Claridge Public LTD — Interim / Quarterly Report 2015

Feb 26, 2016

Claridge Public Limited

INDICATIVE CONSOLIDATED RESULT FOR THE YEAR ENDED 31 DECEMBER 2015

	2015 (Unaudited)	2014 (Audited)
	€	$\overline{\epsilon}$
Continuing operations Revenue	852.424	500.000
Loss after taxation from continuing operations	(446.034)	(3.477.728)
Discontinued operations Profit/(loss) from discontinued operations	76.140	(7.805.815)
Net loss for the year	(369.844)	(11.283.543)
Basic loss per share (cent per share)	IO 34	[10,43

EXPLANATORY STATEMENT

The Board of Directors of Claridge Public Limited at its meeting held on 26 February 2016 examined and approved the above consolidated indicative result for the year ended 31 December 2015. The consolidated indicative result has been prepared in accordance with the accounting principles and the International Financial Reporting Standards which were applied for the preparation of the annual financial statements of the year 2014 and the Accounting Standards that are effective as of the 1^st January 2015, as these were presented in the interim financial statement for the six months' period ended 30 June 2015.

The Group of Claridge Public Limited includes its wholly subsidiary company Amathus Vacation Ownership Limited and its associate company Leisure Holding S.A.

Continuing operations – Development and sale of properties

The revenues for the year 2015 of the wholly subsidiary company which is engaged with the development and sale of properties, Amathus Vacation Ownership Ltd, amounted to $\epsilon$ 852.424 compared to $\epsilon$ 500.000 of last year, showing an increase by $\epsilon$ 352.424. The loss after taxation amounted to €446.034 compared to loss of €3.477.728, showing improvement to the results by $63.031.694$ . The decrease of loss for the year 2015 compared to 2014 is attributed to the results of the associate company Leisure Holding S.A. More particularly the results of last year included impairment to the value of the immovable property, fixtures, fittings and equipment of Amathus Beach Hotel Rhodes by $\epsilon$ 2,6 million. The results of Leisure Holding S.A. for the current year are profitable.

Discontinued Operations - Hotel services

Following the sale of the hotel to K.A. Olympic Lagoon Resort Ltd, which was completed on 21 January 2016, its operating results are classified to the discontinued operations of the Company. According to the relevant provisions of the contract of sale of the hotel to K.A. Olympic Lagoon Resort Ltd, its operating revenue as well as the expenses for 2015 belongs to the purchasing company as from $01/01/2015$ .

For transparency purposes and compliance with the relevant regulations the results of the hotel for 2015 are set out hereinafter:

The revenues of hotel Olympic Lagoon Resort Paphos (ex Amathus Beach Hotel Paphos) for the year 2015 amounted to $\epsilon$ 8.865.352 compared to $\epsilon$ 5.721.299 of last year showing an increase by $\epsilon$ 3.144.053. The increase to the revenues is attributed to increased occupancies in relation to last year's. It is noted that during 2014 Amathus Beach Hotel Paphos was operating for the period as from 10 March 2014 up to 24 September 2014, when it terminated its operation to undergo extensive renovations in order to be converted into an Olympic Lagoon Hotel. In addition, the hotel suspended its operations for the period as from 1 January 2014 up to 9 March 2014 due to low occupancies during the winter period. During 2015 the hotel was operating as from 31 May 2015 up to 30 November 2015.

The results from the discontinued operations for the year 2015, which include the net finance expenses of such operations, present profit of $\epsilon$ 76.140 compared to loss of $\epsilon$ 7.805.815 of last year showing an improvement by $€7.881.955$ . The improvement in the results of the discontinued operations is attributed mainly to the following reasons:

$(a)$ The impairment to the value of the immovable property, fixtures, fittings and equipment of the hotel of $\text{\$5.263.295}$ which was recognised in the profit and loss account of 2015. No impairment has been debited to the profit and loss account for 2015.

The discount of $E2$ million which was given by the Bank because of the $(b)$ settlement of all the loans of the Group, which was the result of the consideration of the sale and transfer of the hotel to the company K.A. Olympic Lagoon Resort Ltd.

Developments

On 7 January 2016 the District Court of Paphos gave a judgment against Claridge Public Ltd and in favour of K.A. Olympic Lagoon Resort Ltd for the specific performance of the contract of sale of the hotel dated 2 April 2015.

It is reminded that the said action was filed by K.A. Olympic Lagoon Resort Ltd on 3 September 2015 because of breach of the terms of the sales contract dated 2 April 2015 by Claridge Public Ltd. K.A. Olympic Lagoon Resort Ltd was claiming the issue of an order for the specific performance of the sales contract. The breach by Claridge Public Ltd was the result of a petition for the dissolution of the Company which was filed by a number of shareholders on 13 May 2015.

On 21 January 2016, Claridge Public Ltd, within the framework of compliance with the judgment of the District Court of Paphos transferred to the company K.A. Olympic Lagoon Resort Ltd the hotel which was known with the name Amathus Beach Hotel Paphos, as it was provided in the sales contract which was signed on 2 April 2015 and was deposited in the District Lands Office of Paphos bearing number C/S262/2015. With the collection of the sales price, which was $634.450.000$ , the Group of Claridge Public Ltd repaid all its loans, which following an agreement with Bank of Cyprus was reduced by €2.000.000, and was limited to the amount of $€32.400.000$ .

Prospects

The Management of the Company, taking into consideration all up to date data available, as well as the fact that the sole activity of the Group is the sale of properties, evaluates that for 2016 there can be no provision for its results as these are depended on great degree on the sales of properties.

Notes:

• The indicative results of the consolidated results of the Group have not been audited by a) the external auditors of the Company.
• The current indicative results and the explanatory statement for the financial year b) ended 31 December 2015 will be published in the daily newspaper «Fileleftheros» on the 29th February 2016.
• The indicative result will not be sent to the shareholders, but anyone who wishes to $c)$ receive a copy may apply to the office of the Secretary of the Company, at 10 George Gennadiou Street, Agathangelos Court, Office 303, 3041 Limassol or he may send a facsimile to 25-362001 or to the electronic address pmc@pkdlaw.com to this effect.