Keo PLC — Interim / Quarterly Report 2015

Aug 6, 2015

ANNOUNCEMENT

We wish to inform you that, at the meeting held on 6 August 2015, 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 2015.

Copy of the Unaudited Interim Condensed Consolidated Financial Statements for the six month period ended 30 June 2015 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 2015 will be published on 7 August 2015 in the newspaper "Alithia".

Limassol, 6 August 2015

KEO plc

Condensed Consolidated Income Statement for the six month period ended 30 June 2015

	Unaudited		Audited
	30 June	30 June	31 December
	2015	2014	2014
	€000	€000	€000
Turnover	19.737	19.702	43.574
Cost of Sales	(12.899)	(13.626)	(29.392)
Gross Profit	6.838	6.076	14.182
Other operating income	133	324	500
Sales and distribution expenses	(5.418)	(5.369)	(10.523)
Administration expenses	(1.282)	(1.355)	(2.909)
Other operating expenses	(62)	(61)	(144)
Profit/(Loss) from Operations	209	(385)	1.106
Investment Income, net		142	235
(Loss) / Income on revaluation of available for
sale investments	(77)	17	(365)
Income / (Loss) on revaluation of fair value
through profit or loss investments	200		(1.500)
Loss on revaluation of investment property			(1.300)
Income on disposal of subsidiary company		829	829
Finance cost, net	(741)	(836)	(1.650)
Loss before taxation	(409)	(233)	(2.645)
Taxation	5	(53)	63
Net Loss for the period	(404)	(286)	(2.582)
		PRODUCTS AND ARTS AND ARTS COMPANY

INTERIM MANAGEMENT STATEMENT FOT THE SIX MONTH PERIOD ENDED 30 JUNE 2015

The Condensed Interim Consolidated Financial Statements have been prepared in accordance to the provisions of the International Accounting Standard No. 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 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 2015 amounted to $\epsilon$ 19,737,000 in comparison to $\epsilon$ 19,702,000 during 2014, showing an increase of 0.2%. This marginal increase was achieved despite the general shrinkage of the local market and is a result of an increase in the market share of the Group's products.

PROFITABILITY

During the first six months of 2015, the Group showed a profit from operations of $\epsilon$ 209,000 in comparison to a loss of $\epsilon$ 385,000 during 2014. The improvement in the profitability is mainly due to the increase in gross profit as a result of a descrease in the cost of production and the cost of raw materials.

The Group's loss before taxation during the first six months of 2015 showed an increase by $\epsilon$ 176,000 when compared to the same period in the previous year. It is noted that the Group's results before taxation for 2014 included profit of $\epsilon$ 829,000 that has arisen from the sale of the entire share capital of the subsidiary company Fifty Frith Street Ltd in the United Kingdom, which is not repetitive.

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 2014.

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.