Keo PLC — Interim / Quarterly Report 2014

Aug 6, 2014

ANNOUNCEMENT

We wish to inform you that, at the meeting held on 6 August 2014, 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 2014.

Copy of the Unaudited Interim Condensed Consolidated Financial Statements for the six month period ended 30 June 2014 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 2014 will be published on 8 August 2014 in the newspaper "Alithia".

Limassol, 6 August 2014

INTERIM MANAGEMENT STATEMENT FOT THE SIX MONTH PERIOD ENDED 30 JUNE 2014

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.

MAIN ACTIVITIES

The main activities of the Group, which have not been changed since the previous year, include the vinification of vine products, the production of beer and juices and bottling of natural mineral water which are distributed in the local market and overseas.

TURNOVER

Turnover for the first six months of 2014 amounted to $\epsilon$ 19,702,000 in comparison to $\epsilon$ 19,347,000 during 2013, showing an increase of 1.8%.

PROFITABILITY

The Group's loss from operations during the first six months of 2014 amounted to $\epsilon$ 385,000 in comparison to $\epsilon$ 470,000 during 2013, showing a decrease of 18.1%.

On 19 June 2014 the Company has completed the sale of the of the entire share capital of its subsidiary company, Fifty Frith Street Ltd, which is based in the United Kingdom. The consideration for the sale of the entire share capital amounted to $64,996,000$ (£4,050,000 Great Britain Pounds) and from the sale resulted a profit of $\epsilon$ 829,000 for the Group.

Loss before taxation during the first six months of 2014 showed a decrease of $\epsilon$ 1,005,000 in comparison to the same period in the previous year. This decrease is due to the profit on the sale of the entire share capital of a subsidiary company and the decrease in loss from operations.

MAJOR RISKS AND UNCERTAINTIES

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 2013.

SIGNIFICANT EVENTS AND TRANSACTIONS

There have been no significant events and transactions which had an impact in the financial condition of the Company and its subsidiaries, other than the normal operations of the Group and the sale of the entire share capital of its subsidiary company Fifty Frith Street Ltd.

KEO plc

Condensed Consolidated Income Statement for the six month period ended 30 June 2014

	Unaudited		Audited
	30 June	30 June	31 December
	2014	2013	2013
	€000	€000	€000
Turnover	19.702	19.347	43.426
Cost of Sales	(13.626)	(13.288)	(29.218)
Gross Profit	6.076	6.059	14.208
Other operating income	324	166	371
Sales and distribution expenses		$(5.369)$ $(5.353)$	(10.646)
Administration expenses	(1.355)	(1.280)	(2.725)
Other operating expenses	(61)	(62)	(134)
Loss from Operations	(385)	(470)	--------------------------------------- 1.074
Investment Income, net	142	86	164
Income on disposal of subsidiary company	829
Income / (Loss) on revaluation of available for
sale investments	17		(764)
Loss on de-recognition of fair value through
profit or loss investments			(3.500)
Loss on revaluation of investment property			(3.950)
Finance Cost, net	(836)	(854)	(1.878)
Loss before taxation	(233)	(1.238)	(8.854)
Taxation	(53)	(310)	(8)
Net Loss	(286)	(1.548)	(8.862)
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