Interim / Quarterly Report • Sep 28, 2018
Interim / Quarterly Report
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According to article 5, Law 3556/2007
| A) STATEMENTS BY THE REPRESENTATIVES OF THE BOARD OF DIRECTORS 3 | |
|---|---|
| B) SEMI-ANNUAL MONTH REPORT OF THE BOARD OF DIRECTORS 4 | |
| C) REVIEW REPORT ON INTERIM FINANCIAL INFORMATION 8 | |
| D) SIX-MONTH CONDENSED FINANCIAL STATEMENTS 9 | |
| Consolidated Statement of Financial Position10 | |
| Company's Statement of Financial Position11 | |
| Consolidated Income Statement11 | |
| Company's Income Statement13 | |
| Consolidated Statement of Comprehensive Income 14 | |
| Company's Statement of Comprehensive Income 15 | |
| Consolidated Statement of Changes in Equity16 | |
| Company's statement of changes in equity 16 | |
| Consolidated Statement of Cash Flows18 | |
| Company's statement of Cash Flows19 | |
| Notes to the Financial Statements 20 |
The members of the Board of Directors:
1) Panagiotis Lykos, Chairman of the Board of Directors
2) Panagiotis Spyropoulos, Vice Chairman & Group CEO
3) Ilias Karantzalis, Member of the Board of Directors
in the above capacity, especially assigned by the Board of Directors of the Société Anonyme under the title «INFORM P. LYKOS S.A.», declare and certify that to the best of our knowledge:
(a) The six-month, separate and consolidated, financial statements of «INFORM P. LYKOS S.A.» for the period 1/1/2018 - 30/06/2018, which were prepared according to the effective accounting standards, present truly and fairly the assets and liabilities, the equity and the financial results of the Company as well as of the consolidated companies as a total, according to par. 3 - 5 of article 5 of L. 3556/2007 and the authorizing decisions of the BoD of the Stock Market Committee.
(b) The six-month management report of the Board of Directors presents in a true and fair way the information required according to par. 6 of article 5 of L. 3556/2007 and authorizing decisions of the BoD of the Stock Market Committee.
Koropi Attica, 27 September 2018
The designees
Chairman of the Board of Directors Vice Chairman & Group CEO Member of the Board of Directors
Panagiotis Lykos Panagiotis Spyropoulos Ilias Karantzalis I.D. no. AB 607588 I.D. No AI 579288 I.D. No K 358862
The present Semi-annual month Report of the Board of Directors concerns the period of the first half of the current year 2018. The report was prepared and is in accordance with the Greek legislation, Law 3556/2007 (Official publication in National gazette 91A / 30.4.2007) and the issued executive decisions of the Hellenic Capital Market Commission and in particular Decision No. 7/448 / 11.10.2007 of the Board of Directors of the Hellenic Capital Market Commission.
This report summarizes the financial information of the Group and the company INFORM P. LYKOS S.A. for the first half of the current year, significant events that took place during this period and their effect on the six-month financial statements. In addition, it outlines the main risks and uncertainties that Group companies may face in the second half of the year and finally lists significant transactions between the issuer and its affiliates.
INFORM Group presented sales growth in the first semester of 2018 with the OASA project (project for public transportation of Athens) for the production of the electronic rechargeable cards (ATH.ENA Card) and the electronic rechargeable tickets (ATH.ENA Ticket) of € 3.8 million budget being the main contributor of growth. The above mentioned initiative compensated the shortfall in operating profitability from the existing product range due to the competitive environment we operate which lead to pricing pressure and as such the operating profitability was maintained at the same level as the first semester of 2017. Despite the price pressure, the sales volume of the Group continues to be strong due to the long term contracts and the healthy relationship with our customers, creating a significant share of recurring revenues.
During H1 of 2018, the sales of the Group increased by € 2.9 million or 9.2% compared to the corresponding semester of 2017 and amounted to € 34.9 million compared to € 31.9 million, thanks to OASA project and the increase in postal services both in Greece and Romania. The above increase in sales compensated the reduced volume of bank credit cards issued in Greece the first semester of 2018 compared to the corresponding semester of 2017, since in 2018 we do not have bulk renewal of credit cards for the existing customers like we had in 2017.
The operating expenses excluding depreciation in the first semester of 2018 declined by 3.6%, thanks to the focus in driving efficiencies with the investment in new highly productive digital equipment to the companies of the Group in recent years.
| 30/6/2018 | 30/6/2017 | Δ 18-17 | % Δ 18-17 | |
|---|---|---|---|---|
| Revenues Cost of materials |
34.859.797 (24.373.341) |
31.929.612 (21.122.568) |
2.930.185 (3.250.773) |
9,2% 15,4% |
| Gross profit I | 10.486.456 | 10.807.044 | (320.588) | -3,0% |
| Gross margin Ι | 30,1% | 33,8% | ||
| Production cost | (6.138.302) | (6.324.943) | 186.641 | -3,0% |
| Cost of sales | (30.511.643) | (27.447.511) | (3.064.132) | 11,2% |
| Gross profit II | 4.348.154 | 4.482.101 | (133.947) | -3,0% |
| Gross margin ΙI | 12,5% | 14,0% | ||
| Other income | 696.339 | 670.493 | 25.845 | 3,9% |
| Selling and distribution expenses | (1.997.520) | (2.080.672) | 83.152 | -4,0% |
| Administrative expenses | (1.750.046) | (1.646.350) | (103.696) | 6,3% |
| Research and development expenses | (238.090) | (210.875) | (27.215) | 12,9% |
| Other expenses | (439.986) | (409.421) | (30.565) | 7,5% |
| + Depreciation & amortization | 2.103.432 | 1.942.986 | 160.446 | 8,3% |
| EBITDA | 2.722.283 | 2.748.263 | (25.980) | -0,9% |
| - Depreciation & amortization | (2.103.432) | (1.942.986) | (160.446) | 8,3% |
| EBIT | 618.851 | 805.277 | (186.427) | -23,2% |
| Financial income | 2.345 | 17.061 | (14.716) | -86,3% |
| Financial expenses | (621.535) | (631.141) | 9.606 | -1,5% |
| Net finance costs | (619.190) | (614.080) | (5.110) | 0,8% |
| EBT | (339) | 191.198 | (191.537) | -100,2% |
| Income tax | 38.318 | (159.359) | 197.677 | -124,0% |
| EAT | 37.979 | 31.839 | 6.140 | 19,3% |
| OPERATING EXPENSES | 30/6/2018 | 30/6/2017 | Δ 18-17 | % Δ 18-17 |
|---|---|---|---|---|
| Production expenses | (6.138.302) | (6.324.943) | 186.641 | -3,0% |
| Selling and distribution expenses | (1.997.520) | (2.080.672) | 83.152 | -4,0% |
| Administrative expenses | (1.750.046) | (1.646.350) | (103.696) | 6,3% |
| Research and development expenses | (238.090) | (210.875) | (27.215) | 12,9% |
| + Depreciation & amortization | 2.103.432 | 1.942.986 | 160.446 | 8,3% |
| TOTAL | (8.020.525) | (8.319.853) | 299.327 | -3,6% |
| % OPERATING EXPENSES ON SALES | 23,0% | 26,1% |
As a result of the above, the key financial profitability figures of INFORM Group are presented, as follows:
The consolidated operating cash flow in the H1 of 2018, improved significantly reaching € 5.6 million compared to € 1.5 million in the corresponding period of 2017, mainly due to the focus in improving the working capital by € 4 million. The bank debt of the Group reached € 19.1 million in the first semester of 2018 compared to € 19.7 million in the corresponding semester of 2017, reduced by € 0.6 million.
According to the above, the financial performance ratios of the Group were in the first semester 2018 compared to first semester 2017 as follows:
No other event occurred subsequent to the 30/06/2018 which may have a significant impact on the financial position and operations of the Group.
No other event occurred subsequent to the 30/06/2017 which may have a significant impact on the financial position and operations of the Group.
The Group uses financial instruments for trading, financial and investment purposes. The use of financial instruments by the Group materially affects the financial position, profitability and cash flows.
The main risks arising from the financial instruments held by the Group are mainly the following:
In relation to the risk arising from general market conditions, the Group has reduced exposure to this risk, due to the geographical dispersion with equal distribution of sales between Greece, Romania and Other Countries with major exposure to the markets of Central and Eastern Europe. A significant part of these sales is directed to the financial sector and mainly banking. The continuing negative economic conditions make the markets, in which we operate more vulnerable. However, the products we offer to our customers in both private and public sector are considered essential for their daily operation and growth. Furthermore, by achieving significant reductions in its operating expenses, the Group is particularly competitive and can offer high-level products and services at competitive prices.
Regarding the risks arising from the volatility of interest rates and exchange rates:
The main part of economic transactions of the Group companies (Greece, Romania, Albania) is dominated in the currency of the main economic environment, where each company operates (in operation currency). In Romania, part of the obligations of the company is denominated in RON and in Albania is denominated in ALL.
An exposure to exchange rate fluctuations exists regarding the value of the Group's investments in Romania, only at the time of consolidation of financial statements and their translation from the functional currency RON into the presentation currency Euro.
All bank debt of the Group is connected with fluctuating interest rates, maintaining however, the option to convert into stable interest rates, depending on the market conditions.
The company does not use financial derivatives. As in the previous year, other financial assets and other financial liabilities are not affected significantly by interest rates.
The Group has established and applies procedures of credit control, aiming at minimization of bad debt. Sales are directed mainly in big public and private organizations with evaluated historic credit abilities. In case indications of bad debts appear, the relative impairment provisions are made.
The Group manages its liquidity needs by careful follow-up of debts, long-term financing obligations and payments. Liquidity needs are monitoring on a daily basis and planning of payments - on weekly and monthly basis. Special attention is paid to management of inventories, receivables and liabilities in order to achieve the highest possible cash liquidity for the Group.
The central financial department of the company, responsible for risk management, operates following certain rules approved by the Board of Directors.
The Board of Directors through appointee members:
(a) Establishes and implements procedures and arrangements that allow the identification of risks which are associated with the activities, procedures and the Company's operating systems (notably credit risk, market risk and operational risk).
(b) Determines the acceptable level of risk.
(c) Ensures that the Group has the required capital adequacy and overall risk management arising from its operation.
The Group having extensive experience and know-how in integrated solutions-services has developed long term customer relationships offering high level products and services, at competitive prices, so as to be considered a strategic supplier of banking institutions, telecommunications and other organizations either in the private sector or in the public sector.
Group's main objective focus on creating further value added to the shareholders into the following fields:
It will continue to focus on the increase of market share of existing markets, on the development of exports, and also will focus at exploring and evaluating new growth opportunities at the sector of secure documents management and information,
It will accelerate the development of new digital services by providing integrated solutions and services and aligned with the evolving needs of customers and in accordance with the development of technology. Indicatively, we mention services such as e-statements, dynamic statements, customer interactive communication, scanning and archiving, hybrid mail, cloud printing.
It will further utilize low-cost facilities in order to further increase the competitiveness and profitability, it will continue to improve its efficiency and invest in new technologies that will increase production capacity and reduce costs, in order to enhance profitability.
It will continue to search potential opportunities for strategic partnerships, aiming at a further strengthening of its position in the broader region of Central and Eastern Europe.
Focusing on improving efficiency, adapting production capacity to current market conditions in combination with continued streamlining of operating cost is a key challenge for INFORM. The successful operating growth has only been possible thanks to the strong contribution of each employee.
Our employee's knowledge, capacity for innovation and high motivation are preconditions for the success of INFORM team. Therefore, the Group aims to promote team spirit and motivation, with emphasizing in internal education and maintain and improve the internal cooperation.
In total the Group's headcount was 378 employees as at 30/06/2018 from 405 as at 30/06/2017.
The Group manages legally and effectively the environmental impacts caused by its activities and prevents pollution as far as possible by means of the Environmental Management System. This management system has developed / certified in accordance with the International Environmental Standard ISO 14001. The managers of the respective production and business premises are responsible for complying with the legislative /regulatory provisions in the conduct of any environmental activity, such as waste / pollutant management, environmental measurements and inspections, environmental reporting to public authorities, obtaining / updating relevant environmental permits etc. The
effective functioning of the Environmental Management System is audited annually by an independent Certification Body and ensures the achievement of the Environmental Policy and related Objectives set by the Group Management.
The Group's research and development strategy focuses on the following objectives:
Especially in the digital era, effective research and development is important as product cycles are short and the requirements of partners and end customers are evolving. This is particularly valid for the digital printing sector. We perceive these changes as opportunities and rely on R & D experts so that we can offer unique services to our customers that will help us grow in the short and long term.
The commercial transactions between the company and its related parties within the first half of 2018, were conducted on usual market terms, and did not sufficiently differ from the respective transactions conducted in the previous years and therefore, they do not materially affect the financial position and performance of the parent within the first six-month period of the current year.
| Parent Company - from/to subsidiaries | Sales of products / services |
Purchases of products / services |
Receivables | Liabilities |
|---|---|---|---|---|
| Lykos Paperless Solutions S.A. | 30 | 0 | 6 | 15 |
| Inform Lykos S.A. (Romania) | 107 | 1.239 | 43 | 1.015 |
| Albanian Digital Printing Solutions Sh.p.k. | 38 | 0 | 15 | 0 |
| Total | 175 | 1.239 | 64 | 1.030 |
The following shall be mentioned regarding the above:
The sales of the parent company to: (a) «Lykos Paperless Solutions S.A.» concern data processing products, (b) «Inform Lykos S.A. (Romania)» concern mainly printing items and data processing products, and (c) « Albanian Digital Printing Solutions» concern printing items and services.
The purchases of parent company from: «Inform Lykos S.A. (Romania)» concern mainly forms, services and printing items.
The company has the following branches:
There are no own shares.
We have reviewed the accompanying condensed company and consolidated statement of financial position of INFORM P. LYKOS S.A. (the "Company"), as of 30 June 2018 and the related condensed company and consolidated statements of profit or loss and other comprehensive income , changes in equity and cash flows for the six-month period then ended, and the selected explanatory notes which comprise the interim condensed financial information and which form an integral part of the six-month financial report as required by L.3556/2007. Management is responsible for the preparation and presentation of this condensed interim financial
information in accordance with International Financial Reporting Standards as they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this interim condensed financial information based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, as they have been transposed into Greek Legislation and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.
Athens, 28 September2018 The certified chartered accountant
Stergios Ntetsikas SOEL Reg. No. 41961
The attached six-month condensed financial statements that constitute an integral part of the six-month financial report under Article 5 of Law 3556/2007 were approved by the Board of Directors of the issuer (hereinafter INFORM P. LYKOS S.A. or the Company) on 27.09.2018 and have been published on the Company's website - www.lykos.gr, as well as on the ASE website where they will remain at the disposal of investors for at least ten (10) years from their preparation and publication date. It is noted that the annual financial statements, audit reports of the statutory auditor and the reports of the board of directors of the subsidiaries are posted at the site www.lykos.gr.
The Statement of Financial Position of the Group for the period ended as at 30/06/2018 and the corresponding comparative figures of previous year 31/12/2017 are the following:
| THE GROUP | |||
|---|---|---|---|
| Note | 30/6/2018 | 31/12/2017 *Restated |
|
| Assets | |||
| Property, plant and equipment | 12 | 54.573.278 | 55.845.054 |
| Intangible assets | 13 | 4.077.050 | 3.912.994 |
| Other receivables | 26.202 | 25.250 | |
| Investment property | 239.673 | 244.839 | |
| Deferred tax assets | 38.234 | 36.267 | |
| Non-current assets | 58.954.437 | 60.064.404 | |
| Inventories | 14 | 5.958.384 | 5.576.566 |
| Contract assets | 15 | 933.298 | 922.334 |
| Current income tax assets | 243.997 | 219.203 | |
| Trade receivables | 16 | 12.378.762 | 11.894.020 |
| Other receivables | 1.607.542 | 1.261.449 | |
| Receivables from related parties | 16 | 176.525 | 146.056 |
| Cash and cash equivalents | 17 | 4.156.497 | 2.067.396 |
| Current assets | 25.455.005 | 22.087.024 | |
| Total assets | 84.409.442 | 82.151.428 | |
| Equity | |||
| Share capital | 18 | 12.758.592 | 12.758.592 |
| Share premium | 18 | 13.805.791 | 13.805.791 |
| Reserves | 14.614.113 | 14.611.578 | |
| Retained profits | 3.700.214 | 5.753.741 | |
| Equity attributable to shareholders of the | 44.878.710 | 46.929.702 | |
| Parent Company | |||
| Non-controlling interests | 680.355 | 677.174 | |
| Total Equity | 45.559.066 | 47.606.876 | |
| Liabilities | |||
| Loans and borrowings | 19 | 4.117.873 | 4.188.682 |
| Employee benefits | 1.034.076 | 1.021.398 | |
| Other payables | 14.427 | 14.427 | |
| Deferred tax liabilities | 1.653.788 | 1.700.104 | |
| Non-current liabilities | 6.820.166 | 6.924.611 | |
| Current income tax liabilities | 0 | 3.634 | |
| Loans and borrowings | 19 | 14.962.184 | 15.403.052 |
| Trade payables | 20 | 12.673.030 | 9.352.536 |
| Other payables | 1.293.899 | 1.184.820 | |
| Liabilities to related parties | 20 | 2.676.322 | 1.228.972 |
| Deferred income / revenue | 131.576 | 153.641 | |
| Provisions | 293.199 | 293.287 | |
| Current Liabilities | 32.030.211 | 27.619.942 | |
| Total Liabilities | 38.850.377 | 34.544.553 | |
| Total Equity and Liabilities | 84.409.442 | 82.151.428 |
The Statement of Financial Position of the Company for the period ended as at 30/06/2018 and the corresponding comparative figures of previous year 31/12/2017 are the following:
| THE COMPANY | |||
|---|---|---|---|
| Note | 30/6/2018 | 31/12/2017 *Restated |
|
| Assets | |||
| Property, plant and equipment | 12 | 29.325.564 | 30.279.839 |
| Intangible assets | 13 | 1.922.502 | 1.805.589 |
| Other receivables | 26.202 | 25.250 | |
| Investments in subsidiaries | 21.804.131 | 22.138.861 | |
| Non-current assets | 53.078.399 | 54.249.539 | |
| Inventories | 14 | 4.332.693 | 3.524.927 |
| Contract assets | 15 | 569.517 | 580.613 |
| Current income tax assets | 228.892 | 206.531 | |
| Trade receivables | 16 | 4.978.997 | 4.600.877 |
| Other receivables | 245.398 | 317.702 | |
| Receivables from related parties | 16 | 336.867 | 444.986 |
| Cash and cash equivalents | 17 | 2.337.369 | 1.148.246 |
| Current assets | 13.029.733 | 10.823.880 | |
| Total assets | 66.108.132 | 65.073.420 | |
| Equity | |||
| Share capital | 18 | 12.758.592 | 12.758.592 |
| Share premium | 18 | 13.805.791 | 13.805.791 |
| Reserves | 13.166.340 | 13.166.340 | |
| Retained profits | (215.618) | 2.274.021 | |
| Equity attributable to shareholders of the Parent Company |
39.515.105 | 42.004.743 | |
| Total Equity | 39.515.105 | 42.004.743 | |
| Liabilities | |||
| Loans and borrowings | 19 | 3.075.846 | 2.819.251 |
| Employee benefits | 1.034.076 | 1.021.398 | |
| Other payables | 14.427 | 14.427 | |
| Deferred tax liabilities | 897.121 | 1.014.836 | |
| Non-current liabilities | 5.021.471 | 4.869.913 | |
| Loans and borrowings | 19 | 12.189.670 | 11.836.387 |
| Trade payables | 20 | 4.706.784 | 3.470.416 |
| Other payables | 933.757 | 909.805 | |
| Liabilities to related parties | 20 | 3.674.849 | 1.843.571 |
| Deferred income / revenue | 66.496 | 138.586 | |
| Current Liabilities | 21.571.556 | 18.198.764 | |
| Total Liabilities | 26.593.027 | 23.068.677 | |
| Total Equity and Liabilities | 66.108.132 | 65.073.420 |
The Income Statement of the Group for the period 01/01 - 30/06/2018 and the respective comparative figures of the previous period are the following:
| THE GROUP | |||
|---|---|---|---|
| Note | 30/6/2018 | 30/6/2017 *Restated |
|
| Revenue | 7 | 34.859.797 | 31.929.612 |
| Cost of sales | 8 | (30.511.643) | (27.447.511) |
| Gross profit | 4.348.154 | 4.482.101 | |
| Other income | 696.339 | 670.493 | |
| Selling and distribution expenses | (1.997.520) | (2.080.672) | |
| Administrative expenses | (1.750.046) | (1.646.350) | |
| Research and development expenses | (238.090) | (210.875) | |
| Other expenses | (439.986) | (409.421) | |
| + Depreciation | 2.103.432 | 1.942.986 | |
| EBITDA | 2.722.283 | 2.748.263 | |
| - Depreciation | (2.103.432) | (1.942.986) | |
| EBIT | 618.850 | 805.277 | |
| Financial income | 2.345 | 17.061 | |
| Financial expenses | (621.535) | (631.141) | |
| Net finance costs | (619.190) | (614.080) | |
| Profits / (losses) before taxes | (339) | 191.197 | |
| Income tax expense | 10 | 38.318 | (159.359) |
| Profits / (losses) after taxes for the period | 37.978 | 31.839 | |
| Profits / (losses) attributable to: | |||
| Owners of the Parent Company | 4.311 | (7.442) | |
| Non-controlling interests | 33.667 | 39.281 | |
| 37.979 | 31.839 |
The Income Statement of the Company for the period 1/1 - 30/06/2018 and the respective comparative figures of the previous period are the following:
| THE COMPANY | |||
|---|---|---|---|
| Note | 30/6/2018 | 30/6/2017 *Restated |
|
| Revenue | 7 | 18.014.816 | 15.759.113 |
| Cost of sales Gross profit |
8 | (15.877.681) 2.137.135 |
(13.429.889) 2.329.224 |
| Other income | 406.177 | 478.690 | |
| Selling and distribution expenses | (1.271.420) | (1.361.970) | |
| Administrative expenses | (1.024.843) | (1.000.939) | |
| Research and development expenses | (238.090) | (209.750) | |
| Other expenses | (124.672) | (142.806) | |
| Non-recurring expenses | (35.000) | (20.679) | |
| + Depreciation | 1.536.504 | 1.459.603 | |
| EBITDA | 1.385.792 | 1.531.372 | |
| - Depreciation | (1.536.504) | (1.459.603) | |
| EBIT | (150.712) | 71.769 | |
| Financial income | 41.765 | 68.085 | |
| Financial expenses | (440.568) | (478.166) | |
| Net finance costs | (398.803) | (410.081) | |
| Profits / (losses) before taxes | (549.516) | (338.312) | |
| Income tax expense | 10 | 117.715 | (37.342) |
| Profits / (losses) after taxes for the period | (431.801) | (375.654) | |
| Profits / (losses) attributable to: | |||
| Owners of the Parent Company | (431.801) | (375.654) | |
| Non-controlling interests | 0 | 0 | |
| (431.801) | (375.654) |
The Statement of Comprehensive Income of the Group for the period 1/1 - 30/06/2018 and the respective comparative figures of the previous period are the following:
| THE GROUP | |||
|---|---|---|---|
| Note | 30/6/2018 | 30/6/2017 *Restated |
|
| Profits / (Losses) after taxes | 37.978 | 31.839 | |
| Other comprehensive income | |||
| Items that are or may be reclassified to profit or loss |
|||
| Foreign operations - foreign currency translation | 11 | 12.371 | (63.210) |
| differences | 12.371 | (63.210) | |
| 12.371 | (63.210) | ||
| Other comprehensive income, net of tax | |||
| Total comprehensive income for the period | 50.350 | (31.371) | |
| Total comprehensive income attributable to: | |||
| Owners of the Parent Company | 6.846 | (73.373) | |
| Non-controlling interests | 43.503 | 42.002 | |
| 50.350 | (31.371) |
The Statement of Comprehensive Income of the Company for the period 1/1 - 30/06/2018 and the respective comparative figures of the previous period are the following:
| THE COMPANY | |||||
|---|---|---|---|---|---|
| Note | 30/6/2018 | 30/6/2017 *Restated |
|||
| Profits / (Losses) after taxes | (431.801) | (375.654) | |||
| Other comprehensive income | |||||
| Other comprehensive income | 0 | 0 | |||
| Total comprehensive income for the period | (431.801) | (375.654) |
The Statement of Changes in Equity of the Group is the following:
| THE GROUP | For the period ended 30 June 2018 Attributable to owners of the Company |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| Share capital |
Share premium |
Translation and other reserves |
Revaluation reserve |
IAS 19 reserve |
Retained earnings |
Total | Non controlling interest |
Total equity |
|
| Balance at 31 December 2017 (As previously reported) |
12.758.592 | 13.805.791 | (1.885.057) | 16.650.720 | (155.644) | 5.945.224 | 47.119.625 | 677.742 | 47.797.367 |
| Adjustment on application of IFRS 15 |
0 | 0 | (358) | 0 | 0 | 64.086 | 63.728 | 130 | 63.858 |
| Adjustment on application of IFRS 9 |
0 | 0 | 1.918 | 0 | 0 | (255.569) | (253.652) | (699) | (254.350) |
| Balance at 1 January 2018 (*Restated) |
12.758.592 | 13.805.791 | (1.883.497) | 16.650.720 | (155.644) | 5.753.144 | 46.929.702 | 677.174 | 47.606.876 |
| Profits / (losses) |
0 | 0 | 0 | 0 | 0 | 4.311 | 4.311 | 33.667 | 37.978 |
| Other comprehensive income | 0 | 0 | 2.535 | 0 | 0 | 0 | 2.535 | 9.836 | 12.371 |
| Total comprehensive income | 0 | 0 | 2.535 | 0 | 0 | 4.311 | 6.846 | 43.503 | 50.350 |
| Reduction of share capital | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (270) | (270) |
| Distribution of dividends | 0 | 0 | 0 | 0 | 0 | (2.057.837) | (2.057.837) | (40.052) | (2.097.889) |
| Balance at 30 June 2018 | 12.758.592 | 13.805.791 | (1.880.962) | 16.650.720 | (155.644) | 3.700.214 | 44.878.710 | 680.355 | 45.559.066 |
| THE GROUP | For the period ended 30 June 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Attributable to owners of the Company | |||||||||
| Share capital |
Share premium |
Translation and other reserves |
Revaluation reserve |
IAS 19 reserve |
Retained earnings |
Total | Non controlling interest |
Total equity |
|
| Balance at 31 December 2016 (As previously reported) |
12.758.592 | 13.805.791 | (1.261.569) | 16.650.720 | (136.747) | 7.958.015 | 49.774.802 | 658.888 | 50.433.690 |
| Adjustment on application of IFRS 15 |
0 | 0 | 0 | 0 | 0 | 63.851 | 63.851 | 0 | 63.851 |
| Adjustment on application of IFRS 9 |
0 | 0 | 0 | 0 | 0 | (179.670) | (179.670) | 0 | (179.670) |
| Balance at 1 January 2017 (*Restated) |
12.758.592 | 13.805.791 | (1.261.569) | 16.650.720 | (136.747) | 7.842.196 | 49.658.983 | 658.888 | 50.317.871 |
| Profits / (losses) |
0 | 0 | 0 | 0 | 0 | (7.442) | (7.442) | 39.281 | 31.839 |
| Other comprehensive income | 0 | 0 | (65.931) | 0 | 0 | 0 | (65.931) | 2.721 | (63.210) |
| Total comprehensive income | 0 | 0 | (65.931) | 0 | 0 | (7.442) | (73.373) | 42.002 | (31.371) |
| Distribution of dividends | 0 | 0 | 0 | 0 | 0 | (1.440.486) | (1.440.486) | (49.819) | (1.490.305) |
| Balance at 30 June 2017 | 12.758.592 | 13.805.791 | (1.327.500) | 16.650.720 | (136.747) | 6.394.268 | 48.145.124 | 651.070 | 48.796.194 |
The statement of changes in equity of the Company is the following:
| THE COMPANY | For the period ended 30 June 2018 | |||||||
|---|---|---|---|---|---|---|---|---|
| Share capital |
Share premium |
Revaluation reserve |
IAS 19 reserve |
Other reserve | Retained earnings |
Total | ||
| Balance at 31 December 2017 (As previously reported) |
12.758.592 | 13.805.791 | 5.614.730 | (155.644) | 7.707.254 | 2.396.173 | 42.126.896 | |
| Adjustment on application of IFRS 15 |
50.839 | 50.839 | ||||||
| Adjustment on application of IFRS 9 |
(172.992) | (172.992) | ||||||
| Balance at 1 January 2018 (*Restated) |
12.758.592 | 13.805.791 | 5.614.730 | (155.644) | 7.707.254 | 2.274.021 | 42.004.743 | |
| Profits / (losses) |
(431.801) | (431.801) | ||||||
| Total comprehensive income | 0 | 0 | 0 | 0 | 0 | (431.801) | (431.801) | |
| Distribution of dividends | (2.057.837) | (2.057.837) | ||||||
| Balance at 30 June 2018 | 12.758.592 | 13.805.791 | 5.614.730 | (155.644) | 7.707.254 | (215.618) | 39.515.105 | |
| THE COMPANY | For the period ended 30 June 2017 | |||||||
| Share capital |
Share premium |
Revaluation reserve |
IAS 19 reserve |
Other reserve | Retained earnings |
Total | ||
| Balance at 31 December 2016 | 12.758.592 | 13.805.791 | 5.614.730 | (136.747) | 7.707.254 | 5.118.405 | 44.868.025 | |
| (As previously reported) Adjustment on application of IFRS 15 |
47.008 | 47.008 | ||||||
| Adjustment on application of IFRS 9 |
(125.943) | (125.943) | ||||||
| Balance at 1 January 2017 (*Restated) |
12.758.592 | 13.805.791 | 5.614.730 | (136.747) | 7.707.254 | 5.039.471 | 44.789.091 | |
| Profits / (losses) |
(375.654) | (375.654) | ||||||
| Total comprehensive income | 0 | 0 | 0 | 0 | 0 | (375.654) | (375.654) | |
| Distribution of dividends | (1.440.486) | (1.440.486) |
Cash flows of the Group for the period 1/1 - 30/06/2018 and the respective comparative figures of the previous period are the following:
| THE GROUP | ||
|---|---|---|
| 30/6/2018 | 30/6/2017 *Restated |
|
| Cash flows from operating activities | ||
| Profits / (Losses) before taxes | (339) | 191.197 |
| Adjustments for: | ||
| – Depreciation & amortisation | 2.103.432 | 1.942.986 |
| – Net finance cost | 619.190 | 614.080 |
| – Gain on sale of property, plant and equipment | (21.725) | 6.561 |
| – Foreign exchange differences included in EBIT | 443 | 0 |
| – Provisions / Accrued expenses | 12.678 | 14.297 |
| – Other | (95.439) | (53.516) |
| 2.618.241 | 2.715.606 | |
| Changes in working capital: | ||
| Inventories | (376.320) | (1.467.451) |
| Trade, other receivables and contract assets | (877.551) | (1.631.538) |
| Trade and other payables | 4.871.982 | 2.476.173 |
| Cash generated from operating activities | 6.236.352 | 2.092.790 |
| Taxes paid | (16.343) | (56.088) |
| Interest paid | (592.287) | (576.685) |
| Net cash from (used in) operating activities | 5.627.721 | 1.460.017 |
| Cash flows from investment activities | ||
| Interest received | 96 | 17.045 |
| Proceeds from sale of property, plant and equipment | 13.762 | 2.150 |
| Acquisition of property, plant and equipment & intangible assets | (705.214) | (464.194) |
| Net cash from (used in) investing activities | (691.356) | (445.000) |
| Cash flows from financing activities | ||
| Proceeds from loans & borrowings | 0 | 2.600.584 |
| Payment of loans | (271.248) | 0 |
| Payment of finance lease liabilities | (495.711) | (448.468) |
| Dividends paid to non-controlling interest | (637.404) | (472.507) |
| Dividends paid to owners of the Company | (1.456.805) | (1.019.764) |
| Net cash from (used in) financing activities | (2.861.167) | 659.845 |
| Net increase (decrease) in cash and cash equivalents | 2.075.198 | 1.674.862 |
| Cash and cash equivalents at 1 January | 2.067.396 | 926.095 |
| Effect of movements in exchange rates on cash held | 13.903 | 1.556 |
| Cash and cash equivalents at 30 June | 4.156.497 | 2.602.513 |
Cash flows of the Company for the period 1/1 - 30/06/2018 and the respective comparative figures of the previous period are the following:
| THE COMPANY | ||
|---|---|---|
| 30/6/2018 | 30/6/2017 *Restated |
|
| Cash flows from operating activities | ||
| Profits / (Losses) before taxes | (549.516) | (338.312) |
| Adjustments for: | ||
| – Depreciation & amortisation | 1.536.504 | 1.459.603 |
| – Net finance cost | 398.803 | 410.081 |
| – Gain on sale of property, plant and equipment | (8.943) | 6.561 |
| – Provisions / Accrued expenses | 12.678 | 14.297 |
| – Other | (16.919) | (54.439) |
| 1.372.609 | 1.497.792 | |
| Changes in working capital: | ||
| Inventories | (807.766) | (854.370) |
| Trade, other receivables and contract assets | (208.963) | 616.461 |
| Trade and other payables | 3.019.508 | 1.192.778 |
| Cash generated from operating activities | 3.375.388 | 2.452.662 |
| Taxes paid | 0 | 0 |
| Interest paid | (412.008) | (423.727) |
| Net cash from (used in) operating activities | 2.963.379 | 2.028.935 |
| Cash flows from investment activities | ||
| Interest received | 56 | 17.002 |
| Dividend received | 39.900 | 51.083 |
| Proceeds from sale of property, plant and equipment | 1.000 | 2.150 |
| Proceeds from decrease of share capital of subsidiaries | 299.730 | 0 |
| Acquisition of property, plant and equipment & intangible assets | (414.068) | (410.625) |
| Net cash from (used in) investing activities | (73.383) | (340.390) |
| Cash flows from financing activities | ||
| Proceeds from loans & borrowings | 700.000 | 700.000 |
| Payment of finance lease liabilities | (346.716) | (422.290) |
| Dividends paid to non-controlling interest | (597.352) | (420.722) |
| Dividends paid to owners of the Company | (1.456.805) | (1.019.764) |
| Net cash from (used in) financing activities | (1.700.873) | (1.162.776) |
| Net increase (decrease) in cash and cash equivalents | 1.189.123 | 525.769 |
| Cash and cash equivalents at 1 January | 1.148.246 | 702.373 |
| Cash and cash equivalents at 30 June | 2.337.369 | 1.228.142 |
The Group INFORM LYKOS is a fast growing Group of companies, forming the market in the business area of Information Management under the brand INFORM. Nowadays, the Group is activated internationally and is leader in the area of printing management, shaping developments in the printing market, but also in the market of digital security data management, information and applications.
The registered office of the parent company Inform P. Lykos S.A. (the Company) is in Koropi Attica, 5th km. of Varis-Koropiou Avenue.
Since 12/03/2014, the financial statements of the Group are included in the consolidated financial statements of AUSTRIACARD AG (former LYKOS AG), with its headquarters in Austria. The Group AUSTRIACARD AG (former LYKOS AG) is an international group, active in the business areas of "Digital Security" under the brand AUSTRIACARD and "Information Management" under the brand INFORM.
The present financial statements were approved by the Board of Directors on 27/9/2018.
The accompanying separate and consolidated financial statements (hereinafter "financial statements"), have been prepared by the Management based on historic cost principal, as modified following the adjustment of certain assets and liabilities at fair values and the going concern principle and are in accordance with the International Financial Reporting Standards (hereinafter ≪IFRS≫) and the International Accounting Standards (hereinafter ≪IAS≫), as adopted by the European Union (according to the Regulation (EC) No. 1606/ 2002 of the European Parliament and the Council of the European Union at July 19th, 2002) and published by the International Accounting Standards Board (IASB), and also their interpretations, as published by the International Financial Reporting Interpretation Committee (I.F.R.I.C.) of the IASB. The period of application of each IAS/IFRS is set by the regulations published by the competent commission of the European Union.
The accompanying interim condensed financial statements were prepared under the same accounting policies and methods of calculation as those applied for the preparation of the annual financial statements as of 31/12/2017, apart from the changes arising following the adoption of new or revised IAS - IFRS or Interpretations that are effective on or after January 1st 2018. The aforementioned changes are described in the note 29.
The consolidated and separate financial statements are presented in euro, which is the functional currency of the Company. All amounts have been rounded to the nearest unit euro (without decimals), unless otherwise indicated.
In preparing these consolidated financial statements, management has made judgments, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses, as also and the notes to the financial statements. They also affect disclosures of contingent assets and liabilities as at the financial statements preparation date as well as the publicized amounts of revenue and expenses.
Judgments, estimates and assumptions are based on the experience from previous years and other factors, included the expectations of future events that are considered reasonable under the particular conditions, while estimates and underlying assumptions are reviewed on an ongoing basis, making the best use of all the available data. Actual results may differ from these estimates.
Significant judgments and estimates used by the Group under the preparation of the presented interim financial statements are the same as the ones used under the preparation of the previous year annual financial statements, adjusted to the conditions, reflecting the current developments taking place in the Greek economy, described in note 27.
As part of the implementation of IFRS, the Group has an obligation or option to revalue assets and liabilities at fair value.
The fair value measurement is based on the market and not on a particular entity. For certain assets and liabilities may be available observable market transactions or market information. For other assets and liabilities may not be available observable market transactions or market information. However, the objective of measuring fair value is the same in both cases to estimate the price at which it would take place a normal transaction to sell the asset or transfer the liability between market participants at the measurement date under current market conditions (ie an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).
Even when there is no observable market to provide pricing information on the sale of an asset or transfer a liability at the measurement date, the fair value measurement should consider that a transaction occurs on that date, considering the transaction from the perspective of a market participant that holds the asset or owes the liability. This alleged transaction constitutes the basis for valuation of the sale price of the asset or transfer the liability. Especially for liabilities if no observable market to provide pricing information on the transfer of a liability (eg when the contractual and other legal restrictions prevent the transfer of such data) may be observable market for such obligation if the other party holds as an asset (eg corporate bonds).
The assets and liabilities of the Group measured at fair value are mainly non-financial assets, in particular, real estate items, owned and used by the Group (self-owned and investment property) are monitored at fair value by using measurement techniques and are analytically presented in the relative Notes to the financial statements for the year ended as at December 31, 2017 (13B and 14B). The fair values of the aforementioned assets have not undergone significant changes, and, therefore, remain the same as the ones defined as at 31/12/2017.
The Group maintains one strategic segment, the "Information Management" (printing segment), which is its reportable segment. Every unit of the segment offers same products and services, and requires unique technology and marketing strategies.
The activity of the printing segment mainly extents geographically in two countries Greece and Romania. This geographic allocation is the designated factor for the segmentation of printing segment.
These operating segments are monitored by the Head of Risk and Strategic decisions of the Group (Group CEO).
Information related to each reportable segment is set out below. Segment "profit before tax" is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments.
| 30/6/2018 | Printing segment (Greece) |
Printing segment (Romania) |
Other | Eliminations | Total |
|---|---|---|---|---|---|
| Revenues | 17.839.531 | 16.677.296 | 342.970 | 0 | 34.859.797 |
| Intersegment revenues | 175.285 | 1.239.256 | 0 | (1.414.541) | 0 |
| Segment revenues | 18.014.816 | 17.916.552 | 342.970 | (1.414.541) | 34.859.797 |
| Cost of sales | (15.877.681) | (15.734.917) | (276.380) | 1.377.334 | (30.511.643) |
| Gross profit | 2.137.135 | 2.181.636 | 66.590 | (37.207) | 4.348.154 |
| 12,5% | |||||
| Other income | 406.177 | 450.761 | 43.653 | (204.253) | 696.339 |
| Selling and distribution expenses | (1.271.420) | (813.450) | 0 | 87.350 | (1.997.520) |
| Administrative expenses | (1.024.843) | (765.298) | (56.471) | 96.566 | (1.750.046) |
| Research and development expenses | (238.090) | 0 | 0 | 0 | (238.090) |
| Other expenses | (159.672) | (371.857) | (5.845) | 97.388 | (439.987) |
| + Depreciation & amortization | 1.536.504 | 516.274 | 50.654 | 0 | 2.103.432 |
| EBITDA | 1.385.792 | 1.198.067 | 98.580 | 39.844 | 2.722.283 |
| - Depreciation & amortization | (1.536.504) | (516.274) | (50.654) | 0 | (2.103.432) |
| Operating profit / (loss) | (150.712) | 681.792 | 47.927 | 39.844 | 618.850 |
| Financial income | 41.765 | 10 | 957.418 | (996.849) | 2.345 |
| Financial expenses | (440.568) | (178.713) | (2.253) | (621.535) | |
| Net finance costs | (398.803) | (178.703) | 955.165 | (996.849) | (619.190) |
| Profit / (loss) before tax | (549.516) | 503.089 | 1.003.092 | (957.005) | (339) |
| Income tax expense | 117.715 | (80.536) | 1.139 | 38.318 | |
| Profit / (loss) | (431.801) | 422.554 | 1.004.230 | (957.005) | 37.978 |
| 30/6/2017 | Printing segment (Greece) |
Printing segment (Romania) |
Other | Eliminations | Total |
|---|---|---|---|---|---|
| Revenues | 15.409.380 | 16.113.436 | 406.796 | 0 | 31.929.612 |
| Intersegment revenues | 349.733 | 1.354.418 | 0 | (1.704.151) | 0 |
| Segment revenues | 15.759.113 | 17.467.854 | 406.796 | (1.704.151) | 31.929.612 |
| Cost of sales | (13.429.889) | (15.328.539) | (325.603) | 1.636.519 | (27.447.511) |
| Gross profit | 2.329.224 | 2.139.315 | 81.193 | (67.632) | 4.482.101 |
| 14,0% | |||||
| Other income | 478.690 | 351.404 | 41.982 | (201.582) | 670.493 |
| Selling and distribution expenses | (1.361.970) | (802.521) | 0 | 83.819 | (2.080.672) |
| Administrative expenses | (1.000.939) | (697.847) | (59.281) | 110.593 | (1.647.475) |
| Research and development expenses | (209.750) | 0 | 0 | 0 | (209.750) |
| Other expenses | (163.485) | (317.174) | (2.016) | 73.254 | (409.421) |
| + Depreciation & amortization | 1.459.603 | 430.191 | 53.192 | 0 | 1.942.986 |
|---|---|---|---|---|---|
| EBITDA | 1.531.372 | 1.103.369 | 115.070 | (1.547) | 2.748.263 |
| - Depreciation & amortization | (1.459.603) | (430.191) | (53.192) | 0 | (1.942.986) |
| Operating profit / (loss) | 71.769 | 673.177 | 61.878 | (1.547) | 805.277 |
| Financial income | 68.085 | 17 | 240.365 | (291.405) | 17.061 |
| Financial expenses | (478.166) | (148.846) | (4.130) | (631.141) | |
| Net finance costs | (410.081) | (148.829) | 236.235 | (291.405) | (614.080) |
| Profit / (loss) before tax | (338.312) | 524.349 | 298.113 | (292.952) | 191.198 |
| Income tax expense | (37.342) | (83.893) | (38.124) | 0 | (159.359) |
| Profit / (loss) | (375.654) | 440.456 | 259.989 | (292.952) | 31.839 |
The allocation of assets, liabilities, capital expenditure and depreciation to operating segments is as follows:
| 30/6/2018 | Printing segment (Greece) |
Printing segment (Romania) |
Other | Eliminations | Total |
|---|---|---|---|---|---|
| Assets | 66.108.132 | 36.628.679 | 2.843.770 | (21.171.138) | 84.409.442 |
| Liabilities | 26.593.027 | 12.842.325 | 806.173 | (1.391.148) | 38.850.377 |
| Capital expenditures (1/1-30/6/2018) | 699.141 | 297.819 | 894 | 0 | 997.854 |
| Depreciation (1/1-30/6/2018) | 1.536.504 | 516.274 | 50.654 | 0 | 2.103.432 |
| 31/12/2017 | Printing segment (Greece) |
Printing segment (Romania) |
Other | Eliminations | Total |
|---|---|---|---|---|---|
| Assets | 65.073.420 | 35.981.386 | 2.259.369 | (21.162.746) | 82.151.429 |
| Liabilities | 23.068.677 | 11.659.292 | 864.611 | (1.048.027) | 34.544.553 |
| Capital expenditures (1/1-30/6/2018) | 410.624 | 61.041 | 619 | 0 | 472.284 |
| Depreciation (1/1-30/6/2018) | 1.459.603 | 430.191 | 53.192 | 0 | 1.942.986 |
The Group sales do not record significant seasonality and, therefore, are mainly equally allocated within the two semesters of the year. Furthermore, there is no indication of changes to assets, liabilities, equity, profit or cash flows caused by the unusual events regarding nature or size.
| THE GROUP | THE COMPANY | ||||
|---|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | ||
| Sales of goods | 12.849.464 | 13.293.425 | 5.815.512 | 6.650.117 | |
| Rendering of services | 11.906.663 | 10.553.564 | 2.761.616 | 1.879.562 | |
| Sales of merchandise | 10.103.671 | 8.082.623 | 9.437.688 | 7.229.434 | |
| Total | 34.859.797 | 31.929.612 | 18.014.816 | 15.759.113 |
| THE GROUP | THE COMPANY | ||||
|---|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | ||
| West Europe | 1.363.726 | 766.591 | 1.281.596 | 744.081 | |
| Central & Eastern Europe | 33.151.420 | 30.765.530 | 16.388.569 | 14.620.074 | |
| Asia & Africa | 344.651 | 397.491 | 344.651 | 394.957 | |
| Total | 34.859.797 | 31.929.612 | 18.014.816 | 15.759.113 |
Sales in the current period increased mainly due to OASA project.
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | |
| Employee compensation and expenses | 2.292.702 | 2.377.095 | 1.368.928 | 1.393.303 |
| Cost of inventories recognized as expense | 7.177.432 | 7.128.967 | 2.499.645 | 3.079.874 |
| Cost of services | 9.318.187 | 8.085.226 | 1.068.855 | 185.967 |
| Cost of merchandise | 7.877.722 | 5.908.376 | 8.388.719 | 6.240.323 |
| Third party fees | 285.448 | 437.573 | 135.334 | 274.334 |
| Utilities and maintenance expenses | 771.653 | 982.476 | 489.143 | 426.420 |
| Rentals from property and machinery | 43.834 | 37.786 | 41.637 | 45.059 |
| Tax and duties | 41.260 | 48.531 | 20.886 | 26.575 |
| Transportation expenses | 6.492 | 1.645 | 6.532 | 1.517 |
| Other consumable materials | 786.300 | 696.559 | 488.485 | 455.156 |
| Depreciation and amortisation | 1.775.793 | 1.625.525 | 1.252.459 | 1.197.390 |
| Other expenses | 134.820 | 117.752 | 117.057 | 103.971 |
| Total | 30.511.643 | 27.447.511 | 15.877.681 | 13.429.889 |
Cost of sales increased mainly due to OASA project.
All shares are ordinary (see note 18). The calculation of earnings/(losses) per share is based on the following earnings/(losses) per share attributable to the ordinary shareholders and the weighted average number of ordinary outstanding shares.
| THE GROUP | ||
|---|---|---|
| 30/6/2018 | 30/6/2017 | |
| Profits / (losses) for the year, attributable to the owners of the Company |
4.311 | (7.442) |
| 2018 | 2017 | |
|---|---|---|
| Issued ordinary shares at 1 January | 20.578.374 | 20.578.374 |
| Weighted-average of ordinary shares at 30 June | 20.578.374 | 20.578.374 |
| 2018 | 2017 | |
|---|---|---|
| Profit / (loss) per share | 0,0002 | (0,0004) |
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | |
| Current tax expense | ||||
| Current year income tax | (7.778) | (10.788) | 0 | 0 |
| (7.778) | (10.788) | 0 | 0 | |
| Deferred taxation | ||||
| Origination and reversal of temporary differences | 46.095 | (148.571) | 117.715 | (37.342) |
| 46.095 | (148.571) | 117.715 | (37.342) | |
| Total | 38.318 | (159.359) | 117.715 | (37.342) |
Foreign currency translation differences amounting to € 12.371, recognized in OCI for the period 1/1 - 30/06/2018 (1/1 - 30/6/2017: € -63.210) mainly pertain to foreign currency translation differences arising from conversion of the financial statements of the Group subsidiaries in Romania («Inform Lykos S.A.» and «Compaper Converting S.A.») from functional currency to the financial statements presentation currency (Euro).
A. Changes within the period
| THE GROUP | |||||
|---|---|---|---|---|---|
| Land and | Plant and | Fixtures and | Under | ||
| buildings | equipment | fittings | construction | Total | |
| Cost | |||||
| Balance at 1 January 2017 | 52.280.281 | 47.189.561 | 6.269.479 | 66.648 | 105.805.969 |
| Additions | 270.086 | 1.617.209 | 136.381 | 100.467 | 2.124.143 |
| Disposals | 0 | (25.950) | (115.722) | 0 | (141.672) |
| Reclassifications | 33.566 | 100.468 | (134.034) | 0 | |
| Effect of movements in exchange rates | (506.388) | (268.993) | (5.183) | (900) | (781.464) |
| Balance at 31 December 2017 | 52.077.545 | 48.612.295 | 6.284.955 | 32.181 | 107.006.977 |
| Balance at 1 January 2018 | 52.077.545 | 48.612.295 | 6.284.955 | 32.181 | 107.006.977 |
| Additions | 36.054 | 478.209 | 42.181 | 18.267 | 574.910 |
| Disposals | 0 | (94.306) | (7.862) | (4.202) | (106.370) |
| Effect of movements in exchange rates | (5.860) | 16.534 | 2.731 | (0) | 13.404 |
| Balance at 30 June 2018 | 52.107.738 | 49.012.731 | 6.322.006 | 46.246 | 107.488.721 |
| Accumulated depreciation and impairment | |||||
| losses | |||||
| Balance at 1 January 2017 | 18.057.258 | 24.253.258 | 5.640.219 | 0 | 47.950.735 |
| Depreciation | 514.743 | 2.827.472 | 179.559 | 0 | 3.521.774 |
| Disposals | 0 | (7.689) | (115.463) | 0 | (123.152) |
| Effect of movements in exchange rates | (41.557) | (142.421) | (3.457) | 0 | (187.434) |
| Balance at 31 December 2017 | 18.530.444 | 26.930.620 | 5.700.858 | 0 | 51.161.923 |
| Balance at 1 January 2018 | 18.530.444 | 26.930.620 | 5.700.858 | 0 | 51.161.923 |
| Depreciation | 260.887 | 1.490.463 | 87.866 | 0 | 1.839.216 |
| Disposals | 0 | (94.146) | (4.343) | 0 | (98.489) |
| Effect of movements in exchange rates | (638) | 11.621 | 1.809 | 0 | 12.793 |
| Balance at 30 June 2018 | 18.790.693 | 28.338.559 | 5.786.191 | 0 | 52.915.443 |
| Carrying amounts | |||||
| Balance at 31 December 2017 | 33.547.101 | 21.681.675 | 584.097 | 32.181 | 55.845.054 |
| Balance at 30 June 2018 | 33.317.045 | 20.674.172 | 535.815 | 46.246 | 54.573.278 |
| THE COMPANY | |||||
| Land and | Plant and | Fixtures and | Under | ||
| buildings | equipment | fittings | construction | Total | |
| Cost | |||||
| Balance at 1 January 2017 | 32.384.690 | 32.307.216 | 5.303.854 | 31.300 | 70.027.060 |
| Additions | 181.774 | 310.995 | 126.300 | 0 | 619.069 |
| Disposals | 0 | (25.950) | (115.550) | 0 | (141.500) |
| Balance at 31 December 2017 | 32.566.464 | 32.592.261 | 5.314.604 | 31.300 | 70.504.629 |
| Balance at 1 January 2018 | 32.566.464 | 32.592.261 | 5.314.604 | 31.300 | 70.504.629 |
| Additions | 36.054 | 267.898 | 32.001 | 0 | 335.952 |
| Disposals | 0 | (7.943) | (761) | 0 | (8.703) |
| Balance at 30 June 2018 | 32.602.518 | 32.852.216 | 5.345.845 | 31.300 | 70.831.878 |
| Accumulated depreciation and impairment | |||||
| losses | |||||
| Balance at 1 January 2017 | 16.567.151 | 16.440.419 | 4.791.044 | 0 | 37.798.613 |
| Depreciation | 330.083 | 2.060.582 | 158.663 | 0 | 2.549.328 |
| Disposals | (7.689) | (115.463) | 0 | (123.152) | |
| Balance at 31 December 2017 | 16.897.234 | 18.493.312 | 4.834.244 | 0 | 40.224.790 |
| Balance at 1 January 2018 | 16.897.234 | 18.493.312 | 4.834.244 | 0 | 40.224.790 |
| Depreciation | 168.222 | 1.043.945 | 78.061 | 0 | 1.290.228 |
| Disposals | 0 | (7.943) | (761) | 0 | (8.703) |
| Balance at 30 June 2018 Carrying amounts |
17.065.456 | 19.529.315 | 4.911.544 | 0 | 41.506.315 |
| Balance at 31 December 2017 | 15.669.230 | 14.098.949 | 480.361 | 31.300 | 30.279.840 |
|---|---|---|---|---|---|
| Balance at 30 June 2018 | 15.537.062 | 13.322.901 | 434.301 | 31.300 | 29.325.564 |
The Group leases machinery in Greece and Romania. At 30/6/2018 the net carrying amount of leased equipment was € 4.583.407 (2017: € 4.797.922). The value of the leased equipment is ensuring the relevant leasing obligations.
There are encumbrances on the Group's fixed assets for an amount of € 6 million in order to cover loan liabilities. There are no encumbrances on the parent company's fixed assets.
The changes to the Group intangible assets values for the period as follows:
| THE GROUP | ||||
|---|---|---|---|---|
| Software, | ||||
| Goodwill | Patents, licenses |
Development costs |
Total | |
| Cost | ||||
| Balance at 1 January 2017 | 6.103.881 | 11.193.689 | 2.435.180 | 19.732.750 |
| Additions | 0 | 372.984 | 0 | 372.984 |
| Acquisitions - internally developed | 0 | 155.057 | 186.269 | 341.326 |
| Effect of movements in exchange rates | 0 | (40.159) | 0 | (40.159) |
| Balance at 31 December 2017 | 6.103.881 | 11.681.571 | 2.621.449 | 20.406.901 |
| Balance at 1 January 2018 | 6.103.881 | 11.681.571 | 2.621.449 | 20.406.901 |
| Additions | 0 | 203.809 | 0 | 203.809 |
| Acquisitions - internally developed | 0 | 110.215 | 109.120 | 219.335 |
| Effect of movements in exchange rates | 0 | (436) | 0 | (436) |
| Balance at 30 June 2018 | 6.103.881 | 11.995.158 | 2.730.570 | 20.829.609 |
| Accumulated depreciation and impairment | ||||
| losses | ||||
| Balance at 1 January 2017 | 4.017.437 | 10.183.190 | 1.906.226 | 16.106.853 |
| Amortisation | 0 | 258.067 | 169.351 | 427.418 |
| Effect of movements in exchange rates | 0 | (40.365) | 0 | (40.365) |
| Balance at 31 December 2017 | 4.017.437 | 10.400.893 | 2.075.577 | 16.493.907 |
| Balance at 1 January 2018 | 4.017.437 | 10.400.893 | 2.075.577 | 16.493.907 |
| Amortisation | 0 | 160.828 | 98.286 | 259.115 |
| Effect of movements in exchange rates | 0 | (464) | 0 | (464) |
| Balance at 30 June 2018 | 4.017.437 | 10.561.258 | 2.173.863 | 16.752.558 |
| Carrying amounts | ||||
| Balance at 31 December 2017 | 2.086.444 | 1.280.679 | 545.872 | 3.912.994 |
| Balance at 30 June 2018 | 2.086.444 | 1.433.901 | 556.706 | 4.077.050 |
| THE COMPANY | |||||
|---|---|---|---|---|---|
| Software, Patents, licenses |
Development costs |
Total | |||
| Cost | |||||
| Balance at 1 January 2017 | 7.308.231 | 2.435.180 | 9.743.411 | ||
| Additions | 337.853 | 0 | 337.853 | ||
| Acquisitions - internally developed | 155.057 | 186.269 | 341.326 | ||
| Balance at 31 December 2017 | 7.801.141 | 2.621.449 | 10.422.590 | ||
| Balance at 1 January 2018 | 7.801.141 | 2.621.449 | 10.422.590 | ||
| Additions | 162.265 | 0 | 162.265 | ||
| Acquisitions - internally developed | 110.215 | 90.709 | 200.924 |
| Balance at 30 June 2018 | 8.073.622 | 2.712.158 | 10.785.780 |
|---|---|---|---|
| Accumulated depreciation and impairment | |||
| losses | |||
| Balance at 1 January 2017 | 6.313.132 | 1.906.226 | 8.219.358 |
| Amortisation | 228.292 | 169.351 | 397.643 |
| Balance at 31 December 2017 | 6.541.424 | 2.075.577 | 8.617.001 |
| Balance at 1 January 2018 | 6.541.424 | 2.075.577 | 8.617.001 |
| Amortisation | 147.990 | 98.286 | 246.276 |
| Balance at 30 June 2018 | 6.689.414 | 2.173.863 | 8.863.277 |
| Carrying amounts | |||
| Balance at 31 December 2017 | 1.259.717 | 545.872 | 1.805.589 |
| Balance at 30 June 2018 | 1.384.208 | 538.295 | 1.922.502 |
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Raw materials and consumables | 3.859.100 | 3.912.608 | 2.400.676 | 2.192.176 |
| Work in progress | 26.734 | 20.590 | 13.058 | 0 |
| Finished and semi-finished goods | 407.961 | 634.032 | 55.942 | 55.343 |
| Merchandise | 613.769 | 669.747 | 814.729 | 967.114 |
| Prepayments for inventory purchase | 1.050.820 | 339.589 | 1.048.287 | 310.294 |
| Total | 5.958.384 | 5.576.566 | 4.332.693 | 3.524.927 |
| THE GROUP | THE COMPANY | ||||
|---|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | ||
| Contract assets | 933.298 | 922.334 | 569.517 | 580.613 | |
| Total | 933.298 | 922.334 | 569.517 | 580.613 |
The above figures refer to contract assets that recognized under IFRS 15 (see also note 29 b).
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Trade receivables | 13.532.103 | 12.981.712 | 5.792.135 | 5.378.333 |
| Minus: Allowance for doubtful accounts | (1.153.341) | (1.087.691) | (813.138) | (777.456) |
| Total trade receivables | 12.378.762 | 11.894.020 | 4.978.997 | 4.600.877 |
| Trade receivables due from related parties | 176.525 | 146.056 | 336.867 | 444.986 |
| Total trade receivables due from related parties | 176.525 | 146.056 | 336.867 | 444.986 |
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Cash at hand | 11.227 | 7.838 | 10.447 | 6.152 |
| Short term bank balances | 4.145.271 | 2.059.558 | 2.326.922 | 1.142.094 |
| Total | 4.156.497 | 2.067.396 | 2.337.369 | 1.148.246 |
The Group does not hold deposits pledged to secure any obligation.
The Company's share is freely traded on the Athens Stock Exchange and participates in the business support services industry and in the Mid & Small Cap Price index.
The share premium of the Group and the Company comes from previous issuing of shares for cash at a value higher than their nominal value.
The share capital concerns exclusively ordinary shares, fully settled. In the Company's shares are not included shares with revoke right or preference shares. Moreover, the Company has not issued any bonds or other securities convertible into shares.
Within the period 1/1 - 30/6/2018, there was no change in the Company's share capital.
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Non-current liabilities | ||||
| Secured bank loans | 143.030 | 357.679 | 0 | 0 |
| Finance lease liabilities | 3.974.844 | 3.831.003 | 3.075.846 | 2.819.251 |
| 4.117.873 | 4.188.682 | 3.075.846 | 2.819.251 | |
| Current liabilities | ||||
| Secured bank loans | 2.553.622 | 2.779.851 | 0 | 0 |
| Unsecured bank loans | 11.800.000 | 11.656.282 | 11.800.000 | 11.100.000 |
| Finance lease liabilities | 608.563 | 966.919 | 389.670 | 736.387 |
| 14.962.184 | 15.403.052 | 12.189.670 | 11.836.387 |
The terms and conditions of Group's and Company's loans are as follows:
| Nominal | |||||
|---|---|---|---|---|---|
| interest | Year of | Carrying | |||
| Lender/Bank | Currency | rate | maturity | Pledge type | amount |
| Secured bank loans | 2.696.651 | ||||
| RON | Robor 3m+3% |
2019 | Plegde on Land and Building |
572.111 | |
| RON | Robor 3m+2.6% |
2018 | Plegde on Land and Building |
2.124.540 | |
| Unsecured bank loans | 11.800.000 | ||||
| EUR | Euribor 1m+5,1% |
2018 | - | 6.800.000 | |
| EUR | Euribor 1m+4,8% |
2018 | - | 5.000.000 | |
| Finance lease liabilities |
4.583.407 | ||||
| EUR | Euribor 3M+4,7% |
2019 | Pledge on equipment |
32.530 | |
| EUR | 6% | 2021 | Pledge on equipment |
954.243 | |
| EUR | 4%-5% | 2022 | Pledge on equipment |
2.423.992 | |
| EUR | 2% | 2024 | - | 1.073.228 | |
| EUR | 5% | 2024 | Pledge on equipment |
67.875 | |
| EUR | 5% | 2025 | Pledge on equipment |
19.406 | |
| EUR | Variable | 12.133 | |||
| 19.080.058 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Trade payables | 11.553.826 | 8.553.045 | 4.706.784 | 3.470.416 |
| Accrued expenses | 1.119.205 | 799.490 | 0 | 0 |
| Trade payables | 12.673.030 | 9.352.536 | 4.706.084 | 3.470.416 |
| Other trade payables due to related parties | 2.676.322 | 1.228.972 | 3.674.849 | 1.843.571 |
| Trade payables due to related parties | 2.676.322 | 1.228.972 | 3.674.849 | 1.843.571 |
Set out below a list of all subsidiaries country, participation percentage, consolidation method and participation relation of incorporated subsidiaries the Group as at 30/06/2018:
| Company | Country | Participation percentage |
Consolidation method |
Participation relationship |
|---|---|---|---|---|
| Inform P. Lykos S.A. | Greece | Parent | - | Parent |
| Lykos Paperless Solutions S.A. | Greece | 99,91% | Full | Direct |
| Terrane L.T.D. | Cyprus | 100,00% | Full | Direct |
| Inform Lykos (Romania) L.T.D. | Cyprus | 98,19% | Full | Indirect |
| Inform Lykos S.A. | Romania | 98,19% | Full | Indirect |
| Compaper Converting S.A. | Romania | 95,68% | Full | Indirect |
| Sagime Gmbh | Austria | 100,00% | Full | Direct |
| Albanian Digital Printing Solutions Sh.p.k. | Albania | 51,00% | Full | Direct |
The closing down of Sagime Gmbh was completed in May 2018. In the Company's income statement a loss of € 35,000 occurred, while there was no effect in the Group.
Group does not include subsidiary with material non-controlling interest.
The Regular General Meeting for year 2018 held on 11/05/2018 approved the relative proposal of the Company Board of Directors on distribution of dividend of € 0,10 (net of taxes € 0,085) per share, i.e. a total amount of dividend of € 2.057.837,40. The aforementioned amount was paid in June of the current year 2018.
The Group has not entered into important commitments apart from those mentioned in subsections (loans, finance lease contracts etc.).
In 2016, the Competition Council of Romania imposed a fine of approximately € 0.8 million on the subsidiary of the Group, Inform Lykos, S.A., (ILR), in Romania. As the management is convinced that the Group has complied with the competition law and that the verdict is unjustified and disproportional, it has appealed against this verdict. At the date of issuance of this report, the lawsuit was still ongoing. Within the scope of the principle of prudence, Group management has formed a provision of € 0.3 million for this lawsuit, which is included in the consolidated financial statements.
Besides the aforementioned case, there are no other judicial or legal claims that are expected to affect significantly the financial position of the company as at 30/06/2018.
The Company has not been tax audited by tax authorities for the years from 2009 and 2010. Contingently arising taxes are not expected to have a significant effect on the financial statements.
For the years 2011-2013, the Greek companies of the Group are subject to tax audit conducted by Chartered Accountants in compliance with the provisions of Article 82, par. 5, Law 2238/1994. For the years 2014-2016 the Greek companies of the Group are subject to tax audit conducted by Chartered Accountants in compliance with the provisions of Article 65A, Law 4174/2013.This audit for the years 2011 - 2015 has
been completed and the relative unqualified conclusions tax compliance certificates have been issued. The tax audit for the year 2016 is in progress and is expected to be completed without substantial tax burdening.
Regarding subsidiaries and related companies, they have not been tax inspected by tax authorities for the years, presented below, and therefore, their tax liabilities in respect of these years have not been finalized:
| Company | Domicile | Tax unaudited years |
|---|---|---|
| Inform P. Lykos S.A. | Greece | 2017 |
| Lykos Paperless Solutions S.A. | Greece | 2017 |
| Terrane Ltd | Cyprus | 2012-2017 |
| Infrom Lykos (Romania) Ltd | Cyprus | 2012-2017 |
| Infrom Lykos S.A. | Romania | 2005-2017 |
| Compaper Converting S.a. | Romania | 2001-2017 |
| Albanian Digital Printing Solutions Sh.p.k. | Austria | 2011-2017 |
Apart from the aforementioned, there are no other cases of contingent liabilities or contingent receivables, which could significantly affect the Group or the Company financial position or operation.
There are encumbrances on the Group's fixed assets with value of € 6 million in order to cover loan obligations. There are no encumbrances on the parent company's fixed assets.
The operational and investment activity of the Group creates certain earnings, assets or liabilities that concern except others related companies or individuals persons. These transactions are realised in commercial base and according to the laws of market. The Group did not participate in any transaction of uncommon nature or content which is essential for the Group, or the companies and the individuals connected closely with this, and does not aim to participate in such kind of transactions in the future.
The table below presents analytically all the intercompany transactions:
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | |
| Subsidiaries | 0 | 0 | 175.285 | 349.733 |
| Other related parties | 146.543 | 133.179 | 98.230 | 52.005 |
| Total | 146.543 | 133.179 | 273.515 | 401.738 |
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | |
| Subsidiaries | 0 | 0 | 1.276.726 | 1.391.103 |
| Other related parties | 3.290.979 | 2.837.289 | 3.262.020 | 2.745.718 |
| Total | 3.290.979 | 2.837.289 | 4.538.746 | 4.136.822 |
| Granted loans | THE GROUP | THE COMPANY | |||
|---|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | ||
| Subsidiaries | 0 | 0 | 63.650 | 63.650 | |
| Total | 0 | 0 | 63.650 | 63.650 |
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Subsidiaries | 0 | 0 | 64.099 | 108.673 |
| Other related parties | 176.525 | 146.056 | 9.118 | 72.663 |
| Total | 176.525 | 146.056 | 73.217 | 181.337 |
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Subsidiaries | 0 | 0 | 1.030.030 | 631.171 |
| Other related parties | 2.676.322 | 1.228.972 | 2.644.819 | 1.212.400 |
| Total | 2.676.322 | 1.228.972 | 3.674.849 | 1.843.571 |
Income from dividends
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | |
| Subsidiaries | 0 | 0 | 39.900 | 51.083 |
| Total | 0 | 0 | 39.900 | 51.083 |
Remuneration of key executives
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 30/6/2017 | 30/6/2018 | 30/6/2017 | |
| Key executives | 210.408 | 262.451 | 210.408 | 262.451 |
| Total | 210.408 | 262.451 | 210.408 | 262.451 |
Balances of receivables from key executives
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Key executives | 0 | 0 | 0 | 0 |
| Total | 0 | 0 | 0 | 0 |
Balances of liabilities to key executives
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Key executives | 0 | 0 | 0 | 0 |
| Total | 0 | 0 | 0 | 0 |
Remuneration of non-executive members of the Board of Directors
| THE GROUP | THE COMPANY | |||
|---|---|---|---|---|
| 30/6/2018 | 31/12/2017 | 30/6/2018 | 31/12/2017 | |
| Non-executive members of the Board of Directors | 12.000 | 12.500 | 12.000 | 12.500 |
| Total | 12.000 | 12.500 | 12.000 | 12.500 |
Developments in recent years, national and international negotiations on the re-examination of the terms of Greece's funding program, and assessments of compliance with these conditions, make the domestic macroeconomic and financial environment volatile. The return to financial stability depends to a large extent on the actions and decisions of the institutions in the country and abroad.
Taking into account the nature of the Company's operations and financial position, any adverse developments are not expected to have a significant effect on its operations.
Nevertheless, the Management constantly assesses the possible consequences in order to ensure that all necessary and effective measures and actions are taken in time to minimize any impact on the Company's activities.
There was no event that occurred subsequent to the 30/06/2018 which may have a significant impact on the financial position and operations of the Group.
The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from or after 01/01/2018.
IFRS 9 "Financial Instruments" (effective for annual periods starting on or after 01/01/2018)
In July 2014, the IASB issued the final version of IFRS 9. The package of improvements introduced by the final version of the Standard, includes a logical model for classification and measurement, a single, forward-looking "expected loss" impairment model and a substantiallyreformed approach to hedge accounting. The effect of the The impact of the implementation of IFRS 9 to the Group Financial Statements is presented in the note 29 b.
In May 2014, the IASB issued a new Standard, IFRS 15. The Standard fully converges with the requirements for the recognition of revenue in both IFRS and US GAAP. The key principles on which the Standard is based are consistent with much of current practice. The new Standard is expected to improve financial reporting by providing a more robust framework for addressing issues as they arise, increasing comparability across industries and capital markets, providing enhanced disclosures and clarifying accounting for contract costs. The new Standard will supersede IAS 11 "Construction Contracts", IAS 18 "Revenue" and several revenue related Interpretations. The impact of the implementation of IFRS 9 to the Group Financial Statements is presented in the note 29 b.
In April 2016, the IASB published clarifications to IFRS 15. The amendments to IFRS 15 do not change the underlying principles of the Standard, but clarify how those principles should be applied. The amendments clarify how to identify a performance obligation in a contract, how to determine whether a company is a principal or an agent and how to determine whether the revenue from granting a license should be recognized at a point in time or over time. The amendments do not affect the consolidated Financial Statements.
In June 2016, the IASB published narrow scope amendment to IFRS 2. The objective of this amendment is to clarify how to account for certain types of share-based payment transactions. More specifically, the amendments provide requirements on the accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, for share-based payment transactions with a net settlement feature for withholding tax obligation, as well as, a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The amendments do not affect the consolidated Financial Statements.
In September 2016, the IASB published amendments to IFRS 4. The objective of the amendments is to address the temporary accounting consequences of the different effective dates of IFRS 9 Financial Instruments and the forthcoming insurance contracts Standard. The amendments to existing requirements of IFRS 4 permit entities whose predominant activities are connected with insurance to defer the application of IFRS 9 until 2021 (the "temporary exemption") and also permit all issuers of insurance contracts to recognize in other comprehensive income, rather than profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts Standard is issued (the "overlay approach"). The amendments do not affect the consolidated Financial Statements.
In December 2016, the IASB issued Annual Improvements to IFRSs – 2014-2016 Cycle, a collection of amendments to IFRSs, in response to several issues addressed during the 2014-2016 cycle. The issues included in this cycle and are effective for annual periods starting on or after 01/01/2018 are the following: IFRS 1: Deletion of short-term exemptions for first-time adopters, IAS 28: Measuring an associate or joint venture at fair value. The amendments do not affect the consolidated Financial Statements.
In December 2016, the IASB published narrow-scope amendments to IAS 40. The objective of the amendments is to reinforce the principle for transfers into, or out of, investment property in IAS 40, to specify that (a) a transfer into, or out of investment property should be made only when there has been a change in use of the property, and (b) such a change in use would involve the assessment of whether the property qualifies as an investment property. That change in use should be supported by evidence. The amendments do not affect the consolidated Financial Statements.
In December 2016, the IASB issued a new Interpretation, IFRIC 22. IFRIC 22 provides requirements about which exchange rate to use in reporting foreign currency transactions (such as revenue transactions) when payment is made or received in advance. The new Interpretation do not affect the consolidated Financial Statements.
The new standard constitutes of a framework for determining when to recognise revenue and how much revenue to recognise. The core principle of IFRS 15 is that an entity recognizes revenue to depict the transfer of control of the promised goods or/and services (performance obligations) in an amount that reflects the consideration to which that entity is entitled.
The Group adopted the new standard on 1 January 2018, using the full retrospective transition method and restated the comparative periods as provided by the IAS 8 «Accounting policies, Changes in Accounting Estimates and Errors». Accordingly, the Company restated the comparative 2017 results included in the first half-year 2018 Consolidated Financial Statements. The opening equity was restated as of 1 January 2017.
The impact on the Group Financial Statements, from the implementation of the new standard, is mainly due to the application of changes in timing of the revenue recognition related to products without alternative use for which the Group has an enforceable payment right.
According to the new standard the Group recognizes revenue when (or while) the performance obligations of the contract are being met, transferring the promised goods/services to a client. When the control of the produced good and rendered services is transferred over time to the customer, revenue is recognised over time. The customer gains control over the good or service when it can direct its use and receive virtually all the rewards from it. The amount of revenue recognized is the amount that is allocated to the performance obligation of the contract that has been settled. The performance obligations of the contract can be fulfilled either at a specific time or over time. For performance obligations that are performed over time, the Group recognizes revenue over time by choosing the most appropriate method of measuring progress of the obligations completed. Appropriate methods of measuring progress include both output methods and input methods.
The receivable is recognized when there is an unconditional right to receive the consideration allocated to the fulfilled performance obligations to the client.
The contract asset is recognized when the performance obligations of the Group are met transferring promised goods/services to the client, before the payment of the consideration from the client is paid or became enforceable.
In July 2014, the IASB issued the final version of IFRS 9. The package of improvements introduced by the final version of the Standard, includes a logical model for classification and measurement, a single, forward-looking "expected loss" impairment model and a substantially-reformed approach to hedge accounting.
The Group adopted the new standard on 1 January 2018 and restated the comparative periods as it considered that it is feasible on the basis of the internal historical data available. Therefore, the Group restated the comparative figures of 2017 included in the first half-year 2018 Consolidated Financial Statements. The opening equity was restated as of 1 January 2017.
The new Standard replaces IAS 39 "Financial Instruments: Recognition and Measurement" and includes the classification and measurement of financial assets and financial liabilities, an expected impairment loss model and hedge accounting.
The new Standard abrogates the previous categories of IAS 39 for financial assets: held to maturity, loans and receivables and available for sale.
Under the new Standard, financial instruments are subsequently measured at fair value through profit or loss, at amortized cost, or at fair value through other comprehensive income.
The classification is based on two criteria: a) the business model of a financial asset management, ie whether the objective is to hold for the purpose of collecting contractual cash flows or the collection of contractual cash flows and the sale of financial assets; and b) cash flows of the financial asset consist exclusively of capital repayment and interest on the outstanding balance.
The Group applies the simplified approach of IFRS 9 for the calculation of expected impairment losses in relation to customer requirements and contingent assets for which an ageing analysis and rates produced by historical data and reasonable assumptions are used.
The impact on the Group Financial Statements, from the implementation of the new standard, is mainly due to change in the receivables impairment.
In applying the new standards (IFRS 9 and IFRS 15) using the method described in the above paragraphs, the Group has restated the financial statements of comparable periods and the opening equity has been adjusted as of 1 January 2017.
The restated figures and the impact is described in the tables below.
| THE GROUP | ||||
|---|---|---|---|---|
| 31/12/2017 *(As previously reported) |
IFRS 9 | IFRS 15 | 31/12/2017 *Restated |
|
| Assets | ||||
| Property, plant and equipment | 55.845.054 | 55.845.054 | ||
| Intangible assets and goodwill | 3.912.994 | 3.912.994 | ||
| Other receivables | 25.250 | 25.250 | ||
| Investment property | 244.839 | 244.839 | ||
| Deferred tax assets | 36.267 | 36.267 | ||
| Non-current assets | 60.064.404 | 60.064.404 | ||
| Inventories | 6.411.951 | (835.386) | 5.576.565 | |
| Contract assets | 0 | 922.334 | 922.334 | |
| Current tax assets | 219.203 | 219.203 | ||
| Trade receivables | 12.234.371 | (340.350) | 11.894.021 | |
| Other receivables | 1.261.449 | 1.261.449 | ||
| Receivables from related parties | 146.056 | 146.056 | ||
| Cash and cash equivalents | 2.067.396 | 2.067.396 | ||
| Current assets | 22.340.426 | (340.350) | 86.948 | 22.087.024 |
| Total assets | 82.404.830 | (340.350) | 86.948 | 82.151.428 |
| Equity | ||||
| Share capital | 12.758.592 | 12.758.592 | ||
| Share premium | 13.805.791 | 13.805.791 | ||
| Reserves | 14.610.018 | 1.918 | (358) | 14.611.578 |
| Retained profits | 5.945.224 | (255.439) | 63.956 | 5.753.741 |
| Equity attributable to owners of the Company | 47.119.625 | (253.521) | 63.598 | 46.929.702 |
| Non-controlling interest | 677.742 | (699) | 130 | 677.174 |
| Total Equity | 47.797.367 | (254.220) | 63.728 | 47.606.875 |
| Liabilities | ||||
| Loans and borrowings | 4.188.682 | 4.188.682 | ||
| Employee benefits | 1.021.398 | 1.021.398 | ||
| Other payables | 14.427 | 14.427 | ||
| Deferred tax liabilities | 1.763.014 | (86.131) | 23.220 | 1.700.104 |
| Non-current liabilities | 6.987.521 | (86.131) | 23.220 | 6.924.611 |
| Current tax liabilities | 3.634 | 3.634 | ||
| Loans and borrowings | 15.403.052 | 15.403.052 | ||
| Trade payables | 9.352.536 | 9.352.536 | ||
| Other payables | 1.184.820 | 1.184.820 | ||
| Liabilities to related parties | 1.228.972 | 1.228.972 | ||
| Deferred income / revenue | 153.641 | 153.641 | ||
| Provisions | 293.287 | 293.287 | ||
| Current Liabilities | 27.619.942 | 27.619.942 | ||
| Total Liabilities | 34.607.463 | (86.131) | 23.220 | 34.544.553 |
| Total Equity and Liabilities | 82.404.830 | (340.350) | 86.948 | 82.151.428 |
| Revenue 31.837.231 92.381 31.929.612 Cost of Sales (27.367.990) (79.521) (27.447.511) Gross profit 4.469.240 12.861 4.482.101 Other income 670.493 670.493 Selling and distribution expenses (2.080.672) (2.080.672) Administrative expenses (1.646.350) (1.646.350) Research and development expenses (210.875) (210.875) Other expenses (325.047) (84.374) (409.421) + Depreciation & amortization 1.942.986 1.942.986 |
30/6/2017 *(As previously reported) |
IFRS 9 | IFRS 15 | 30/06/2017 *Restated |
|---|---|---|---|---|
| EBITDA | 2.819.777 | (84.374) | 12.861 | 2.748.263 |
|---|---|---|---|---|
| - Depreciation & amortization | (1.942.986) | (1.942.986) | ||
| Operating profits / (losses) | 876.791 | (84.374) | 12.861 | 805.277 |
| Financial income | 17.061 | 17.061 | ||
| Financial expenses | (631.141) | (631.141) | ||
| Net finance costs | (614.080) | (614.080) | ||
| Profits / (losses) before taxes | 262.712 | (84.374) | 12.861 | 191.197 |
| Income tax expense | (176.298) | 19.879 | (2.941) | (159.359) |
| Profits / (losses) | 86.414 | (64.495) | 9.920 | 31.839 |
| Profits / (losses) attributable to: | ||||
| Owners of the Company | 46.690 | (63.971) | 9.839 | (7.442) |
| Non-controlling interests | 39.724 | (524) | 81 | 39.280 |
| 86.414 | (64.495) | 9.920 | 31.839 |
| 1/1/2017 | |
|---|---|
| Retained Earnings |
|
| As previously reported balance | 50.433.690 |
| Impact IFRS 9 | (179.670) |
| Impact IFRS 15 | 63.851 |
| Restated balance | 50.317.871 |
| 31/12/2017 *(As previously reported) |
IFRS 9 | IFRS 15 | 31/12/2017 *Restated |
|
|---|---|---|---|---|
| Assets | ||||
| Property, plant and equipment | 30.279.839 | 30.279.839 | ||
| Intangible assets | 1.805.589 | 1.805.589 | ||
| Other receivables | 25.250 | 25.250 | ||
| Investments in subsidiaries | 22.138.861 | 22.138.861 | ||
| Non-current assets | 54.249.539 | 54.249.539 | ||
| Inventories | 4.033.935 | (509.009) | 3.524.926 | |
| Contract assets | 0 | 580.613 | 580.613 | |
| Current tax assets | 206.531 | 206.531 | ||
| Trade receivables | 4.844.528 | (243.651) | 4.600.877 | |
| Other receivables | 317.702 | 317.702 | ||
| Receivables from related parties | 444.986 | 444.986 | ||
| Cash and cash equivalents | 1.148.246 | 1.148.246 | ||
| Current assets | 10.995.927 | (243.651) | 71.605 | 10.823.882 |
| Total assets | 65.245.466 | (243.651) | 71.605 | 65.073.421 |
| Equity | ||||
| Share capital | 12.758.592 | 12.758.592 | ||
| Share premium | 13.805.791 | 13.805.791 | ||
| Reserves | 13.166.340 | 13.166.340 | ||
| Retained profits | 2.396.173 | (172.992) | 50.839 | 2.274.020 |
| Total Equity | 42.126.896 | (172.992) | 50.839 | 42.004.743 |
| Liabilities | ||||
| Loans and borrowings | 2.819.251 | 2.819.251 | ||
| Employee benefits | 1.021.398 | 1.021.398 | ||
| Other payables | 14.427 | 14.427 | ||
| Deferred tax liabilities | 1.064.730 | (70.659) | 20.765 | 1.014.837 |
| Non-current liabilities | 4.919.806 | (70.659) | 20.765 | 4.869.913 |
| Total Equity and Liabilities | 65.245.466 | (243.651) | 71.605 | 65.073.421 |
|---|---|---|---|---|
| Total Liabilities | 23.118.570 | (70.659) | 20.765 | 23.068.678 |
| Current Liabilities | 18.198.764 | 18.198.765 | ||
| Deferred income / revenue | 138.586 | 138.586 | ||
| Liabilities to related parties | 1.843.571 | 1.843.571 | ||
| Other payables | 909.805 | 909.805 | ||
| Trade payables | 3.470.416 | 3.470.416 | ||
| Loans and borrowings | 11.836.387 | 11.836.387 | ||
| THE COMPANY | ||||
|---|---|---|---|---|
| 30/06/2017 *(As previously reported) |
IFRS 9 | IFRS 15 | 30/06/2017 *Restated |
|
| Revenue | 15.722.588 | 36.524 | 15.759.112 | |
| Cost of Sales | (13.400.155) | (29.733) | (13.429.888) | |
| Gross profit | 2.322.433 | 6.791 | 2.329.224 | |
| Other income | 478.690 | 478.690 | ||
| Selling and distribution expenses | (1.361.970) | (1.361.970) | ||
| Administrative expenses | (1.000.939) | (1.000.939) | ||
| Research and development expenses | (209.750) | (209.750) | ||
| Other expenses | (93.734) | (49.073) | (142.807) | |
| Non recurring expenses | (20.679) | (20.679) | ||
| + Depreciation & amortization | 1.459.603 | 1.459.603 | ||
| EBITDA | 1.573.653 | (49.073) | 6.791 | 1.531.372 |
| - Depreciation & amortization | (1.459.603) | (1.459.603) | ||
| Operating profits / (losses) | 114.050 | (49.073) | 6.791 | 71.768 |
| Financial income | 68.085 | 68.085 | ||
| Financial expenses | (478.166) | (478.166) | ||
| Net finance costs | (410.081) | (410.081) | ||
| Profits / (losses) before taxes | (296.030) | (49.073) | 6.791 | (338.312) |
| Income tax expense | (49.604) | 14.231 | (1.969) | (37.342) |
| Profits / (losses) | (345.634) | (34.842) | 4.822 | (375.654) |
| Profits / (losses) attributable to: | ||||
| Owners of the Company | (345.634) | (34.842) | 4.822 | (375.654) |
| Non-controlling interests | 0 | 0 | ||
| (345.634) | (34.842) | 4.822 | (375.654) |
| 1/1/2017 | |
|---|---|
| Retained | |
| Earnings | |
| As previously reported balance | 44.868.025 |
| Impact IFRS 9 | (125.943) |
| Impact IFRS 15 | 47.008 |
| Restated balance | 44.789.091 |
Finally, the application of IFRS 9 and IFRS 15 had no impact on the net cash flows, by segment and as a whole, of the Group and the Company.
(c) New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have not been adopted by the European Union
The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the European Union.
In January 2016, the IASB issued a new Standard, IFRS 16. The objective of the project was to develop a new Leases Standard that sets out the principles that both parties to a contract, i.e. the customer ('lessee') and the supplier ('lessor'), apply to provide relevant information about leases in a manner that faithfully represents those transactions. To meet this objective, a lessee is required to recognise assets and liabilities arising from a lease. The Group plans to apply the new standard starting at 1 January 2019. The Group has already examined the impact of the above on its Financial Statements and it is not expected to have any.
In October 2017, the IASB published narrow-scope amendments to IFRS 9. Under the existing requirements of IFRS 9, an entity would have measured a financial asset with negative compensation at fair value through profit or loss as the "negative compensation" feature would have been viewed as introducing potential cash flows that were not solely payments of principal and interest. Under the amendments, companies are allowed to measure particular prepayable financial assets with so-called negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have been adopted by the European Union with effective date of 01/01/2019.
In October 2017, the IASB published narrow-scope amendments to IAS 28. The objective of the amendments is to clarify that companies account for long-term interests in an associate or joint venture – to which the equity method is not applied – using IFRS 9. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In December 2017, the IASB issued Annual Improvements to IFRSs – 2015-2017 Cycle, a collection of amendments to IFRSs, in response to several issues addressed during the 2015-2017 cycle. The issues included in this cycle are the following: IFRS 3 - IFRS 11: Previously held interest in a joint operation, IAS 12: Income tax consequences of payments on financial instruments classified as equity, IAS 23: Borrowing costs eligible for capitalization. The amendments are effective for annual periods beginning on or after 1 January 2019. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In February 2018, the IASB published narrow-scope amendments to IAS 19, under which an entity is required to use updated assumptions to determine current service cost and net interest for the remainder of the reporting period after an amendment, curtailment or settlement to a plan. The objective of the amendments is to enhance the understanding of the financial statements and provide useful information to the users. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In June 2017, the IASB issued a new Interpretation, IFRIC 23. IAS 12 "Income Taxes" specifies how to account for current and deferred tax, but not how to reflect the effects of uncertainty. IFRIC 23 provides requirements that add to the requirements in IAS 12 by specifying how to reflect the effects of uncertainty in accounting for income taxes. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In March 2018, the IASB issued the revised Conceptual Framework for Financial Reporting (Conceptual Framework), the objective of which was to incorporate some important issues that were not covered, as well as update and clarify some guidance that was unclear or out of date. The revised Conceptual Framework includes a new chapter on measurement, which analyzes the concept on measurement, including factors to be considered when selecting a measurement basis, concepts on presentation and disclosure, and guidance on derecognition of assets and liabilities from financial statements. In addition, the revised Conceptual Framework includes improved definitions of an asset and a liability, guidance supporting these definitions, update of recognition criteria for assets and liabilities, as well as clarifications in important areas, such as the roles of stewardship, prudence and measurement uncertainty in financial reporting. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In March 2018, the IASB issued Amendments to References to the Conceptual Framework, following its revision. Some Standards include explicit references to previous versions of the Conceptual Framework. The objective of these amendments is to update those references so that they refer to the revised Conceptual Framework and to support transition to the revised Conceptual Framework. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of the project was to provide a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
Koropi Attica, September 28, 2018
CHAIRMAN OF THE BoD VICE CHAIRMAN & GROUP CEO
PANAGIOTIS LYKOS PANAGIOTIS SPYROPOULOS ID No AB 607588 ID No AI 579288
CHIEF FINANCIAL OFFICER HEAD OF ACCOUNTING DEPARTMENT
ALEXANDRA ADAM ANASTASIOS TATOS ID No AE 118025 ID No AM 556006 Registr. No of E.C. A' CLASS 9657
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