2013 amounting to €354.463.

Loss before tax

The loss before tax of the Group for the first six months of 2014 is €37.872 compared to €557.965 for the corresponding period of 2013.

The decrease of the loss before tax is due to the impairment of bank deposits recorded in the first 6 months of 2013 amounting to €533.154 which represents the maximum impairment loss that could have been suffered by the Group in respect of its unsecured deposits at the Bank of Cyprus.

Loss attributable to the owners of the Company

The loss attributable to the owners of the Company for the six month period ended on 30 June 2014 is €56.263 compared to €575.980 for the corresponding period of 2013.

Prospects

The Board of Directors has reviewed the performance of the Group to date, and has assessed the future developments and the current operating environment, and due to the uncertainties that exist in the Cyprus Economy is unable to predict the financial performance, cash flows and financial position of the Group for the year ending 31 December 2014.

Τhe Board of Directors is taking all the necessary measures to maintain the liquidity and viability of the Group, and to promote its products and services.

Publication and distribution of the unaudited condensed interim consolidated financial statements and interim management statement

The unaudited condensed interim consolidated financial statements will not be distributed to the shareholders, however the interim management statement of the Board of Directors will be published in the newspaper "Phileleftheros" on 30 August 2014.

Copies of the unaudited condensed consolidated financial statements will be available at the Company's registered office, 69 Bethlehem Street, Strovolos Industrial Area, 2033 Strovolos, Nicosia.