Interim / Quarterly Report • Oct 23, 2017
Interim / Quarterly Report
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from January 1st to June 30th 2017
According to the International Financial Reporting Standards (I.F.R.S) & Greek Law 3556/2007
Intracom Constructions Societe Anonyme Technical and Steel Constructions G.E.M.I. No.: 408501000 (former Companies Register No.: 16205/06/Β/87/37) 19th km Peania - Markopoulo Ave. 190 02 Peania, Attika, Greece
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| STATEMENTS OF THE BOARD OF DIRECTORS' MEMBERS 1 | |||
|---|---|---|---|
| SEMI-ANNUAL REVIEW REPORT OF THE BOARD OF DIRECTORS 2 | |||
| REVIEW REPORT ON INTERIM FINANCIAL INFORMATION 15 | |||
| SEMI-ANNUAL FINANCIAL STATEMENTS 17 | |||
| 1. | Statement of Financial Position 18 | ||
| 2. | Statement of Comprehensive Income 19 | ||
| 3.a | Statement of Changes in Equity - Group 20 | ||
| 3.b | Statement of Changes in Equity - Company 21 | ||
| 4. | Statement of Cash Flows 22 | ||
| 5. | Notes to the Interim Financial Statements as of June 30th 2017 23 | ||
| 5.1. | General Information 23 | ||
| 5.2. | Scope of Activity 23 | ||
| 5.3 | Basis of preparation of the financial statements 23 | ||
| 5.4 | Adoption of New and Revised International Standards 24 | ||
| 5.5 | Group structure and methods of consolidating companies 27 | ||
| 5.6 | Financial risk management 31 | ||
| 5.7 | Alternative Performance Measures (APM) 32 | ||
| 5.8 | Roundings 33 | ||
| 6. | Segment information 34 | ||
| 6.1 | Operational segments 34 | ||
| 6.2 | Group's sales, assets and capital expenditure per geographical segment 35 | ||
| 6.3 | Sales per category of operations 35 | ||
| 7. | Detailed data regarding the Financial Statements 36 | ||
| 7.1 | Goodwill 36 | ||
| 7.2 | Capital Expenditures 37 | ||
| 7.3 | Investments in subsidiaries 39 | ||
| 7.4 | Investments in associates 39 | ||
| 7.5 | Available-for-sale financial assets 40 | ||
| 7.6 | Trade and other receivables 40 | ||
| 7.7 | Construction contracts & State financial contribution 40 | ||
| 7.8 | Current income tax assets 40 | ||
| 7.9 | Cash and cash equivalents 40 | ||
| 7.10 | Share capital 40 | ||
| 7.11 | Fair value reserves 41 | ||
| 7.12 | Other reserves 42 | ||
| 7.13 | Borrowings 43 | ||
| 7.14 | Trade and other payables 44 | ||
| 7.15 | Provisions 44 | ||
| 7.16 | Finance leases 45 | ||
| 7.17 | Sales 45 | ||
| 7.18 | Expenses by nature 45 | ||
| 7.19 | Other income 46 | ||
| 7.20 | Other gains/ losses (net) 46 | ||
| 7.21 | Finance cost (net) 47 | ||
| 7.22 | Eearnings/(losses) per share 47 | ||
| 7.23 | Fair value measurement of financial instruments 47 | ||
| 7.24 | Number of employed personnel 48 | ||
| 7.25 | Contingencies and commitments 48 | ||
| 7.26 | Related party transactions 50 | |
|---|---|---|
| 7.27 | Tax unaudited years 53 | |
| 7.28 | Application of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 54 | |
| 7.29 | Significant events after the balance sheet date 67 |
It is hereby declared and certified as far as we know, that:
Α. The semi-annual separate and consolidated financial statements of the company and the Group for the period from January 1st 2017 to June 30th 2017, drawn up in accordance with the applicable Accounting Standards, reflect in a true manner the assets, liabilities, the equity and comprehensive income for the period, of «INTRACOM CONSTRUCTIONS SOCIETE ANONYME TECHNICAL AND STEEL CONSTRUCTIONS», as well as of the undertakings included in the consolidation taken as a whole, according to the provisions of paragraphs 3 to 5, article 5 of Law 3556/2007 and
Β. The BoD's semi-annual report reflects in a true manner the information required according to par. 6, article 5 of Law 3556/2007.
The certifiers
The Chairman of the B.o.D The Managing Director The B.o.D. Member
DIMITRIOS X. KLONIS ID No AK 121708
PETROS K. SOURETIS ID No ΑΒ 348882
DIMITRIOS A. PAPPAS ID No Χ 661414
The present Semi-annual Report of the Board of Directors was drawn up in accordance with the provisions of Law 3556/2007 as well as the issued thereon implementing decisions of the Board of Directors of the Capital Market Commission.
The purpose of the Report is to inform the investors about:
The Group's sales during the 1st semester 2017 amounted € 78,1 million as opposed to € 95,6 million of the 1st semester 2016, marking a decrease of 18,3%. The decrease is due to the completion of old projects executed by the Group and is expected to be offset by the launch of new projects contracted during the first semester of 2017.
The Group's results before taxes amounted to losses of € 1,48 million as opposed to profits of € 1,7 million of the respective period 2016, while results net of taxes amounted to losses of € 2,6 million as opposed to profits of € 143,9 thousand.
The Group's results before interest, taxes, depreciation, and amortization (EBITDA) during the 1st semester 2017, amounted to profits of € 5,9 million as opposed to profits of € 8,2 million of the respective period 2016. The decrease is due to the decrease in sales as mentioned above.
The Company's sales amounted € 69,03 million as opposed to € 85,7 million, recording a decrease of 19,4% compared with the 1st semester 2016. The decrease is due to the completion of old projects executed by the Group and is expected to be offset by the launch of new projects contracted during the first semester of 2017.
The Company's results before taxes amounted to profits of € 0,2 million as opposed to profits of € 1,5 million of the respective period 2016, while results net of taxes amounted to losses of € 0,6 million as opposed to profits of € 0,3 million.
The Company's results before interest, taxes, depreciation, and amortization (EBITDA) amounted to profits of € 5,6 million as opposed to profits of € 6,4 million of the respective period 2016. The decrease is due to the decrease in sales as mentioned above.
The Group's non-current bank borrowings at the end of the 1st semester 2017 amounted € 61,4 million against € 54,9 million at the end of 2016, which include a bond loan amounting € 26,3 million as well as a subsidiary's longterm bank loan for the implementation of a Wind Park, while current bank borrowings amounted € 44,2 million which include bond loans amounting € 9,3 million as well as a short-term loan taken by a subsidiary for the implementation of a PPP project.
The equity at the end at the end of the 1st semester of 2017 amounted € 56,1 million for the Group and € 68,5 million for the Company.
Total cash in hand at the end of the 1st semester of 2017 amounted for the Group € 62,6 million while for the Company € 59,5 million and total assets for the Group amounted € 347,2 million while for the Company € 270,7 million.
It is noted that the increase in cash is attributable to the advance of € 53,5 million received for the project of the 14 Regional Airports, whose contract was signed within the first semester of 2017. For the same reason, the item accounts of suppliers and other liabilities appear increased.
The liquidity and leverage ratios (note 5.7 – Definitions) for the 1st semester 2017 as compared to those for the year 2016 are as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 | |
| LIQUIDITY RATIO | ||||
| General Liquidity | 1,07 | 0,95 | 1,38 | 1,12 |
| LEVERAGE RATIO | ||||
| Liabilities / Equity | 5,18 | 4,77 | 2,95 | 2,62 |
| Borrowings / Equity | 1,88 | 1,98 | 0,82 | 0,91 |
Summary figures regarding the cash flow statement for the 1st semester 2017 as compared to those for the 1st semester 2016 are as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 01.01 - 30.06.2017 |
01.01 - 30.06.2016 |
01.01 - 30.06.2017 |
01.01 - 30.06.2016 |
| Net cash flows from operating activities | 48.016.423 | (13.618.268) | 47.378.592 | (12.886.266) |
| Net cash flows from investing activities | (6.653.719) | (5.557.849) | (2.183.361) | (171.773) |
| Net cash flows from financing activities | 7.190.110 | 4.241.248 | 6.953.414 | 3.900.132 |
| Cash and cash equivalents at the end of the period | 62.592.764 | 16.389.883 | 59.493.820 | 6.798.130 |
The Ordinary General Shareholders' Meeting of INTRAKAT held on 26.06.2017, took among others the following decisions:
The A' Repeat General Shareholders' Meeting held on 07.07.2017, took among others the following decisions:
Change in the Group's structure
During the current period:
The parent company ΙΝΤΡΑΚΑΤ:
On 23.06.2017 the subsidiary company Κ-WIND KITHAIRONAS ENERGY S.A. proceeded to a share capital increase by the amount of € 210 thousand, with the capitalization of retained earnings.
On 12.06.2017, INTRAKAT's subsidiary INTRADEVELOPMENT, acquired 100% from Messrs. S. Kokkalis and P. Kokkalis of the societe anonyme INTRAPAR S.A. (shareholder of KEKROPS S.A. by 25,72%).
On 14.02.2017 the subsidiary company DEVENETCO LTD, in which the subsidiary INTRADEVELOPMENT participated by 100%, proceeded to an increase of its share capital by € 13.599 thousand. To the company's share capital increase the subsidiary INTRADEVELOPMENT participated with the amount of € 6.799 thousand and a strategic investor with the amount of € 6.800 thousand. After the completion of the share capital increase, the interest held by the subsidiary INTRADEVELOPMENT in DEVENETCO stood at 50% and DEVENETCO Group is now considered a participation in associated companies.
On 27.01.2017 the company B.L. BLUE PRO (subsidiary of DEVENETCO LTD) founded with a participation percentage of 100% the company STUERZA PROPERTIS LTD, which is considered a participation in associated companies.
On 10.02.2017 the company B.L. BLUE PRO (subsidiary of DEVENETCO LTD) acquired 100% of the company BENECIELO CO LTD against the amount of € 2 million, which is considered a participation in associated companies.
The subsidiary "ΙΝ.ΜΑΙΝΤ MAINTENANCE AND REPAIR OF INSTALLATIONS SOCIETE ANONYME - PRIVATE SECURITY SERVICES" decided to split into two parts, with the A' benefited company "INTRAPOWER SOCIETE ANONYME ENERGY PROJECTS", also a subsidiary company, absorbing the one part and the B' benefited company "IOANNIS VALSAMIDIS SOCIETE ANONYME", company outside the Group, absorbing the other part.
The aforementioned split was approved on 31.08.2017 and was realized in accordance with the provisions of articles 81 par. 2 and 82 - 86 of C.L.2190/20, in conjunction with article 54 of Law 4172/2013 (for tax purposes), the splitting contract No 42.021/29.08.2017, the Evaluation Report of the Committee of article 9 of C.L. 2190/1920 dated 08.08.2017, for the valuation of the splitting company's assets based on the Transformation Balance Sheet as of 31.12.2016 and the resolutions of the Extraordinary General Meetings of the shareholders of the three societe anonyme companies held on 21.08.2017.
In the first semester of 2016, the situation of the Greek economy presented a mixed picture, with fiscal developments remaining stable, while business expectations for future developments showing a relative stagnation.
The positive development that came with the successful completion of the second evaluation of the adjustment program prompted a number of indices to show an improvement in individual aspects of the economy.
Although growth rates were overall lower than the targets set, the expected recovery will approach the 1,5% region at a yearly level, thus forming high expectations and the general belief that the Greek economy is moving within track. After the completion of the current financial program and after clarifying the country's financing terms as well as the public debt management terms, it is estimated that in the long run there will be a gradual lifting of the uncertainty, while investment and employment will be fed back accordingly.
In order to maintain this positive climate, emphasis should be placed on the rapid completion of the necessary reforms, on attracting investment and on increasing employment. Futhermore, in order to facilitate entrepreneurship, special attention should be paid to the development of factors related to the imposition of capital controls, the tax burden on businesses and the enhancement of liquidity.
The improved economic climate remains stable in the first semester of 2017, while indices of business expectations show relative fluctuations in the individual fields.
Especially in the construction field, business expectations dropped in the second quarter of 2017 to 42,9 (from 52) points on average.
The forecasts of construction enterprises for their second quarter's business plan as compared to the first, are going more pessimistic (the index to -67 from -51 points), while the months of assured activity of enterprises in the field are set to 7,2 (from 8,1).
For the second quarter of 2017, the percentage of enterprises in the field stating seamless business operation moves at the level of 7-8%, 30% report as a problem the insufficient demand, 48% the low funding and 11% the current financial situation, high taxation and payment delays as the main operational obstacles.
With regard to the field of public projects construction, in July 2017 the index of business expectations improved to 56,5 from 40,1 points in the same period last year, while estimates for current business operations changed positively to -39 from -61 points. Finally, 11% of the surveyed companies state seamless business operation, 38% the insufficient demand, 40% the low funding and 9% other conjuncture factors as the main operational obstacles.
In relation to the second semester of 2017 and in view of the recent acquisition of new major construction projects, it is estimated that the Group's construction activity will remain stable and will provide additional benefit to the financial figures of the year 2017.
Smooth continuation of the projects currently being carried out, which are mentioned in detail below. These projects include road constructions, dams and hydraulic projects, telecommunication projects, airports, building infrastructure, hospitals, renewable energy projects and environmental projects, development of complex tourist, hotel and residential infrastructure.
The first contract concerns the seven airports of Crete, mainland Greece and the Ionian Sea (Thessaloniki, Kavala, Zakynthos Chania, Kefalonia, Corfu and Aktio), while the second contract concerns the seven Aegean airports (Rhodes, Kos, Mykonos, Santorini, Samos, Skiathos and Mytilene).
The contracts between Fraport Greece - Intrakat include the refurbishment and upgrading of existing airport infrastructures, as well as the design and construction of expansions.
The project duration is set at 3,5 years.
In full development are the works of the project "Construction works on the Clinical Hospital in Shtip" in Skopje with a budget of € 29,2 million and a construction period of 24 months (+ 24 months maintenance) on behalf of the Ministry of Health, which also finances the project.
Construction of the project "Works for construction of Vlora waterfront project - Phase 1" in Albania with a budget of € 8,2 million and a construction period of 15 months (+ 12 months maintenance) on behalf of the Albanian State. The project is funded by the European Union General Financial Fund.
INTRAKAT through the upper 7th grade contractors' degree it holds, participates competitively in tenders for undertaking new public or private construction projects.
Significant involvement in the development of tourist residences in luxurious tourism destinations and in the development of complex commercial and urban units.
Smooth operation of the 21MW Wind Park in Viotia, the expansion of which by 12MW is being studied and the necessary licensing actions are being undertaken.
On 30.06.2017 the total backlog of the Group's projects amounted € 484 million. Furthermore, on 30.06.2017 the projects in which the Group has emerged as the lowest bidder and for which the signing procedures are expected to be concluded amounted € 24 million.
| Key projects currently running and their budget | Budget (INTRAKAT Group's share) |
|
|---|---|---|
| FRAPORT GREECE S.A. - Refurbishment and Upgrading of Existing Infrastructures, Design and Construction of Expansions at 14 Regional Airports (Cluster A + Cluster B). Project duration 4 years |
€ 343 mil. | |
| Construction of Road Section Potidea-Kassandria - Prefecture of Chalkidiki | € 54,3 mil. | |
| EGNATIA ODOS - Improvement, Upgrading of Western Internal Peripheral Road of Thessaloniki (District of PAPAGEORGIOU Hospital) |
€ 41,4 mil. | |
| Ministry of Infrastructure, Transport and Networks - Reinforcement of the Reservoir at the Dam Aposelemis from the plateau of Lasithi |
€ 37,1 mil. | |
| AGGEMAR S.A. - New building on the corner of L. Katsoni - Doiranis - Tagmatarchi Plessa in Kalithea. Works of Phase B (Completion) |
€ 36,7 mil. | |
| SCOPJE - Construction works on the Clinical Hospital in Shtip | € 29,2 mil. | |
| MINISTRY OF DEVELOPMENT - Construction of the Dam at the Filiatrinou Basin in the Prefecture of Messinia | € 26,5 mil. | |
| CONSTRUCTION PROJECTS | ERGA OSE - Construction of New Double Railway Line Infrastructure in the Section Rododafni-Psathopyrgos to be performed by the Joint venture "AKTOR-J&P AVAX-INTRAKAT" (AKTOR: 42%, J&P ΑVAX: 33%, INTRAKAT: 25% - Total budget: € 293 million) |
€ 18,6 mil. |
| THEMIS CONSTRUCTION S.A. - General Detainment Facility of Crete II | € 18,2 mil. | |
| ΟΤΕ SA - Development of a New Generation Access Network (NGA) in areas of the Greek territory | € 18 mil. | |
| Municipality of Thessaloniki - Provision of Services for the Implementation and Operation of a Controlled Parking System in Municipal Communities (Α', C' & E') of the Municipality of Thessaloniki (INTRAKAT: 95%, INTRASOFT INTERNATIONAL: 5% - Total budget: € 17,3 million). Project duration 5 years |
€ 16,4 mil. | |
| ALBANIA - Works for construction of Vlora Waterfront Project - Phase 1 | € 12 mil. | |
| Prefecture of Ioannina - Improvement of Road Tiria-Sistrouni | € 10,2 mil. | |
| OTE SA - Construction and maintenance technical works | € 10 mil. | |
| KTIRIAKES YPODOMES - Design, construction and equipment of Karpathos General Hospital | € 4,9 mil. | |
| COSMOTE - Construction and maintenance technical works | € 4,2 mil. | |
| PUBLIC-PRIVATE PARTNERSHIPS (PPP) |
Development of Broadband Infrastructure in Rural "White" Areas of the Greek territory and Services for the Exploitation-Development of the Infrastructure with PPP (Association of companies INTRAKAT: 60% – INTRACOM HOLDINGS: 30% – HELLAS ONLINE: 10% Total budget: € 161 million) |
€ 59 mil. |
| FODSA CENTRAL MACEDONIA - Implementation of a Waste Treatment Unit in Serres Prefecture - Phase B.II through PPP (Association of companies ARCHIRODON GROUP N.V.: 40% - INTRAKAT: 40% - ENVITEC: 20% Total budget: € 25,4 million) |
€ 10 mil. |
The Company is exposed to various risks, and for that reason, through continuous monitoring, it attempts to anticipate the likelihood of such risks in order to act promptly to limit their possible impact. It has also created the appropriate structures and procedures to evaluate and manage risks associated with financial reporting. Meetings of Administration members and Company's chief executive officers take place on a weekly basis to examine the company's current issues, including issues related to financial reporting as well as issues related to the company's projects.
The Group is exposed to risks related to political and economic conditions as well as the market conditions and developments in Greece. Economic developments in Greece's financial situation and the imposition of restrictions on capital movements may adversely affect the results and financial position of the Company and the Group.
89% of the Group's sales in the first semester of 2017 come from Greece, with the remaining 11% coming from the Group's activity abroad.
The Group's activity is significantly influenced by the decline recorded in the construction field in recent years. In order to ensure stability in its financial figures, the Company is required to continually update its overall planning and strategy so as to be able to expand its activities in areas where it has the potential to develop directly, such as the field of environmental projects and the field of renewable energy sources.
The adverse economic environment and the restrictions on capital movements intensify economic uncertainty and risks arise that relate to:
the collection of receivables,
the continuous impairment of assets,
and as a result there are potential problems in the smooth flow of the Company's and the Group's operations.
The main risks of the Company and the Group from their exposure to the Greek market are summarized in:
The ability of the Company and the Group to raise capital through borrowing or through a share capital increase from capital markets, is significantly influenced by the prevailing macroeconomic conditions, the developments in the financial system and the instability in the Greek stock market. However, if the current adverse conditions in the Greek capital market persist or if the Group fails to successfully implement its capital management policy, it is likely to have a significantly reduced ability to raise additional borrowing or other financing and hence the activity, the financial situation, the results and the prospects of the Company and the Group may be affected negatively.
The nature of the works and projects (construction, including telecommunications and fiber optic networks and steel structures) carried out by the Company requires specialized personnel and equipment and is addressed to a specific clientele.
The above characteristics present business risks for the Company such as:
The Company's personnel and the corresponding equipment cannot be easily placed in projects of a different nature, in case the projects currently performed in Greece are reduced. It is noted, however, that the Company, in order to further ensure its development, has expanded in countries such as Cyprus, Romania, Poland, Albania and F.Y.R.O.M.
Additionally, the Company has been active in new areas such as environmental projects (natural resource management projects and green development projects) and renewable energy sources (integrated solutions for the design and installation of photovoltaic and wind farms).
Any failure of the Company to utilize its specialized personnel and equipment in the future, may affect its activity, results, financial position and the Group's business prospects.
To date, the Company's main activities cover road constructions, dams and hydraulic projects, telecommunications projects, airports, building infrastructure, hospitals, renewable energy projects and environmental projects, construction of complex tourism, hotel and residential infrastructures. In order however for the Company to increase its turnover at satisfactory levels, it has expanded into other areas of activity such as real estate, energy production and its participation in PPP projects. In addition, within 2017 the Company signed with FRAPORT GREECE S.A. two construction contracts with a total budget of € 343 million, plus VAT, for the implementation of design and construction works at 14 regional airports, for which Fraport Greece has undertaken the operation, upgrading and maintenance for a period of 40 years.
The expansion of the Company's activities into new areas implies the undertaking of initiatives by the Management on issues such as:
In order for the Company to extend its activities into new areas and to enter into agreements for undertaking self-financed projects, it is necessary to develop partnerships with specialized institutions. Through partnerships it is estimated that the Company will acquire the necessary know-how for its participation in the execution of new projects.
The trends of the modern economy for the construction of major projects are directed to various ways of financing. This means that in order for the Company to participate to a significant extent in undertaking such projects, she must cooperate with credit institutions to find the funds required by self-financed projects and develop appropriate systems for managing such projects.
Any failure of the Company to expand its activities into new areas may affect the Group's financial position and prospects.
The Company, through its subsidiaries, operates in Romania and Cyprus. Also through branches, it operates in Poland, Albania and F.Y.R.O.M.
The course of operations and the results of INTRAKAT Group are subject to risks such as the political and financial instability and the foreign exchange risk of the above countries.
In particular, for the foreign exchange risk, since the course of currencies of the above countries cannot be predicted in relation to the euro, the consolidated financial statements may be affected by exchange rate differences. The Company seeks borrowings in these countries to be made in local currency so as to limit the exchange risk. It also seeks agreements for the collection of receivables in euro.
The Group's participation in the implementation and operation of self-financed projects require extensive use of equity. Given that these projects are large-scale, substantial amounts of funds may be required to secure the Group's participation. Any failure to obtain the funds required to participate in these projects, may adversely affect the Group's activities and financial figures.
Management and Group operations rely on a team of experienced executive officers and specialized personnel who, having knowledge of the subject, contribute to the smooth operation and further development of the Group. Currently these executives are in harmonious cooperation having as an objective the implementation of the strategy and the achievement of the Company's goals. Disturbance, for whatever reason, of the relationship of executives and skilled employees with the Group or their possible loss, could adversely affect the smooth development of its operations, at least in the short run and until it can replace them.
The Group's future success depends as well in part on its ability to attract and retain in its ranks highly qualified personnel, which is in great demand in the labor market. If the Group fails to attract and retain highly qualified personnel, the Group's activity and results may be adversely affected
The unfavorable economic climate and the existence of few auctioned projects intensifies competition among construction companies in the field, resulting in very high levels of competition adversely affecting the Group's activity and results.
Possible non-compliance of the Company with restrictive clauses (positive and negative obligations) and other provisions in existing or future financing agreements could lead to cross-default of certain financing contracts. Also, any failure to obtain financing from the Greek banks or failure to issue letters of guarantee could lead to a breach of the contractual obligations arising from the undertaking of construction and other projects by the Group.
For financing the projects it implements, the Group cooperates with banks in Greece. Financing concerns working capital and issuance of guarantee letters (participation, good performance etc.). Borrowing rates depend on international economic conditions, while commissions for issuing guarantee letters generally reflect the credit liquidity conditions of the economy. Approved limits on financing and guarantees by banks ensure the Company and its subsidiaries with the required working capital as well as with the necessary guarantee letters.
Furthermore, customers, for whom projects are executed, mainly due to the economic distress, may not fully comply with their contractual obligations and this will have a negative impact on the Group's liquidity.
The Group's borrowings on a consolidated basis as at 30.06.2017 amounted to € 105.584.076, broken down into short-term loans of € 32.580.479, in bond loans of € 9.266.502, in long-term borrowings payable within the next 12 months of € 2.351.579 and long-term loans amounting to € 61.385.517, including a bond loan amounting to € 26.260.000, while there were cash and cash equivalents of € 62.592.764. Although the Group maintains good relations with the banking system and the clients for whom it executes projects are credible, the risk of facing project financing problems is existent.
Existing financing agreements include special terms of loan termination at the discretion of banks, when the Company does not meet the restrictive clauses. Macroeconomic risks and events beyond the Group's control could affect the ability of Group companies to comply with the terms of these contracts. In addition, loan agreements may provide for the right to terminate them on the occurrence of significant adverse changes e.g. indicatively changes in legislation. Non-compliance with any of the restrictive clauses in existing or future financing agreements could lead to a default and cross-default of financing contracts, resulting in the suspension of financing by the lenders or even the termination of the financing contracts of the Group's companies and the requirement for immediate repayment of their total borrowings, thus adversely affecting the Group's results, financial position and business prospects.
The Group is exposed to interest rate risk due to its borrowing, which is subject to floating interest rates. The Company does not use derivative financial instruments to reduce its exposure to the interest rate risk on the date of the Statement of Financial Position.
Failure of the Company to effectively manage interest rate risk may adversely affect the Group's activities and financials.
The business activities and operations of the Group companies may be affected by the current level of financial leverage and the service and smooth fulfillment of the relevant commitments they will undertake.
The Group may decide in the future to proceed with further financial leverage in order, but not restrectively, to repay existing borrowings, to finance new construction projects or to seek working capital. Therefore, in the event of future further leverage by the Group:
The above implies a limitation of the Group's ability to fulfill its obligations to suppliers, to finance investments and other payments, including payments of any dividends, as well as to freely conduct transactions with Group companies.
A significant part of the Group's revenue comes from projects executed on behalf of the Greek State. In addition, there are claims from the Greek State for the execution of projects, which are subject to delays in payment. This may negatively affect the Group's working capital, as well as future changes in the payment policy by the Greek State may substantially affect negatively the Group's activities and financial results.
Pursuant to the provisions of the current legislation on public projects, in order for a contractor company to be able to participate in tenders for undertaking public project contracts, it must be registered in the Registry of Contractor Enterprises held by the Ministry of Infrastructure, Transport and Networks, while by the time the regular reassessment takes place, it should have the proper staffing, the necessary financial data demonstrating compliance with the sustainability indicators designated by the law, experience in project implementation, etc. A potential weakness in fulfilling the criteria of a future reassessment will affect the Company's financial figures. It is noted that in January 2015 the Company renewed its 7th grade contractors' degree for the next three years. A potential weakness in fulfilling the criteria of a future reassessment will affect the Group's business activity and financial figures.
Due to the imminent renewal of the company's contractors' degree in January 2018, the company has proceeded with the necessary procedures for its timely renewal.
The construction projects undertaken by the Group include clauses regarding their proper and timely execution. Although the Group has experience and expertise in the execution of complex and large-scale construction projects, it cannot be ruled out that in the future, mainly due to the lack of liquidity and the possible failure to issue guarantee letters, problems with the proper execution of the projects may arise, thus adversely affecting the Group's financial results.
Part of the Group's revenues comes from projects carried out in the form of joint ventures with other construction companies in Greece. Each joint venture is established to serve the implementation of a specific project (public or private). Therefore, because of the specific purpose and object of the Joint venture, the participation of a Company (as a venture member) in one or more joint ventures does not entail particular risks. However, the venture members, namely INTRAKAT in this case, are jointly and severally liable towards the developer of the project, as well as towards any of the joint venture's obligations.
Therefore, if one or more venture members fail to meet their obligations, this may have a negative effect on the joint venture and consequently on the Company and its Group, as the Company participates and will continue to participate in joint ventures for undertaking projects and procurements of the wider Public sector.
In some projects, the Company or the Group companies may outsource part of the works to third companies under subcontracting. In such cases, the Company or the Group companies are liable towards the customer for any errors or omissions on the part of their subcontractor. Although the Group endeavors to enter into agreements with subcontractors covering the obligation of the latter to correct any errors on their own responsibility, it cannot be ruled out that in some cases subcontractors fail to fulfill these obligations which will ultimately be borne by the Group, thus adversely affecting the Group's operations and financial results.
Agreements relating to the supply of construction materials as well as to the subcontracting of projects are carried out with reliable and important firms both foreign and domestic.
Foreign suppliers are mainly manufacturing and trading companies of specialized construction materials (machinery, equipment, materials, etc.), while domestic suppliers are subcontractors performing subcontracted parts of projects or companies supplying construction materials and consumables.
To minimize risks, Management proceeds to a rigorous selection of suppliers and subcontractors based on appropriate quality assessment systems, controls centrally the supplies of materials and negotiates prices for the overall needs of the companies it controls, so as to be able to limit the potential risks of imposing penalties on her due to the delay in the timely supply of materials and the timely execution of construction works.
The activities of the Group companies in the construction field depend on the legislation regulating both public projects (procurement, assignment, execution supervision), as well as issues related to the environment, safety, public health, labor and taxation. It is a fact that the Group has the infrastructure to respond effectively to changes in the relevant legislation, but it cannot be ruled out that future legislative reforms will have, even temporarily, a negative impact on the Group's financial results.
The activities of Group companies face risks that may arise from adverse events such as, among others, accidents of any kind, injuries and damages to persons (employees and/or third parties), environmental damages or damages to equipment and property of third parties. All of the above are likely to cause delays, or in the worst case scenario, interruption of works on the projects involved and incur criminal liabilities to Company executives. The Company takes all necessary precautionary measures and health and safety measures to avoid such adverse events and at the same time concludes the appropriate for each activity insurance policies. If a risk occurs for which there is either no insurance coverage (e.g. credits, war or nuclear accidents), or the damage exceeds the insurance limit, the Group may suffer a loss of revenue due to an interruption of works as well as of future revenue from the discontinued activity.
Despite the fact that the Company updates the insured values and risks each year, it cannot ensure that there will be no future substantial damages exceeding the indemnity or insurance coverage, which cannot be predicted at this time. Furthermore, it cannot be ruled out that in the future, partial or total coverage of certain risks against which the Company is insured, may no longer be available. To the extent that the insurance coverage of the Company and the Group is insufficient to cover the losses resulting from the discontinued activity or the total or partial destruction of assets, or to reimburse the expenses resulting from these events, the Company's and Group's activity, financial performance, financial results and prospects may be adversely affected.
The Group's commercial transactions take place almost entirely with highly reputable private or public sector organizations. In many cases there is a multiannual sufficient history of good cooperation. In any case, however, and given the Greek market conditions, the Group companies continuously monitor the total of trade receivables and, where required, directly engage in judicial and extrajudicial actions to ensure the collection of claims, thereby limiting any credit risk. Where it appears that there is a potential risk of non-collection of a claim, the Company proceeds to the formation of the required relevant provision. Consequently, it is considered that the risk of bad debts appears to be limited.
A possible decrease in the fair value of the financial assets held by the Group or to be acquired in the future, may affect its results negatively, while in case of liquidation, the accounting loss will also be translated into a reduced liquidity.
The Group is subject to European and Greek laws and environmental regulations. The risk of environmental liability is inherent in the activity of the Company and its subsidiaries. For INTRAKAT Group it is of the utmost importance to adhere to environmental responsibility values. The Group is committed to maintaining an environmentally sensitive and responsible position and to manage its activities accordingly, implementing preventive measures for protecting the environment and minimizing any negative environmental impacts that may arise.
The Group's Environmental Actions concern:
All dividends and other distributions paid by the Company are carried out at the discretion of the general meeting of its shareholders and are subject to the availability of profits and reserves for distribution (after the fulfillment of any relevant terms of the Greek company law), the sufficiency of cash and the Company's compliance with any obligations included in loan agreements, which may limit its ability to carry out various transactions, including the distribution of profits. The generation of profits and other reserves to be distributed depends on a number of factors, including the successful management of the Company's investments, the operating performance of its activities, interest costs, taxes and profits from its activities, the regulatory framework, the liquidity requirements as well as tax and other legal factors. As a result, Company's Management cannot assure shareholders that it will be able to pay dividends or other amounts to be distributed in each fiscal year.
Sales of shares by major shareholders or any share capital increases by the Company or the possibility of such actions, may affect the stock price of the Company's shares. Also, future issuance of new shares may impair
The sale of a significant number of Company shares in the future or any future share capital increases, or even the possibility of carrying out such actions, could cause the stock price to fall. Such a reduction could undermine the ability of other shareholders to sell the Company's shares from time to time or at least their ability to sell them at a price they consider fair. If the Company chooses to raise capital through a share capital increase, the interest held by existing shareholders in the Company's share capital may be impaired. Current legislation provides for analogue pre-emptive rights, with respect to share offers against cash, to existing Company shareholders with certain exceptions, including cases where these rights are abolished by decision of the shareholders.
The stock price of the Company's shares has fluctuated in the past and may show significant fluctuations in the future due to many endogenous factors. These factors include, among others, future changes in operating results, share capital increases or future sales of the Company's common shares or other exchangeable or convertible securities of the Company, changes of the Board members through the election of new or withdrawal of existing, withdrawal or replacement of key personnel, significant changes in the shareholder structure, deviation of financial results from market expectations, successful implementation of the company's strategy and policy and other events and factors within the Company's control. These endogenous factors may contribute to high volatility of prices and sales volume and this may have a material adverse impact on the stock price of the Company's shares. Shareholders cannot be expressly or implicitly guaranteed that they will be reimbursed the amount they invested in the Company's shares.
INTRAKAT Group, while pursuing its business activities in Greece and abroad, maintains a high level of corporate governance, transparency, corporate responsibility and absolute respect for the environment. Furthermore, special attention is given to quality assurance, implementation of preventive measures to protect the environment, ensuring optimum working conditions and raising awareness on issues related to society as a whole.
In its effort to satisfy the key social partners (customers, shareholders, employees), INTRAKAT Group implements a Quality Management system which guarantees the firm commitment to the above principles and full compatibility with ISO 9001: 2008.
In order to maintain the quality of human resources at high levels, INTRAKAT Group has established procedures for the selection, training, evaluation and rewarding of staff and has created a safe and fair working environment, objective evaluation criteria, while providing satisfactory compensation and benefits as well as additional hospital and outpatient insurance coverage for all employees.
On 30.06.2017 the Group employed 564 people (438 as at 30.06.2016) and the Company 343 people (325 as at 30.06.2016). Scientific staff constitutes the majority of total employees.
The Group's companies are investing timeless funds in research and development both in new innovative products and in the development of integrated "turnkey" solutions in the areas of technical projects, steel structures, real estate and renewable energy sources.
For INTRAKAT Group is of prime importance to adhere to environmental responsibility values. The Group is committed to maintaining an environmentally sensitive and responsible position and managing its activities accordingly, by applying preventive measures to protect the environment and minimizing any negative environmental impacts that may arise.
The Group's Environmental Actions concern:
Use of more environmentally friendly materials
Saving natural resources
INTRAKAT Group exercises its business activities in a rational and sustainable manner, while at the same time it provides an excellent working environment and actively supports the local communities in which it develops.
In addition, special attention is given to the existence of a safe working environment without discrimination, respect for the workers' union rights, hygiene and safety rules, as well as to shareholders rights.
INTRAKAT Group adopts the modern principles of Corporate Governance, a system of laws, rules, procedures and proper practices of corporate governance and control, in accordance with applicable Greek legislation and international best practices. The Group's Corporate Governance policies are designed to protect the rights of shareholders and the interests of all stakeholders with transparency and a high sense of responsibility in the decision-making process, effective internal control and audit and appropriate financial risk management.
The company's Corporate Governance Code, as well as issues concerning internal control and audit, information transfer and business and financial risk reduction are in line with the Corporate Governance Code of the Hellenic Federation of Enterprises (SEV).
The Group's employed personnel on 30.06.2017 were 564 people, 153 of which were administrative staff and the other 411 were technical staff.
Peania, September 29th 2017
To the shareholders of the company "INTRACOM CONSTRUCTIONS SOCIETE ANONYME TECHNICAL AND STEEL CONSTRUCTIONS"
We have reviewed the accompanying condensed separate and consolidated statement of financial position of the Company "INTRACOM CONSTRUCTIONS SOCIÉTÉ ANONYME TECHNICAL AND STEEL CONSTRUCTIONS" as at 30 June 2017 and the relative condensed separate and consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended, as well as the selected explanatory notes, that constitute the condensed interim financial information, which is an integral part of the six-month financial report under the 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 adopted by the European Union (EU) and which apply to Interim Financial Reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this condensed interim 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 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 condensed interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard "IAS 34".
We draw your attention to the following:
Our opinion is not modified with respect to these matters.
Our review did not identify any inconsistency or mismatching of the other data of the provided by the article 5 of L. 3556/2007 six-month financial report with the accompanying condensed interim financial information.
Athens, September 29th 2017
ZOE D. SOFOU Certified Public Accountant Auditor Institute of CPA (SOEL) Reg. No.14701
Associated Certified Public Accountants s.a. member of Crowe Horwath International 3, Fok. Negri Street – 112 57 Athens, Greece Institute of CPA (SOEL) Reg. No. 125
These financial statements have been translated from the original statutory financial statements that have been prepared in the Greek language. In the event that differences exist between this translation and the original Greek language financial statements, the Greek language financial statements will prevail over this document.
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Adjusted | Adjusted | ||||
| ASSETS | Σημείωση | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Non-current assets | |||||
| Goodwill | 7.1 | 20.430.231 | 3.042.597 | 326.268 | 326.268 |
| Other intangible assets | 7.2 | 4.240.856 | 3.407.956 | 120.025 | 123.944 |
| Property, plant and equipment | 7.2 | 61.739.585 | 59.985.582 | 30.068.588 | 29.859.761 |
| Investment property | 7.2 | 25.118.773 | 37.214.675 | 8.640.348 | 8.653.001 |
| Investment in subsidiaries | 7.3 | - | - | 23.756.428 | 23.080.403 |
| Investment in associates | 7.4 | 8.953.230 | 1.080.096 | 619.660 | 420.660 |
| Available-for-sale financial assets | 7.5 | 3.655.096 | 432.069 | 1.179.811 | 432.069 |
| Trade and other receivables | 10.260.244 | 10.482.561 | 8.755.480 | 10.405.474 | |
| Deferred income tax assets | 605.236 135.003.251 |
918.960 116.564.496 |
1.235.999 74.702.607 |
1.328.698 74.630.277 |
|
| Current assets | |||||
| Inventories | 13.129.650 | 14.438.308 | 7.906.830 | 8.653.667 | |
| Construction contracts | 7.7 | 38.067.648 | 36.065.758 | 37.867.872 | 35.811.261 |
| State financial contribution (IFRIC 12) | 7.6 | 12.889.301 | 15.344.154 | - | - |
| Trade and other receivables | 77.389.489 | 83.920.573 | 83.887.682 | 89.661.467 | |
| Financial assets at fair value through profit and loss | 233.275 | 167.118 | 233.275 | 167.118 | |
| Current income tax assets | 7.8 | 7.050.330 | 7.347.209 | 6.679.636 | 6.733.433 |
| Cash and cash equivalents | 7.9 | 62.592.764 | 14.039.950 | 59.493.820 | 7.345.175 |
| 211.352.457 | 171.323.069 | 196.069.114 | 148.372.121 | ||
| Assets held for sale | 5.5, 6.1 | 886.951 | - | - | - |
| Total assets | 347.242.658 | 287.887.565 | 270.771.721 | 223.002.398 | |
| EQUITY Capital and reserves attributable to the Parent's equity holders |
|||||
| Share capital | 7.10 | 68.624.477 | 65.573.476 | 68.624.477 | 65.573.476 |
| Amounts against Share Capital increase | 7.10 | 3.900.000 | - | 3.900.000 | - |
| Fair value reserves | 7.11 | (889.727) | (1.345.885) | 287.922 | (403.655) |
| Other reserves | 7.12 | 16.041.602 | 16.046.618 | 16.004.199 | 16.004.199 |
| Retained earnings | (32.989.785) | (32.171.122) | (20.273.639) | (19.613.388) | |
| 54.686.567 | 48.103.088 | 68.542.959 | 61.560.632 | ||
| Non-controlling interests | 1.485.812 | 1.823.451 | - | - | |
| Total equity | 56.172.379 | 49.926.539 | 68.542.959 | 61.560.632 | |
| LIABILITIES | |||||
| Non-current liabilities | |||||
| Borrowings | 7.13 | 61.385.517 | 54.989.913 | 28.302.670 | 27.520.497 |
| Provisions for retirement benefit obligations | |||||
| 1.284.031 | 1.369.180 | 1.020.107 | 1.016.197 | ||
| Grants | 46.373 | 49.100 | 46.373 | 49.100 | |
| Trade and other payables | 7.14 | 30.343.270 93.059.191 |
750.000 57.158.194 |
30.343.270 59.712.421 |
750.000 29.335.794 |
| Current Liabilities | |||||
| Trade and other payables | 7.14 | 148.222.199 | 127.393.313 | 109.385.370 | 92.533.484 |
| Borrowings | 7.13 | 44.198.560 | 44.025.417 | 27.671.740 | 28.420.989 |
| Construction contracts | 17.661 | 3.732.877 | 864.112 | 5.680.594 | |
| Current income tax liabilities | 204.296 | 1.108.605 | 56.592 | 928.284 | |
| Short-term provisions for other liabilities and charges | 7.15 | 4.538.529 | 4.542.621 | 4.538.529 | 4.542.621 |
| 197.181.245 | 180.802.832 | 142.516.342 | 132.105.972 | ||
| Liabilities of assets held for sale | 829.844 | - | - | - | |
| Total liabilities | 5.5, 6.1 | 291.070.279 | 237.961.026 | 202.228.763 | 161.441.766 |
| Total Equity and Liabilities | 347.242.658 | 287.887.565 | 270.771.721 | 223.002.398 |
| (Amounts in Euro) | GROUP | COMPANY | |||
|---|---|---|---|---|---|
| Note | 01.01 - 30.06.2017 |
01.01 - 30.06.2016 |
01.01 - 30.06.2017 |
01.01 - 30.06.2016 |
|
| Sales | 78.096.144 | 95.578.035 | 69.028.471 | 85.681.193 | |
| Cost of goods sold | 7.18 | (65.887.713) | (83.051.510) | (58.766.442) | (76.000.595) |
| Gross profit | 12.208.431 | 12.526.524 | 10.262.029 | 9.680.598 | |
| Administrative expenses | 7.18 | (8.230.842) | (7.239.843) | (5.769.710) | (5.909.094) |
| Other income | 7.19 | 699.193 | 859.139 | 811.253 | 1.201.623 |
| Other expenses | - | - | - | - | |
| Other gains/(losses) - net | 7.20 | (354.973) | 325.005 | (822.899) | 251.665 |
| Operating results | 4.321.809 | 6.470.825 | 4.480.673 | 5.224.793 | |
| Finance income | 7.21 | 138.146 | 158.824 | 181.493 | 153.293 |
| Finance expenses | 7.21 | (5.637.736) | (4.917.155) | (4.419.311) | (3.870.922) |
| Finance cost - net | (5.499.591) | (4.758.331) | (4.237.819) | (3.717.629) | |
| (Losses)/profits from associates (after tax and minority interests) | (259.779) | 22.068 | - | - | |
| (Losses)/profits before taxes | (1.437.561) | 1.734.562 | 242.854 | 1.507.164 | |
| Income tax expense | (1.160.480) | (1.590.664) | (881.444) | (1.199.612) | |
| (Losses)/profits net of taxes | (2.598.040) | 143.898 | (638.590) | 307.552 | |
| Other comprehensive income net of taxes: | |||||
| Amounts which may be transferred to results | |||||
| Available-for-sale financial assets - Fair value (losses)/profit | 522.651 | (1.705.088) | 522.651 | (1.705.088) | |
| Transfer to results | 15.053 | (54.437) | 15.053 | (54.437) | |
| Currency translation differences | (87.527) | (121.602) | 153.874 | (122.476) | |
| Other comprehensive income net of taxes | 450.177 | (1.881.127) | 691.578 | (1.882.002) | |
| Total comprehensive income net of taxes | (2.147.863) | (1.737.229) | 52.988 | (1.574.450) | |
| (Losses)/profit for the period attributable to: | |||||
| Owners of the Parent | (1.998.338) | 39.158 | (638.590) | 307.552 | |
| Non-controlling interests | (599.703) | 104.740 | - | - | |
| (2.598.040) | 143.898 | (638.590) | 307.552 | ||
| Total comprehensive income net of taxes Attributable to: |
|||||
| Owners of the Parent | (1.542.181) | (1.842.212) | 52.988 | (1.574.450) | |
| Non-controlling interests | (605.683) | 104.983 | - | - | |
| (2.147.863) | (1.737.229) | 52.988 | (1.574.450) | ||
| Basic (losses)/profit per share | 7.22 | -0,0862 | 0,0017 | -0,0276 | 0,0133 |
| (Amounts in Euro) | GROUP | |||||||
|---|---|---|---|---|---|---|---|---|
| Note | Ordinary Share Capital |
Against Share Capital increase |
Fair Value Reserves |
Other Reserves |
Retained Earnings |
Non-controlling interests |
Total Equity | |
| Balance at 1 January 2016 | 65.573.476 | - | (1.135.197) | 15.994.739 | (21.574.951) | 2.365.445 | 61.223.512 | |
| Net profit for the period | - - |
- | - | 39.158 | 104.740 | 143.898 | ||
| Available-for-sale financial assets - Fair value (losses)/profit | - | - | (1.705.088) | - | - | - | (1.705.088) | |
| Currency translation differences | - | - | (121.845) | - | - 243 |
(121.602) | ||
| Currency translation differences - Transfer to results | - | - | (54.437) | - | - - |
(54.437) | ||
| Total comprehensive income | - | - | (1.881.371) | - | 39.158 | 104.983 | (1.737.229) | |
| Increase of subsidiary's share capital covered by the minority | - | - | - | - | 3.696 | 20.304 | 24.000 | |
| Expenses of subsidiary's share capital increase | - | - | - | - | (16.080) | (120) | (16.200) | |
| Deferred tax recorded directly in equity | - | - | - | - | 4.628 | - | 4.628 | |
| Acquisition of interest held in subsidiaries from minority | - | - | - | 6.831 | (378.384) | (241.247) | (612.800) | |
| Transfer | - | - | - | - | 83 | (83) | - | |
| Balance at 30 June 2016 | 65.573.476 | - | (3.016.568) | 16.001.570 | (21.921.850) | 2.249.282 | 58.885.911 | |
| Balance at 1 January 2016 | 65.573.476 | - | (1.135.197) | 15.994.739 | (21.574.951) | 2.365.445 | 61.223.512 | |
| Net losses for the year | - - |
- | - | (5.503.193) | 249.159 | (5.254.034) | ||
| Available-for-sale financial assets - Fair value (losses)/profit | - | - | (2.234.245) | - | - | - | (2.234.245) | |
| Available-for-sale financial assets - Transfer to results | - | - | 2.247.625 | - | - | - | 2.247.625 | |
| Currency translation differences | - | - | (169.630) | - | - (2.222) |
(171.852) | ||
| Currency translation differences - Transfer to results | - | - | (54.437) | - | - - |
(54.437) | ||
| Actuarial (losses)/gains | - | - | - | (124.270) | - (13.980) |
(138.250) | ||
| Total comprehensive income Increase of subsidiaries' share capital with change in the interest |
- | - | (210.687) | (124.270) | (5.503.193) | 232.957 | (5.605.193) | |
| held | - | - | - | - | 3.696 | 20.304 | 24.000 | |
| Expenses of subsidiariies' share capital increase Deferred tax imposed on the expenses of a subsidiary's share |
- | - | - | - | (16.080) | (120) | (16.200) | |
| capital increase | - | - | - | - | 4.628 | - | 4.628 | |
| Change of interest held in subsidiaries | - | - | - | 12.831 | (3.789.216) | (855.661) | (4.632.045) | |
| Payment of subsidiary capital | - | - | - | - | - 66.020 |
66.020 | ||
| Adjustment | - | - | - | - | 83 | (83) | - | |
| Transfer from retained earnings to other income | - | - | - | 163.318 | (163.318) | - | - | |
| Balance at 31 December 2016 | 65.573.476 | - | (1.345.885) | 16.046.618 | (31.038.350) | 1.828.861 | 51.064.721 | |
| Balance at 31 December 2016 as pub;ished | 65.573.476 | - | (1.345.885) | 16.046.618 | (31.038.350) | 1.828.861 | 51.064.721 | |
| Effect of error correction (Note 7.28) | - | - | - | - | (1.132.772) | (5.411) | (1.138.183) | |
| Adjusted Balance at 1 January 2017 | 65.573.476 | - | (1.345.885) | 16.046.618 | (32.171.122) | 1.823.451 | 49.926.539 | |
| Net losses for the period | - | - | - | - | (1.998.338) | (599.703) | (2.598.040) | |
| Available-for-sale financial assets - Fair value (losses)/profit | 7.11 | - | - | 522.651 | - | - | - | 522.651 |
| Available-for-sale financial assets - Transfer to results | - | - | 15.053 | - | - | - | 15.053 | |
| Currency translation differences | 7.11 | - | - | (81.547) | - | - (5.980) |
(87.527) | |
| Total comprehensive income | - | - | 456.157 | - | (1.998.338) | (605.683) | (2.147.863) | |
| Share capital increase | 3.051.001 | - | - | - | - | 3.051.001 | ||
| Expenses of share capital increase | - | - | - | - | (30.510) | - | (30.510) | |
| Deferred tax recorded directly in equity | - | - | - | - | 8.848 | - | 8.848 | |
| Amounts against share capital increase | - | 3.900.000 | - | - | - | - | 3.900.000 | |
| Expenses of subsidiariies' share capital increase | - | - | - | - | (14.650) | (13.390) | (28.040) | |
| Deferred tax recorded directly in equity | - | - | - | - | 487 | 122 | 609 | |
| Disposal of subsidiary or of a percentage | - | - | - | (5.016) | 1.215.500 | 281.312 | 1.491.796 | |
| Balance at 30 June 2017 | 68.624.477 | 3.900.000 | (889.727) | 16.041.602 | (32.989.785) | 1.485.812 | 56.172.379 |
| (Amounts in Euro) | COMPANY | ||||||
|---|---|---|---|---|---|---|---|
| Note | Ordinary Share Capital |
Against Share Capital increase |
Fair Value Reserves |
Other Reserves |
Retained Earnings |
Total Equity | |
| Balance at 1 January 2016 | 65.573.476 | - | (301.956) | 15.945.834 | (13.315.336) | 67.902.018 | |
| Net profit for the period | - | - | - | - | 307.552 | 307.552 | |
| Available-for-sale financial assets - Fair value (losses)/profit | - | - | (1.705.088) | - | - | (1.705.088) | |
| Currency translation differences | - | - | (122.476) | - | - | (122.476) | |
| Currency translation differences - transfer to results | - | - | (54.437) | - | - | (54.437) | |
| Total comprehensive income | - | - | (1.882.002) | - | 307.552 | (1.574.450) | |
| Balance at 30 June 2016 | 65.573.476 | - | (2.183.958) | 15.945.834 | (13.007.784) | 66.327.568 | |
| Balance at 1 January 2016 | 65.573.476 | - | (301.956) | 15.945.834 | (13.315.336) | 67.902.018 | |
| Net losses for the year (published) | - | - | - | - | (5.263.508) | (5.263.508) | |
| Available-for-sale financial assets - Fair value (losses)/profit | - | - | (2.234.245) | - | - | (2.234.245) | |
| Available-for-sale financial assets - Transfer to results | - | - | 2.247.625 | - | - | 2.247.625 | |
| Currency translation differences | - | - | (60.642) | - | - | (60.642) | |
| Currency translation differences - Transfer to results | - | - | (54.437) | - | - | (54.437) | |
| Actuarial (losses)/gains | - | - | - | (101.753) | - | (101.753) | |
| Total comprehensive income | - | - | (101.699) | (101.753) | (5.263.508) | (5.466.961) | |
| Transfer from other income to retained earnings | - | - | - | 160.118 | (160.118) | - | |
| Balance at 31 December 2016 | 65.573.476 | - | (403.655) | 16.004.199 | (18.738.963) | 62.435.057 | |
| Balance at 31 December 2016 as pub;ished | 65.573.476 | - | (403.655) | 16.004.199 | (18.738.963) | 62.435.057 | |
| Effect of error correction (Note 7.28) | - | - | - | - | (874.425) | (874.425) | |
| Adjusted Balance at 1 January 2017 | 65.573.476 | - | (403.655) | 16.004.199 | (19.613.388) | 61.560.632 | |
| Net losses for the period | - | - | - | - | (638.590) | (638.590) | |
| Available-for-sale financial assets - Fair value (losses)/profit | 7.11 | - | - | 522.651 | - | - | 522.651 |
| Available-for-sale financial assets - Transfer to results | 7.11 | - | - | 15.053 | - | - | 15.053 |
| Currency translation differences | 7.11 | - | - | 153.874 | - | - | 153.874 |
| Total comprehensive income | - | - | 691.578 | - | (638.590) | 52.988 | |
| Share capital increase | 3.051.001 | - | - | - | 3.051.001 | ||
| Expenses of share capital increase | - | - | - | - | (30.510) | (30.510) | |
| Deferred tax recorded directly in equity | - | - | - | - | 8.848 | 8.848 | |
| Amounts against share capital increase | - | 3.900.000 | - | - | - | 3.900.000 | |
| Balance at 30 June 2017 | 68.624.477 | 3.900.000 | 287.922 | 16.004.199 | (20.273.639) | 68.542.959 |
| (Amounts in Euro) | GROUP | COMPANY | ||||
|---|---|---|---|---|---|---|
| Note | 30.06.2017 | 30.06.2016 | 30.06.2017 | 30.06.2016 | ||
| Cash flows from operating activities | ||||||
| (Losses)/profit for the period | (2.598.040) | 143.898 | (638.590) | 307.552 | ||
| Adjustments for: | ||||||
| Taxes | 1.160.480 | 1.590.664 | 881.444 | 1.199.612 | ||
| Depreciation | 1.771.991 | 2.015.428 | 910.463 | 1.147.922 | ||
| Gains/ (losses) from disposal of PPE | 7.20 | (25.218) | 24.630 | (24.023) | 18.191 | |
| Gains/ (losses) from disposal of investment property | 7.20 | (55.710) | - | - | - | |
| Fair value gains/ (losses) of other financial assets at fair value through profit or loss | 7.20 | (66.157) | 11.802 | (66.157) | 11.802 | |
| (Gains)/losses from disposal of subsidiaries | (596) | - | 409.175 | - | ||
| (Gains)/losses from J/Vs dissolution Interest income |
7.21 | 36.423 (138.146) |
- (158.824) |
36.423 (181.493) |
- (153.293) |
|
| Interest expense | 7.21 | 5.637.736 | 4.917.155 | 4.419.311 | 3.870.922 | |
| Dividend income | 7.19 | - | (365) | - | (365) | |
| Depreciation of grants received | 7.19 | (2.727) | (2.727) | (2.727) | (2.727) | |
| Impairment of doubtful debts | 7.20 | 451.179 | 63.422 | 452.429 | - | |
| Impairment of subsidiaries | 7.20 | - | - | - | 143.200 | |
| Extraordinary profits from judicial settlement of liabilities | 7.20 | - | (333.210) | - | (333.210) | |
| Currency translation differences | (95.024) | (160.035) | 145.383 | (168.284) | ||
| Share of profit/(losses) from associates | 7.4 | 259.779 | (22.068) | - | - | |
| Cash flows from operating activities before changes in the working capital | 6.335.970 | 8.089.768 | 6.341.639 | 6.041.320 | ||
| Changes in working capital : | ||||||
| (Increase) / decrease of inventories | 1.277.323 | 105.206 | 746.837 | 867.316 | ||
| (Increase) / decrease of receivables | 6.035.471 | (21.018.021) | 4.894.369 | (13.245.267) | ||
| Increase / (decrease) of payables | 41.683.125 | 6.305.902 | 41.628.673 | (532.842) | ||
| Increase / (decrease) of provisions | (4.092) | (37.210) | (4.092) | (37.210) | ||
| Increase / (decrease) of retirement benefit obligations | 17.204 49.009.030 |
18.804 (14.625.320) |
3.911 47.269.697 |
25.932 (12.922.071) |
||
| Cash flows from operating activities | 55.345.000 | (6.535.551) | 53.611.336 | (6.880.751) | ||
| Interest paid | (5.637.736) | (4.917.155) | (4.419.311) | (3.870.922) | ||
| Income tax paid | (1.690.840) | (2.165.561) | (1.813.433) | (2.134.594) | ||
| Net cash generated from operating activities | 48.016.423 | (13.618.268) | 47.378.592 | (12.886.266) | ||
| Cash flows from investing activities | ||||||
| Purchase of PPE | 7.2 | (3.493.687) | (4.783.868) | (1.084.295) | (490.497) | |
| Purchase of investment property | 7.2 | (274.174) | (70.065) | - | (15.757) | |
| Purchase of intangible assets | 7.2 | (894.775) | (986.216) | (52.865) | (8.498) | |
| Disposal of PPE | 57.506 | 303.723 | 57.506 | 251.133 | ||
| Disposal of investment property | 837.489 | - | - | - | ||
| Dividends received | 7.19 | - | 365 | - | 365 | |
| Purchase of financial assets available for sale | 7.5 | - | (54.612) | - | (54.612) | |
| Loss of control in a subsidiary | (22.270) | - | - | - | ||
| Cash in hand of assets held for sale | (11.102) | - | - | - | ||
| Purchase of subsidiaries (less cash in hand of susidiary) | (4.299.651) | - | - | - | ||
| Disposal of subsidiary or of a percentage to the minority | 1.508.800 | - | 1.508.800 | - | ||
| Contribution to the share capital of subsidiaries/associates | - | (126.000) | (2.794.000) | (7.200) | ||
| Purchase/Foundation of associates | (200.000) | - | - | - | ||
| Interest received | 138.146 | 158.824 | 181.493 | 153.293 | ||
| Net cash used in investing activities | (6.653.719) | (5.557.849) | (2.183.361) | (171.773) | ||
| Cash flows from financing activities | ||||||
| Issue of common shares | 7.10 | 3.051.001 | - | 3.051.001 | - | |
| Expenses of share capital increase | (30.510) | - | (30.510) | - | ||
| Shareholders' deposits against share capital increase | 3.900.000 | - | 3.900.000 | - | ||
| Minority shareholders' deposits against subsidiary's share capital increase | 1.200.000 | - | - | - | ||
| Minority shareholders share in subsidiary's share capital payment | - | 24.000 | - | - | ||
| Expenses of subsidiariies' share capital increase | (28.040) | (16.200) | - | - | ||
| Proceeds from borrowings | 37.036.007 | 41.262.670 | 29.595.206 | 39.546.206 | ||
| Repayment of borrowings | (37.785.004) | (36.863.148) | (29.408.939) | (35.483.542) | ||
| Repayments of finance lease obligations | (153.344) | (166.074) | (153.344) | (162.533) | ||
| Net cash used in financing activities | 7.190.110 | 4.241.248 | 6.953.414 | 3.900.132 | ||
| Net (decrease) / increase in cash & cash equivalents Cash and cash equivalents at the beginning of the period |
48.552.814 14.039.950 |
(14.934.868) 31.324.751 |
52.148.645 7.345.175 |
(9.157.908) 15.956.037 |
||
| Cash and cash equivalents at the end of the period | 62.592.764 | 16.389.883 | 59.493.820 | 6.798.130 |
The interim financial statements consist of the separate financial statements of «INTRACOM CONSTRUCTIONS SOCIETE ANONYME TECHNICAL AND STEEL CONSTRUCTIONS» (the "Company") and the consolidated financial statements of the Company and its subsidiaries (the "Group") for the six-month period ended 30 June 2017 drawn up in accordance with the International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board (IASB).
«INTRACOM CONSTRUCTIONS SOCIETE ANONYME TECHNICAL AND STEEL CONSTRUCTIONS» (d.t. «INTRAKAT») is the parent company of the group domiciled in Greece. Its registered office is at the 19th km Peania-Markopoulo Ave., Peania Attikis, Greece P.O. 190 02.
The Company's shares are listed on the Athens Stock Exchange.
The interim financial statements for the period ended on June 30th 2017 were approved by the Board of Directors on September 29th 2017.
INTRAKAT was founded in 1987, is a Greek Societe Anonyme with General Electronic Commercial Registry No: 408501000, (former companies registration No: 16205/06/B/87/37).
The Group's is activated in the fields of constructions (including telecommunications and optical fiber networks), steel structures and energy production from wind farms.
The construction activity is expanding in all contemporary fields of public and private projects and until today the Parent company as well as the joint operations in which it participates have materialized significant projects such as office buildings, industrial buildings, hospitals, airport expansions, motorway infrastructures, athletic projects, railway projects, hotels, telecommunication projects and natural gas infrastructure projects.
The Parent company holds the upper (7th) grade Contractors Certificate of the Registry of Contractors' Enterprises (Ministry of Infrastructure, Transport and Networks) for all categories of projects.
Development in the field of steel structures is realized through the Company's factory unit, situated on a privately owned plot in Larissa, Yannouli, measuring 125.000 m² (25.000 m² indoor space), that provides a series of services including the design, study, development, industrialization and installation (erection) of complex steel and electromechanical structures.
At the same time INTRAKAT Group expands its activity in the fields of environmental projects (administration of natural resources and green development projects) and renewable energy sources (integrated solutions of study, installation and maintenance of solar and wind parks), while significant is its presence abroad, where through its subsidiaries in Romania and Cyprus and through its branch offices in Albania, Syria, Poland and Bulgaria, it implements various building projects and telecommunication infrastructure projects.
The interim condensed separate and consolidated financial statements for the period ended 30 June 2017 (hereinafter the «financial statements») have been prepared under the historical cost convention, except for the available-for-sale financial assets, the financial assets at fair value through profit or loss valuated at fair value, the going concern principle and are in accordance with the International Financial Reporting Standards (IFRS), as those have been issued by the International Accounting Standards Board (IASB), as well as with their Interpretations, as issued by the International Financial Reporting Interpretations Committee (IFRIC) and approved by the European Union and in particular with the provisions of IAS 34 "Interim Financial Reporting".
The interim condensed financial statements include limited information as compared to those of the annual financial statements and therefore should be considered in conjunction with the latest published annual financial statements.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates and the exercise of Management's judgement in the process of applying the accounting policies. Futhermore, the use of estimates and assumptions is required that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of preparation of the financial statements and the reported income and expense amounts during the reporting period. Although these estimates are based on the best possible knowledge of management with respect to the current conditions, the actual results may eventually differ from these estimates.
The accounting principles used for the preparation of the interim financial statements are consistent with those used for the preparation of the annual financial statements of the previous year.
Furthermore, all amended standards and interpretations effective from January 1st 2017 have been taken under consideration to the extent they are applicable.
Certain new standards, amendments to standards and interpretations have been issued that are mandatory for annual periods beginning from January 1st 2017 or subsequently. The Group and the Company are in the process of assessing their impact on their financial statements.
There are no new standards, amendments to standards and interpretations that have been adopted by the European Union and are mandatory for reporting periods beginning on 1.1.2017.
The amendment clarifies the accounting treatment relating to the recognition of deferred tax assets for unrealized losses arising from debt instruments measured at fair value. The amendment is effective for annual reporting periods beginning on or after January 1st 2017 and has not yet been adopted by the European Union.
The amendment introduces mandatory disclosures that enable users of financial statements to evaluate changes in liabilities derived from financing activities. The amendment shall require entities to provide disclosures that enable investors to evaluate the changes in liabilities arising from financial activities, including changes derived from cash flows and changes on non-cash nature. The amendment is effective for annual reporting periods beginning on or after January 1st 2017 and has not yet been adopted by the European Union.
The amendments of the 2014-2016 cycle, were issued by IASB on December 8th 2016. Τhe following improvement is effective for periods beginning on or after January 1st and has not yet been adopted by the European Union.
The amendment clarified the standard's scope of application, specifying that certain disclosure requirements of the standard, apply to the entity's interests referred to in paragraph 5 which have been classified as held for sale, as held for distribution or as discontinued operations in accordance with IFRS 5 "Non-current Assets Held for Sale or Discontinued Operations". The amendment is effective for annual reporting periods beginning on or after January 1st 2017.
The following new standards, amendments and interpretations have been issued but are mandatory for subsequent periods. The Company and the Group have not early adopted the following standards.
On July 24th 2014, IASB issued the final version of IFRS 9 which includes the classification and measurement, the impairment and hedge accounting. The standard is going to replace IAS 39 as well as all other earlier versions of IFRS 9. The financial assets are measured at amortized cost, at fair value through profit or loss, or at fair value through other comprehensive income, based on the entity's business model for managing the financial assets and the contractual cash flow of the financial assets. Apart from the credit risk of the entity, the classification and measurement of financial liabilities has not changed in relation to the existing
requirements. The Company and the Group are in the process of assessing the impact of IFRS 9 on their financial statements. IFRS 9 is mandatory for annual reporting periods beginning on or after January 1st 2018 and was adopted by the European Union on November 22nd 2016.
On May 28th 2014 the IASB issued IFRS 15 «Revenue from Contracts with Customers» and including the amendments to the standard issued on September 11th 2015 is mandatory for annual reporting periods beginning on or after January 1st 2018 and constitutes the new standard for the recognition of revenue.
IFRS 15 replaces IAS 18, IAS 11 and the interpretations IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31.
The new standard establishes a five-step model to be applied to revenue resulting from a contract with a customer (with limited exceptions), in order to improve comparability between companies in the same industry, different sectors and different capital markets. The standard's requirements will also apply to the recognition and measurement of profits and losses from the sale of certain non-financial assets that do not constitute production from the entity's ordinary operations (i.e., sale of property plant and equipment or of intangible assets). Extensive disclosures shall be required, including total revenue analysis, information on the performance obligations, changes in balances of contract assets and contract liabilities between periods and key judgments and estimates. IFRS 15 was adopted by the European Union on September 22nd 2016.
The Company and the Group are in the process of assessing the impact of IFRS 15, as the application of this standard in the future may have a material effect on their financial statements.
On January 30th 2014 the IASB issued the standard the objective of which is to specify the financial reporting requirements for the "Regulatory Deferral Accounts" balances that arise when an entity provides goods or services to customers at a price or rate that is subject to rate regulation by the state.
IFRS 14 permits an entity that is a first-time adopter of IFRS to continue to account, with minor changes, "regulatory deferral accounts" balances in accordance with the previous accounting standards, both in its first IFRS financial statements as well as in its subsequent financial statements. The balances and transactions of these accounts are presented separately in the statements of financial position, results and other comprehensive income, while specific disclosures are required. The new standard is effective for annual reporting periods beginning on or after January 1st 2016 and has not yet been adopted by the European Union.
On January 13th 2016 the IASB issued IFRS 16 and replaces IAS 17. The purpose of the standard is to ensure that lessees and lessors provide useful information that fairly presents the substance of transactions involving leases. IFRS 16 introduces a single lessee accounting model, which requires the lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Regarding the accounting on the part of the lessor, IFRS 16 substantially incorporates the requirements of IAS 17. Accordingly, the lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. The new standard is effective for annual reporting periods beginning on or after January 1st 2019 and has not yet been adopted by the European Union.
On May 18th 2017 the IASB issued IFRS 17, which replaces the existing standard IFRS 4.
IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosures of insurance contracts, aiming to provide a more uniform valuation and presentation approach for all insurance contracts.
IFRS 17 requires the valuation of insurance liabilities not to be carried at historical cost but at current value in a consistent manner and with the use of:
The main consequence of the amendment issued by IASB on September 11th 2014, is that a full gain or loss should be recognized when a transaction includes a business (whether relating to a subsidiary or not). A partial gain or loss is recognized when a transaction includes assets that do not constitute a business, even if these assets relate to a subsidiary. The amendment is effective for annual reporting periods beginning on or after January 1st 2016 and has not yet been adopted by the European Union.
The amendment provides clarifications on the basis of measurement regarding cash-settled share-based payment transactions and the accounting for modifications of terms and conditions that alter a cash-settled share-based payment to an equity-settled share-based payment. In addition, it introduces an exception regarding the principles of IFRS 2 on the basis of which a payment should be treated as equity-settled in its entirety, in cases where the employer is required to withhold an amount to cover the tax liabilities of employees resulting from share-based payments and attribute it to the tax authorities. The amendment is effective for annual reporting periods beginning on or after January 1st 2018 and has not yet been adopted by the European Union.
The IASB issued on September 12th 2016 amendments to IFRS 4 so as to address the concerns arising from the application of the new financial instruments standard (IFRS 9), prior to the application of the new, modified by the IASB, IFRS 4. The amendments introduce two optional approaches: overlay and deferral. The amended standard will:
The amendment is effective for annual reporting periods beginning on or after January 1st 2018 and has not yet been adopted by the European Union.
In April 2016, the IASB issued 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 an entity is a principal or an agent and how to determine whether the revenue from granting a license should be recognized at a specific point in time or over time. The Group will consider the impact of all the above on its Financial statements, although they are not expected to have any. The amendment is effective for annual reporting periods beginning on or after 1.1.2018 and has not yet been adopted by the European Union.
The amendments of the 2014-2016 cycle, were issued by IASB on December 8th 2016, are effective for periods beginning on or after January 1st 2018 and have not yet been adopted by the European Union.
The amendment deletes "Short-term exemptions from IFRS" which were provided in Appendix E of IFRS 1, on the grounds that they have served their intended purpose and are no longer necessary.
The amendment clarifies that the option given, to measure investments in associates or joint ventures held by an entity which is a venture capital organization, or other entity that meets the requirements, at fair value through profit or loss, is available for each investment in an associate or joint venture separately upon initial recognition.
The amendments to IAS 40 issued by the IASB on December 8th 2016 clarify that an entity may transfer a property to or from investment property when, and only when, there are indications of change in use. A change in use occurs if the property meets or no longer meets the definition of investment property. A change in management intentions for the use of the property itself, is not an indication of a change in use. The amendment is effective for annual reporting periods beginning on or after January 1st 2018 and has not yet been adopted by the European Union.
IFRIC 22 clarifies the accounting for transactions that include the receipt or payment of advance consideration in a foreign currency. The interpretation covers foreign currency transactions when an entity recognizes a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognizes the related asset, expense or income. According to the interpretation the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The interpretation is effective for annual reporting periods beginning on or after January 1st 2018 and has not yet been adopted by the European Union.
IFRIC 23 is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. In this case, it should be considered:
The interpretation is effective for annual reporting periods beginning on or after January 1st 2019 and has not yet been adopted by the European Union.
The Group's structure as at June 30th 2017 is as follows:
| COMPANY NAME | % of interest held |
Consolidation method |
|---|---|---|
| INTRAKAT, Greece | Parent | |
| EUROKAT ATE, Greece | 100,00% | Full |
| ΙΝ. ΜΑΙΝΤ S.A, Greece | 62,00% | Full |
| FRACASSO HELLAS S.A. DESIGN & CONSTRUCTION OF ROAD SAFETY SYSTEMS, Greece | 80,00% | Full |
| - FRACASSO HOLDINGS D.O.O., Croatia | 40,00% | Equity * |
| INTRADEVELOPMENT S.A., Greece | 50,00% | Full |
| - ANAPTIXIAKI CYCLADES S.A. REAL ESTATE DEVELOPMENT, Greece | 50,00% | Full * |
| - INTRA-CYCLADES REAL ESTATE DEVELOPMENT COMPANY SOCIETE ANONYME, Greece | 50,00% | Full * |
| - ALPHA ANAPTIXIAKI CYCLADES S.A., Greece | 50,00% | Full * |
| - BITA ANAPTIXIAKI CYCLADES S.A., Greece | 50,00% | Full * |
| - INTRAPAR S.A., Greece | 50,00% | Full * |
| - KEKROPS S.A., Greece | 12,86% | Equity * |
| - DEVENETCO L.T.D., Cyprus | 50,00% | Equity * |
| - B.L.BLUEPRO HOLDINGS L.T.D., Cyprus | 50,00% | Equity * |
| - BENECIELO CO LTD | 50,00% | Equity * |
| - STUERZA PROPERTIES LTD | 50,00% | Equity * |
| - INESTIA TOURISTIKI SOCIETE ANONYME, Greece | 25,00% | Full * |
| - INTRA-HOSPITALITY SOCIETE ANONYME HOTEL AND TOURISM BUSINESS, Greece | 25,00% | Full * |
| INTRA-BLUE HOSPITALITY AND BUSINESS TOURISM SOCIETE ANONYME, Greece | 100,00% | Full ** |
| INTRAPOWER SOCIETE ANONYME ENERGY PROJECTS, Greece | 100,00% | Full |
| RURAL CONNECT S.A., Greece | 60,00% | Full |
| B-WIND POWER ENERGY SOCIETE ANONYME, Greece | 100,00% | Full ** |
| INTRACOM CONSTRUCT SA, Romania | 97,17% | Full |
| OIKOS PROPERTIES SRL, Romania | 100,00% | Full |
| ROMINPLOT SRL, Romania | 100,00% | Full |
| ΙNTRAKAT INTERNATIONAL LIMITED, Cyprus | 100,00% | Full |
| - ALPHA MOGILANY DEVELOPMENT SP. Z.O.O, Poland | 25,00% | Equity * |
| - AMBTILA ENTERPRISES LIMITED, Cyprus | 100,00% | Full * |
| - Κ-WIND KITHAIRONAS ENERGY S.A. (former Α.KATSELIS ENERGEIAKI S.A.), Greece | 80,00% | Full * |
| Α. Κ. ENERGEIAKI S.A., Greece | 60,00% | Full |
| THESSALONIKI's CONTROLLED PARKING SYSTEM S.A. (ΣΤΕΛΣΤΑΘ), Greece | 95,00% | Full |
| ADVANCED TRANSPORT TELEMATICS S.A., Greece | 50,00% | Equity |
| SOCIETE ANONYME FOR THE OPERATION OF SERRES MUNICIPAL SOLID WASTE TREATMENT UNIT (ELMEAS SA), Greece | 40,00% | Equity |
| SOCIETE ANONYME FOR THE MANAGEMENT OF SERRES MUNICIPAL SOLID WASTE (SIRRA SA), Greece | 40,00% | Equity |
| MOBILE COMPOSTING S.A., Greece | 24,00% | Equity |
| J/V MOHLOS - INTRACOM CONSTRUCTIONS (SWIMMING POOL), Greece | 50,00% | Equity |
| J/V PANTHESSALIKO STADIUM, Greece | 15,00% | Equity |
* indirect participation, ** direct and indirect participation
The joint operations in which the Group INTRAKAT participates are:
| COMPANY NAME | % of interest held |
|---|---|
| INTRAKAT, Greece | Μητρική |
| Joint operations | |
| - J/V ΙΝΤRΑΚΑΤ - ΑΤΤΙΚΑΤ (ΕGΝΑΤΙΑ ROAD), Greece | 50,00% |
| - J/V INTRAKAT- ELTER (PROJECT OF NATURAL GAS SCHOOL INSTALLATION), Greece | 30,00% |
| - J/V ΙΝΤRΑΚΑΤ - ΙΝΤRACOM TELECOM (DEPA's TELECOMMUNICATION NETWORKS), Greece | 70,00% |
| - J/V INTRAKAT - ELTER (EXPANSION OF NATURAL GAS DISTRIBUTION NETWORKS XANTHI, SERRES, KOMOTINI), Greece | 50,00% |
| - J/V AKTOR ATE - J&P AVAX - ΙΝΤRΑΚΑΤ (J/V MOREAS), Greece | 13,33% |
| - J/V INTRAKAT - ELTER (NATURAL GAS PIPELINES DISTRIBUTION AND SUPPLY NETWORK IN SOUTH ATTIKA REGION - EPA 7), Greece | 49,00% |
| - J/V EUROKAT - INTRAKAT (IONIOS GENERAL CLINIC), Greece | 100,00% |
| - J/V INTRAKAT - ETVO (CONSTRUCTION OF THE CENTRAL LIBRARY FACILITIES OF THE ATHENS SCHOOL OF FINE ARTS), Greece | 70,00% |
| - J/V ANASTILOTIKI - INTRAKAT - GETEM - ETETH (CIVIL, ELECTROΜECHANICAL WORKS & SHAPING OF SURROUNDINGS OF THE NEW MUSEUM IN PATRA), Greece |
25,00% |
| - J/V ANASTILOTIKI - GETEM - INTRAKAT (CONSTRUCTION OF REFINERY & WATER PIPELINES IN PATRA & ITS INDUSTRIAL DISTRICT FROM PEIROS - PARAPEIROS DAM), Greece |
33,30% |
| - J/V ALTEK SA - INTRAKAT - ANASTILOTIKI ATE (EXPANSION OF THE TERMINAL OF THESSALONIKI's PUBLIC AIRPORT "MACEDONIA" NORTHWEST UNTIL THE CONTROL TOWER), Greece |
46,90% |
| - J/V INTRAKAT - K. PANAGIOTIDIS UNLIMITED CO. (PROJECT OF TRANSPORT LINES 'ONE'), Greece | 60,00% |
| - J/V INTRAKAT - FILIPPOS S.A. (AMFIPOLIS PROJECT), Greece | 50,00% |
| - J/V EKTER S.A. - ERTEKA S.A. - THEMELI S.A. - INTRAKAT (NETWORKS OF FILOTHEI REGION IN KIFISIA), Greece | 24,00% |
| - J/V INTRAKAT - G.D.Κ. TECHNIKI EPE "J/V FOR THE CONSTRUCTION OF THE FILIATRINOU DAM PROJECT", Greece | 70,00% |
| - J/V J&P ΑVAX-AEGEK-INTRAKAT (INFRASTRUCTURE OF THE DOUBLE RAIL LINE KIATO-RODODAFNI), Greece | 33,33% |
| - J/V AKTOR ΑΤΕ-PORTO KARRAS SA-INTRAKAT (SETTLEMENT OF ESHATIA STREAM), Greece | 25,00% |
| - J/V INTRAKAT-PROTEAS (SETTLEMENT OF XIRIAS TORRENT), Greece | 50,00% |
| - J/V AKTOR - J&P AVAX - INTRAKAT (PANAGOPOULA TUNNEL), Greece | 25,00% |
| - J/V AKTOR ATE-INTRAKAT (MONITORING APOSELEMIS's RESERVOIR FILLING PROCESS), Greece | 50,00% |
| - J/V ATERMON ΑΤΕ-ΙΝΤRΑΚΑΤ (MATERIAL SUPPLY & CONSTRUCTION OF T.L. ΚΥΤ LAGADA-ΚΥΤ FILIPPON), Greece | 50,00% |
| - J/V ΙΝΤRΑΚΑΤ-ΕRGO ΑΤΕ (CONSTRUCTION OF DISTRIBUTION NETWORK & NATURAL GAS PIPES IN ATTICA), Greece | 50,00% |
| - J/V INTRAKAT - "J/V ARHIRODON HELLAS ATE - INTRAKAT" (GENERAL DETAINMENT FACILITY OF EASTERN MACEDONIA & THRACE), | 80,00% |
| Greece | |
| - J/V INTRAKAT - MESOGEIOS E.S. SA (PROJECT OF BIOLOGICAL PURIFICATION OPERATION MAINTENANCE IN OINOFITA SHIMATARIOU), | 50,00% |
| - J/V INTRAKAT - PROTEAS (DRAINAGE OF RAINWATER IN ANAVYSSOS), Greece | 50,00% |
| - J/VINTRAKAT - PROTEAS (COMPLETION WORKS FOR SETTLING XIRIAS TORRENT), Greece | 50,00% |
| - J/V AKTOR ATE - LOBBE TZILALIS - EUROKAT ATE (TOTAL ADMINISTRATION OF OOZE KEL), Greece | 33,33% |
| - J/V EUROKAT ATE - PROTEYS A.T.E.E. (PROJECT OF RAINWATER RUNOFF NETWORKS IN PAIANIA's MUNICIPALITY), Greece | 50,00% |
* indirect participation, ** direct and indirect participation
The parent company ΙΝΤΡΑΚΑΤ:
On 23.06.2017 the subsidiary company Κ-WIND KITHAIRONAS ENERGY S.A. proceeded to a share capital increase by the amount of € 210 thousand, with the capitalization of retained earnings.
The current period's consolidation does not include, the company «ICMH HEALTH SERVICES S.A.» due to its sale, the joint operations, J/V ΙΝΤRΑΚΑΤ - ΙΝΤRACOM TELECOM (DEPA's TELECOMMUNICATION NETWORKS), and «J/V INTRAKAT - FILIPPOS S.A. (AMFIPOLIS PROJECT)» as well as the joint venture «J/V INTRAKAT - ERGAS - ALGAS», due to their dissolution.
The overall impact of the above events on the turnover was null, on the results net of taxes and non-controlling interests was € 94,56 thousand and on the issuer's equity was € 1.192 thousand.
On 12.06.2017, INTRAKAT's subsidiary INTRADEVELOPMENT, acquired 100% from Messrs. S. Kokkalis and P. Kokkalis of the societe anonyme INTRAPAR S.A., shareholder of KEKROPS S.A. by 25,72% (relevant Notification of significant changes in voting rights dated 15.06.2017 by KEKROPS S.A. according to Law 3556/2007), for a consideration of € 7 million and a contingent consideration of € 2,7 million, which is subject to proviso payment.
On that date, the shares and voting rights were transferred to Intrapar SA and therefore under IFRS 10 the Company acquired control over Intrapar SA. For the accounting of the transaction, the Company followed the provisions of IFRS 3. This acquisition was made within the framework of the Group's strategy for expanding its activity in the real estate sector.
On 12.06.2017 the equity of Intrapar SA amounted to € -7,66 million, including the 25,72% interest held in the associate company Kekrops SA valued at its market value amounting € 815 thousand.
The price of the transaction was deemed reasonable based on the following elements:
Finally, as expressly stipulated in the purchase-sale agreements of INTRAPAR SA shares, in the event that the abovementioned under 2 application for annulment of KEKROPS SA is not accepted, the above acquired shares of INTRAPAR SA, with the rights thereon, are transferred to the ownership of the Sellers, who are obliged to return to the Buyer the price they collected plus interest.
The Company recognized the assets of the subsidiary based on their book value of € -7,66 million and therefore goodwill resulted from the acquisition amounting to € 17,4 million.
The Company will make use of the ability provided by IFRS 3 to decide on the definitive allocation over the next 12-month period.
The assets and liabilities of the acquired company are as follows:
| (Amounts in Euro) | Fair value of acquired company |
|---|---|
| Cash in hand | 349 |
| Investment in associates | 814.846 |
| Trade receivables | 138.414 |
| Other liabilities and borrowings | (11.089.979) |
| Other assets | 2.475.287 |
| Acquired net worth | (7.661.084) |
| Cash acquisition outflows: | |
| Acquisition consideration in cash | 7.000.000 |
| Cash and cash equivalents of acquired company | 349 |
| 6.999.651 |
The outflow from the transaction as it appears in cash flows amounted to € 2,3 million. The outstanding balance of the transaction is presented in note 7.26: Related Party Transactions.
The effect of the initial accounting was as follows:
| Acquisition date | 12.06.2017 |
|---|---|
| Acquired participation percentage | 100% |
| Acquisition consideration: | |
| Cash | 7.000.000 |
| Contigent consideration | 2.726.550 |
| Total acquisition consideration | 9.726.550 |
| Less: Net Asset Value acquired | (7.661.084) |
| Goodwill | 17.387.634 |
The impairment test of goodwill in the associate KEKROPS SA revealed no reasons for conducting impairment (See note 7.1: Goodwill).
The impact of the event on the turnover was null, on the results net of taxes and non-controlling interests was € - 18 thousand and on the issuer's equity was € -18 thousand.
Loss of control over a subsidiary during the six-month period
• On 14.02.2017 the subsidiary company DEVENETCO LTD, in which the subsidiary INTRADEVELOPMENT participated by 100%, proceeded to an increase of its share capital by € 13.599 thousand. To the company's share capital increase the subsidiary INTRADEVELOPMENT participated with the amount of € 6.799 thousand and a strategic investor with the amount of € 6.800 thousand. After the completion of the share capital increase, the interest held by the subsidiary INTRADEVELOPMENT in DEVENETCO stood at 50% and DEVENETCO Group is now considered a participation in associated companies. Until 13.02.2017 the Group incorporated the DEVENETCO Group with the full consolidation method. Since
14.02.2017 the participation has been transferred from Investments to Subsidiaries to Investments in Associates and is now incorporated in the Group's Financial Statements using the equity method.
The fair values of Assets and Liabilities of the DEVENETCO Group as at 14.02.2017 were as follows:
| (Amounts in Euro) | |
|---|---|
| Cash in hand | 6.822.270 |
| Investment property | 11.824.459 |
| Trade receivables | 41.151 |
| Trade payables | (6.448.124) |
| Other assets | 1.678.650 |
| Other liabilities | (10.893) |
| Net worth | 13.907.513 |
| Net worth attributable to the Group (50%) | 6.953.757 |
| Date of loss of control | 14.02.2076 |
| Previously interest held | 100% |
| Lost interest percentage | 50% |
| Total interest held | 50% |
| Fair value of the net worth of items lost | 6.953.757 |
| Less: Net worth of items lost | 7.107.513 |
| Profit / Loss from associates | (153.757) |
The impact of the above event on the turnover was null, on the results net of taxes and non-controlling interests was € -153,7 thousand and on the issuer's equity was € -153,7 thousand.
The subsidiary "ΙΝ.ΜΑΙΝΤ MAINTENANCE AND REPAIR OF INSTALLATIONS SOCIETE ANONYME - PRIVATE SECURITY SERVICES" decided to split into two parts, with the A' benefited company "INTRAPOWER SOCIETE ANONYME ENERGY PROJECTS", also a subsidiary company, absorbing the one part and the B' benefited company "IOANNIS VALSAMIDIS SOCIETE ANONYME", company outside the Group, absorbing the other part.
The aforementioned split was approved on 31.08.2017 and was realized in accordance with the provisions of articles 81 par. 2 and 82 - 86 of C.L.2190/20, in conjunction with article 54 of Law 4172/2013 (for tax purposes), the splitting contract No 42.021/29.08.2017, the Evaluation Report of the Committee of article 9 of C.L. 2190/1920 dated 08.08.2017, for the valuation of the splitting company's assets based on the Transformation Balance Sheet as of 31.12.2016 and the resolutions of the Extraordinary General Meetings of the shareholders of the three societe anonyme companies held on 21.08.2017.
The measurement of held-for-sale assets and liabilities at fair value did not reveal differences.
Temporary Assets and temporary Liabilities transferred at 30.06.2017 are as follows:
| (Amounts in Euro) | 30.06.2017 |
|---|---|
| Assets held for sale | |
| Property, plant and equipment | 5.620 |
| Trade and other receivables | 805.455 |
| Other assets | 75.876 |
| 886.951 | |
| Assets held for sale | 886.951 |
| Liabilities of assets held for sale | |
| Trade and other payables | 106.500 |
| Borrowings | 620.990 |
| Other liabilities | 102.354 |
| Liabilities of assets held for sale | 829.844 |
The impact of the above event on the turnover, on the results net of taxes and non-controlling interests and on the issuer's equity was null.
The Group faces the following financial risks:
With respect to the liquidity risk, the Group, in the adverse economic environment as it is currently shaped, is in constant contact with the Greek banking institutions in order to ensure the required letters of guarantee and fundings for the implementation of the projects it has undertaken.
Furthermore, with respect to the credit risk, the Group constantly monitors the total of trade receivables and where necessary takes promptly all extrajudicial or judicial actions to safeguard the rights and interests of the Group's companies and the collection of receivables, thereby minimizing any credit risk. In cases where it appears that there is a potential risk of non-collection of a receivable, the Group proceeds to the formation of the required related provision.
Definitions of alternative indices
| Earnings before taxes, interest and investing results and depreciation/amortization (EBITDA) |
Operating results plus depreciation less investing results |
|---|---|
| Adjusted EBITDA | Operating results plus depreciation less investing results less extraordinary and non-recurring events |
| Liquidity ratio | Current assets divided by current liabilities |
Leverage ratios
| Liabilities / Equity | Total liabilities divided by Total Equity |
|---|---|
| Borrowings / Equity | Total bank borrowings divided by Total Equity |
Agreement of APM (Alternative Performance Measures) with elements of the Group's Statement of Comprehensive Income
| 01.01 - | 01.01 - | |||
|---|---|---|---|---|
| Note | 30.06.2017 | 30.06.2016 | ||
| Operating results | 4.321.809 | 6.470.825 | ||
| Plus: | Depreciation | 7.2 | 1.771.991 | 2.015.428 |
| Subtotal (a) | 6.093.800 | 8.486.253 | ||
| Less: | Amortization of grants received | 7.19 | 2.727 | 2.727 |
| Dividend income | 7.19 | - | 365 | |
| Rental income | 7.19 | 47.297 | 41.432 | |
| Available-for-sale financial assets-Impairment | 7.20 | (15.053) | - | |
| Other financial assets at fair value through profit or loss | ||||
| Valuation at fair value | 7.20 | 66.157 | (11.802) | |
| Gains/ (losses) from disposal of participation percentages | 7.20 | 596 | - | |
| Gains/ (losses) from disposal of investment property | 7.20 | 55.710 | - | |
| Gains/ (losses) from disposal of PPE | 7.20 | 25.218 | (24.630) | |
| Impairment of doubtful debts | 7.20 | - | (66.528) | |
| Provision of doubtful debts restored | 7.20 | - | 3.106 | |
| Currency translation differences | 7.20 | - | 54.437 | |
| Extraordinary gains from judicial settlement of liabilities | - | 333.210 | ||
| Subtotal (b) | 182.653 | 332.319 | ||
| Earnings before taxes, interest and investing results and | ||||
| depreciation/amortisation (a) - (b) | 5.911.148 | 8.153.934 | ||
| Plus: | Gains/ (losses) from disposal of investment property | 7.20 | 55.710 | - |
| Impairment of doubtful debts | 7.20 | 452.429 | - | |
| Extraordinary gains from judicial settlement of liabilities | 7.20 | - | 333.210 | |
| Currency translation differences | 7.20 | - | 54.437 | |
| Adjusted EBITDA | 6.419.287 | 8.541.582 |
Differences between amounts presented in the financial statements and corresponding amounts in the notes result from roundings.
The Group recognizes as business and operational segments, which the Administration uses for internal information purposes preparative to making strategic decisions, the following:
Results of operational segments
| 01.01 - 30.06.2017 | 01.01 - 30.06.2016 | |||||||
|---|---|---|---|---|---|---|---|---|
| Constructions | Steel structures | Renewable Energy Sources |
Total | Constructions | Steel structures | Renewable Energy Sources |
Total | |
| Gross sales | 75.396.453 | 9.412.010 | 2.265.685 | 87.074.148 | 94.618.794 | 17.120.242 | 2.911.304 | 114.650.340 |
| Sales between segments | (7.726.933) | (1.251.071) | - | (8.978.004) | (16.015.838) | (3.056.467) | - | (19.072.305) |
| Sales | 67.669.520 | 8.160.939 | 2.265.685 | 78.096.144 | 78.602.956 | 14.063.775 | 2.911.304 | 95.578.035 |
| Operating results Profit before taxes, financing and investing results and |
2.611.986 | 763.323 | 946.500 | 4.321.809 | 3.822.715 | 1.066.531 | 1.581.579 | 6.470.825 |
| depreciation/amortisation (EBITDA) | 2.785.462 | 1.255.091 | 1.870.595 | 5.911.148 | 4.115.303 | 1.653.117 | 2.385.514 | 8.153.934 |
| Adjusted EBITDA | 3.293.601 | 1.255.091 | 1.870.595 | 6.419.287 | 4.502.951 | 1.653.117 | 2.385.514 | 8.541.582 |
| Finance cost - net (Note 7.21) | (5.499.591) | (4.758.331) | ||||||
| (Losses)/profits from associates | (259.779) | 22.068 | ||||||
| (Losses)/profits before taxes | (1.437.561) | 1.734.563 | ||||||
| Income tax | (1.160.480) | (1.590.664) | ||||||
| (Losses)/profits net of taxes | (2.598.040) | 143.898 |
Sales is derived for the first semester of 2017 by 37% and for the first semester of 2016 by 43% from projects implemented on behalf of the Greek State. There are no other customers for whom sales exceed 10% of the Group's sales.
Sales to the Public Sector are analyzed as follows:
| 01.01 - | 01.01 - | |
|---|---|---|
| 30.06.2017 | 30.06.2016 | |
| Constructions | 25.673.918 | 33.721.765 |
| Steel structures | 1.097.649 | 4.004.193 |
| Renewable Energy Sources | 2.254.934 | 2.898.114 |
| 29.026.501 | 40.624.072 |
| 01.01 - 30.06.2017 | 01.01 - 30.06.2016 | |||||||
|---|---|---|---|---|---|---|---|---|
| Constructions | Steel structures | Renewable Energy Sources |
Total | Constructions | Steel structures | Renewable Energy Sources |
Total | |
| Impairment of trade receivables | 452.429 | (1.250) | - | 451.179 | - | 61.508 | 1.914 | 63.422 |
| Depreciation | 482.655 | 485.401 | 803.935 | 1.771.991 | 706.128 | 505.366 | 803.935 | 2.015.428 |
| 30.06.2017 | 31.12.2016 | |||||||
| Constructions | Steel structures | Renewable Energy Sources |
Total | Constructions | Steel structures | Renewable Energy Sources |
Total | |
| Assets of operational segments | 273.832.347 | 34.267.647 | 38.255.714 | 346.355.707 | 204.988.523 | 36.641.460 | 46.257.582 | 287.887.565 |
| Assets held for sale | 886.951 | - | - | 886.951 | - - |
- | - | |
| Total Assets | 274.719.298 | 34.267.647 | 38.255.714 | 347.242.658 | 204.988.523 | 36.641.460 | 46.257.582 | 287.887.565 |
| Liabilities of operational segments | 250.354.230 | 10.120.904 | 29.765.301 | 290.240.435 | 191.155.123 | 9.476.504 | 37.329.400 | 237.961.026 |
| Liabilities of assets held for sale | 829.844 | - | - | 829.844 | - - |
- | - | |
| Total Liabilities | 251.184.074 | 10.120.904 | 29.765.301 | 291.070.279 | 191.155.123 | 9.476.504 | 37.329.400 | 237.961.026 |
| Capital expenditure | 5.660.758 | 16.724 | - | 5.677.482 | 24.054.521 | 222.008 | - | 24.276.529 |
| Sales | Total Assets | Capital Expenditure | ||||
|---|---|---|---|---|---|---|
| (Amounts in Euro) | 01.01- 30.06.2017 |
01.01- 30.06.2016 |
30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Greece | 69.339.031 | 91.996.429 | 331.276.847 | 273.615.669 | 5.677.482 | 24.276.031 |
| European Community countries | 1.101.916 | 1.386.104 | 10.370.869 | 10.517.610 | - | 290 |
| Other European countries | 7.483.423 | 2.195.502 | 5.594.942 | 3.754.285 | - | 208 |
| Third countries | 171.775 | - | - | - | - | - |
| Total | 78.096.144 | 95.578.035 | 347.242.658 | 287.887.564 | 5.677.482 | 24.276.529 |
| COMPANY | ||||
|---|---|---|---|---|
| Sales | ||||
| 01.01- | 01.01- | 01.01- | 01.01- | |
| 30.06.2017 | 30.06.2016 | 30.06.2017 | 30.06.2016 | |
| 4.643.006 | 25.845.649 | 5.646.180 | 17.894.605 | |
| 2.499.206 | 1.533.297 | 227.755 | 440.322 | |
| 5.505.923 | 3.448.763 | 4.263.927 | 3.215.451 | |
| 65.448.008 | 64.750.326 | 58.890.609 | 64.130.815 | |
| 78.096.144 | 95.578.035 | 69.028.471 | 85.681.193 | |
| GROUP Sales |
| GROUP | COMPANY | |
|---|---|---|
| (Amounts in Euro) | Goodwill | Goodwill |
| Balance at 1 January 2016 | 2.926.597 | 326.268 |
| Additions | 116.000 | - |
| Net book value at 31 December 2016 | 3.042.597 | 326.268 |
| Balance at 1 January 2017 | 3.042.597 | 326.268 |
| Acquisition of subsidiary INTRAPAR SA | 17.387.634 | - |
| Balance at 30 June 2017 | 20.430.231 | 326.268 |
| Net book value at 30 June 2017 | 20.430.231 | 326.268 |
At the balance sheet date, the Group proceeded to an impairment audit of the amount of goodwill arising from the acquisition of INTRAPAR SA, as mentioned in detail in note 5.5 "Group Structure", and reviewed the data taken into account at the acquisition date (12.06.2017). The audit did not reveal any new data that differentiate the assets of the acquired company, and therefore there was no need for impairment of the acquisition goodwill. In anticipation of the developments regarding the court cases concerning the assets of the associate company KEKROPS SA, the Group intends to proceed to a new impairment audit at the end of the current year.
The properties of KEKROPS SA were valued based on the following methodologies, depending on the suitability of each method:
The Group's and the Company's capital expenditures (tangible and intangible assets as well as investment property) for the first semester are analyzed as follows:
| GROUP | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Amounts in Euro) | Property, plant and equipment |
Intangible assets |
Investment property |
Total | ||||
| Period until 30 June 2016 | ||||||||
| Net book value at 1 January 2016 | 64.382.723 | 1.639.122 | 14.885.920 | 80.907.765 | ||||
| Currency translation differences | (8.475) | - | 402 | (8.073) | ||||
| Additions | 4.783.868 | 986.216 | 70.065 | 5.840.149 | ||||
| Disposals/write-offs | (328.353) | - | - | (328.353) | ||||
| Depreciation | (1.937.191) | (56.356) | (21.881) | (2.015.428) | ||||
| Transfer to investment property | (921.011) | - | 921.011 | - | ||||
| Net book value at 30 June 2016 | 65.971.561 | 2.568.982 | 15.855.517 | 84.396.060 | ||||
| Period until 31 December 2016 | ||||||||
| Net book value at 1 January 2016 | 64.382.723 | 1.639.122 | 14.885.920 | 80.907.765 | ||||
| Currency translation differences | (21.469) | 1 | (10.010) | (31.478) | ||||
| Additions | 9.421.151 | 1.868.477 | 12.986.902 | 24.276.529 | ||||
| Disposals/write-offs | (563.540) | - | - | (563.540) | ||||
| Change of associate to subsidiary | 7.155 | 13.777 | - | 20.932 | ||||
| Depreciation | (3.842.968) | (113.421) | (45.607) | (4.001.996) | ||||
| Transfer to investment property | (921.011) | - | 921.011 | - | ||||
| Balance at 31 December 2016 as published | 68.462.041 | 3.407.956 | 28.738.216 | 100.608.213 | ||||
| Effect of error correction (Note 7.28) | (8.476.459) | - | 8.476.459 | - | ||||
| Net book value at 31 December 2016 | 59.985.582 | 3.407.956 | 37.214.675 | 100.608.213 | ||||
| Period until 30 June 2017 | ||||||||
| Net book value at 1 January 2017 | 59.985.582 | 3.407.956 | 37.214.675 | 100.608.213 | ||||
| Currency translation differences | (4.295) | (18) | (9.798) | (14.111) | ||||
| Additions | 3.493.687 | 894.775 | 274.174 | 4.662.636 | ||||
| Disposals/write-offs | (32.288) | - | (781.779) | (814.066) | ||||
| Acquisition of subsidiary | 1 | - | 320.000 | 320.001 | ||||
| Depreciation | (1.697.481) | (61.857) | (12.653) | (1.771.991) | ||||
| Transfer to assets held for sale | (5.620) | - | - | (5.620) | ||||
| Change of subsidiary to associate | - | - | (11.885.847) | (11.885.847) | ||||
| Net book value at 30 June 2017 | 61.739.585 | 4.240.856 | 25.118.773 | 91.099.214 |
The above table includes assets held under finance lease as follows:
| (Amounts in Euro) | Property, plant and equipment |
Intangible assets |
Investment property |
Total |
|---|---|---|---|---|
| 30.06.2017 | ||||
| Capitalization of finance lease | 567.997 | - | 581.138 | 1.149.135 |
| Accumulated amortization | (355.675) | - | (188.798) | (544.473) |
| Net book value | 212.322 | - | 392.340 | 604.662 |
| 31.12.2016 | ||||
| Capitalization of finance lease | 567.997 | - | 581.138 | 1.149.135 |
| Accumulated amortization | (353.883) | - | (179.093) | (532.976) |
| Net book value | 214.114 | - | 402.045 | 616.158 |
| Property, plant (Amounts in Euro) and equipment |
Intangible assets |
Investment property |
Total | ||
|---|---|---|---|---|---|
| Currency translation differences | |||||
| Net book value at 1 January 2016 | 29.522.804 | 223.613 | 8.662.550 | 38.408.967 | |
| Currency translation differences | (8.630) | - | - | (8.630) | |
| Additions | 490.497 | 8.498 | 15.757 | 514.752 | |
| Disposals/write-offs | (269.324) | - | - | (269.324) | |
| Depreciation | (1.081.376) | (53.893) | (12.653) | (1.147.922) | |
| Net book value at 30 June 2016 | 28.653.972 | 178.218 | 8.665.654 | 37.497.844 | |
| Period until 31 December 2016 | |||||
| Net book value at 1 January 2016 | 29.522.804 | 223.613 | 8.662.550 | 38.408.967 | |
| Currency translation differences | (18.219) | - | - | (18.219) | |
| Additions | 3.051.837 | 8.631 | 15.757 | 3.076.225 | |
| Disposals/write-offs | (563.527) | - | - | (563.527) | |
| Depreciation | (2.133.134) | (108.301) | (25.305) | (2.266.740) | |
| Net book value at 31 December 2016 | 29.859.761 | 123.944 | 8.653.001 | 38.636.706 | |
| Period until 30 June 2017 | |||||
| Net book value at 1 January 2017 | 29.859.761 | 123.944 | 8.653.001 | 38.636.706 | |
| Currency translation differences | (957) | - | - | (957) | |
| Additions | 1.084.295 | 52.865 | - | 1.137.160 | |
| Disposals/write-offs | (33.483) | - | - | (33.483) | |
| Depreciation | (841.027) | (56.783) | (12.653) | (910.463) | |
| Net book value at 30 June 2017 | 30.068.588 | 120.025 | 8.640.348 | 38.828.962 |
The above table includes assets held under finance lease as follows:
| (Amounts in Euro) | Property, plant and equipment |
Intangible assets |
Investment property |
Total |
|---|---|---|---|---|
| 30.06.2017 | ||||
| Capitalization of finance lease | 567.997 | - | 581.138 | 1.149.135 |
| Accumulated amortization | (353.883) | - | (188.798) | (542.681) |
| Net book value | 214.114 | - | 392.340 | 606.454 |
| 31.12.2016 | ||||
| Capitalization of finance lease | 567.997 | - | 581.138 | 1.149.135 |
| Accumulated amortization | (353.883) | - | (179.093) | (532.976) |
| Net book value | 214.114 | - | 402.045 | 616.158 |
On the Company's and the Group's fixed assets and investmemt property there are encumbrances amounting € 66,8 million to secure bank borrowings and guarantees.
The Company's investments in subsidiaries are analyzed in the following table:
| COMPANY | |||
|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | |
| Balance at the beginning of the period | 23.080.403 | 17.350.403 | |
| Acquisition of subsidiary | - | 4.000.000 | |
| Share capital increase | 2.594.000 | 1.596.000 | |
| Payment of share capital | - | 7.200 | |
| Acquisition of interest in subsidiaries from minority | - | 612.800 | |
| Disposal of interest held in subsidiary to the minority | (1.905.975) | - | |
| Impairment of subsidiaries | - | (486.000) | |
| Disposals | (12.000) | - | |
| Balance at the end of the period | 23.756.428 | 23.080.403 |
During the year 2016 the subsidiary's impairment of € 486.000 was realized after a review of the subsidiary's financial performance (note 7.28).
Summarized financial information regarding the Company's subsidiaries is given below:
| 30.06.2017 | 31.12.2016 | |
|---|---|---|
| Assets | 150.035.107 | 138.393.210 |
| Liabilities | 126.762.816 | 117.525.003 |
| Revenues | 18.343.893 | 55.761.353 |
| Profit (Losses) | (2.325.576) | (507.408) |
The Group's and Company's investments in associates are analyzed in the following table:
| GROUP | ||
|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 |
| Balance at the beginning of the period | 1.080.096 | 1.126.599 |
| Share capital increase | - | 126.000 |
| Acquisition of associate | 814.846 | - |
| Share of profit/(loss) from associates (after tax and minority interest) | (259.779) | 19.950 |
| Currency translation differences | 11.553 | (3.096) |
| Additions | 200.000 | - |
| Disposals/write-offs | (1.000) | (7.337) |
| Change of associate to subsidiary | - | (182.020) |
| Change of subsidiary to associate | 7.107.513 | - |
| Balance at the end of the period | 8.953.230 | 1.080.096 |
The acquisition of an associate company concerns the acquisition of 25,72% of KEKROPS S.A. The company was valued at its stock market price (note 5.5).
| COMPANY | ||||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | ||
| Balance at the beginning of the period | 420.660 | 427.997 | ||
| Foundation of associates | 200.000 | - | ||
| Disposals/write-offs | (1.000) | (7.337) | ||
| Balance at the end of the period | 619.660 | 420.660 |
| (Amounts in Euro) GROUP |
COMPANY | |||
|---|---|---|---|---|
| Balance at 1 January 2017 and 1 January 2016 respectively | 432.069 | 2.481.582 | 432.069 | 2.481.582 |
| Additions | - | 184.732 | - | 184.732 |
| Acquisition of subsidiary | 2.475.285 | - | - | - |
| Fair value adjustment (Note 7.11) | 747.742 | (2.234.245) | 747.742 | (2.234.245) |
| Balance at 30 June 2017 and 31 December 2016 respectively | 3.655.096 | 432.069 | 1.179.811 | 432.069 |
| Non-current assets | 3.655.096 | 432.069 | 1.179.811 | 432.069 |
| Current assets | - | - | - | - |
| 3.655.096 | 432.069 | 1.179.811 | 432.069 |
Available-for-sale financial assets include the following:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 | |
| 1. Listed equity securities | 1.049.691 | 301.949 | 1.049.691 | 301.949 |
| 2. Unlisted equity securiries | 2.605.405 | 130.120 | 130.120 | 130.120 |
Available-for-sale financial assets are denominated in the following currencies:
| 30.06.2017 | 31.12.2016 | |
|---|---|---|
| Euro | 3.655.096 | 432.069 |
| 3.655.096 | 432.069 |
The decrease in the line "Trade and other receivables" for both the Group and the Company is due to the decrease in the period's sales.
The increase in the line "Construction contracts" in Current Assets is due to additional works on the new contracts executed by the Company, which are expected to be certified and invoiced during the second half of 2017.
Accordingly, the reduction in the line "Construction Contracts" in Current Liabilities is due to the completion of works of a construction project.
The decrease in the line "State financial contribution" is due to invoicing, during the first half, part of the total cost that appeared in the financial statements of 31.12.2016.
"Current tax assets" amounting to € 7,05 million relate to a claim for income tax refund for fiscal years up to 31.12.2016, plus a tax claim from withholding taxes for the first half of 2017 (mainly a 3% contractor tax).
The increase in cash and cash equivalents is due to the € 53,5 million advance payment received on the project of the 14 Regional Airports.
The Company's shares are intangible and listed for trading on the Athens Stock Exchange Market.
| (Amounts in Euro) | Number of shares |
Common shares Share premium | Total | |
|---|---|---|---|---|
| Balance at 1 January 2016 | 23.154.250 | 31.489.780 | 34.083.696 | 65.573.476 |
| Balance at 31 December 2016 | 23.154.250 | 31.489.780 | 34.083.696 | 65.573.476 |
| Share capital increase | 2.243.383 | 3.051.001 | - | 3.051.001 |
| Balance at 30 June 2017 | 25.397.633 | 34.540.781 | 34.083.696 | 68.624.477 |
| (Ποσά σε Ευρώ) | Number of shares |
Common shares Share premium | Total | |
|---|---|---|---|---|
| Balance at 1 January 2016 | 23.154.250 | 31.489.780 | 34.083.696 | 65.573.476 |
| Balance at 31 December 2016 | 23.154.250 | 31.489.780 | 34.083.696 | 65.573.476 |
| Share capital increase | 2.243.383 | 3.051.001 | - | 3.051.001 |
| Balance at 30 June 2017 | 25.397.633 | 34.540.781 | 34.083.696 | 68.624.477 |
The Annual Ordinary General Meeting of «INTRACOM CONSTRUCTIONS SOCIETE ANONYME TECHNICAL AND STEEL CONSTRUCTIONS», held on 26.06.2017 approved among others, the Company's share capital increase by the amount of € 3.051.000,88 through the capitalization of part of its liabilities to the creditor and main shareholder, Intracom Holdings as well as the issuance of 2.243.383 new common registered shares of € 1,36 par value each and a disposal price for each share of € 1,36, with the abrogation of the the old shareholders' preemptive right in favor of the abovementioned creditor whose claims will be capitalized.
The new shares were made available to the company's main shareholder Intracom Holdings, as decided in the Annual Shareholders' Ordinary General Meeting held on 26.06.2017.
Following the above increase, the Company's share capital amounts to € 34.540.780,88 and is divided into 25.397.633 common registered voting shares of € 1,36 par value each.
The item "Amounts against share capital increase" in the Statement of Financial Position amounting to € 3,9 million relates to an advance payment received by the Company against the future increase of its share capital.
The fair value reserves of both the Group and the Company are analyzed as follows:
| (Amounts in Euro) | Available-for-sale financial assets |
GROUP Exchange diferrences reserves |
Total |
|---|---|---|---|
| Balance at 1 January 2016 | - | (1.135.197) | (1.135.197) |
| Revaluation Currency translation differences of foreign subsidiaries & |
(2.234.245) | - | (2.234.245) |
| branch offices | - | (165.829) | (165.829) |
| Currency translation differences of associates | - | (3.802) | (3.802) |
| Tranfer to results | 2.247.625 | (54.437) | 2.193.188 |
| Balance at 31 December 2016 | 13.380 | (1.359.265) | (1.345.885) |
| Balance at 1 January 2017 | 13.380 | (1.359.265) | (1.345.885) |
| Revaluation: | |||
| Gross | 747.742 | - | 747.742 |
| Less: Tax | (225.091) | - | (225.091) |
| Currency translation differences of foreign subsidiaries & branch offices |
- | (92.080) | (92.080) |
| Currency translation differences of associates | - | 10.533 | 10.533 |
| Tranfer to results | 15.053 | - | 15.053 |
| Balance at 30 June 2017 | 551.084 | (1.440.811) | (889.727) |
| (Amounts in Euro) | Available-for-sale financial assets |
Exchange diferrences reserves |
Total |
|---|---|---|---|
| Balance at 1 January 2016 | - | (301.956) | (301.956) |
| Revaluation | (2.234.245) | - | (2.234.245) |
| Currency translation differences of foreign branch offices | - | (60.642) | (60.642) |
| Tranfer to results | 2.247.625 | (54.437) | 2.193.188 |
| Balance at 31 December 2016 | 13.380 | (417.035) | (403.655) |
| Balance at 1 January 2017 | 13.380 | (417.035) | (403.655) |
| Revaluation: | |||
| Gross | 747.742 | - | 747.742 |
| Less: Tax | (225.091) | - | (225.091) |
| Currency translation differences of foreign branch offices | - | 153.874 | 153.874 |
| Tranfer to results | 15.053 | - | 15.053 |
| Balance at 30 June 2017 | 551.084 | (263.162) | 287.922 |
The other reserves of both the Group and the Company are analyzed as follows:
| GROUP | |||||
|---|---|---|---|---|---|
| (Amounts in Euro) | Statutory reserves |
Tax free reserves |
Actuarial gains/losses |
Other reserves |
Total |
| Balance at 1 January 2016 | 3.758.795 | 11.829.032 | (684.628) | 1.091.540 | 15.994.739 |
| Transfer from retained earnings | 3.200 | 160.118 | - | - | 163.318 |
| Change of interest held in subsidiaries | 12.831 | - | - | - | 12.831 |
| Actuarial gains/(losses) | - | - | (124.270) | - | (124.270) |
| Balance at 31 December 2016 | 3.774.826 | 11.989.150 | (808.898) | 1.091.540 | 16.046.618 |
| Change of interest held in subsidiary | (5.016) | - | - | - | (5.016) |
| Balance at 30 June 2017 | 3.769.810 | 11.989.150 | (808.898) | 1.091.540 | 16.041.602 |
| (Amounts in Euro) | Statutory reserves |
Tax free reserves |
Actuarial gains/losses |
Other reserves |
Total |
|---|---|---|---|---|---|
| Balance at 1 January 2016 | 3.672.540 | 11.829.032 | (647.278) | 1.091.540 | 15.945.834 |
| Transfer from retained earnings | - | 160.118 | - | - | 160.118 |
| Actuarial gains/(losses) | - | - | (101.753) | - | (101.753) |
| Balance at 31 December 2016 | 3.672.540 | 11.989.150 | (749.031) | 1.091.540 | 16.004.199 |
| Balance at 30 June 2017 | 3.672.540 | 11.989.150 | (749.031) | 1.091.540 | 16.004.199 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Non-current borrowings | ||||
| Bank loans | 34.917.173 | 27.919.267 | 1.834.326 | 449.851 |
| Bond Loan | 26.260.000 | 26.835.000 | 26.260.000 | 26.835.000 |
| Finance lease liabilities | 208.344 | 235.646 | 208.344 | 235.646 |
| Total non-current borrowings | 61.385.517 | 54.989.913 | 28.302.670 | 27.520.497 |
| Current borrowings | ||||
| Current portion of non-current borrowings | 2.351.579 | 3.135.585 | 422.999 | 209.553 |
| Bank loans | 32.240.791 | 26.177.497 | 25.261.528 | 24.223.182 |
| Bond Loan | 9.266.502 | 11.950.000 | 1.625.000 | 1.500.000 |
| Borrowings from related parties | 242.475 | 2.539.081 | 265.000 | 2.265.000 |
| Finance lease liabilities | 97.213 | 223.254 | 97.213 | 223.254 |
| Total current borrowings | 44.198.560 | 44.025.417 | 27.671.740 | 28.420.989 |
| Total borrowings | 105.584.076 | 99.015.330 | 55.974.410 | 55.941.487 |
Exposure to interest rate changes as well as the contractual re-pricing dates of current borrowings is as follows:
| GROUP | COMPANY | |||||
|---|---|---|---|---|---|---|
| (Amounts in Euro) | 6 months or less |
6-12 months | Total | 6 months or less |
6-12 months | Total |
| 31 December 2016 | ||||||
| Total borrowings | 28.869.921 | 15.155.496 | 44.025.417 | 26.641.525 | 1.779.464 | 28.420.989 |
| 28.869.921 | 15.155.496 | 44.025.417 | 26.641.525 | 1.779.464 | 28.420.989 | |
| 30 June 2017 | ||||||
| Total borrowings | 32.289.397 | 11.909.162 | 44.198.560 | 25.310.134 | 2.361.606 | 27.671.740 |
| 32.289.397 | 11.909.162 | 44.198.560 | 25.310.134 | 2.361.606 | 27.671.740 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Between 1 and 2 years | 7.550.254 | 5.411.625 | 3.461.478 | 2.318.819 |
| Between 2 and 3 years | 8.624.573 | 5.991.589 | 3.572.849 | 2.831.033 |
| Between 3 and 4 years | 17.992.240 | 13.806.325 | 10.710.000 | 10.685.000 |
| Between 4 and 5 years | 7.123.785 | 6.529.628 | 3.750.000 | 3.250.000 |
| Over 5 years | 19.886.322 | 23.015.100 | 6.600.000 | 8.200.000 |
| 61.177.173 | 54.754.267 | 28.094.326 | 27.284.851 |
The weighted average effective interest rates at the balance sheet date are the following:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2017 31.12.2016 € € |
30.06.2017 31.12.2016 |
|||
| € | € | |||
| Bank loans (current) | 6,07% | 6,18% | 6,03% | 6,24% |
| Bank loans (non-current) | 5,93% | 4,94% | 6,99% | 5,10% |
| Bond loan | 5,14% | 4,93% | 5,14% | 4,71% |
| Finance lease liabilities | 5,63% | 6,33% | 5,63% | 6,42% |
The fair values of non-current borrowings approximate their carrying amounts.
The carrying amounts of borrowings are denominated in the following currencies:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 | |
| Euro | 105.584.076 | 99.015.330 | 55.974.410 | 55.941.487 |
| 105.584.076 | 99.015.330 | 55.974.410 | 55.941.487 |
The change in Trade and other payables is mainly due to the collection of customer advances amounting € 53,5 million.
Provisions relating to the Group and the Company are recognized when there are present legal or constructive obligations as a result of past events, when there is a chance of settling them through an outflow of resources and when the obligation amount can be reliably estimated. Contingent assets are not recognized in the financial statements but disclosed when there is a potential inflow of economic benefits.
| GROUP & COMPANY | |||
|---|---|---|---|
| (Amounts in Euro) | Provision for a fine by the Competition Commission |
Other provisions |
Total |
| Balance at 1 January 2016 | - | 362.220 | 362.220 |
| Additional provisions for the year | 4.300.493 | 3.257 | 4.303.750 |
| Unrealized reversed provisions | - | (56.526) | (56.526) |
| Realized provisions for the year | - | (66.823) | (66.823) |
| Balance at 31 December 2016 | 4.300.493 | 242.128 | 4.542.621 |
| Realized provisions for the period | - | (4.092) | (4.092) |
| Balance at 30 June 2017 | 4.300.493 | 238.036 | 4.538.529 |
| GROUP & COMPANY | ||||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | ||
| Non-current provisions | - | - | ||
| Current provisions | 4.538.529 | 4.542.621 | ||
| Total | 4.538.529 | 4.542.621 |
It is clarified that in relation to the fine by the Competition Commission, for which provision was made and was charged to the results for the year 2016, there is no deviation from the amount disclosed to the company under the settlement resolution of the Competition Commission No. 642/2017.
The way the above amount is to be settled, has not yet been disclosed to the company.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 31.12.2016 |
30.06.2017 | 31.12.2016 | |
| Finance lease liabilities- minimum lease | ||||
| Not later than 1 year | 111.262 | 242.228 | 111.262 | 242.228 |
| Between 1 and 5 years | 230.079 | 263.862 | 230.079 | 263.862 |
| Total | 341.341 | 506.090 | 341.341 | 506.090 |
| Less: Future finance charges on finance leases | (35.785) | (47.190) | (35.785) | (47.190) |
| Present value of finance lease liabilities | 305.556 | 458.900 | 305.556 | 458.900 |
The present value of finance lease liabilities is analyzed below:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Not later than 1 year | 97.213 | 223.254 | 97.213 | 223.254 |
| Between 1 and 5 years | 208.344 | 235.646 | 208.344 | 235.646 |
| Total | 305.556 | 458.900 | 305.556 | 458.900 |
The decrease in both the Company's and the Group's sales is due to the completion of old projects carried out and is expected to be offset by the launch of new projects contracted within the first semester of 2017.
The Group's expenses by nature are analyzed as follows:
| Ο ΟΜΙΛΟΣ | ||||||
|---|---|---|---|---|---|---|
| (Amounts in Euro) | 01.01 - 30.06.2017 | 01.01 - 30.06.2016 | ||||
| Cost of goods | Administrative | Cost of goods | Administrative | |||
| sold | expenses | Total | sold | expenses | Total | |
| Employee benefit expense | 4.090.080 | 2.262.548 | 6.352.628 | 4.441.970 | 1.503.378 | 5.945.348 |
| Inventory cost recognised as expense | 16.633.606 | 607 | 16.634.214 | 26.517.456 | 149.526 | 26.666.981 |
| Depreciation of PPE | ||||||
| - Owned assets | 1.384.690 | 310.985 | 1.695.675 | 1.470.115 | 331.570 | 1.801.684 |
| - Leased assets | 1.792 | - | 1.792 | 131.661 | 3.846 | 135.507 |
| Repairs and maintenance of PPE | 450.497 | 99.036 | 549.534 | 407.584 | 82.340 | 489.924 |
| Amortisation of intangible assets | 27.487 | 34.385 | 61.872 | 32.609 | 23.747 | 56.356 |
| Depreciation of investment property | - | 2.948 | 2.948 | - | 12.176 | 12.176 |
| Depreciation of leased investment property | - | 9.705 | 9.705 | - | 9.705 | 9.705 |
| Operating lease payments | ||||||
| - Land | 288.817 | 432.190 | 721.007 | 247.801 | 149.681 | 397.481 |
| - Machinery | 1.596.455 | 2.988 | 1.599.443 | 591.509 | 2.474 | 593.983 |
| - Furniture and other equipment | 89.234 | 710 | 89.944 | 43.776 | 28.729 | 72.505 |
| - Vehicles | 193.227 | 169.904 | 363.131 | 184.274 | 120.528 | 304.802 |
| Advertisement | 32.772 | 306.838 | 339.610 | 25.159 | 539.421 | 564.579 |
| Subcontractors' and third paries' fees | 35.850.426 | 2.861.764 | 38.712.190 | 44.584.924 | 2.471.188 | 47.056.112 |
| Other (Third party benefits, various expenses etc.) | 5.248.629 | 1.736.234 | 6.984.863 | 4.372.674 | 1.811.536 | 6.184.210 |
| Total | 65.887.713 | 8.230.842 | 74.118.555 | 83.051.510 | 7.239.843 | 90.291.354 |
| COMPANY | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Amounts in Euro) | 01.01 - 30.06.2017 | 01.01 - 30.06.2016 | ||||||
| Cost of goods sold |
Administrative expenses |
Total | Cost of goods sold |
Administrative expenses |
Total | |||
| Employee benefit expense | 3.082.399 | 1.596.666 | 4.679.065 | 3.311.604 | 1.286.477 | 4.598.081 | ||
| Inventory cost recognised as expense | 12.834.091 | - | 12.834.091 | 23.575.436 | 147.854 | 23.723.289 | ||
| Depreciation of PPE | ||||||||
| - Owned assets | 549.404 | 289.832 | 839.235 | 654.750 | 294.965 | 949.715 | ||
| - Leased assets | 1.792 | - | 1.792 | 131.661 | - | 131.661 | ||
| Repairs and maintenance of PPE | 431.414 | 96.873 | 528.287 | 440.792 | 103.306 | 544.098 | ||
| Amortisation of intangible assets | 25.245 | 31.539 | 56.783 | 32.347 | 21.547 | 53.893 | ||
| Depreciation of investment property | - | 2.948 | 2.948 | - | 2.948 | 2.948 | ||
| Depreciation of leased investment property | - | 9.705 | 9.705 | - | 9.705 | 9.705 | ||
| Operating lease payments | ||||||||
| - Land | 131.131 | 302.947 | 434.078 | 130.807 | 127.152 | 257.959 | ||
| - Machinery | 1.597.900 | 1.597.900 | 588.967 | 12 | 588.979 | |||
| - Furniture and other equipment | 60.581 | 710 | 61.291 | 43.776 | 4.216 | 47.992 | ||
| - Vehicles | 176.191 | 146.760 | 322.951 | 166.083 | 114.928 | 281.011 | ||
| Advertisement | 6.674 | 245.049 | 251.722 | 24.615 | 535.126 | 559.741 | ||
| Subcontractors' and third paries' fees | 35.149.275 | 1.812.231 | 36.961.506 | 42.965.377 | 1.891.629 | 44.857.006 | ||
| Other (Third party benefits, various expenses etc.) | 4.720.346 | 1.234.451 | 5.954.797 | 3.934.382 | 1.369.228 | 5.303.609 | ||
| Total | 58.766.442 | 5.769.710 | 64.536.152 | 76.000.595 | 5.909.094 | 81.909.689 |
The Group's and the Company's other income is analyzed as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 01.01- 30.06.2017 |
01.01- 30.06.2016 |
01.01- 30.06.2017 |
01.01- 30.06.2016 |
| Other financial assets at fair value through profit or loss: | ||||
| - Dividend income | - | 365 | - | 365 |
| Amortization of grants received | 2.727 | 2.727 | 2.727 | 2.727 |
| Rental income | 47.297 | 41.432 | 76.668 | 70.272 |
| Insurance reimbursement | 3.798 | - | 2.800 | - |
| Other reimbursements | 180.000 | - | - | - |
| Forfeiture of guarantees | - | 81.965 | - | - |
| Income from leased equipment | 1.000 | 4.000 | - | 1.860 |
| Income from services rendered to third parties | 66.843 | 604.694 | 337.856 | 1.002.602 |
| Other income | 397.528 | 123.957 | 391.202 | 123.797 |
| Total | 699.193 | 859.139 | 811.253 | 1.201.623 |
The Group's and Company's other gains / losses are as follows:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 01.01- | 01.01- | 01.01- | 01.01- | ||
| (Amounts in Euro) | 30.06.2017 | 30.06.2016 | 30.06.2017 | 30.06.2016 | |
| Available-for-sale financial assets: | |||||
| - Impairment | (15.053) | - | (15.053) | - | |
| Other financial assets at fair value through profit or loss: | |||||
| - Fair value gains / (losses) | 66.157 | (11.802) | 66.157 | (11.802) | |
| Impairment of doubtful debts | (452.429) | (66.528) | (452.429) | - | |
| Provision of doubtful debts restored | 1.250 | 3.106 | - | - | |
| Impairment of subsidiaries (Note 7.3) | - | - | - | (143.200) | |
| Currency translation differences of foreign branch offices - Transfer to | |||||
| results | - | 54.437 | - | 54.437 | |
| Extraordinary gains from judicial settlement of liabilities | - | 333.210 | - | 333.210 | |
| Gains/ (losses) from disposal of participation percentages | 596 | - | (409.175) | - | |
| Gains/ (losses) from dissolution of J/Vs | (36.423) | - | (36.423) | - | |
| Gains/ (losses) from disposal of PPE | 25.218 | (24.630) | 24.023 | (18.191) | |
| Gains/ (losses) from disposal of investment property | 55.710 | - | - | - | |
| Share of gains/(losses) from J/Vs consolidated according to the equity meth | - | 37.210 | - | 37.210 | |
| (354.973) | 325.005 | (822.899) | 251.665 |
The Group's and Company's finance cost is as follows:
| GROUP | COMPANY | ||||||
|---|---|---|---|---|---|---|---|
| (Amounts in Euro) | 01.01- 30.06.2017 |
01.01- 30.06.2016 |
01.01- 30.06.2017 |
01.01- 30.06.2016 |
|||
| Finance expenses | |||||||
| - Bank loans | (1.943.366) | (2.198.416) | (888.561) | (1.168.376) | |||
| - Bond loan | (660.694) | (504.726) | (660.694) | (504.726) | |||
| - Finance leases | (8.686) | (22.675) | (8.686) | (22.645) | |||
| - Letters of credit | (1.860.338) | (1.455.977) | (1.786.850) | (1.455.977) | |||
| - Interest on advances from customers | (237.142) | (215.130) | (237.142) | (215.130) | |||
| - Other | (938.320) | (518.343) | (849.035) | (500.039) | |||
| - Net gains / (losses) from currency translation differences | 10.808 | (1.887) | 11.655 | (4.028) | |||
| (5.637.736) | (4.917.155) | (4.419.311) | (3.870.922) | ||||
| Interest income | 138.146 | 158.824 | 181.493 | 153.293 | |||
| Total | (5.499.591) | (4.758.331) | (4.237.819) | (3.717.629) |
The increase in financial expenses in the statement of comprehensive income for the period is mainly attributable to the financial cost of the good performance and advance payment guarantee letters that resulted from the contractualisation of the new projects undertaken by the Company.
Eearnings/(losses) per share were calculated using the weighted average number of shares multiplied by the total number of outstanding common shares.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2017 | 30.06.2016 | 30.06.2017 | 30.06.2016 | |
| Weighted average number of shares | 23.178.835 | 23.154.250 | 23.178.835 | 23.154.250 |
| 01.01- 30.06.2017 |
01.01- 30.06.2016 |
01.01- 30.06.2017 |
01.01- 30.06.2016 |
|
| (Losses)/profit before taxes | (1.437.561) | 1.734.562 | 242.854 | 1.507.164 |
| Income tax | (1.160.480) | (1.590.664) | (881.444) | (1.199.612) |
| (Losses)/profit net of taxes from continuing operations | (2.598.040) | 143.898 | (638.590) | 307.552 |
| Attributable to: | ||||
| Owners of the Parent | (1.998.338) | 39.158 | (638.590) | 307.552 |
| Non-controlling interests | (599.703) | 104.740 | - | - |
| Basic (losses)/earnings per share | -0,0862 | 0,0017 | -0,0276 | 0,0133 |
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments per valuation method:
Level 1: Based on negotiable (unspecified) prices in active markets for identical assets or liabilities.
| 30.06.2017 | |||
|---|---|---|---|
| (Amounts in Euro) | Level 1 | Level 3 | |
| Financial assets measured at fair value | |||
| Avaialable for sale financial assets | 1.049.691 | 2.605.405 | |
| Financial assets at fair value through profit or loss | 233.275 | - | |
| 1.282.966 | 2.605.405 |
| 31.12.2016 | ||||
|---|---|---|---|---|
| (Amounts in Euro) | Επίπεδο 1 | Επίπεδο 3 | ||
| Financial assets measured at fair value | ||||
| Avaialable for sale financial assets | 301.949 | 130.120 | ||
| Financial assets at fair value through profit or loss | 167.118 | - | ||
| 469.067 | 130.120 |
The Group has not made any transfers between valuation levels.
The carrying amount of the following categories of assets and liabilities approximates their fair value:
Trade and other receivables - Current borrowings
Trade and other payables Non-current borrowings
Cash and cash equivalents
The number of employees on June 30th, 2017 and June 30th, 2016 respectively is:
| Ο ΟΜΙΛΟΣ | Η ΕΤΑΙΡΕΙΑ | |||
|---|---|---|---|---|
| Average number of employees | 564 | 438 | 343 | 325 |
| 30.06.2017 | 30.06.2016 | 30.06.2017 | 30.06.2016 | |
| (per category) | ||||
| Administrative personnel | 153 | 117 | 97 | 78 |
| Workers personnel | 411 | 321 | 246 | 247 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Good performance guarantees | 125.322.802 | 91.294.995 | 119.232.402 | 85.204.356 |
| Advance payments guarantees | 64.724.880 | 14.065.672 | 55.037.669 | 4.378.461 |
| Good payment guarantees | 17.496.461 | 16.275.902 | 17.496.461 | 16.275.902 |
| Other guarantees | 532.842 | 532.842 | 532.842 | 532.842 |
| Good operation guarantees | 395.300 | 421.757 | 395.300 | 421.757 |
| Participation guarantees | 14.163.280 | 12.695.442 | 14.104.045 | 12.662.891 |
| Guarantees to banks on behalf of subsidiaries | 7.775.741 | 7.829.491 | 7.775.741 | 7.829.491 |
| 230.411.306 | 143.116.101 | 214.574.460 | 127.305.700 |
Intracom Telecom brought before the Athens Multi-Member Court of First Instance three lawsuits against the Company, its subsidiary Rural Connect and its parent Intracom Holdings, seeking:
The above lawsuits were pronounced on 15.02.2017 and a decision or act of witness evidence is expected to be issued on them, depending on the judgment of the court seised.
The Company and the other co-defendant companies, based on their legal advisor's opinion, whereby the chance of rejecting Intracom Telecom's claims is clearly stronger than any chance of their success, have made no provision.
Accordingly, the Company jointly with Intracom Holdings and Rural Connect has filed three arbitration proceedings in order to recognize the lawfulness of the termination of the contract with Intracom Telecom, to recognize that there is no obligation to indemnify Intracom Telecom for any reason, legal basis or amount and to recognize that Intracom Telecom has to pay to the plaintiffs, as joint borrowers, the amount of € 10 mil. from forfeited penalties and their development before the competent courts is expected.
| GROUP | COMPANY | ||||||
|---|---|---|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 | |||
| Customers' good payment guarantees | 33.000 | 33.000 | 33.000 | 33.000 | |||
| Suppliers' good performance guarantees | 9.677.195 | 3.827.635 | 9.677.195 | 3.827.635 | |||
| Advance payments guarantees | 6.070.573 | 1.615.968 | 6.070.573 | 1.615.968 | |||
| 15.780.768 | 5.476.603 | 15.780.768 | 5.476.603 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 | |
| Not later than 1 year | 65.416 | 71.100 | 121.608 | 126.390 | |
| Between 1 and 5 years | 103.192 | 135.160 | 229.963 | 259.168 | |
| More than 5 years | 37.610 | 55.628 | 127.278 | 134.463 | |
| 206.218 | 261.888 | 478.849 | 520.021 |
Commitments pertain to future lease obligations regarding the operating leases of buildings-plots, machinery, vehicles etc.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (Amounts in Euro) | 30.06.2017 | 31.12.2016 | 30.06.2017 | 31.12.2016 |
| Not later than 1 year | 846.516 | 1.225.400 | 167.015 | 726.596 |
| Between 1 and 5 years | 3.641.382 | 3.822.571 | 1.008.000 | 1.604.027 |
| More than 5 years | 4.365.582 | 4.411.080 | 1.249.500 | 1.124.316 |
| 8.853.480 | 9.459.051 | 2.424.515 | 3.454.939 |
The following tables present information regarding the Group's and the Company's transactions with related parties. Purchases and sales from and to related parties have been carried out under market terms.
| GROUP | ||
|---|---|---|
| Assets - Liabilities | ||
| 30.06.2017 | 31.12.2016 | |
| Receivables from the parent company Ιntracom Holdings | 1.708.796 | 219.785 |
| Receivables from associates | 4.809.119 | 3.479.622 |
| Receivables from J/Vs | 361.264 | 369.978 |
| Receivables from other related parties | 6.135.586 | 6.351.921 |
| Receivables from Management Executives and Administration Members | 206.882 | 206.673 |
| 13.221.647 | 10.627.979 | |
| Payables to the parent company Intracom Holdings | 3.185.395 | 4.579.241 |
| Payables to associates | 130.113 | 129.286 |
| Payables to J/Vs | 75.353 | 75.353 |
| Payables to other related parties | (*) 18.762.889 | 10.194.159 |
| Payables to Management Executives and Administration Members | 132.351 | 361.884 |
| 22.286.102 | 15.339.924 | |
| Revenues - Expenses | 30.06.2017 | 30.06.2016 |
| Revenues from the parent company Intracom Holdings | 1.575.177 | 90.626 |
| Revenues from associates | 1.415.490 | 214.249 |
| Revenues from other related parties | 1.543.507 | 1.934.601 |
| Revenues from Management Executives and Administration Members | 1.964 | 535 |
| 4.536.138 | 2.240.012 | |
| Purchases from the parent company Intracom Holdings | 644.601 | 538.494 |
| Purchases from associates | - | 323.100 |
| Purchases from other related parties | (*) 12.826.217 | 6.178.557 |
| Fees to Management Executives and Administration Members | 543.828 | 663.011 |
| 14.014.645 | 7.703.162 | |
| The above transactions pertain to: | ||
| Income from disposal of PPE | 2.142.624 | - |
| Income from construction contracts | - | 983.960 |
| Income from sale of goods and services | 782.134 | 1.163.565 |
| Interest income | 106.890 | 88.286 |
| Rental income | 4.490 | 4.200 |
| Disposal of interest held in subsidiary | 1.500.000 | - |
| 4.536.138 | 2.240.012 | |
| Purchase and prepayments of assets (PPE and intangible) | 1.983 | 323.100 |
| Subcontracts | 2.949.443 | 6.010.896 |
| 14.014.645 | 7.703.162 | ||
|---|---|---|---|
| Fees to Management Executives and Administration Members | 543.828 | 663.011 | |
| Acquisition of subsidiary | (*) | 9.726.550 | - |
| Interest expenses | 96.092 | 3.413 | |
| Rental expenses | 137.799 | 136.529 | |
| Purchase of services | 558.951 | 566.214 | |
| Subcontracts | 2.949.443 | 6.010.896 |
(*) The items"Payables to other related parties" amounting € 18.762.889, "Purchases from other related parties" amounting € 12.826.217 and "Acquisition of subsidiary" amounting € 9.726.550 include the amounts of the transaction carried out by the subsidiary INTRADEVELOPMENT as mentioned in note 5.5 "Group Structure".
The above transactions in cases involving project contracts, sales of goods and services and rental and interest income are carried out at market terms.
In cases involving project contracts and subcontracts with related parties, the required good performance or advance payment guarantee letters are requested and obtained, which are also usually requested and obtained from such partnerships with third parties.
Settlement of the debts of related parties is always made as specified in the cooperation agreements and on terms that do not differ from the terms in similar partnerships with third parties.
It is clarified that the amounts of receivables and liabilities, income and expenses, as far as Intrasoft International SA is concerned, are related to current account balances and advances, since the above company operates as Intrakat's subcontractor for the Rural broadband infrastructure project.
The same is true for Rural Connect, which is developing the PPP project Rural - Zone 2 with Intrakat being the exclusive manufacturer, as well as for Advance Transport Telematics SA, which constructed and operates the OASA Telematics project with Intrasoft and Intrakat being the manufacturers.
Furthermore, regarding the amounts of the companies Intradevelopment, Anaptixiaki Cyclades S.A., Alpha Anaptixiaki Cyclades S.A., Bita Anaptixiaki Cyclades S.A., Intra-Cyclades S.A., Intra-Hospitality S.A., Intra-Blue S.A. and B.L. Bluepro Holdings Ltd, they are related to the construction activities carried out by Intrakat on the property of those companies. The settlement of claims is expected to take place on completion of the projects undertaken in relation to the above companies.
There are no bad debts in the above amounts with related parties.
The above clarifications apply as well to related party transactions with respect to the Company, which are set out below.
| COMPANY | ||
|---|---|---|
| Assets - Liabilities | 30.06.2017 | 31.12.2016 |
| Receivables from the parent company Ιntracom Holdings | 1.537.801 | 21.863 |
| Receivables from subsidiaries | 34.342.876 | 33.596.346 |
| Receivables from joint operations | 502 | 502 |
| Receivables from associates | 4.471.017 | 3.232.145 |
| Receivables from J/Vs | 361.264 | 369.978 |
| Receivables from other related parties | 5.036.250 | 6.100.857 |
| Receivables from Management Executives and Administration Members | 137.684 | 137.476 |
| 45.887.395 | 43.459.166 | |
| Payables to the parent company Intracom Holdings | 1.881.167 | 4.218.877 |
| Payables to subsidiaries | 2.650.353 | 3.212.440 |
| Payables to joint operations | 300.810 | 300.810 |
| Payables to J/Vs | 75.353 | 75.353 |
| Payables to other related parties | 10.483.373 | 9.749.429 |
| Payables to Management Executives and Administration Members | 78.972 | 130.214 |
| 15.470.030 | 17.687.124 | |
| Revenues - Expenses | ||
| 30.06.2017 | 30.06.2016 | |
| Revenues from the parent company Intracom Holdings | 1.500.000 | - |
| Revenues from subsidiaries | 9.066.631 | 18.270.997 |
| Revenues from associates | 103.816 | 209.209 |
| Revenues from other related parties | 129.268 | 987.805 |
| 10.799.715 | 19.468.011 | |
| Purchases from the parent company Intracom Holdings | 624.569 | 527.005 |
| Purchases from subsidiaries | 292.205 | 1.071.735 |
| Purchases from other related parties | 3.033.485 | 6.079.999 |
| Fees to Management Executives and Administration Members | 528.828 | 609.151 |
| 4.479.087 | 8.287.890 | |
| The above transactions pertain to: | ||
| Income from disposal of PPE | - | 10.000 |
| Income from construction contracts | 7.684.602 | 14.144.068 |
| Income from sale of goods and services | 1.439.633 | 5.194.721 |
| Rental income | 33.861 | 33.040 |
| Income from leases | - | 1.860 |
Disposal of interest held in subsidiary 1.500.000 - Interest income 141.619 84.322
10.799.715 19.468.011
| 4.479.087 | 8.287.890 | |
|---|---|---|
| Fees to Management Executives and Administration Members | 528.828 | 609.151 |
| Interest expenses | 84.431 | - |
| Lease expenses | 5.200 | - |
| Rental expenses | 167.015 | 186.000 |
| Purchase of services | 533.701 | 616.068 |
| Subcontracts | 2.949.443 | 6.010.896 |
| Purchase of goods | 210.470 | 865.774 |
Management executives and administration members' fees as of 30.06.2017 amounted € 543.828. These fees concern dependent work fees of the members of the Board of Directors and of management executives.
Tax unaudited years are presented for each company and joint venture/joint operations in the following table:
| COMPANY NAME | Tax unaudited years |
|---|---|
| INTRAKAT, Greece | 1 |
| Joint operations | |
| - J/V ΙΝΤRΑΚΑΤ - ΑΤΤΙΚΑΤ (ΕGΝΑΤΙΑ ROAD), Greece - J/V INTRAKAT- ELTER (PROJECT OF NATURAL GAS SCHOOL INSTALLATION), Greece |
6 6 |
| - J/V INTRAKAT - ELTER (EXPANSION OF NATURAL GAS DISTRIBUTION NETWORKS XANTHI, SERRES, KOMOTINI), Greece | 6 |
| - J/V AKTOR ATE - J&P AVAX - ΙΝΤRΑΚΑΤ (J/V MOREAS), Greece | 6 |
| - J/V INTRAKAT - ELTER (NATURAL GAS PIPELINES DISTRIBUTION AND SUPPLY NETWORK IN SOUTH ATTIKA REGION - EPA 7), Greece | 6 |
| - J/V EUROKAT - INTRAKAT (IONIOS GENERAL CLINIC), Greece | 6 |
| - J/V ANASTILOTIKI - INTRAKAT - GETEM - ETETH (CIVIL, ELECTROΜECHANICAL WORKS & SHAPING OF SURROUNDINGS OF THE NEW MUSEUM IN PATRA), Greece |
6 |
| - J/V ANASTILOTIKI - GETEM - INTRAKAT (CONSTRUCTION OF REFINERY & WATER PIPELINES IN PATRA & ITS INDUSTRIAL DISTRICT FROM PEIROS - PARAPEIROS DAM), Greece - J/V ALTEK SA - INTRAKAT - ANASTILOTIKI ATE (EXPANSION OF THE TERMINAL OF THESSALONIKI's PUBLIC AIRPORT "MACEDONIA" |
6 6 |
| NORTHWEST UNTIL THE CONTROL TOWER), Greece | |
| - J/V INTRAKAT - K. PANAGIOTIDIS UNLIMITED CO. (PROJECT OF TRANSPORT LINES 'ONE'), Greece | 6 |
| - J/V EKTER S.A. - ERTEKA S.A. - THEMELI S.A. - INTRAKAT (NETWORKS OF FILOTHEI REGION IN KIFISIA), Greece - J/V INTRAKAT - G.D.Κ. TECHNIKI EPE "J/V FOR THE CONSTRUCTION OF THE FILIATRINOU DAM PROJECT", Greece |
6 6 |
| - J/V J&P ΑVAX-AEGEK-INTRAKAT (INFRASTRUCTURE OF THE DOUBLE RAIL LINE KIATO-RODODAFNI), Greece | 5 |
| - J/V AKTOR ΑΤΕ-PORTO KARRAS SA-INTRAKAT (SETTLEMENT OF ESHATIA STREAM), Greece | 4 |
| - J/V INTRAKAT-PROTEAS (SETTLEMENT OF XIRIAS TORRENT), Greece | 5 |
| - J/V AKTOR - J&P AVAX - INTRAKAT (PANAGOPOULA TUNNEL), Greece | 3 |
| - J/V AKTOR ATE-INTRAKAT (MONITORING APOSELEMIS's RESERVOIR FILLING PROCESS), Greece - J/V ATERMON ΑΤΕ-ΙΝΤRΑΚΑΤ (MATERIAL SUPPLY & CONSTRUCTION OF T.L. ΚΥΤ LAGADA-ΚΥΤ FILIPPON), Greece |
3 3 |
| - J/V ΙΝΤRΑΚΑΤ-ΕRGO ΑΤΕ (CONSTRUCTION OF DISTRIBUTION NETWORK & NATURAL GAS PIPES IN ATTICA), Greece | 3 |
| - J/V INTRAKAT - "J/V ARHIRODON HELLAS ATE - INTRAKAT" (GENERAL DETAINMENT FACILITY OF EASTERN MACEDONIA & THRACE), Greece | 6 |
| - J/V INTRAKAT - MESOGEIOS E.S. SA (PROJECT OF BIOLOGICAL PURIFICATION OPERATION MAINTENANCE IN OINOFITA SHIMATARIOU), | 6 |
| - J/V INTRAKAT - PROTEAS (DRAINAGE OF RAINWATER IN ANAVYSSOS), Greece | 3 |
| - J/V INTRAKAT - PROTEAS (COMPLETION WORKS FOR SETTLING XIRIAS TORRENT), Greece - J/V J&P AVAX - TERNA - AKTOR (VOTANIKOS MOSQUE), Greece |
3 1 |
| - J/V INTRAKAT - ARCHIRODON - ENVITEC (CONSTRUCTION OF SERRES MUNICIPAL SOLID WASTE TREATMENT UNIT), Greece | 0 |
| - J/V INTRAKAT - WATT S.A. (CONSTRUCTION OF VIOTIA WASTE TREATMENT UNIT 2nd D.E., Greece | 0 |
| EUROKAT ATE, Greece | 1 |
| Joint operations | |
| - J/V AKTOR ATE - LOBBE TZILALIS - EUROKAT ATE (TOTAL ADMINISTRATION OF OOZE KEL), Greece - J/V EUROKAT ATE - PROTEYS A.T.E.E. (PROJECT OF RAINWATER RUNOFF NETWORKS IN PAIANIA's MUNICIPALITY), Greece |
6 6 |
| ΙΝ. ΜΑΙΝΤ S.A, Greece | 3 |
| FRACASSO HELLAS S.A. DESIGN & CONSTRUCTION OF ROAD SAFETY SYSTEMS, Greece | 1 |
| - FRACASSO HOLDINGS D.O.O., Croatia | 2 |
| INTRADEVELOPMENT S.A., Greece | 6 |
| - ANAPTIXIAKI CYCLADES S.A. REAL ESTATE DEVELOPMENT, Greece | 3 |
| - INTRA-CYCLADES REAL ESTATE DEVELOPMENT COMPANY SOCIETE ANONYME, Greece - ALPHA ANAPTIXIAKI CYCLADES S.A., Greece |
3 1 |
| - BITA ANAPTIXIAKI CYCLADES S.A., Greece | 1 |
| - INTRAPAR S.A., Greece | 6 |
| - KEKROPS S.A., Greece | 4 |
| - DEVENETCO L.T.D., Cyprus | 1 |
| - B.L.BLUEPRO HOLDINGS L.T.D., Cyprus - BENECIELO CO LTD |
1 0 |
| - STUERZA PROPERTIES LTD | 0 |
| - INESTIA TOURISTIKI SOCIETE ANONYME, Greece | 2 |
| - INTRA-HOSPITALITY SOCIETE ANONYME HOTEL AND TOURISM BUSINESS, Greece | 2 |
| INTRA-BLUE HOSPITALITY AND BUSINESS TOURISM SOCIETE ANONYME, Greece | 3 |
| INTRAPOWER SOCIETE ANONYME ENERGY PROJECTS, Greece RURAL CONNECT S.A., Greece |
1 3 |
| B-WIND POWER ENERGY SOCIETE ANONYME, Greece | 2 |
| INTRACOM CONSTRUCT SA, Romania | 8 |
| OIKOS PROPERTIES SRL, Romania | 8 |
| ROMINPLOT SRL, Romania | 8 |
| ΙNTRAKAT INTERNATIONAL LIMITED, Cyprus - ALPHA MOGILANY DEVELOPMENT SP. Z.O.O, Poland |
6 6 |
| - AMBTILA ENTERPRISES LIMITED, Cyprus | 6 |
| - Κ-WIND KITHAIRONAS ENERGY S.A. (former Α.KATSELIS ENERGEIAKI S.A.), Greece | 6 |
| Α. Κ. ENERGEIAKI S.A., Greece | 6 |
| THESSALONIKI's CONTROLLED PARKING SYSTEM S.A. (ΣΤΕΛΣΤΑΘ), Greece | 0 |
| ADVANCED TRANSPORT TELEMATICS S.A., Greece | 3 |
| SOCIETE ANONYME FOR THE OPERATION OF SERRES MUNICIPAL SOLID WASTE TREATMENT UNIT (ELMEAS SA), Greece SOCIETE ANONYME FOR THE MANAGEMENT OF SERRES MUNICIPAL SOLID WASTE (SIRRA SA), Greece |
0 0 |
| MOBILE COMPOSTING S.A., Greece | 5 |
| J/V MOHLOS - INTRACOM CONSTRUCTIONS (SWIMMING POOL), Greece | 6 |
| J/V PANTHESSALIKO STADIUM, Greece | 6 |
The parent company as well as the Group companies in Greece for the fiscal years 2011 to 2013, pursuant to Law 2238/94 article 85 par. 5, received a tax certificate from their Certified Auditors-Accountants. In addition for the fiscal years 2014 & 2015 they received a tax certificate from their Certified Auditors-Accountants, based on the provisions of article 65A of Law 4174/2013.
For the fiscal year 2016, pursuant to law 4174/2013 article 65A, a tax certificate has been requested from the Certified Auditors Accountants. This audit is in progress and the relevant tax certificate is to be granted after the publication of the financial statements for the six-month period 01.01.2017-30.06.2017.
It is estimated that upon completion of the tax audit no additional tax liabilities will arise that will have a substantial impact beyond those recognized and reported in the financial statements.
The parent company has received an audit order for re-auditing fiscal year 2012.
According to recent relevant legislation, the audit and issuance of tax certificates is valid for the years 2016 onwards, on a voluntary basis.
For the joint operations, J/V ΙΝΤRΑΚΑΤ - ΙΝΤRACOM TELECOM (DEPA's TELECOMMUNICATION NETWORKS), and «J/V INTRAKAT - FILIPPOS S.A. (AMFIPOLIS PROJECT)» as well as the joint venture «J/V INTRAKAT - ERGAS - ALGAS», which were liquidated during the current period, no provisions have been made for unaudited fiscal years, since it is estimated that there will be no additional charges.
Following the signing and approval of the financial statements for the year 2016 and during the process of preparing the newsletter, the Group proceeded with the restatement of specific amounts.
The Group proceeded with the transfer from Tangible Assets to Investments, the assets presented in the category "Prepayments for purchases of assets and assets under construction" amounting to € 8,47 million and were related to construction works in progress on assets intended for investment purposes. This transfer did not result in any change in the turnover, the results net of taxes and the equity of the Company.
The fair value of the Group's investment property after the above transfer at 31.12.2016 amounts to € 38,93 million.
• Trade and other receivables
The Group proceeded with the transfer from Current Assets to Non-current Assets, trade and other receivables amounting to € 6,98 million, as these receivables are not expected to be settled within twelve months after the end of the reporting period. As a result of the above transfer, the Group discounted the receivables burdening the results of the year and equity by € 1 million. Accordingly, the Company proceeded with the transfer from Current Assets to Non-current Assets, trade and other receivables amounting to € 5,91 million. As a result of the transfer the Company discounted the receivables burdening the results of the year and equity by € 0,87 million.
Further to the above, the Group discounted the trade receivables that had already been classified as noncurrent amounting to € 1 million, thus burdening the results of the year and equity by € 0,138 million.
The Group and the Company proceeded with the transfer of the provision of the fine by the Competition Commission amounting to € 4,3 million and the impairment carried out in the available for sale financial assets amounting to € 2,1 million from "Other gains/(losses)" to a discrete line in the statement of comprehensive income.
The effect of the data correction for the year ended 31 December 2016 on the Statement of Financial Position, the Statement of Comprehensive Income, the Statement of Changes in Equity and the Cash Flow Statement of both the Group and the Company are presented in detail in the tables below.
Effect of the data correction on the Group's and the Company's Statement of Financial Position.
| (Amounts in Euro) | GROUP | ||
|---|---|---|---|
| ASSETS | Published 31.12.2016 |
Adjusted 31.12.2016 |
Restatement |
| Non-current assets | |||
| Goodwill | 3.042.597 | 3.042.597 | - |
| Other intangible assets | 3.407.956 | 3.407.956 | - |
| Property, plant and equipment | 68.462.041 | 59.985.582 | (8.476.459) |
| Investment property Investment in associates (consolidated according to the equity |
28.738.216 | 37.214.675 | 8.476.459 |
| method) | 1.080.096 | 1.080.096 | - |
| Available-for-sale financial assets | 432.069 | 432.069 | - |
| Trade and other receivables | 4.633.291 | 10.482.561 | 5.849.270 |
| Deferred income tax assets | 918.960 | 918.960 | - |
| 110.715.225 | 116.564.496 | 5.849.270 | |
| Current assets | |||
| Inventories | 14.438.308 | 14.438.308 | - |
| Construction contracts | 36.065.758 | 36.065.758 | - |
| State financial contribution (IFRIC 12) | 15.344.154 | 15.344.154 | - |
| Trade and other receivables | 90.908.026 | 83.920.573 | (6.987.453) |
| Financial assets at fair value through profit and loss | 167.118 | 167.118 | - |
| Current income tax assets | 7.347.209 | 7.347.209 | - |
| Cash and cash equivalents | 14.039.950 | 14.039.950 | - |
| 178.310.522 | 171.323.069 | (6.987.453) | |
| Total assets | 289.025.747 | 287.887.565 | (1.138.183) |
| EQUITY Capital and reserves attributable to the Parent's equity holders |
|||
| Share capital | 65.573.476 | 65.573.476 | - |
| Fair value reserves | (1.345.885) | (1.345.885) | - |
| Other reserves | 16.046.618 | 16.046.618 | - |
| Retained earnings | (31.038.350) | (32.171.122) | (1.132.772) |
| 49.235.860 | 48.103.088 | (1.132.772) | |
| Non-controlling interests | 1.828.861 | 1.823.451 | (5.411) |
| Total equity | 51.064.721 | 49.926.539 | (1.138.183) |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 54.989.913 | 54.989.913 | - |
| Provisions for retirement benefit obligations | 1.369.180 | 1.369.180 | - |
| Grants | 49.100 | 49.100 | - |
| Trade and other payables | 750.000 | 750.000 | - |
| 57.158.194 | 57.158.194 | - | |
| Current Liabilities | |||
| Trade and other payables | 127.393.313 | 127.393.313 | - |
| Borrowings | 44.025.417 | 44.025.417 | - |
| Construction contracts | 3.732.877 | 3.732.877 | - |
| Current income tax liabilities | 1.108.605 | 1.108.605 | - |
| Short-term provisions for other liabilities and charges | 4.542.621 | 4.542.621 | - |
| 180.802.832 | 180.802.832 | - | |
| Total liabilities | 237.961.026 | 237.961.026 | - |
| Total Equity and Liabilities | 289.025.747 | 287.887.565 | (1.138.183) |
| (Amounts in Euro) | COMPANY | ||
|---|---|---|---|
| ASSETS | Published 31.12.2016 |
Adjusted 31.12.2016 |
Restatement |
| Non-current assets Goodwill |
326.268 | 326.268 | - |
| Other intangible assets | 123.944 | 123.944 | - |
| Property, plant and equipment | 29.859.761 | 29.859.761 | - |
| Investment property | 8.653.001 | 8.653.001 | - |
| Investment in subsidiaries | 23.080.403 | 23.080.403 | - |
| Investment in associates (consolidated according to the equity | |||
| method) | 420.660 | 420.660 | - |
| Available-for-sale financial assets | 432.069 | 432.069 | - |
| Trade and other receivables | 5.372.199 | 10.405.474 | 5.033.275 |
| Deferred income tax assets | 1.328.698 | 1.328.698 | - |
| 69.597.002 | 74.630.277 | 5.033.275 | |
| Current assets | |||
| Inventories | 8.653.667 | 8.653.667 | - |
| Construction contracts | 35.811.261 | 35.811.261 | - |
| Trade and other receivables | 95.569.167 | 89.661.467 | (5.907.700) |
| Financial assets at fair value through profit and loss | 167.118 | 167.118 | - |
| Current income tax assets | 6.733.433 | 6.733.433 | - |
| Cash and cash equivalents | 7.345.175 | 7.345.175 | - |
| 154.279.821 | 148.372.121 | (5.907.700) | |
| Total assets | 223.876.823 | 223.002.398 | (874.425) |
| EQUITY | |||
| Capital and reserves attributable to the Parent's equity holders | |||
| Share capital | 65.573.476 | 65.573.476 | - |
| Fair value reserves | (403.655) | (403.655) | - |
| Other reserves | 16.004.199 | 16.004.199 | - |
| Retained earnings | (18.738.963) | (19.613.388) | (874.425) |
| 62.435.057 | 61.560.632 | (874.425) | |
| Non-controlling interests | - | - | - |
| Total equity | 62.435.057 | 61.560.632 | (874.425) |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 27.520.497 | 27.520.497 | - |
| Provisions for retirement benefit obligations | 1.016.197 | 1.016.197 | - |
| Grants | 49.100 | 49.100 | - |
| Trade and other payables | 750.000 | 750.000 | - |
| 29.335.794 | 29.335.794 | - | |
| Current Liabilities | |||
| Trade and other payables Borrowings |
92.533.484 28.420.989 |
92.533.484 28.420.989 |
- - |
| Construction contracts | 5.680.594 | 5.680.594 | - |
| Current income tax liabilities | 928.284 | 928.284 | - |
| Short-term provisions for other liabilities and charges | 4.542.621 | 4.542.621 | - |
| 132.105.972 | 132.105.972 | - | |
| Total liabilities | 161.441.766 | 161.441.766 | - |
| Total Equity and Liabilities | 223.876.823 | 223.002.398 | (874.425) |
| (Amounts in Euro) | GROUP | ||
|---|---|---|---|
| Published 31.12.2016 |
Adjusted 31.12.2016 |
Restatement | |
| Sales | 182.383.706 | 182.383.706 | - |
| Cost of goods sold | (156.669.800) | (156.669.800) | - |
| Gross profit | 25.713.905 | 25.713.905 | - |
| Administrative expenses | (15.297.368) | (15.297.368) | - |
| Other income | 1.793.270 | 1.793.270 | - |
| Other gains/(losses) - net | (5.840.096) | 708.022 | 6.548.118 |
| Fine by the Competition Commission | - | (4.300.493) | (4.300.493) |
| Impairment of available for sale financial assets | - | (2.247.625) | (2.247.625) |
| Operating results | 6.369.712 | 6.369.712 | - |
| Finance income | 211.203 | 211.203 | - |
| Finance expenses | (9.314.281) | (10.452.463) | (1.138.183) |
| Finance cost - net | (9.103.078) | (10.241.261) | (1.138.183) |
| Profit/(losses) from associates (after tax and minority interests) | 19.950 | 19.950 | - |
| Losses before taxes | (2.713.416) | (3.851.599) | (1.138.183) |
| Income tax expense | (2.540.618) | (2.540.618) | - |
| Losses net of taxes | (5.254.034) | (6.392.217) | (1.138.183) |
| Other comprehensive income net of taxes: Amounts which may be transferred to results |
|||
| Available-for-sale financial assets - Fair value (losses)/profit | (2.234.245) | (2.234.245) | - |
| Available-for-sale financial assets - Transfer to results | 2.247.625 | 2.247.625 | - |
| Currency translation differences | (171.852) | (171.852) | - |
| Currency translation differences - Transfer to results | (54.437) | (54.437) | - |
| Amounts which are not transferred to results | |||
| Actuarial gains/(losses) after deferred taxes | (138.250) | (138.250) | - |
| Other comprehensive income net of taxes | (351.159) | (351.159) | - |
| Total comprehensive income net of taxes | (5.605.193) | (6.743.376) | (1.138.183) |
| Losses for the year attributable to : | |||
| Owners of the Parent | (5.503.193) | (6.635.965) | (1.132.772) |
| Non-controlling interests | 249.159 | 243.748 | (5.411) |
| (5.254.034) | (6.392.217) | (1.138.183) | |
| Total comprehensive income net of taxes | |||
| Attributable to: | |||
| Owners of the Parent | (5.838.150) | (6.970.922) | (1.132.772) |
| Non-controlling interests | 232.957 | 227.546 | (5.411) |
| (5.605.193) | (6.743.376) | (1.138.183) | |
| Losses per share | |||
| Basic: | -0,2377 | -0,2866 | 0,0489 |
| (Amounts in Euro) | COMPANY | |||
|---|---|---|---|---|
| Published 31.12.2016 |
Adjusted 31.12.2016 |
Restatement | ||
| Sales | 160.608.638 | 160.608.638 | - | |
| Cost of goods sold | (141.057.230) | (141.057.230) | - | |
| Gross profit | 19.551.407 | 19.551.407 | - | |
| Administrative expenses | (12.442.647) | (12.442.647) | - | |
| Other income | 2.523.107 | 2.523.107 | - | |
| Other gains/(losses) - net | (6.173.332) | 374.787 | 6.548.118 | |
| Fine by the Competition Commission | - | (4.300.493) | (4.300.493) | |
| Impairment of available for sale financial assets | - | (2.247.625) | (2.247.625) | |
| Operating results | 3.458.536 | 3.458.536 | - | |
| Finance income | 236.403 | 236.403 | - | |
| Finance expenses | (7.272.872) | (8.147.297) | (874.425) | |
| Finance cost - net | (7.036.469) | (7.910.894) | (874.425) | |
| Profit/(losses) from associates (after tax and minority interests) | - | - | - | |
| Losses before taxes | (3.577.933) | (4.452.358) | (874.425) | |
| Income tax expense | (1.685.575) | (1.685.575) | - | |
| Losses net of taxes | (5.263.508) | (6.137.933) | (874.425) | |
| Other comprehensive income net of taxes: | ||||
| Amounts which may be transferred to results | ||||
| Available-for-sale financial assets - Fair value (losses)/profit | (2.234.245) | (2.234.245) | - | |
| Available-for-sale financial assets - Transfer to results | 2.247.625 | 2.247.625 | - | |
| Currency translation differences | (60.642) | (60.642) | - | |
| Currency translation differences - Transfer to results | (54.437) | (54.437) | - | |
| Amounts which are not transferred to results | ||||
| Actuarial gains/(losses) after deferred taxes | (101.753) | (101.753) | - | |
| Other comprehensive income net of taxes | (203.453) | (203.453) | - | |
| Total comprehensive income net of taxes | (5.466.961) | (6.341.386) | (874.425) | |
| Losses for the year attributable to : | ||||
| Owners of the Parent | (5.263.508) | (6.137.933) | (874.425) | |
| Total comprehensive income net of taxes | ||||
| Attributable to: | ||||
| Owners of the Parent | (5.466.961) | (6.341.386) | (874.425) | |
| Losses per share | ||||
| Basic: | -0,2862 | -0,2651 | -0,0211 |
Effect of the data correction on the Group's and the Company's Statement of Changes in Equity.
| GROUP | ||||||
|---|---|---|---|---|---|---|
| (Amounts in Euro) | Ordinary Share Capital |
Fair Value Reserves |
Other Reserves |
Retained Earnings |
Non-controlling interests |
Total Equity |
| Balance at 31 December 2016 as published | 65.573.476 | (1.345.885) | 16.046.618 | (31.038.350) | 1.828.861 | 51.064.721 |
| Effect of error correction | - | - | - | (1.132.772) | (5.411) | (1.138.183) |
| Adjusted Balance at 31 December 2016 | 65.573.476 | (1.345.885) | 16.046.618 | (32.171.122) | 1.823.451 | 49.926.539 |
| COMPANY | |||||
|---|---|---|---|---|---|
| (Amounts in Euro) | Ordinary Share Capital |
Fair Value Reserves |
Other Reserves |
Retained Earnings |
Total Equity |
| Balance at 31 December 2016 as published | 65.573.476 | (403.655) | 16.004.199 | (18.738.963) | 62.435.057 |
| Effect of error correction | - | - | - | (874.425) | (874.425) |
| Adjusted Balance at 31 December 2016 | 65.573.476 | (403.655) | 16.004.199 | (19.613.388) | 61.560.632 |
Effect of the data correction on the Group's and the Company's Cash Flow Statement.
| (Amounts in Euro) | GROUP | ||
|---|---|---|---|
| Published 31.12.2016 |
Adjusted 31.12.2016 |
Restatement | |
| Cash flows from operating activities | |||
| Losses for the year | (5.254.034) | (6.392.217) | (1.138.183) |
| Adjustments for: | |||
| Taxes | 2.540.618 | 2.540.618 | - |
| Depreciation | 4.001.996 | 4.001.996 | - |
| Gains/ (losses) from disposal of PPE | (16.312) | (16.312) | - |
| Fair value gains/ (losses) of other financial assets at fair value through profit or loss | 3.271 | 3.271 | - |
| Impairment of available for sale assets | 2.247.625 | 2.247.625 | - |
| Dissolution of J/Vs (equity) | 7.337 | 7.337 | - |
| Interest income | (211.203) | (211.203) | - |
| Interest expense | 9.314.281 | 10.452.463 | 1.138.183 |
| Dividend income | (2.196) | (2.196) | - |
| Depreciation of grants received | (5.456) | (5.456) | - |
| Impairment of doubtful debts | (64.871) | (64.871) | - |
| Negative goodwill from subsidiary acquisition | (7.132) | (7.132) | - |
| Currency translation differences | (183.873) | (183.873) | - |
| Share of profit/(losses) from associates | (19.950) | (19.950) | - |
| Cash flows from operating activities before changes in the working capital | 12.350.100 | 12.350.100 | - |
| Changes in working capital : | |||
| (Increase) / decrease of inventories | (693.612) | (693.612) | - |
| (Increase) / decrease of receivables | 6.127.802 | 6.127.802 | - |
| Increase / (decrease) of payables | (4.554.481) | (4.554.481) | - |
| Increase / (decrease) of provisions | 4.180.401 | 4.180.401 | - |
| Increase / (decrease) of retirement benefit obligations | 30.414 5.090.524 |
30.414 5.090.524 |
- - |
| Cash flows from operating activities | 17.440.624 | 17.440.624 | - |
| Interest paid | (9.314.281) | (9.314.281) | - |
| Income tax paid | 120.830 | 120.830 | - |
| Net cash generated from operating activities | 8.247.173 | 8.247.173 | - |
| Cash flows from investing activities | |||
| Purchase of PPE, investment property, intangible assets | (16.034.221) | (16.034.221) | - |
| Disposal of PPE, investment property, intangible assets | 579.852 | 579.852 | - |
| Purchase of financial assets available for sale | (184.732) | (184.732) | - |
| Acquisition or purchase of interest in subsidiary | (636.800) | (636.800) | - |
| Acquisition of control over a subsidiary | 84.847 | 84.847 | - |
| Contribution to the share capital/foundation of subsidiaries, associates | (126.000) | (126.000) | - |
| Dividends received | 2.196 | 2.196 | - |
| Interest received | 211.203 | 211.203 | - |
| Net cash used in investing activities | (16.103.655) | (16.103.655) | - |
| Cash flows from financing activities | |||
| Share of minority shareholders in the foundation, share capital payment of subsidiaries | 24.000 | 24.000 | - |
| Expenses of subsidiaries' share capital increase | (16.200) | (16.200) | - |
| Acquisition of minority | (3.999.832) | (3.999.832) | - |
| Proceeds from borrowings | 66.360.848 | 66.360.848 | - |
| Repayment of borrowings | (71.463.858) | (71.463.858) | - |
| Repayments of finance lease obligations | (333.277) | (333.277) | - |
| Net cash used in financing activities | (9.428.320) | (9.428.320) | - |
| Net (decrease) / increase in cash & cash equivalents | (17.284.802) | (17.284.802) | - |
| Cash and cash equivalents at the beginning of the year | 31.324.751 | 31.324.751 | - |
| Cash and cash equivalents at the end of the year | 14.039.950 | 14.039.950 | - |
| (Amounts in Euro) | Published 31.12.2016 |
COMPANY Adjusted 31.12.2016 |
Restatement |
|---|---|---|---|
| Cash flows from operating activities | |||
| Losses for the year | (5.263.508) | (6.137.933) | (874.425) |
| Adjustments for: | |||
| Taxes | 1.685.575 | 1.685.575 | - |
| Depreciation | 2.266.740 | 2.266.740 | - |
| Gains/ (losses) from disposal of PPE | (19.340) | (19.340) | - |
| Fair value gains/ (losses) of other financial assets at fair value through profit or loss | 3.271 | 3.271 | - |
| Impairment of available for sale assets | 2.247.625 | 2.247.625 | - |
| Dissolution of J/Vs (equity) | 7.337 | 7.337 | - |
| Interest income | (236.403) | (236.403) | - |
| Interest expense | 7.271.615 | 8.146.040 | 874.425 |
| Dividend income | (2.196) | (2.196) | - |
| Depreciation of grants received | (5.456) | (5.456) | - |
| Impairment of doubtful debts | (221.740) | (221.740) | - |
| Impairment of subsidiaries | 486.000 | 486.000 | - |
| Currency translation differences | (89.019) | (89.019) | - |
| Cash flows from operating activities before changes in the working capital | 8.130.502 | 8.130.502 | - |
| Changes in working capital : | |||
| (Increase) / decrease of inventories | 330.748 | 330.748 | - |
| (Increase) / decrease of receivables | 3.367.248 | 3.367.248 | - |
| Increase / (decrease) of payables | (6.642.000) | (6.642.000) | - |
| Increase / (decrease) of provisions | 4.180.401 | 4.180.401 | - |
| Increase / (decrease) of retirement benefit obligations | 56.629 | 56.629 | - |
| 1.293.026 | 1.293.026 | - | |
| Cash flows from operating activities | 9.423.528 | 9.423.528 | - |
| Interest paid | (7.271.615) | (7.271.615) | - |
| Income tax paid | 735.186 | 735.186 | - |
| Net cash generated from operating activities | 2.887.099 | 2.887.099 | - |
| Cash flows from investing activities | |||
| Purchase of PPE, investment property, intangible assets | (3.076.225) | (3.076.225) | - |
| Disposal of PPE, investment property, intangible assets | 582.867 | 582.867 | - |
| Purchase of financial assets available for sale | (184.732) | (184.732) | - |
| Acquisition or purchase of interest in subsidiary | (4.612.800) | (4.612.800) | - |
| Contribution to the share capital/foundation of subsidiaries, associates | (7.200) | (7.200) | - |
| Dividends received | 2.196 | 2.196 | - |
| Interest received | 236.403 | 236.403 | - |
| Net cash used in investing activities | (7.059.491) | (7.059.491) | - |
| Cash flows from financing activities | |||
| Proceeds from borrowings | 52.561.665 | 52.561.665 | - |
| Repayment of borrowings | (56.670.399) | (56.670.399) | - |
| Repayments of finance lease obligations | (329.736) | (329.736) | - |
| Net cash used in financing activities | (4.438.470) | (4.438.470) | - |
| Net (decrease) / increase in cash & cash equivalents | (8.610.862) | (8.610.862) | - |
| Cash and cash equivalents at the beginning of the year | 15.956.037 | 15.956.037 | - |
| Cash and cash equivalents at the end of the year | 7.345.175 | 7.345.175 | - |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Published ratios 31.12.2016 |
Adjusted ratios 31.12.2016 |
Published ratios 31.12.2016 |
Adjusted ratios 31.12.2016 |
|
| LIQUIDITY RATIO | ||||
| GENERAL LIQUIDITY | ||||
| Current Assets / Current Liabilities | 0,99 | 0,95 | 1,17 | 1,12 |
| LEVERAGE RATIO | ||||
| Liabilities / Equity | 4,66 | 4,77 | 2,59 | 2,62 |
| Borrowings / Equity | 1,94 | 1,98 | 0,90 | 0,91 |
Agreement of Alternative Performance Measures (APM) with data of the Statement of Comprehensive Income.
| 31.12.2016 | ||
|---|---|---|
| Operating results | 6.369.712 | |
| Plus: | Depreciation | 4.001.996 |
| Subtotal (a) | 10.371.707 | |
| Less: | Amortization of grants received | 5.456 |
| Dividend income | 2.196 | |
| Rental income | 208.522 | |
| Available-for-sale financial assets-Impairment | (2.247.625) | |
| Other financial assets at fair value through profit or loss | ||
| Valuation at fair value | (3.271) | |
| Gains/ (losses) from disposal of PPE | 16.312 | |
| Negative goodwill from subsidiary acquisition | 7.132 | |
| Subtotal (b) | (2.011.278) | |
| Earnings before taxes, interest and investing results and | ||
| depreciation/amortisation (a) - (b) | 12.382.985 | |
| Plus: | Provision for a fine by the Competition Commission | 4.300.493 |
| Adjusted EBITDA | 16.683.478 |
The Group recognizes business and operational segments, which the Administration uses for internal information purposes preparative to making strategic decisions. An analysis follows, including sales between segments as well as an analysis of customers affecting the turnover of more than 10%.
| 2016 | |||||
|---|---|---|---|---|---|
| Constructions | Steel structures | Renewable Energy Sources |
Total | ||
| Gross sales | 175.152.956 | 34.613.349 | 6.322.628 | 216.088.933 | |
| Sales between segments | (28.060.774) | (5.644.453) | - | (33.705.227) | |
| Sales | 147.092.182 | 28.968.896 | 6.322.628 | 182.383.706 | |
| Operating results | 3.270.464 | 1.609.906 | 3.736.968 | 8.617.337 | |
| Adjusted EBITDA | 8.725.142 | 2.613.499 | 5.344.838 | 16.683.478 | |
| Profit before taxes, financing and investing results and depreciation/amortisation (EBITDA) |
4.424.649 | 2.613.499 | 5.344.838 | 12.382.985 | |
| Impairment of investments | (2.247.625) | (2.247.625) | |||
| Finance cost - net | (10.241.261) | ||||
| Profit/(losses) from associates | 19.950 | ||||
| Losses before taxes | (3.851.599) | ||||
| Income tax | (2.540.618) | ||||
| Losses net of taxes from continuing operations | (6.392.217) | ||||
We also note that for 2016 sales is derived by 57% from projects implemented on behalf of the Greek State. There are no other customers for whom sales exceed 10% of the Group's sales.
Sales to the Public Sector are analyzed as follows:
| 2016 | |
|---|---|
| Constructions | 93.156.713 |
| Steel structures | 4.635.550 |
| Renewable Energy Sources | 6.293.134 |
| 104.085.397 |
From the goodwill account an amount of € 2,6 million is allocated to the company "Κ-WIND KITHAIRONAS ENERGY S.A." (former Α.KATSELIS ENERGEIAKI S.A.) as a cash-generating unit (CGU).
It is a subsidiary company whose activity concerns the power generation from a wind farm of 21 MW in the wider region of Viotia. The company has signed a contract with RAE for the sale of the power produced by the Wind Farm since April 2015, the duration of which is for the next 20 years. Based on the 20-year contract signed with RAE, the company has a guaranteed fixed selling price of the energy produced throughout the contract.
The projected 20-year cash flows have been based on budgeted and discounted cash flows of the Wind Park's operation and are not considered to have residual value. The basis on which the valuation of the investment's recoverable amount has been made, is the value in use.
The key assumptions used are as follows:
Based on the audits carried out, the recoverable amount of goodwill exceeds its carrying amount and no impairment loss arises.
During the year 2016 the company proceeded to an impairment audit of its participations in subsidiaries. Specifically, for the subsidiary Eurokat, there was an impairment of € 486.000, due to its negative financial performance.
The Group has undertaken, under a concession by the Greek State (IS), the construction, operation and exploitation of the project "Development of Broadband infrastructure in Rural 'White' areas of the Greek Territory and Operations Services - Development of Infrastructure, Zone 2". The total duration of the contract is set to 204 months. The duration of the construction phase, Phase A is 24 months and the duration of operation and operation, Phase B, 180 months with the right to extend the contract for another 2 years.
The model used is the mixed model, which recognizes a financial asset (State Financial Contribution), Phase A, and an intangible asset (Concession Right), Phase B.
During the construction phase the project is financed entirely through the NSRF Operational Programs. The Group recognizes a financial asset, when it has an unconditional right to collect from the Grantor for the construction services. The construction contract amounts to € 60 million and the execution and completion of the construction period will last until April 2018. Revenues are recognized under IAS 11. In the year 2016, the Group's receivable amounts to € 15,3 million and is recognized in current assets under the item "State Financial Contribution".
The Group recognizes the right to exploit and utilize the infrastructure after the end of the construction period and for 15 years relating to the operating period. The intangible asset (concession right), includes the capitalization of borrowing costs as an eligible asset. Borrowing costs are measured at cost less accumulated amortization and impairment losses. They will be amortized during the operation of the infrastructure, i.e. 15 years.
The Group, after the end of the construction period, shall handle the contractual infrastructure conservation and rehabilitation liabilities in accordance with IAS 37.
The revenues of the 15-year operation period will occur on the basis of commercial network management (lease) agreements with telecom providors, meeting the needs of the areas covered by Zone 2.
It is noted that the financial contribution amounting to € 15,34 million is to be settled by 31.12.2017 and that on 31.12.2016 there were no contractual obligations requiring a provision.
The item "Current tax assets" amounting to € 7,3 million includes an amount of € 5,8 million relating to a tax claim from withholding taxes (mainly a 3% contractor's tax) of INTRAKAT, while the remaining amount relates to tax claims from withholding taxes of joint-ventures' (€ 0,93 million) and subsidiaries (€ 0,61 million) respectively.
The trade and other receivables for the Group and the Company for the year ended 31 December 2016 are analyzed as follows:
| GROUP | |||
|---|---|---|---|
| (Amounts in Euro) | Published | Adjusted | Restatement |
| 31.12.2016 | 31.12.2016 | ||
| Trade receivables | 56.822.039 | 55.765.646 | (1.056.393) |
| Trade receivables - Related parties | 2.493.461 | 2.493.461 | - |
| Less: Provisions for impairment | (6.941.888) | (6.941.888) | - |
| Trade receivables - net | 52.373.611 | 51.317.219 | (1.056.393) |
| Prepayments | 7.224.334 | 7.224.334 | - |
| Prepayments - Related parties | 3.815.472 | 3.815.472 | - |
| Borrowings to related parties | 3.309.167 | 3.309.167 | - |
| Receivables from the state (except for income tax) | 14.748.693 | 14.748.693 | - |
| Deposits against share capital increase of subsidiaries, associates | 50.000 | 50.000 | - |
| Committed deposit accounts | 450.004 | 450.004 | - |
| Prepaid expenses (prepayments) | 3.723.457 | 3.723.457 | - |
| Prepaid expenses - Related parties | 21.179 | 21.179 | - |
| Accrued income | 146.272 | 146.272 | - |
| Accrued income - Related parties | 2.023 | 2.023 | - |
| Other receivables | 11.740.820 | 11.659.030 | (81.790) |
| Other receivables from related parties | 936.677 | 936.677 | - |
| Less: Provisions for impairment | (3.000.392) | (3.000.392) | - |
| Total | 95.541.317 | 94.403.134 | (1.138.183) |
| Non-current assets | 4.633.291 | 10.482.561 | 5.849.270 |
| Current assets | 90.908.026 | 83.920.573 | (6.987.453) |
| 95.541.317 | 94.403.134 | (1.138.183) |
| COMPANY | |||
|---|---|---|---|
| Published | Adjusted | ||
| (Amounts in Euro) | 31.12.2016 | 31.12.2016 | Restatement |
| Trade receivables | 42.098.302 | 41.285.992 | (812.310) |
| Trade receivables - Related parties | 22.485.566 | 22.485.566 | |
| Less: Provisions for impairment | (6.560.934) | (6.560.934) | |
| Trade receivables - net | 58.022.934 | 57.210.625 | (812.310) |
| Prepayments | 6.920.895 | 6.920.895 | |
| Prepayments - Related parties | 3.815.472 | 3.815.472 | |
| Borrowings to related parties | 6.766.121 | 6.766.121 | |
| Receivables from the state (except for income tax) | 3.828.249 | 3.828.249 | |
| Deposits against share capital increase of subsidiaries, associates | 50.000 | 50.000 | |
| Committed deposit accounts | 450.004 | 450.004 | |
| Prepaid expenses (prepayments) | 3.307.099 | 3.307.099 | |
| Prepaid expenses - Related parties | 14.583 | 14.583 | |
| Accrued income | 127.078 | 127.078 | |
| Accrued income - Related parties | 51.094 | 51.094 | |
| Other receivables | 10.252.694 | 10.190.579 | (62.115) |
| Other receivables from related parties | 10.276.329 | 10.276.329 | |
| Less: Provisions for impairment | (2.941.189) | (2.941.189) | |
| Total | 100.941.366 | 100.066.941 | (874.425) |
| Non-current assets | 5.372.199 | 10.405.474 | 5.033.275 |
| Current assets | 95.569.167 | 89.661.467 | (5.907.700) |
| 100.941.366 | 100.066.941 | (874.425) |
The average collection period for the Company's trade receivables is 120 days.
| GROUP | COMPANY | |
|---|---|---|
| (Amounts in Euro) | 31.12.2016 | 31.12.2016 |
| Total | 51.317.219 | 57.210.625 |
| Not past due and not impaired at the balance sheet date | 32.446.399 | 46.736.061 |
| Impaired at the balance sheet date | 6.941.888 | 6.560.934 |
| Provision has been made for the amount: | (6.941.888) | (6.560.934) |
| - | - |
Not impaired at the balance sheet date but past due during the following periods:
| 51.317.219 | 57.210.625 | |
|---|---|---|
| 18.870.820 | 10.474.563 | |
| > 365 days | 2.732.337 | 2.430.809 |
| 120 - 365 days | 6.562.914 | 3.325.258 |
| 0 - 120 days | 9.575.569 | 4.718.496 |
| From the Greek state | 9.523.915 | 5.063.172 |
|---|---|---|
| Other | 9.346.905 | 5.411.392 |
| 18.870.820 | 10.474.563 |
| GROUP | COMPANY | |
|---|---|---|
| (Amounts in Euro) | 31.12.2016 | 31.12.2016 |
| Total | 9.595.315 | 17.525.719 |
| Not past due and not impaired at the balance sheet date | 8.983.235 | 16.928.318 |
| Impaired at the balance sheet date | 3.000.392 | 2.941.189 |
| Provision has been made for the amount: | (3.000.392) | (2.941.189) |
| - | - |
Not impaired at the balance sheet date but past due during the following periods:
| 0 - 120 days | - | - |
|---|---|---|
| 120 - 365 days | 57.335 | 68.735 |
| > 365 days | 554.746 | 528.666 |
| 612.080 | 597.401 | |
| 9.595.315 | 17.525.719 |
Related party transactions in cases involving project contracts, sales of goods and services and rental and interest income are carried out at market terms.
In cases involving project contracts and subcontracts with related parties, the required good performance or advance payment guarantee letters are requested and obtained, which are also usually requested and obtained from such partnerships with third parties.
Settlement of the debts of related parties is always made as specified in the cooperation agreements and on terms that do not differ from the terms in similar partnerships with third parties.
It is clarified that the amounts of receivables and liabilities, income and expenses, as far as Intrasoft International SA is concerned, are related to current account balances and advances, since the above company operates as
Intrakat's subcontractor for the Rural broadband infrastructure project.
The same is true for Rural Connect, which is developing the PPP project Rural - Zone 2 with Intrakat being the exclusive manufacturer, as well as for Advance Transport Telematics SA, which constructed and operates the OASA Telematics project with Intrasoft and Intrakat being the manufacturers.
Furthermore, regarding the amounts of the companies Intradevelopment, Anaptixiaki Cyclades S.A., Alpha Anaptixiaki Cyclades S.A., Bita Anaptixiaki Cyclades S.A., Intra-Cyclades S.A., Intra-Hospitality S.A., Intra-Blue S.A. and B.L. Bluepro Holdings Ltd, they are related to the construction activities carried out by Intrakat on the property of those companies. The settlement of claims is expected to take place on completion of the projects undertaken in relation to the above companies.
There are no bad debts in the above amounts with related parties.
The A' Repeat General Shareholders' Meeting held on 07.07.2017, took the following major decisions:
Peania, September 29th 2017
The Chairman of the B.o.D. The Managing Director
DIMITRIOS X. KLONIS ID No ΑΚ 121708
PETROS K. SOYRETIS ID No. / AB 348882
The Financial Director The Chief Accountant
SOTIRIOS K. KARAMAGIOLIS ID No. / AI 059874
HELEN A. SALATA Licence No A/30440 Economic Chamber of Greece
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