Keo PLC — Interim / Quarterly Report 2013

Aug 26, 2013

ANNOUNCEMENT

We wish to inform you that, at the meeting held on 26 August 2013, the Board of Directors of KEO plc has examined and approved the Unaudited Interim Condensed Consolidated Financial Statements for the six month period ended 30 June 2013.

Copy of the Unaudited Interim Condensed Consolidated Financial Statements for the six month period ended 30 June 2013 is available free of charge at the Company's registered office, 1 Franklin Roosevelt Avenue 3012 Limassol, and in electronic format at the Group's website, www.keogroup.com.

The Condensed Consolidated Income Statement together with the Interim Management Statement for the six month period ended 30 June 2013, which are attached, will be published on 28 August 2013 in the newspaper "Alithia".

Limassol, 26 August 2013

KEO plc

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India
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$\label{eq:1} \tilde{\mathbf{r}} = \mathbf{r}$ $\tilde{\mathbf{r}} = \mathbf{r}_0$

Condensed Consolidated Income Statement for the six month period ended 30 June 2013

	Unaudited		Audited
	30 June	30 June	31 December
	2013	2012	2012
	€000	$\epsilon$ 000	€000
Turnover	19.347	19.979	45.415
Cost of Sales	(13.288)	(14.240)	(32.026)
Gross Profit	6.059	5.739	13.389
Other operating income	166	86	226
Sales and distribution expenses	(5.353)	(6.174)	(14.472)
Administration expenses	(1.280)	(1.440)	(2.881)
Other operating expenses	(62)	(63)	(144)
Loss from Operations	(470)	(1.852)	(3.882)
Investment Income, net	86	80	241
Loss on impairment of available for sale
investments			(688)
Loss on revaluation of investment property			(1.971)
Finance Cost, net	(854)	(817)	(1.872)
Loss before taxation	(1.238)	(2.589)	(8.172)
Taxation	(310)	(85)	159
Net Loss	(1.548)	(2.674)	(8.013)

INTERIM MANAGEMENT STATEMENT FOT THE SIX MONTH PERIOD ENDED 30 JUNE 2013

The Condensed Interim Consolidated Financial Statements have been prepared in accordance to the provisions of the International Accounting Standard 34 «Interim Financial Reporting» and the Securities and Stock Exchange Laws and are non-audited by the Group's External Auditors. Copy of the full document of the Condensed Interim Consolidated Financial Statements is available free of charge at the Company's registered office at 1 Franklin Roosevelt Avenue and at the Group's website, www.keogroup.com.

Turnover for the first six months of 2013 amounted to $\epsilon$ 19.347.000 in comparison to $\epsilon$ 19.979.000 during 2012, showing a decrease of 3%. The decrease in turnover, which was observed mainly during the first 3 months of 2013, is mainly due to the market decline as a result of the deterioration of the financial crisis and the unstable financial conditions observed in the Cyprus Economy, that have negatively affected the psychology of the Cypriot consumer.

The Group's loss from operations during the first six months of 2013 amounted to $6470.000$ in comparison to $61.852.000$ during 2012, showing a decrease of 75% despite the decrease in turnover by 3%. The decrease in loss from operations is due to actions taken by the Group for the restraint of expenses.

Loss before taxation during the first six months of 2013 showed a decrease of $\epsilon$ 1.351.000 in comparison to the same period in the previous year. This decrease is due to the decrease in loss from operations.

The major risks and uncertainties faced by the Group have not changed from those described in the Annual Report of the Company for the year 2012.

There have been no significant events and transactions, other than the normal operations of the Group, which had an impact in the financial condition of the Company and its subsidiaries.