Lanitis Golf Public Co Ltd

Interim Report • Sep 26, 2024

Office of the Secretary

26 September 2024

To: The General Manager Cyprus Stock Exchange Nicosia

10, George Gennadiou Street Agathangelos Court 3rd floor, office 303 3041 Limassol – Cyprus P.O.Box 50012, 3600 Limassol – Cyprus

Tel.: +357 25871600 Fax: +357 25362001

ANNOUNCEMENT

Subject: Approval of the Six-monthly Financial Report of the Company Lanitis Golf Public Co. Ltd for the first six months of 2024 (unaudited)

On the 26th September 2024 the board of directors of Lanitis Golf Public Co. Ltd examined and approved the unaudited Six-monthly Financial Report of the said Company for the first six months of 2024, which expired on the 30th June 2024. The said unaudited Six-monthly Financial Report is attached herewith.

It is to be noted that the unaudited Six-monthly Financial Report has been compiled in accordance with the International Accounting Standard 34.

The complete Report will be sent to all the shareholders of the Company simultaneously with the release of the present announcement.

Copies of the Report will be available without any charge at the registered office of the Company, 10 George Gennadiou Street, Agathangelos Court, 3rd floor, office 303, 3041 Limassol, while the Report will be available at the website of the CSE (www.cse.com.cy) and at the website of the Company (www.limassolgreens.com) where it can be printed.

On behalf of the board of directors

……………………………………………………….. P&D Secretarial Services Limited Secretary

REPORT AND INTERIM CONDENCED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

REPORT AND INTERIM CONDENCED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

CONTENTS	PAGE
Board of Directors and other officers	1
Management Report	2 - 3
Declaration of the members of the Board of Directors and the Company Officials responsible for the preparation of the interim unaudited financial statements of the Company	4
Unaudited statement of profit or loss and other comprehensive income	5
Unaudited statement of financial position	6
Unaudited statement of changes in equity	7
Unaudited statement of cash flows	8

Notes to the condensed unaudited financial statements 9 - 22

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Platon E. Lanitis - Chairman Marios E. Lanitis Costas Charitou Kevin Valenzia Mark Gasan Alec Mizzi Mathew Portelli Evagoras K. Lanitis
Company Secretary:	P & D Secretarial Services Limited 10 Georgiou Gennadiou Street Agathangelos Court, 3rd Floor, 3041, Limassol, Cyprus
Legal Advisers:	Charalambous, Kountouris & Co LLC
Registered office:	10 Georgiou Gennadiou Street Agathangelos Court, 3rd Floor 3041, Limassol, Cyprus
Bankers:	Bank of Cyprus Public Company Ltd Hellenic Bank Public Company Ltd Eurobank Cyprus Ltd
Registration number:	ΗΕ196800

MANAGEMENT REPORT

The Board of Directors presents its report and condensed unaudited financial statements of the Company for the period from 1 January 2024 to 30 June 2024.

Incorporation

The Company Lanitis Golf Public Co Limited was incorporated in Cyprus on 18 April 2007 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. On 28 February 2014, the Company was converted from a private limited liability company to a public liability company under the Cyprus Companies Law, Cap.113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE").

Principal activities and nature of operations of the Company

The principal activities of the Company, which are unchanged from last year, are the development of a special leisure and residential golf course project. The application of the town planning permit with terms and conditions, was approved on 14 November 2012. On 26 July 2019, the Company has also obtained a building permit for construction of its golf development project. Following a change in the group structure on 15 January 2020, the Company has secured sufficient funds to enable it to commence its development plan. In 2021, the Company has begun the construction of the golf project and and has also entered into agreements with buyers for the reservation and sale of plots and apartments. In 2022 and 2023, the Company has entered into additional agreements for the construction of the golf course, the clubhouse, villas, townhouses, two blocks of apartments and an internal road network. Additionally, agreements have also been entered with new buyers for the sale of apartments, villas and townhouses. During the year, the construction of the infrastructure, golf course, and residential units has progressed well, with the first units expected to be delivered by the end of the year.

Review of current position, and performance of the Company's business

The Company is the owner of land of about 1,400 declares near villages of Tserkezoi and Asomatos, in Limassol. The land is located next to the shopping center, My Mall Limassol, the Fasouri Waterpark and the Casino.

The Company aims to develop a fully integrated golf and real estate development project on its land. One of the main goals of the master plan is to create a contemporary designed, integrated leisure and residential community project that includes luxurious villas, townhouses and apartments, an 18 hole championship golf course, a golf club, spa and sports center and commercial and retail facilities, such as restaurants and shops.

The loss attributable to the shareholders for the period ended 30 June 2024 is €1,387,405 (2023: loss of €1,663,604). During the period, the Company had no recognised income relating to its business activities since the project is under development. The consultancy fees, financing and other expenses related to the development of the project, are capitalized in the statement of financial position, under Property, Plant and Equipment and Inventory to the extend that such capitalization is allowed under the Company's accounting policy.

During the period ended 30 June 2024, the Company incurred golf development expenditure amounting to €15,503,898 (2023: €19,462,763), which was financed by bank borrowings, borrowings from related parties and prepayments received from plots, appartments, villas and townhouses. As at 30 June 2024, the Company's total assets amounted to €162,651,605 (2023: €147,128,888) and its net assets amounted to €63,803,045 (2023: €65,190,450). The financial position, development and performance of the Company as presented in these financial statements are considered satisfactory.

The Board of Directors does not expect major changes in the principal activities of the Company in the foreseeable future.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Company are disclosed in note 1 of the condensed unaudited financial statements.

Future developments of the Company

During the third quarter of 2024, the Company continued the sale of residential units. The construction of infrastructure and residential units is also ongoing, with completion expected by the end of this year and extending into the next year.

Use of financial instruments by the Company

The Company is exposed to credit risk and liquidity risk from the financial instruments it holds.

MANAGEMENT REPORT

The Company does not have a formal risk management policy programme. Instead the susceptibility of the Company to financial risks such as credit risk and liquidity risk is monitored as part of its daily management of the business.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost and deposits with banks.

Credit risk is managed on a group basis. For banks, only independently rated parties with a minimum rating of 'C' are accepted. The utilisation of credit limits is regularly monitored. The company's investments in debt instruments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

The Company's credit risk arises from financial assets at amortised cost amounting to €489,852 (2023: €676,944) and bank balances amounting to €23,275,136 (2023: €24,885,398). During the period ended 30 June 2024, all financial assets subject to credit risk were fully performing (stage 1).

Liquidity risk

Management monitors the current liquidity position of the Company based on expected cash flows and expected revenue receipts. On a long-term basis, liquidity risk is defined based on the expected future cash flows at the time of entering into new credit facilities or leases and based on budgeted forecasts. Management believes that it is successful in managing the Company's liquidity risk.

Dividends

The Board of Directors does not recommend the payment of a dividend.

Share capital

There were no changes in the share capital of the Company during the period under review.

Board of Directors

The members of the Company's Board of Directors as at 30 June 2024 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the period from 1 January 2024 to 30 June 2024.

In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.

There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.

Operating Environment of the Company

Any significant events that relate to the operating environment of the Company are described in note 1 to the condensed unaudited financial statements.

Events after the reporting period

There were no material events after the balance sheet date, which have a bearing on the understanding of the financial statements.

By order of the Board of Directors

P & D Secretarial Services Ltd Company Secretary

Limassol, 26 September 2024

-

Members of the Board of Directors
Chairman
Platon E. Lanitis
Directors Carry
Marios E. Lanitis
Costas Charitou
Evagoras K. Lanitis 176
Kevin Valenzia
Mark Gasan
Alec Mizzi
Mathew Portelli onun -
Responsible for Preparation of Interim Financial Statements
Takovos Christofi -- Financial Controller
Limassol, 26 September 2024

UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Period from 1 January 2024 to 30 June 2024

		Six months period ended 30/06/2024	Six months period ended 30/06/2023
	Note	€	€
Administration expenses	5	(1,370,973)	(1,644,357)
Operating loss		(1,370,973)	(1,644,357)
Finance costs	7	(16,432)	(19,247)
Loss before income tax		(1,387,405)	(1,663,604)
Income tax credit	8	-	-
Total comprehensive loss for the period		(1,387,405)	(1,663,604)
Other comprehensive income:
Loss per share attributable to equity holders of the Company during the period ( expressed in cents per share)	9	(50.24)	(60.24)

The notes on pages 9 to 22 form an integral part of these condensed unaudited financial statements.

ASSETS	Note	Six months period ended 30/06/2024 ਦ	Audited 2072 e
Non-current assets
Property, plant and equipment	10
Right-of-use assets	11	20,947,421 522,596	16,061,380 608,133
Intangible assets	12	28,105	26,387
Deferred income tax assets	20	1,105,637	1,105,637
		22,603,759	17,801,537
Current assets
Inventories	13	107,258,468	95,706,634
Financial assets at amortised cost	14	489,852	676,944
Other non-financial assets Cash and cash equivalents	15	9,023,389	8,057,652
	16	23.7762137	24,886,121
		140,047,846	129,327,351
Total assets		162,651,605	147,128,888
EQUITY AND LIABILITIES
Equity
Share capital	17	4,722,462	4,722,462
Share premium	17	25,730,893	25,730,893
Capital contribution Retained earnings		2,556,501	2,556,501
		30 7 3 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8	32,180,594
Total equity		63,803,045	65,190,450
Non-current liabilities
Borrowings	18	26,758,865	16,354,224
Lease liabilities Deferred income tax liabilities	19	385,201	480,825
	20	5,988,947	5,988,947
		SSTERMIS	22,823,996
Current liabilities
Trade and other payables	21	5,164,618	6,559,713
Contract liabilities	22	45,518,310	38,210,738
Borrowings Lease liabilities	18	14,865,837	14,191,739
	19	166,782	152,252
		65,715,547	59,114,442
Total liabilities		98,848,560	81,938,438
Total equity and liabilities		162,651,605	147,128,888

UNAUDITED STATEMENT OF CHANGES IN EQUITY

Period from 1 January 2024 to 30 June 2024

	Share capital €	Share premium €	Capital contributions €	Retained earnings €	Total €
Balance at 1 January 2023	4,722,462	25,730,893	2,556,501	34,964,696 67,974,552
Comprehensive income Loss for the year Total comprehensive loss for the year	- -	- -	- -	(2,784,102) (2,784,102)	(2,784,102) (2,784,102)
Balance at 31 December 2023 / 1 January 2024	4,722,462	25,730,893	2,556,501	32,180,594 65,190,450
Comprehensive income Loss for the period Total comprehensive loss for the period	- -	- -	- -	(1,387,405) (1,387,405)	(1,387,405) (1,387,405)
Balance at 30 June 2024	4,722,462	25,730,893	2,556,501	30,793,189 63,803,045

Companies, which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, within two years after the end of the relevant tax year, will be deemed to have distributed this amount as dividend on the 31 of December of the second year. The amount of the deemed dividend distribution is reduced by any actual dividend already distributed by 31 December of the second year for the year the profits relate. The Company pays special defence contribution on behalf of the shareholders over the amount of the deemed dividend distribution at a rate of 17% (applicable since 2014) when the entitled shareholders are natural persons tax residents of Cyprus and have their domicile in Cyprus. In addition, the Company pays on behalf of the shareholders General Healthcare System (GHS) contribution at a rate of 2,65%, when the entitled shareholders are natural persons tax residents of Cyprus, regardless of their domicile.

The notes on pages 9 to 22 form an integral part of these condensed unaudited financial statements.

UNAUDITED STATEMENT OF CASH FLOWS

Period from 1 January 2024 to 30 June 2024

	Note	Six months period ended 30/06/2024 €	Six months period ended 30/06/2023 €
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax Adjustments for:		(1,387,405)	(1,663,604)
Depreciation of property, plant and equipment	10	16,725	21,569
Depreciation of right-of-use assets	11	92,663	90,939
Amortisation of intangible assets	12	8,260	7,114
Interest expense - Lease Liabilities	7	16,432	19,209
Interest expense	7		- ____ 38
		(1,253,325)	(1,524,735)
Changes in working capital:
Increase in inventories	13	(10,648,305)	(1,078,355)
Decrease/(Increase) in financial assets at amortised cost		187,092	(1,306,510)
(Increase) in other non-financial assets		(965,737)	(1,201,022)
(Decrease)/Increase in trade and other payables		(1,395,095)	679,450
Increase in contract liabilities		7,307,572	10,132,313
Cash (used in)/generated from operations		(6,767,798)	5,701,141
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of property, plant and equipment	10	(4,855,593)	(2,249,015)
Payment for purchase of intangible assets	12	(9,978)	(39,580)
Principal elements of lease payments	19	(104,652)	(100,266)
Net cash used in investing activities		(4,970,223)	(2,388,861)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings	18	10,128,037	-
Interest paid		-	(38)
Net cash used in financing activities		10,128,037	(38)
Net (decrease)/increase in cash and cash equivalents		(1,609,984)	3,312,242
Cash and cash equivalents at beginning of the period		24,886,121	10,128,406
Cash and cash equivalents at end of the period		23,276,137	13,440,648
	16

The notes on pages 9 to 22 form an integral part of these condensed unaudited financial statements.

1. Incorporation and principal activities

Country of incorporation

The Company Lanitis Golf Public Co Limited (the ''Company'') was incorporated in Cyprus on 18 April 2007 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. On 28 February 2014, the Company was converted from a private limited liability company to a public limited liability company under the Cyprus Companies Law, Cap. 113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE"). Its registered office is at 10 Georgiou Gennadiou Street, Agathangelos Court, 3041, Limassol, Cyprus.

Unaudited financial statements

The condensed unaudited financial statements for the six months ended on 30 June 2023 and 2024 respectively, have not been audited by the external auditors of the Company.

Principal activities

The principal activities of the Company, which are unchanged from last year, are the development of a special leisure and residential golf course project. The application of the town planning permit with terms and conditions, was approved on 14 November 2012. On 26 July 2019, the Company has also obtained a building permit for construction of its golf development project. Following a change in the group structure on 15 January 2020, the Company has secured sufficient funds to enable it to commence its development plan. In 2021, the Company has begun the construction of the golf project and and has also entered into agreements with buyers for the reservation and sale of plots and apartments. In 2022 and 2023, the Company has entered into additional agreements for the construction of the golf course, the clubhouse, villas, townhouses, two blocks of apartments and an internal road network. Additionally, agreements have also been entered with new buyers for the sale of apartments, villas and townhouses. During the year, the construction of the infrastructure, golf course, and residential units has progressed well, with the first units expected to be delivered by the end of the year.

Operating Environment of the Company

Conflict between Russia and Ukraine

During 2021, the Russian economy continued to be negatively impacted by the ongoingpolitical tension in the region and international sanctions against certain Russiancompanies and individuals, with the tension intensifying towards the end of 2021 as aresult of further developments of the situation with Ukraine. From late February 2022 theconflict between Russia and Ukraine escalated further and the situation remains highly unstable.

In response to the conflict, a number of sanctions have been imposed on Russian entitiesto restrict them from having access to foreign financial markets, including removing accessof several Russian banks to the international SWIFT system

The EU, UK and US (amongst others) have also imposed sanctions against the Russian central bank, restricting the access of the Russian state to foreign currency reserves, and introduced further asset freezes against designated individuals/entities and sectoral sanctions.

The situation is still evolving and further sanctions and limitations on business activity of companies operating in the region, as well as consequences on the Russian economy in general, may arise but the full nature and possible effects of these are unknown.

Nonetheless, the Company is not significantly impacted from the conflict, as its operations are not affected by the situation however it will continue monitoring the situation and take action if required. Management has taken and continues to take necessary measures to ensure minimum disruption and sustainability of the Company's operations.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

Israel - Gaza conflict

The Israel-Gaza conflict has escalated significantly after Hamas launched a major attackon 7 October 2023. Companies with material subsidiaries, operations, investments, contractual arrangements or joint ventures in the War area might be significantly exposed. Entities that do not have direct exposure to Israel and Gaza Strip are likely to be affected by the overall economic uncertainty and negative impacts on the global economy and major financial markets arising from the war. This is a volatile period and situation, however, the Company is not directly exposed.The Management will continue to monitor the situation closely and take appropriate actions when and if needed.

2. Basis of preparation

The condensed unaudited financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. The condensed unaudited 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 accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

Significant accounting policies

The accounting policies adopted for the preparation of the condensed unaudited financial statements for the six months period ended 30 June 2024 are consistent with those followed for the preparation of the annual audited financial statements for the year ended 31 December 2023. The 2024 interim financial statements do not include all information and disclosures compared to the 2023 annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2023.

3. Adoption of new or revised standards and interpretations

During the current period 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 2024. This adoption did not have a material effect on the accounting policies of the Company.

4. New accounting pronouncements

At the date of approval of these condensed unaudited financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the condensed unaudited financial statements of the Company.

5. Expenses by nature

	Six months period ended 30/06/2024	Six months period ended 30/06/2023
	€	€
Staff costs (Note 6)	589,954	554,345
Depreciation and amortisation expense	117,648	119,622
Auditors' remuneration - current period	11,000	11,876
Auditors' remuneration - prior years	656	-
Marketing & Promotion expenses	340,021	447,482
Legal and professional	44,229	50,194
Motor vehicle running costs	19,664	18,172
Mortgages expenses	-	60,010
Commitment fees	84,079	153,000
Bank charges	34,270	84,514
Other expenses	129,452	145,142
Total expenses	1,370,973	1,644,357

6. Staff costs

	Six months period ended 30/06/2024	Six months period ended 30/06/2023
	€	€
Salaries	494,407	471,353
Social insurance and other costs	68,927	60,096
Social cohesion fund	9,888	9,427
Provident fund contributions	16,732	13,469
	589,954	554,345

The Company participates in an external provident fund scheme run by an independent party, which is funded separately and prepares its own financial statements whereby employees are entitled to payment of certain benefits upon retirement or prior termination of service.

7. Finance costs

	Six months period ended 30/06/2024	Six months period ended 30/06/2023
	€	€
Net foreign exchange losses Interest expense on lease liabilities	- 16,432	38 19,209
Finance costs	16,432	19,247

8. Income tax credit

The Company is subject to corporation tax on taxable profits at the rate of 12,5%.

Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be subject to defence contribution at the rate of 17%.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

Due to tax losses sustained in the period, no tax liability arises on the Company. Under current legislation, tax losses may be carried forward and be set off against taxable income of the five succeeding years.

9. Loss per share attributable to equity holders of the Company

	Six months period ended 30/06/2024	Six months period ended 30/06/2023
Loss attributable to shareholders (€)	(1,387,405)	(1,663,604)
Weighted average number of ordinary shares in issue during the period	2,761,674	2,761,674
Loss per share attributable to equity holders of the parent (cent)	(50.24)	(60.24)

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS

Period from 1 January 2024 to 30 June 2024

10. Property, plant and equipment

	Prefab house	Land and Golf Development	Plant and machinery	Motor vehicles	Computer Hardware and Furniture and fittings	Signages	Leasehold Improvements	Total
	€	€	€	€	€	€	€	€
Cost Balance at 1 January 2023 Additions	22,878 10,922	6,130,866 9,722,278	5,989 -	3,500 -	59,681 104,184	39,128 3,600	- 20,926	6,262,042 9,861,910
Disposals Interest capitalised during the year	- _ -	- 34,653	- -	- _ -	- -	- -	- -	- 34,653
Balance at 1 January 2024	33,800	15,887,797	5,989	3,500	163,865	42,728	20,926	16,158,605
Additions Disposals	21,300 -	4,816,252 -	- -	- -	18,041 -	- -	- -	4,855,593 -
Interest capitalised during the period	_ -	47,173	-	_ -	-	-	-	47,173
Balance at 30 June 2024	___ 55,100	20,751,222	5,989	_3,500	181,906	42,728	20,926	21,061,371
Depreciation
Balance at 1 January 2023 Charge for the period	3,168 3,380	- -	4,893 599	1,400 700	18,260 21,010	26,085 14,242	- 3,488	53,806 43,419
Balance at 1 January 2024	6,548	-	5,492	2,100	39,270	40,327	3,488	97,225
Charge for the period	2,755	-	36	350	11,241	600	1,743	16,725
Balance at 30 June 2024	___ 9,303	-	5,528	_2,450	50,511	40,927	5,231	113,950
Net book amount
Balance at 30 June 2024	45,797	20,751,222	461	1,050	131,395	1,801	15,695	20,947,421
Balance at 1 January 2024	27,252	15,887,797	497	1,400	124,595	2,401	17,438	16,061,380

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

11. Right-of-use assets

	Buildings	Motor vehicles	Total
	€	€	€
Cost Balance at 1 January 2023 Additions Disposals/Modifications	130,178 432,384 -	155,193 206,721 -	285,371 639,105 -
Balance at 1 January 2024	562,562	361,914	924,476
Additions Disposals	5,268 -	1,858 -	7,126 -
Balance at 30 June 2024	567,830	363,772	931,602
Depreciation Balance at 1 January 2023 Charge for the period Disposals/Modifications	75,337 112,213 -	55,396 73,397 -	130,733 185,610 -
Balance at 1 January 2024	187,550	128,793	316,343
Charge for the period Disposals	53,356 -	39,307 -	92,663 -
Balance at 30 June 2024	240,906	168,100	409,006
Net book amount
Balance at 30 June 2024	326,924	195,672	522,596
Balance at 1 January 2024	375,012	233,121	608,133
Amounts recognised in profit and loss:
		Six months period ended 30/06/2024 €	Six months period ended 30/06/2023 €

Interest expense on lease liabilities (16,432) (19,209)

12. Intangible assets

	Computer software €
Cost
Balance at 1 January 2023 Additions	6,401 39,580
Balance at 31 December 2023	45,981
Balance at 1 January 2024	45,981
Additions Disposals	9,978 -
Balance at 30 June 2024	55,959
Amortisation
Balance at 1 January 2023 Charge for the period	5,368 14,226
Balance at 31 December 2023	19,594
Balance at 1 January 2024	19,594
Charge for the period	8,260
Balance at 30 June 2024	27,854
Net book amount
Balance at 30 June 2024	28,105
Balance at 1 January 2024	26,387

13. Inventories

	Six months period ended 30/06/2024	Audited 2023
	€	€
Property under development	107,258,468	95,706,634
	107,258,468	95,706,634

Analysis of cost of property under development:

	Six months period ended 30/06/2024 €	Audited 2023 €
Balance brought forward	95,706,634	85,302,433
Interest capitalised during the year	903,529	663,716
Development costs capitalised during the year	10,648,305	9,740,485
Total	107,258,468	95,706,634

Capitalised costs of €10,648,305 (2023: €9,740,485) includes costs which were incurred in relation to the construction and development of residential premises.

13. Inventories (continued)

All inventories items are stated at cost with the exception of inventory that was transferred on 15 January 2020 from investment property which is presented at its fair value at the date of transfer.

14. Financial assets at amortised cost

	Six months period ended 30/06/2024	Audited 2023
	€	€
Receivables from related parties (Note 23.2)	246,984	163,895
Other receivables	242,868	513,049
	489,852	676,944

The fair values of financial assets at amortised cost due within one year approximate to their carrying amounts as presented above.

15. Other non-financial assets

	Six months period ended 30/06/2024	Audited 2023
	€	€
Prepayments	1,421,628	766,190
Advances to subcontractors – construction contracts	2,450,486	2,428,220
Deferred expenses	5,151,275	4,863,242
	9,023,389	8,057,652

16. Cash and cash equivalents

	Six months period ended 30/06/2024	Audited 2023
	€	€
Cash at bank and in hand	23,276,137	24,886,121
	23,276,137	24,886,121

Non-cash transactions

The principal non-cash investing and financing transactions during the current and the prior year were the acquisition of right-of-use assets using leases for €7,126 (2023: €639,105).

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

16. Cash at bank and in hand (continued)

	Cash and cash equivalents by currency:

	period ended	Audited
	30/06/2024	2023
Euro - functional and presentation currency	€	€
	23,276,137	24,886,121
	23,276,137	24,886,121

Six months

17. Share capital and share premium

Authorised	2024 Number of shares	2024 €	2023 Number of shares	2023 €
Ordinary shares of €1.71 each	3,000,000	5,130,000	3,000,000	5,130,000
Issued and fully paid	Number of shares	Share capital €	Share premium €	Total €
Balance at 1 January 2023	2,761,674	4,722,462	25,730,893	30,453,355
Balance at 31 December 2023	2,761,674	4,722,462	25,730,893	30,453,355
Balance at 1 January 2024	2,761,674	4,722,462	25,730,893	30,453,355
Balance at 30 June 2024	2,761,674	4,722,462	25,730,893	30,453,355

The total authorized number of ordinary shares is 3,000,000 shares (2023: 3,000,000 shares) with a par value of €1.71 per share. All issued shares are fully paid.

18. Borrowings

	Six months period ended 30/06/2024 €	Audited 2023 €
Current borrowings
Borrowings from related parties (Note 23.4) Bank borrowings	702,040 14,163,797	688,311 13,503,428
	14,865,837	14,191,739
Non-current borrowings Borrowings from related parties (Note 23.4) Bank borrowings	16,358,669 26,758,865	16,252,160 10,400,196 ______102,064 16,354,224
Total	41,624,702	30,545,963
Maturity of non-current borrowings: Between one and two years Between two and five years Total	19,532,242 7,226,623 26,758,865	9,234,110 7,120,114 16,364,224

18. Borrowings (continued)

The bank borrowings are secured as follows: (i) By first and second mortgage on the Company's Land for €43,150,000 (ii) By first and second floating charge on the Company's assets for €43,150,000 (iii) By Corporate Guarantees of MCY Development Limited for €43,150,000 (Note 26(iv)). (iv) By pledging of Fire Policy for €15,626,208

Current - Borrowings from related parties

During the previous financial years, the Company received a loan from a related party amounting to €683,666. The loan is repayable by 2024 and bears interest 4%.

Non-current

(1) As part of the share purchase agreement concluded on 15 January 2020, the Company received an interest free loan from a related party amounting €10,000,000 which is repayable during 2025. The interest free loan was fair valued at initial recognition using the market interest rate (5%) for bank borrowings available to the Company. The fair value gain recognised at initial recognition of €2,556,501, was credited in the statement of changes in equity as Capital Contribution. The unwinding of interest expense following the intial recognition, is capitalised against inventories and property, plant and equipment as apportioned using the building coefficient of the project.

(2) On 16 August 2023, the Company has entered into new loan agreements for €7,050,000 for the construction of the project. The loans are repayable upon the request of lender but always after the settlement of the bank borrowings and the loan facility of €10,000,000 (1). The loans bears interest of 3%.

Bank borrowings

On 24 September 2020, the Company has signed an agreement with Hellenic Bank for a €34m loan term facility related to the construction of the infrastructure of the resort and €3,15m ancillary facilities in the form of bank guarantees and overdraft facility. The loan term facility will be available to the Company for utilisation once the Company has reached €30m of confirmed sales.

On 21 October 2022, the Company has signed an amended and restated agreement with Hellenic Bank to which the confirmed sales have been reduced to €25m and the loan repayment period has been extended to 2026.

On 9 June 2023, the Company has signed an amended and restated agreement with Hellenic Bank to which the loan term facility has been increased to €40m and the confirmed sales have been increased to €37m. During the period, the Company has utilised €10,128,037 (2023: €13,435,397) of the loan term facility. As per the agreement an amount of €13,333,333 is repayable by 31 December 2024.

The weighted average effective interest rates at the reporting date were as follows:

	Six months
	period ended	Audited
	30/06/2024	2023
	%	%
Bank borrowings	8,9	8,9
Borrowings from related parties	3-5	3-5
The Company borrowings are denominated in the following currencies:
	Six months
	period ended	Audited
	30/06/2024	2023
	€	€
Euro - functional and presentation currency	41,624,702	30,545,963
	41,624,702	30,545,963

19. Lease liabilities

This note provides information for leases where the Company is a lessee.

(i) The Company's leasing arrangements

The Company leases buildings and motor vehicles. Rental contracts are typically made for fixed periods of 1 year to 6 years, but may have extension options.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

	Six months period ended 30/06/2024 €	Audited 2023 €
Right-of-use assets Motor vehicle	195,672	233,121
Buildings	326,924	375,012
	522,596	608,133
Lease Liabilities
Non-current	385,201	480,825
Current	166,782	152,252
	551,983	633,077

20. Deferred tax

The movement on the deferred taxation account is as follows:

Deferred tax liability

	Fair value gains on investment property €
Balance at 1 January 2023	5,988,947
Balance at 31 December 2023	5,988,947
Balance at 1 January 2024	5,988,947
Balance at 30 June 2024	5,988,947

20. Deferred tax (continued)

Deferred tax assets
	Tax losses €
Balance at 1 January 2023 Charged/(credited) to:	759,534
Charged to Profit or Loss	346,103
Balance at 31 December 2023	1,105,637
Balance at 1 January 2024	1,105,637
Balance at 30 June 2024	1,105,637

Deferred income tax assets are recognised for the tax losses carried forward to the extend that the realisation of the related tax benefit through future taxable profits is probable.

As at 31 December 2023, the Company had tax losses carried forward amounting to €8,845,097 for which a deferred tax asset was recognised. From these losses an amount of €418,903 expires in 2024, €1,585,728 expires in 2025, €2,031,769 expires in 2026, €1,790,255 expires in 2027 and €3,018,442 expires in 2028.

21. Trade and other payables

	Six months period ended 30/06/2024	Audited 2023
	€	€
Retentions	1,961,743	830,248
Social insurance and other taxes	64,240	57,318
VAT payable	234,800	305,564
Accruals	87,510	3,756,015
Other creditors	1,620,845	1,256,915
Payables to related parties (Note 23.3)	1,195,480	353,653
	5,164,618	6,559,713

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

22. Contract liabilities

	Six months period ended 30/06/2024	Audited 2023
	€	€
Client advances	45,518,310	38,210,738
	45,518,310	38,210,738

Client advances represent advances from clients for the sale of plots, apartments, townhouses and villas not yet delivered.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

23. Related party balances and transactions

The company is controlled by MCY Development Limited who owns the 99.99% of the issued share capital. The share capital of MCY Development Limited is equally owned by Lanitis Farm Limited and AMOL Enterprises Limited.

The related party balances and transactions are as follows:

23.1 Related party transactions

		Six months
		period ended	Audited
		30/06/2024	2023
	Nature of transactions	€	€
Lanitis Farm Limited	Rent expense	12,188	-
Lanitis E.C. Holdings Limited	Management fees	1,500	18,000
Carobmill Restaurants Ltd	Hospitality Expenses	4,486	18,679
Cybarco Development Limited	Marketing and promotion	595,897	2,041,989
Cybarco Contracting Limited	Construction costs	8,434,657	10,541,902
Cybarco Contracting Limited	IT services	3,144	4,913
		9,051,872	12,625,483
23.2 Receivables from related parties
		Six months

	period ended	Audited
	30/06/2024	2023
Name	€	€
LG Golf Ltd	69,204	-
Silverlake Property Management Limited	2,526	-
MCY Development Limited (parent company)	175,254	163,895
	246,984	163,895

The above balances bear no interest and are repayable on demand.

23.3 Payables to related parties (Note 21)

	Six months period ended 30/06/2024	Audited 2023
Name	€	€
Amol Enterprises Limited	31,873	29,533
Carobmill Resaturants Ltd	1,903	2,254
Lanitis E.C. Holdings Ltd	1,409	-
Lanitis Farm Limited	6,743	3,889
Cybarco Development Limited	534,501	66,700
Cybarco Contracting Limited	_____619,051	251,277
	1,195,480	353,653

The above balances bear no interest and are repayable on demand.

23.4 Borrowing from related parties (Note 18)

	Six months period ended 30/06/2024 €	Audited 2023 €
At beginning of year	16,940,471	9,362,197
Borrowings advances during the year	-	7,050,000
Interest Charged	120,238	74,759
Unwinding of interest expense	-	453,515
	17,060,709	16,940,471

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2024 to 30 June 2024

23. Related party balances and transactions (continued)

23.4 Borrowing from related parties (Note 18) (continued)

(1) As part of the share purchase agreement concluded on 15 January 2020, the Company received an interest free loan from a related party amounting €10,000,000 which is repayable during 2025. The interest free loan was fair valued at initial recognition using the market interest rate (5%) for bank borrowings available to the Company. The fair value gain recognised at initial recognition of €2,556,501, was credited in the statement of changes in equity as Capital Contribution.

(2) On 16 August 2023, the Company has entered into loan agreements with related parties for €7,050,000 to be used for financing the construction of the project. The loans are repayable upon the request of lender but always after the settlement of the bank borrowings and the loan facility of €10,000,000 (1). The loans bears interest of 3%. During the period total interest expense was capitalised as part of property, plant and equipment and inventories respectively, as apportioned using the building coefficient of the project.

(3) During the previous financial years, the Company received a loan from a related party amounting to €683,666. The loan is repayable by 2024 and bears interest 4%.

24. Contingent liabilities

The Company had no contingent liabilities as at 30 June 2024.

25. Commitments

(a) The Company has entered in contracts for the construction of a golf course, internal road network, clubhouse and the relevant infrastructure in 2022 and 2023 for the total amount of €30,6 million plus €4,2 million as variation orders. The remaining commitments from the Company related to these contracts as at 31 December 2023 are €24,5 million, which are expected to be paid according to construction progress. Expected completion of these contracts is 2025.

(b) The Company has entered in contracts for the construction of the two blocks of apartments, 11 villas and 12 townhouses in 2023 for the total amount of €30,5 million. The remaining commitments from the Company related to these contracts as at 31 December 2023 are €26,4 million, which are expected to be paid according to construction progress. Expected completion of these contracts is 2024 and 2025.

26. Events after the reporting period

There were no material events after the balance sheet date, which have a bearing on the understanding of the financial statements.