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Lamda Development S.A. — Interim / Quarterly Report 2009
Sep 23, 2015
2660_ir_2015-09-23_bbe4882f-eabe-494d-bede-dde781a5d7b8.pdf
Interim / Quarterly Report
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LAMDA Development S.A.
FINANCIAL REPORT For the six-month period ended June 30, 2009 (in accordance with article 5 of the Law 3556/2007)
S.A. REG.No: 3039/06/B/86/28
37A Kifissias Ave., 15123, Maroussi
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.
| Statement of Board of Directors | 2 |
|---|---|
| Semi-annual Board of Directors | 3 |
| Report on review | 6 |
| CONDENSED INTERIM FINANCIAL STATEMENTS | 7 | |
|---|---|---|
| Notes to the condensed consolidated and Company interim financial statements | 12 | |
| 1. | General information | 13 |
| 2. | Basis of preparation and summary of significant accounting policies | 13 |
| 3. | Segment information | 16 |
| 4. | Investment property | 17 |
| 5. | Property, plant and equipment | 18 |
| 6. | Intangible assets | 19 |
| 7. | Investments in subsidiaries and associates | 19 |
| 8. | Available-for-sale financial assets | 22 |
| 9. | Derivative financial instruments | 22 |
| 10. Trade and other receivables | 23 | |
| 11. Cash and cash equivalents | 23 | |
| 12. Borrowings | 23 | |
| 13. Cash generated from operations | 26 | |
| 14. Commitments | 26 | |
| 15. Contingent liabilities and assets | 27 | |
| 16. Related party transactions | 28 | |
| 17. Earnings per share | 29 | |
| 18. Fiscal years unaudited by the tax authorities | 30 | |
| 19. Number of employees | 31 | |
| 20. Events after the balance sheet date | 31 | |
| 21. Seasonality | 31 |
STATEMENT OF THE BOARD OF DIRECTORS OF "LAMDA Development S.A." for the condensed consolidated and company financial statements for the six-month period ended June 30, 2009 (according to the article 5 par.2 of the Law 3556/2007)
We state to the best of our knowledge, that the semi-annual condensed consolidated and company financial statements for the six-month period ended June 30, 2009, which have been prepared in accordance with the international accounting standards in effect, reflect fairly the assets, liabilities, equity and the results of LAMDA Development S.A., as well as of the companies that are included in the consolidation taken as a whole.
Furthermore, we state to the best of our knowledge that the six-month period Financial Report of the Board of Directors reflects fairly the information that is required based on the Law 3556/2007, article 5, paragraph 6.
Maroussi, 24 August 2009
| _____ George K. Papageorgiou |
____ Odysseus E. Athanasiou |
___ Evangelos I. Chronis |
|---|---|---|
| Chairman of the BoD | Chief Executive Officer | Non executive member of the BoD |
SEMI-ANNUAL BOARD OF DIRECTORS' REPORT OF "LAMDA DEVELOPMENT S.A." FOR THE CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2009.
Dear Shareholders,
According to the provisions of the laws 3556/2007 and the decisions 1/434/3.7.2007 and 7/448/11.10.2007 of the Hellenic Capital Market Commission, we present the semi-annual Board of Directors' report of "LAMDA Development S.A." concerning the Consolidated and Company Financial Statements for the six-month period ended June 30, 2009.
FINANCIAL POSITION OF THE GROUP
According to the International Financial Reporting Standards, the basic Group's and Company's figures during the first semester of 2009 are the following:
The LAMDA Development S.A. Group reported an increase of 19,08% on the consolidated turnover of € 40,3 million versus € 33,9 million in the corresponding period of 2008. The increase is due to Golden Hall revenue and the Group recurring revenue which are higher than the corresponding period of 2008.
Consolidated Net Income before tax was €1.670 thousands compared to €23.037 thousand in 2008, whereas net profit for the company's shareholders reached €219 thousands compared to €16.053 thousands of the corresponding period of 2008. The main reason for the drop in Group earnings is the reduction in fair value gains (deriving from investment properties) in the amount of €4.753 thousands which aggravated the results for the first semester, versus profits of €18.579 thousands which had reinforced the results of the corresponding period of 2008. It is significant to note that contrary to the net profit of current year's first semester, the Group recurring EBITDA reached €21,6 million realizing a spectacular increase by 53,2% in relation to the corresponding period of 2008.
The total equity, that corresponds to the Company's shareholders, after minority interests, reached €430,2 million compared to €400,5 million during the corresponding period of 2008 presenting an increase of 7,4%. The implementation of treasure shares purchases program had an unfavorable effect on Group's total equity by €6,7 million, whereas the share price increase of EFG EUROBANK PROPERTIES which shares the Company owns, had a favorable effect of €11,4 million.
The Company during the first semester of 2009 purchased 1.399.859 treasury shares with total cost €6.777 thousands, and average price €4,84 per share, according to the Annual Shareholders Meeting at May 22, 2008 and May 7, 2009 which approved the purchase of treasury shares up to 10% on the total amount of shares, in accordance with article 16 par.5-13 and Law 2190/1920 before the amendment of Law 3604/2007. On June 30, 2009 the Company owns a total amount of 3.007.380 treasury shares of €16.912 thousands, with average price €5.62 per share.
| (amounts in € thousand) | First Semester '09 | First Semester '08 | Variation |
|---|---|---|---|
| Turnover | 40.346 | 33.882 | 19,08% |
| Earnings before valuations | 16.209 | 14.257 | 13,69% |
| Fair Value Gains / (Losses) | -4.753 | 18.579 | |
| Earnings before tax | 1.670 | 23.037 | -92,75% |
| Net Income after tax & minority interest | 219 | 16.053 | -98,64% |
| Shareholders' Equity | 430.176 | 400.483 | 7,41% |
| NET ASSET VALUE (NAV) | 485.783 | 454.562 | 7% |
SIGNIFICANT EVENTS
Despite the international slowdown in the economic environment as well as the deterioration in the economic activity in Greece, the Group's two Shopping Centers continue to excel. "The Mall Athens" during the first semester of 2009 had a shopkeeper turnover increase of 6.2%, while the total revenue from its operations increased by 4,7%. The "Mediterranean Cosmos" in Pylea Thessaloniki had a shopkeeper turnover increase of 9,65%, while the total revenue from its operations increased by 10.4%. Our new shopping and business center "Golden Hall" in Maroussi is developing with satisfactory results according to the initial anticipations.
Significant development in the local market is the great improvement in the operating profits of LAMDA TechnOl Flisvos Marina S.A. given that the marine and land facilities are 100% leased.
Regarding the new developments pipeline, the Group is re-appreciating each strategy that concerns the new investments according to the latest economic situation in the region it is activated.
In addition, the parent company received € 64,3 million from HSBC based on the specific terms of the deal for the transfer of 49.24% of LAMDA Olympia Village to HSBC
SIGNIFICANT RISKS
Fluctuations in property values
Fluctuations in property values are reflected in the income statement and balance sheet according to their fair value. An increase in yields would have an important effect on the Group's profitability and assets. However, due to the successful operations of Shopping and Leisure Centers "The Mall Athens" in Maroussi and "Mediterranean Cosmos" in Pylea Thessaloniki, their market value is unlikely to decline.
Credit risk
Income would be greatly affected in case the tenants are unable to fulfil their contractual obligations. However, the Group has a well-diversified tenant mix consisting mainly of blue chip companies in Greece and foreign countries. The customers' financial condition is monitored on a recurring basis. The Company's management does not expect significant losses from non-receivables apart from those for which certain provisions have already been made.
Foreign exchange risk
The Group operates in Balkan countries and is exposed to foreign exchange risk arising from various currencies, primarily the Serbian, Romanian, Montenegrin and Bulgarian currencies. Since the investments in the above-mentioned countries represent less than 11% of the Group's asset value, the Group is not significantly exposed in this risk category.
Interest rate risk
The Group's interest rate risk derives mainly from bank loans with floating base rate. The continuing interest rate increase lately will result in bigger financial expense.
46% of the Group's borrowings have a fixed base interest rate or are hedged through financial derivative instruments.
Inflation risk
The Group's exposure to inflation risk is limited as the Group enters into long term operating lease arrangements for a minimum of 6 years that are adjusted annually according to the Consumer Price Index plus margin up to 2%.
Liquidity risk
Liquidity needs are fully satisfied by the on-time forecast of cash needs in conjunction with the prompt collection of receivables and by maintaining adequate credit limits with the banks we do business with.
External factors
The Company has investments in Greece, Romania, Serbia, Bulgaria and Montenegro. The Group can be affected by external factors such as political instability, economic uncertainty and changes in local tax regimes.
RELATED-PARTY TRANSACTIONS
The related-party transactions according to IAS 24 of the Company and the Group are disclosed in the note 16 of the consolidated financial statements for the six-month period ended on June 30, 2009.
Maroussi, 24 August 2009
Georgios K. Papageorgiou Odysseus E. Athanasiou Evangelos I. Chronis
Chairman of the Board Chief Financial Officer Member of the BoD
Report on review of interim financial information
[Translation from the original text in Greek]
To the Shareholders of LAMDA Development S.A.
Introduction
We have reviewed the accompanying company and consolidated condensed balance sheet of LAMDA Development S.A. (the "Company") and its subsidiaries as of 30 June 2009 and the related company and consolidated condensed statements of income, changes in equity and cash flows for the six-month period then ended and the selected explanatory notes, that comprise the interim financial information and which form an integral part of the six-month financial report as required by article 5 of L.3556/2007. The Company's Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with International Financial Reporting Standards as they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of 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.
Review conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.
Reference to Other Legal and Regulatory Requirements
In addition to the interim financial information referred to above, we reviewed the remaining information included in the six-month financial report as required by article 5 of L.3556/2007 as well as the information required by the relevant Decisions of the Capital Markets Committee as set-out in the Law. Based on our review we concluded that the above referred financial report includes the data and information that is required by the Law and the Decisions referred to above and is consistent with the accompanying financial information.
PricewaterhouseCoopers S.A. THE CERTIFIED AUDITOR
268 Kifissias Avenue
152 32 Halandri
SOEL Reg. No. 113 Sourbis Dimitris
Athens, 27 August 2009
SOEL Reg. No.16891
CONDENSED INTERIM FINANCIAL STATEMENTS
Balance Sheet
| all amounts in € thousands 30.06.2009 31.12.2008 30.06.2009 31.12.2008 Note ASSETS Non-current assets Investment property 4 614.591 622.594 1.840 1.840 158.252 152.967 742 665 Property, plant and equipment 5 4.518 4.588 - - Intangible assets 6 Investments in subsidiaries 7 - - 159.644 157.144 Investments in associates 7 4.422 4.343 1.634 1.634 57.080 38.675 57.080 38.675 Available-for-sale financial assets 8 29 71 - - Derivative financial instruments 9 Deferred income tax assets 473 487 - - 10.157 - 10.157 - Restricted cash 10,11 12.206 14.060 70.518 Trade and other receivables 10 59.056 861.727 837.786 290.153 270.476 Current assets 46.211 45.799 - - Inventories 44.506 116.079 26.169 75.011 Trade and other receivables 10 Current income tax assets 102 6.309 - 6.300 Cash and cash equivalents 11 230.696 177.180 169.806 112.236 321.514 345.367 195.976 193.547 1.183.241 1.183.153 486.129 464.023 Total assets EQUITY Capital and reserves attributable to equity holders of the company Ordinary shares 218.993 225.770 218.993 225.770 (6.309) (18.461) (7.273) (18.872) Other reserves 217.492 218.259 26.160 20.893 Retained earnings 430.176 425.568 237.880 227.791 36.016 42.292 - - Minority interest in equity 466.191 467.860 237.880 227.791 Total equity LIABILITIES Non-current liabilities Borrowings 12 587.894 513.575 235.000 215.000 58.175 66.032 627 7.114 Deferred income tax liabilities 3.003 2.063 - Derivative financial instruments Retirement benefit obligations 432 432 374 374 2.278 2.449 - Other non-current liabilities 651.782 584.550 236.001 222.488 Current liabilities 51.833 62.447 11.572 13.744 Trade and other payables Current income tax liabilities 3.272 1.328 676 Borrowings 12 10.163 66.968 - 65.268 130.742 12.248 13.744 Total liabilities 717.050 715.293 248.249 236.233 1.183.241 1.183.153 486.129 464.023 |
GROUP | COMPANY | ||
|---|---|---|---|---|
| - - - - |
||||
| Total equity and liabilities |
These condensed consolidated and Company interim financial statements of LAMDA Development SA have been approved for issue by the Company's Board of Directors on August 24, 2009.
Income Statement
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Continuing operations (all amounts in € thousands) | Note | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
| Revenue | 40.346 | 33.882 | 700 | 2.083 | |
| Dividends | 2.859 | 997 | 9.338 | 3.198 | |
| Fair value gains of investment property | 4 | (4.753) | 18.579 | - | - |
| Cost of inventory sales | (770) | (4.030) | - | - | |
| Other direct investment property expenses | (10.558) | (4.001) | - | - | |
| Employee benefit expense | (4.028) | (3.916) | (2.792) | (2.778) | |
| Depreciation of property, plant, equipment and intangible assets | (1.145) | (994) | (94) | (146) | |
| Operating lease payments | (3.206) | (3.309) | (633) | (348) | |
| Contracting cost | (539) | (996) | - | (20) | |
| Profit from participations sale in associates | - | 2.000 | - | 2.000 | |
| Other operating income / (expenses) - net | (6.749) | (5.377) | (1.622) | (1.941) | |
| Operating profit | 11.456 | 32.836 | 4.897 | 2.047 | |
| Finance income | 3.531 | 1.505 | 4.944 | 2.909 | |
| Finance costs | (13.465) | (11.694) | (4.027) | (3.855) | |
| Share of profit of associates | 7 | 148 | 390 | - | - |
| Profit before income tax | 1.670 | 23.037 | 5.814 | 1.101 | |
| Income tax expense | 18 | (917) | (5.861) | (548) | (290) |
| Profit for the period | 753 | 17.176 | 5.267 | 811 | |
| Attributable to: | |||||
| Equity holders of the Company | 219 | 16.053 | 5.267 | 811 | |
| Minority interest | 534 | 1.123 | - | - | |
| 753 | 17.176 | 5.267 | 811 | ||
| Earnings/(losses) per share from continuing operations for profit attributable to the equity holders of the Company during the year (expressed in € per share) |
|||||
| Basic | 18 | 0,01 | 0,37 | 0,13 | 0,02 |
| Diluted | 18 | 0,01 | 0,37 | 0,13 | 0,02 |
Income Statement
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Continuing operations (all amounts in € thousands) | Note | 01.04.2009 to 30.06.2009 |
01.04.2008 to 30.06.2008 |
01.04.2009 to 30.06.2009 |
01.04.2008 to 30.06.2008 |
| Revenue | 20.856 | 17.577 | 328 | 1.767 | |
| Dividends | - | - | 6.479 | 2.200 | |
| Fair value gains of investment property | 4 | (4.753) | 5.599 | - | - |
| Cost of inventory sales | (620) | (2.194) | - | - | |
| Other direct investment property expenses | (6.235) | (2.077) | - | - | |
| Employee benefit expense | (1.910) | (1.919) | (1.259) | (1.273) | |
| Depreciation of property, plant, equipment and intangible assets | (586) | (488) | (48) | (61) | |
| Operating lease payments | (1.486) | (1.651) | (243) | (174) | |
| Contracting cost | (250) | (476) | - | - | |
| Profit from participations sale in associates | - | 2.000 | - | 2.000 | |
| Other operating income / (expenses) - net | (5.072) | (3.617) | (1.022) | (1.292) | |
| Operating profit | (57) | 12.753 | 4.236 | 3.167 | |
| Finance income | 1.794 | 1.192 | 2.546 | 1.764 | |
| Finance costs | (6.285) | (6.617) | (1.640) | (2.311) | |
| Share of profit of associates | 7 | (521) | 200 | - | - |
| Profit / (loss) before income tax | (5.070) | 7.528 | 5.141 | 2.621 | |
| Income tax expense | 18 | 163 | (2.368) | (881) | (920) |
| Profit / (loss) for the period | (4.907) | 5.161 | 4.261 | 1.701 | |
| Attributable to: | |||||
| Equity holders of the Company | (4.563) | 4.814 | 4.261 | 1.701 | |
| Minority interest | (344) | 347 | - | - | |
| (4.907) | 5.161 | 4.261 | 1.701 | ||
| Earnings/(losses) per share from continuing operations for profit attributable to the equity holders of the Company during the year (expressed in € per share) |
|||||
| Basic | (0,11) | 0,11 | 0,10 | 0,04 | |
| Diluted | (0,02) | 0,11 | 0,12 | 0,04 |
Total Comprehensive Income Statement
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Continuing operations (all amounts in € thousands) | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
| Profit for the period | 753 | 17.176 | 5.267 | 811 |
| Profit / (loss) from revaluation of available-for-sale assets | 11.363 | (8.725) | 11.363 | (8.725) |
| (Loss) from cash flow hedges, after tax | 223 | 964 | - | - |
| Currency translation differences | 429 | (388) | - | - |
| Other comprehensive income for the period | 12.015 | (8.149) | 11.363 | (8.725) |
| Total comprehensive income for the period | 12.768 | 9.028 | 16.630 | (7.914) |
| Attributable to: | ||||
| Equity holders of the Company | 12.134 | 7.520 | 16.630 | (7.914) |
| Minority interest | 633 | 1.508 | - | - |
| 12.768 | 9.028 | 16.630 | (7.914) |
Statement of changes in equity
| Attributable to equity holders of the Company | |||||
|---|---|---|---|---|---|
| all amounts in € thousands | Share capital | Other reserves | Retained earnings/(losses) |
Minority interests | Total equity |
| GROUP | |||||
| 1 January 2008 | 235.282 | 6.251 | 155.639 | 54.842 | 452.014 |
| Profit for the period | - | - 16.053 |
1.123 | 17.176 | |
| Other comprehensive income for the period: | |||||
| (Loss) from revaluation of available-for-sale assets Cash flow hedges, after tax |
- - |
(8.725) 580 |
- - - 385 |
(8.725) 964 |
|
| Currency translation differences | - | (388) | - - |
(388) | |
| Total comprehensive income for the period | - | (8.534) | 16.053 | 1.508 | 9.028 |
| Decrease in subsidiary share capital | - | - | - (15.956) |
(15.956) | |
| Dividends relating to 2007 approved by the shareholders | - | - | - (40) |
(40) | |
| Transfers between reserves | - | (3.145) | 3.145 | - | - |
| Treasury shares purchased | (4.208) | - | - - |
(4.208) | |
| (4.208) | (3.145) | 3.145 | (15.996) | (20.204) | |
| 30 June 2008 | 231.073 | (5.428) | 174.837 | 40.354 | 440.837 |
| 1 January 2009 | 225.770 | (18.461) | 218.259 | 42.292 | 467.860 |
| Profit for the period Other comprehensive income for the period: |
- | - 219 |
534 | 753 | |
| Profit from revaluation of available-for-sale assets | - | 11.363 | - - |
11.363 | |
| Cash flow hedges, after tax | - | 134 | - 89 |
223 | |
| Currency translation differences | - | 418 | - 11 |
429 | |
| Total comprehensive income for the period | - | 11.915 | 219 | 633 | 12.768 |
| Employees share option scheme | - | 236 | - - |
236 | |
| Change in subsidiary shareholdings | - | - (987) |
(1.460) | (2.446) | |
| Decrease in subsidiary share capital | - | - | - (4.190) |
(4.190) | |
| Dividends relating to 2008 approved by the shareholders Treasury shares purchased |
- (6.777) |
- - |
- (1.260) - - |
(1.260) (6.777) |
|
| (6.777) | 236 | (987) | (6.910) | (14.437) | |
| 30 June 2009 | 218.993 | (6.309) | 217.492 | 36.016 | 466.191 |
| all amounts in € thousands | Retained | ||||
| Share capital | Other reserves | earnings/(losses) | Total equity | ||
| COMPANY | |||||
| 1 January 2008 | 235.282 | 2.929 | 12.465 | 250.676 | |
| Profit for the period | - | - | 811 | 811 | |
| Other comprehensive income for the period: | |||||
| (Loss) from revaluation of available-for-sale assets | - | (8.725) | - | (8.725) | |
| Total comprehensive income for the period | - | (8.725) | 811 | (7.914) | |
| Treasury shares purchased | (4.208) | - | - | (4.208) | |
| 30 June 2008 | 231.073 | (5.796) | 13.275 | 238.553 | |
| 1 January 2009 | 225.770 | (18.872) | 20.893 | 227.791 | |
| Profit for the period | - | - | 5.267 | 5.267 | |
| Other comprehensive income for the period: Profit from revaluation of available-for-sale assets |
- | 11.363 | - | 11.363 | |
| Total comprehensive income for the period | - | 11.363 | 5.267 | 16.630 | |
| Employees share option scheme | - | 236 | - | 236 | |
| Treasury shares purchased | (6.777) | - | - | (6.777) | |
| (6.777) | 236 | - | (6.541) | ||
| 30 June 2009 | 218.993 | (7.273) | 26.160 | 237.880 | |
Cash Flow Statement
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| all amounts in € thousands | Note | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 | 01.01.2008 to 30.06.2008 |
| Cash flows from operating activities | |||||
| Cash generated from operations | 13 | 15.488 | 24.356 | (5.051) | (5.443) |
| Interest paid | (14.287) | (11.160) | (4.450) | (3.561) | |
| Income tax paid | (752) | (1.479) | (135) | (78) | |
| Net cash generated from operating activities | 449 | 11.716 | (9.636) | (9.082) | |
| Cash flows from investing activities | |||||
| Purchases of property, plant, equipment and investment property | 4,5 | (6.367) | (18.681) | (177) | (44) |
| Proceeds from sale of property, plant and equipment (PPE) | 4 | 2 | - 2 |
3.720 | |
| Dividends received | 2.859 | 997 | 7.439 | 3.038 | |
| Loans granted to related parties | 16 | - | (2.650) | (360) | (360) |
| Interest received | 3.901 | 1.340 | 2.421 | 603 | |
| Loan repayments received from related parties | - | 50 | - | - | |
| Proceeds from sale of participations | 7 | 64.296 | - 64.296 |
- | |
| Proceeds from share capital decrease in subsidiaries | - | - 6.311 |
24.034 | ||
| Purchases of available-for-sale financial assets | 8 | (7.042) | - (7.042) |
- | |
| Increase in participations | 7 | (2.481) | (119) | (8.811) | (5.120) |
| Net cash used in investing activities | 55.169 | (19.063) | 64.079 | 25.871 | |
| Cash flows from financing activities | |||||
| Purchase of treasury shares | (6.777) | (4.208) | (6.777) | (4.208) | |
| Dividends paid to Company's shareholders | (41) | (14) | (41) | (14) | |
| Proceeds from decrease in ordinary shares of subsidiaries | 7 | (4.190) | (15.956) | - | - |
| Costs on issuance of bond loans | 4 | (248) | - | - | |
| Borrowings received | 12 | 25.343 | 112.550 | 20.000 | 58.000 |
| Repayments of capital repayments of finance leases | 12 | (381) | (334) | - | - |
| Repayments of borrowings | (6.006) | (11.629) | - | (8.000) | |
| Net cash used in financing activities | 7.952 | 80.161 | 13.182 | 45.778 | |
| Net (decrease) / increase in cash and cash equivalents | 63.569 | 72.814 | 67.625 | ||
| Cash and cash equivalents at beginning of the period | 11 | 177.180 | 46.200 | 112.236 | 62.567 |
| Reclassification of restricted cash in Receivables | 11 | (10.055) | - (10.055) |
3.337 | |
| Cash and cash equivalents at end of the period | 11 | 230.696 | 119.014 | 169.806 | 65.904 |
Notes to the condensed consolidated and Company interim financial statements
1. General information
These condensed interim financial statements include the six-month period ended June 30, 2009 interim financial statements of the company LAMDA Development S.A. (the "Company") and the interim consolidated financial statements of the Company and its subsidiaries (together "the Group"). The names of the subsidiaries are presented in note 7.
The main activities of the Group are the investment, development and maintenance of innovative real estate projects and marine services.
The Group is activated in Greece and in other neighbour Balkan countries mainly Romania, Bulgaria, Serbia, Montenegro and its shares are listed on the Athens Stock Exchange.
The Company is incorporated and domiciled in Greece. The address of its registered office is 37A Kifissias Ave., 15123, Maroussi and its website address is www.Lamda-development.net. The company is controlled by Consolidated Lamda Holdings S.A. which is domiciled in Luxembourg and therefore Group's financial statements are included in its consolidated financial statements. The company Consolidated Lamda Holdings S.A. is controlled by Latsis family.
It must be stated that the results and the cash flows of the current interim reporting date are not comparable with the ones of the corresponding interim period as a result of the Shopping and Business Center officially opening, Golden Hall in 27/11/2008 when the construction was completed. Therefore, this semi-annual financial report represents the income, the operating results and the cash flows from the operations of the Shopping and Business Center for the six-month period, contrary to the corresponding comparative period during which mainly cash flows in relation to the construction costs were presented.
These interim condensed financial statements have been approved for issue by the Board of Directors on August 24, 2009.
2. Basis of preparation and summary of significant accounting policies
2.1 Basis of preparation
The interim financial information of LAMDA Development SA cover the six-month period ended June 30, 2009. It has been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" and should be read in conjunction with the annual financial statements for the year ended 31 December 2008 which are available on the website address www.Lamdadevelopment.net.
2.2 Accounting policies
The accounting principles that have been used in the preparation and presentation of the interim financial statements are in accordance with those used for the preparation of the Company and Group annual financial statements as of December 31, 2008.
The preparation of the Financial Statements, in conformity with IFRS, requires the use of certain estimates and assumptions which affect the balances of the assets and liabilities, the contingencies disclosure as at the balance sheet date of the financial statements and the amounts of income and expense relating to the reporting year. These estimates are based on the best knowledge of the Company's and Group's management in relation to the current conditions and actions.
New standards, amendments and interpretations to published standards that are mandatory for financial year ending 31 December 2009, as they were described in the annual financial statements for the year ended 31 December 2008 either were not relevant to the Group's operations or did not have a significant impact on the financial information.
Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning during the current reporting period or subsequent reporting periods. The Group's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows:
Standards mandatory effective for the annual period beginning on January 1, 2009
IAS 1 (amendment) "Presentation of Financial Statements"
IAS 1 has been revised to enhance the usefulness of information presented in the financial. The key changes are: the requirement that the statement of changes in equity include only transactions with shareholders, the introduction of a new statement of comprehensive income that combines all items of income and expense recognised in profit or loss together with "other comprehensive income", and the requirement to present restatements of financial statements or retrospective application of a new accounting policy as at the beginning of the earliest comparative period. The Group has applied these amendments and decided to present the total comprehensive income in separate financial statement.
IAS 23 (Amendment) "Borrowing Costs"
This standard replaces the previous version of IAS 23. The benchmark treatment in the previous standard of expensing all borrowing costs to the income statement has been eliminated in the case of qualifying assets. All borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset must be capitalised. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. In accordance with the transitional requirements of the Standard, the Group adopted this as a prospective change. However, there are no existing qualifying assets during the current period and therefore no such capitalisation took place. No changes have been made for borrowing costs incurred prior to January 1, 2009 that have been expensed.
IFRS 8 "Operating Segments"
This standard supersedes IAS 14, under which segments were identified and reported based on a risk and return analysis. Under IFRS 8 segments are components of an entity regularly reviewed by the entity's chief operating decision maker and are reported in the financial statements based on this internal component classification. The Group maintains the same operating segments, as stated in note 3 where there are additional disclosures and amended comparable information.
Standards mandatory effective for the annual period beginning on January 1, 2009 (no impact on the Group's financial statements)
IAS 32 (amendment) "Financial Instruments: Presentation" and consequential IAS 1 (amendment) "Presentation of Financial Statements Puttable Financial Instruments and Obligations Arising on Liquidation"
The amendment to IAS 32 does not have an impact on the Group's financial statements since the Group does not own such instruments.
IAS 39 (Amended) "Financial Instruments: Recognition and Measurement" – Eligible Hedged Items
This amendment is not applicable to the Group as it does not apply hedge accounting in terms of IAS 39.
IFRS 1 (Amendment) "First time adoption of IFRS" and IAS 27 (Amendment) "Consolidated and separate financial statements"
As the parent company and all its subsidiaries have already transitioned to IFRS, the amendment did not have any impact on the Group's financial statements.
IFRS 2 "Share-based payment"
The amendment did not have an impact on its financial statements, since the amendment does not affect the share options scheme as sole requirement is the service rendered from the employees.
Interpretations mandatory effective for the annual period beginning on January 1, 2009
IFRIC 13, "Customer Loyalty Programmes"
This interpretation is not relevant to the Group's operations.
IFRIC 15, "Agreements for the Construction of Real Estate"
This interpretation is not relevant to the Group's operations as no such agreements have been signed during the reporting period.
IFRIC 16, "Hedges of a Net Investment in a Foreign Operation"
This interpretation is not relevant to the Group as the Group does not apply hedge accounting for any investment in a foreign operation.
Standards mandatory effective for the annual period beginning on July 1, 2009
IFRS 3 (revision) "Business combinations" and IAS 27 (amendment) "Consolidated and Separate Financial Statements"
The revised IFRS 3 introduces a number of changes in the accounting for business combinations which will impact the amount of goodwill recognized, the reported results in the period that an acquisition occurs, and future reported results. Such changes include the expensing of acquisition related costs and recognizing subsequent changes in fair value of contingent consideration in the profit or loss. The amended IAS 27 requires that a change in ownership interest of a subsidiary to be accounted for as an equity transaction. Furthermore the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. The changes introduced by these standards must be applied prospectively and will affect future acquisitions and transactions with minority interests. The Group has applied these changes form their effective date.
IFRIC 7 "Distributions of non-cash assets to owners"
This interpretation provides guidance on accounting for the following types of non-reciprocal distributions of assets by an entity to its owners acting in their capacity as owners: (a) distributions of non-cash assets and (b) distributions that give owners a choice of receiving either non-cash assets or a cash alternative. The Group will apply this interpretation from its effective date.
No new standards or amendments have been issued, which are mandatory for annual periods beginning at January 1, 2009.
3. Segment information
Primary reporting format – business segments
The Group is organised into two business segments:
- (1) Real Estate
- (2) Marine services
Management monitors the operating results of the divisions separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on sales, operating results and EBITDA (Earnings before interest, tax, depreciation and amortization). It is noted that the Group applies the same accounting policies as those in the financial statements in order to measure the operating segment's results. Group financing, including finance costs and finance income, as well as income taxes are measured on a group basis and are included in corporate segment without being allocated to the profit generating segments.
Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.
The segment results for the six-month period ended June 30, 2009 were as follows:
| Shipyards and | |||
|---|---|---|---|
| Continuing operations (all amounts in € thousands) | Real Estate | Marine Services | Total |
| Total revenue | 34.337 | 6.082 | 40.419 |
| Inter-segment revenue | (73) | - | (73) |
| Revenue from third parties | 37.472 | 2.874 | 40.346 |
| EBIDTA | 13.393 | 1.395 | 14.789 |
The segment results for the six-month period ended June 30, 2008 were as follows:
| Continuing operations (all amounts in € thousands) | Real Estate | Shipyards and Marine Services |
Total |
|---|---|---|---|
| Total revenue | 28.609 | 5.320 | 33.928 |
| Inter-segment revenue | (46) | - | (46) |
| Revenue from third parties | 28.563 | 5.320 | 33.882 |
| EBIDTA | 34.865 | 1.057 | 35.921 |
The segment results for the three-month period ended June 30, 2009 were as follows:
| Shipyards and | |||
|---|---|---|---|
| Continuing operations (all amounts in € thousands) | Real Estate | Marine Services | Total |
| Total revenue | 17.712 | 3.208 | 20.920 |
| Inter-segment revenue | (64) | - | (64) |
| Revenue from third parties | 17.648 | 3.208 | 20.856 |
| EBIDTA | 2.132 | 592 | 2.724 |
The segment results for the three-month period ended June 30, 2008 were as follows:
| Shipyards and | |||
|---|---|---|---|
| Continuing operations (all amounts in € thousands) | Real Estate | Marine Services | Total |
| Total revenue | 14.656 | 2.982 | 17.638 |
| Inter-segment revenue | (61) | - | (61) |
| Revenue from third parties | 14.595 | 2.982 | 17.577 |
| EBIDTA | 11.390 | 824 | 12.214 |
| Shipyards and | |||
|---|---|---|---|
| Total assets | Real Estate | Marine Services | Total |
| 30 June 2009 | 1.074.471 | 51.217 | 1.125.689 |
| 31 December 2008 | 1.090.468 | 53.522 | 1.143.991 |
| 30 June 2008 | 937.427 | 61.615 | 999.042 |
A reconciliation of the Group's total adjusted EBITDA to total profit after income tax is provided as follows:
| Adjusted EBITDA for reportable segments | 30/06/09 | 30/06/08 |
|---|---|---|
| EBITDA | 14.789 | 35.921 |
| Corporate overheads | (5.047) | (5.088) |
| Depreciation | (1.145) | (994) |
| Dividends | 2.859 | 997 |
| Profit from participations sale in associates | - | 2.000 |
| Share of profit of associates | 148 | 390 |
| Finance income | 3.531 | 1.505 |
| Finance costs | (13.465) | (11.694) |
| Profit before income tax | 1.670 | 23.037 |
| Income tax expense | (917) | (5.861) |
| Profit for the period | 753 | 17.176 |
Reportable segments' assets are reconciled to total assets as follows:
| 30 June 2009 31 December 2008 | 30 June 2008 | ||
|---|---|---|---|
| Total segment assets | 1.125.689 | 1.143.991 | 999.042 |
| Deferred income tax assets | 473 | 487 | 688 |
| Available-for-sale financial assets | 57.080 | 38.675 | 47.987 |
| Total assets per balance sheet | 1.183.242 | 1.183.153 | 1.047.717 |
4. Investment property
| GROUP | COMPANY | |||
|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
| Balance at 1 January | 622.594 | 505.474 | 1.840 | 1.840 |
| Write-off of unused provisions for costs of completion | (3.250) | - | - | - |
| Additions resulting from subsequent expenditure | - | 11.190 | - | - |
| Transfer from property, plant & equipment | - | 66.278 | - | - |
| Disposals | - | (8.500) | - | - |
| Fair value gains | (4.753) | 48.151 | - | - |
| Balance at 30 June | 614.591 | 622.594 | 1.840 | 1.840 |
Group's investment property is revalued by independent professional valuers at semi-annual basis ("SAVILLS HELLAS Ltd"). Valuations are based primarily on discounted cash flow projections due to the absence of sufficient current prices for an active market. In the other interim three-month periods, the revaluation is based on Management estimations taking the existing market conditions at the reporting period into account.
The investment property includes property under finance lease that amounts to €12.530.000 and property under operating lease that amounts to €169.541.000.
Bank borrowings are secured with mortgages on "The Mall Athens", associate's "Lamda Olympia Village SA" investment property, which amount to € 336.000.000 (note 12). Group's proportion on the above mortgages amounts to € 177.446.400.
In relation to the mortgages on property, refer to note 15.
5. Property, plant and equipment
| all amounts in € thousands | Land and | Vehicles and | Furniture, fittings | Investment property under |
Assets under | ||
|---|---|---|---|---|---|---|---|
| buildings | machinery | and equipment | Software | construction | construction | Total | |
| GROUP - Cost | |||||||
| 1 January 2008 | 133.431 | 11.206 | 2.127 | 2.242 | 18.647 | 3.244 | 170.898 |
| Additions | 4.930 | 367 | 1.835 | 114 | 51.604 | 3.097 | 61.948 |
| Disposals | - | (4) | (60) | - | - | - | (65) |
| Indemnity on primary costs | (1.686) | - | - | - | - | - | (1.686) |
| Transfer to inventories | 39 | - | - | - | - | (2.823) | (2.784) |
| Transfer to investment property | - | - | - | - | (66.278) | - | (66.278) |
| 31 December 2008 | 136.715 | 11.570 | 3.902 | 2.356 | 3.973 | 3.518 | 162.033 |
| 1 January 2009 | 136.715 | 11.570 | 3.902 | 2.356 | 3.973 | 3.518 | 162.033 |
| Additions | 4.688 | 10 | 749 | 39 | 140 | 741 | 6.367 |
| Disposals / Write-offs | - | - | (155) | - | - | - | (155) |
| Reclassifications | 3.067 | - | - | - | - | (3.067) | - |
| 30 June 2009 | 144.470 | 11.579 | 4.497 | 2.394 | 4.113 | 1.192 | 168.245 |
| Accumulated depreciation | |||||||
| 1 January 2008 | (1.423) | (2.446) | (1.359) | (2.098) | - | - | (7.327) |
| Depreciation charge | (781) | (511) | (334) | (163) | - | - | (1.789) |
| Disposals | - | 1 | 48 | - | - | - | 49 |
| 31 December 2008 | (2.204) | (2.955) | (1.645) | (2.261) | - | - | (9.065) |
| 1 January 2009 | (2.204) | (2.955) | (1.645) | (2.261) | - | - | (9.065) |
| Depreciation charge | (454) | (258) | (325) | (38) | - | - | (1.075) |
| Disposals / Write-offs | - | - | 148 | - | - | - | 148 |
| 30 June 2009 | (2.658) | (3.213) | (1.822) | (2.299) | - | - | (9.992) |
| Closing net book amount at 31 December 2008 | 134.511 | 8.614 | 2.257 | 95 | 3.973 | 3.518 | 152.967 |
| Closing net book amount at 30 June 2009 | 141.812 | 8.366 | 2.674 | 96 | 4.113 | 1.192 | 158.252 |
| all amounts in € thousands | Land and buildings |
Vehicles and machinery |
Furniture, fittings and equipment |
Software | Assets under construction |
Total |
|---|---|---|---|---|---|---|
| COMPANY - Cost | ||||||
| 1 January 2008 | 155 | 39 | 736 | 2.258 | - | 3.188 |
| Additions | - | 6 | 260 | 91 | 116 | 472 |
| Disposals | - | (4) | - | - | - | (4) - |
| 31 December 2008 | 155 | 41 | 996 | 2.349 | 116 | 3.657 |
| 1 January 2009 | 155 | 41 | 996 | 2.349 | 116 | 3.657 |
| Additions | - | - | 145 | - | 32 | 177 |
| Disposals / Write-offs | - | - | (155) | - | - | (155) |
| 30 June 2009 | 155 | 41 | 987 | 2.349 | 148 | 3.680 |
| Accumulated depreciation | ||||||
|---|---|---|---|---|---|---|
| 1 January 2008 | (60) | (4) | (610) | (2.086) | - | (2.760) |
| Depreciation charge | (12) | (5) | (59) | (155) | - | (232) |
| Disposals | - | - | 1 | - | - | 1 |
| 31 December 2008 | (72) | (9) | (669) | (2.241) | - | (2.992) |
| 1 January 2009 | (72) | (9) | (669) | (2.241) | - | (2.992) |
| Depreciation charge | (6) | (3) | (58) | (28) | - | (94) |
| Disposals / Write-offs | - | - | 148 | - | - | 148 |
| 30 June 2009 | (79) | (12) | (578) | (2.269) | - | (2.937) |
| Closing net book amount at 31 December 2008 | 83 | 32 | 327 | 108 | 116 | 665 |
| Closing net book amount at 30 June 2009 | 77 | 30 | 408 | 80 | 148 | 742 |
The total amount of the reclassifications represents the completion of the construction of subsidiary LAMDA Hellix's property at Koropi.
Liens and pre-notices on the Group's land and buildings amount to € 4.300.000 for securing borrowings (note 10).
6. Intangible assets
| and similar all amounts in € thousands rights GROUP - Cost 1 January 2008 5.469 Additions - 31 December 2008 5.469 1 January 2009 5.469 - Additions 30 June 2009 5.469 Accumulated depreciation (741) 1 January 2008 (140) Depreciation charge (880) 31 December 2008 (880) 1 January 2009 (70) Depreciation charge (950) 30 June 2009 4.588 Closing net book amount at 31 December 2008 4.518 Closing net book amount at 30 June 2009 |
Concessions |
|---|---|
In concessions and rights are included the licences for the management and the operation of the Flisvos Marina for 40 years, and are valued at historical cost less accumulated depreciation.
7. Investments in subsidiaries and associates
| COMPANY | |||
|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | |
| Balance at 1 January | 158.778 | 174.116 | |
| Additions | - | 40 | |
| Increase in participations | 2.480 | - | |
| Share capital increase | 6.331 | 11.938 | |
| Share capital decrease | (6.311) | (27.316) | |
| Balance at 30 June | 161.278 | 158.778 |
The Company's share of the results of its subsidiaries, joint ventures and associates, all of which are unlisted, and its share of the carrying amount are as follows:
Financial report for the six-month period ended June 30, 2009
COMPANY - 30 June 2009 (all amounts in € thousands)
| Country of | |||||
|---|---|---|---|---|---|
| Name | Cost | Impairment | Carrying amount | incorporation | % interest held |
| LAMDA ESTATE DEVELOPMENT SA | 52.654 | 13.164 | 39.490 | Greece | 100,00% |
| LAMDA PRIME PROPERTIES SA | 9.272 | - | 9.272 | Greece | 100,00% |
| LAMDA ERGA ANAPTYXIS SA | 170 | - | 170 | Greece | 100,00% |
| LAMDA DOMI SA | 21.000 | - | 21.000 | Greece | 100,00% |
| LAMDA PROPERTY MANAGEMENT SA | 210 | - | 210 | Greece | 100,00% |
| LAMDA HELLIX SA | 1.240 | - | 1.240 | Greece | 80,00% |
| PYLAIA SA | 4.035 | - | 4.035 | Greece | 60,10% |
| LAMDA TECHNOL FLISVOS HOLDING SA | 10.773 | 2.484 | 8.289 | Greece | 61,00% |
| LAMDA ANADIXI SA | 60 | - | 60 | Greece | 100,00% |
| LAMDA PROTYPI ANAPTYXI SA | 60 | - | 60 | Greece | 100,00% |
| LAMDA WASTE MANAGEMENT SA | 500 | - | 500 | Greece | 100,00% |
| GEAKAT SA | 14.063 | - | 14.063 | Greece | 100,00% |
| LAMDA DEVELOPMENT SOFIA EOOD | 23 | - | 23 | Bulgaria | 100,00% |
| LAMDA DEVELOPMENT SOUTH EOOD | 3 | - | 3 | Bulgaria | 100,00% |
| LAMDA DEVELOPMENT VITOSHA EOOD | 3 | - | 3 | Bulgaria | 100,00% |
| LAMDA DEVELOPMENT DOO (BEOGRAD) | 392 | - | 392 | Serbia | 100,00% |
| PROPERTY DEVELOPMENT DOO | 251 | - | 251 | Serbia | 100,00% |
| PROPERTY INVESTMENTS LTD | 1 | - | 1 | Serbia | 100,00% |
| LAMDA DEVELOPMENT ROMANIA SRL | 1 | - | 1 | Romania | 100,00% |
| ROBIES SERVICES LTD | 1.638 | - | 1.638 | Cyprus | 90,00% |
| LAMDA DEVELOPMENT (NETHERLANDS) BV | 26.000 | - | 26.000 | Netherlands | 100,00% |
| LAMDA DEVELOPMENT MONTENEGRO DOO | 600 | - | 600 | Montenegro | 100,00% |
| Investments in subsidiaries | 142.946 | 15.648 | 127.298 | ||
| LAMDA OLYMPIA VILLAGE SA (a) | 27.106 | - | 27.106 | Greece | 49,24% |
| LAMDA AKINHTA SA | 4.904 | - | 4.904 | Greece | 50,00% |
| S.C. LAMDA OLYMPIC SRL | 1.174 | 838 | 336 | Romania | 50,00% |
| Investments in joint ventures | 33.183 | 838 | 32.345 | ||
| ECE LAMDA HELLAS SA | 204 | - | 204 | Greece | 34,00% |
| ATHENS METROPOLITAN EXPO SA | 1.325 | - | 1.325 | Greece | 11,70% |
| PIRAEUS METROPOLITAN CENTER SA | 39 | 39 | Greece | 19,50% | |
| EFG PROPERTY SERVICES SA | 30 | - | 30 | Romania | 20,00% |
| EFG PROPERTY SERVICES SOFIA AD | 15 | - | 15 | Bulgaria | 20,00% |
| EFG PROPERTY SERVICES DOO BEOGRAD | 20 | - | 20 | Serbia | 20,00% |
| Investments in associates | 1.634 | - | 1.634 | ||
| TOTAL | 177.764 | 16.486 | 161.278 |
The Group participates in the following companies' equity:
GROUP - 30 June 2009 - Investments in associates (all amounts in € thousands)
| Share in profit / | |||||
|---|---|---|---|---|---|
| Name | Cost | (loss) | Carrying amount | ||
| ECE LAMDA HELLAS SA | 204 | 686 | 890 | Greece | 34,00% |
| ATHENS METROPOLITAN EXPO SA | 1.325 | 33 | 1.358 | Greece | 11,70% |
| PIRAEUS METROPOLITAN CENTER SA | 39 | (12) | 27 | Greece | 19,50% |
| MC PROPERTY MANAGEMENT SA | 40 | 263 | 303 | Greece | 25,00% |
| EFG PROPERTY SERVICES SA | 30 | 130 | 160 | Romania | 20,00% |
| EFG PROPERTY SERVICES SOFIA AD | 15 | 279 | 295 | Bulgaria | 20,00% |
| EFG PROPERTY SERVICES DOO BEOGRAD | 20 | 131 | 151 | Serbia | 20,00% |
| S.C. LAMDA MED SRL | 0,5 | 1.237 | 1.238 | Romania | 40,00% |
| TOTAL | 1.674 | 2.748 | 4.422 | ||
During the period ended June 30, 2009 the following significant events have occurred:
(a) "LAMDA Olympia Village SA"
On 7/11/2006 the Company transferred 50% of its participation in "LAMDA Olympia Village SA" to "HSBC LUXEMBOURG SARL". Specifically, "HSBC LUXEMBOURG SARL" acquired 13.006.105 shares of "LAMDA Olympia Village SA", which represent 49.24% of the company's share capital. As a result, the Group with this transaction loses the control and in league with "HSBC LUXEMBOURG SARL" have the power to govern the financial and operating policies of "LAMDA Olympia Village SA".
According to the special terms of the purchase sale contract, the initial cost of the transaction is adjusted upwards with figures as they occur for the period until December 31, 2008 by € 17.950.093. The current total transaction cost amounts to € 182.964.600.
On March 5, 2009 HSBC paid to the Company the amount of € 64.296.373. Various partial figures of the agreement between the two parties have not been finalized yet. According to the contract of shares' transfer, a certain procedure to the finalization of the purchase price will be followed but no significant alteration is expected.
The Company has already received € 179.201.428 and the rest of amount (31/06/2009: € 3.763.471) remains in Trade and other receivables.
Share capital increase / decrease
The Company increased its participation in 100% subsidiaries "LAMDA DOMI SA", "LAMDA Development DOO Beograd", "LAMDA Development Netherlands BV", "Property Development DOO" and "LAMDA Development Montenegro" by €5m, €0,28m, €0,4m, €0,25 and 0,40m respectively. In addition, during the three month period ended March 31, 2009 the Company's subsidiary "PYLEA SA" proceeded in share capital decrease and as a result, the Company's participation decreased by € 6,3m.
Increase in participation
On 26/01/2009 the Company proceeded to an increase of 10% of its participation in LAMDA TechnOL Flisvos Holding S.A. and therefore the Company holds a 61% in the company. More specifically IGY FLISVOS HOLDING Ltd has transferred the total of its shares, which is 10% of the share capital, at the price of € 2,480m. Following the above transaction, the equity holders of the Company has decreased by € 987k.
The Group's composition on June 30, 2009 is as follows:
| % Participation of the parent company |
% Participation of the parent company |
||||||
|---|---|---|---|---|---|---|---|
| Company | Company | ||||||
| LAMDA Development SA Full consolidation |
Parent company | ||||||
| LAMDA Estate Development SA | Greece | 100,00% | LAMDA Development Vitosha EOOD | Bulgaria | 100,00% | ||
| KRONOS PARKING SA | Greece | Indirect | 100,00% | TIHI EOOD | Bulgaria | Indirect | 100,00% |
| LAMDA Prime Properties SA | Greece | 100,00% | LAMDA Development (Netherlands) BV | Netherlands | 100,00% | ||
| PYLEA SA | Greece | 60,10% | Robies Services Ltd | Cyprus | 90,00% | ||
| LAMDA Technol Flisvos Holding SA | Greece | 61,00% | Proportionate consolidation | ||||
| LAMDA Technol Flisvos Marina SA | Greece | Indirect | 47,11% | LAMDA Olympia Village SA | Greece | 49,24% | |
| LAMDA Erga Anaptyxis SA | Greece | 100,00% | LAMDA Akinhta SA | Greece | 50,00% | ||
| LAMDA Domi SA | Greece | 100,00% | LAMDA Redding Contracting Consortium | Greece | Indirect | 50,00% | |
| LAMDA Property Management SA | Greece | 100,00% | Singidunum-Buildings DOO | Serbia | Indirect | 50,00% | |
| LAMDA Hellix SA | Greece | 80,00% | Rang Nekretnine DOO | Serbia | Indirect | 50,00% | |
| LAMDA Anadixi SA | Greece | 100,00% | SC LAMDA Olympic SRL | Romania | 50,00% | ||
| LAMDA Protypi Anaptyxi SA | Greece | 100,00% | GLS OOD | Bulgaria | Indirect | 50,00% | |
| LAMDA Waste Management SA | Greece | 100,00% | S.L. Imobilia DOO | Croatia | Indirect | 50,00% | |
| GEAKAT SA | Greece | 100,00% | |||||
| LAMDA Development DOO Beograd | Serbia | 100,00% | Equity consolidation | ||||
| Property Development DOO | Serbia | 100,00% | MC Property Management SA | Greece | Indirect | 25,00% | |
| Property Investments DOO | Serbia | 100,00% | ECE LAMDA HELLAS SA | Greece | 34,00% | ||
| LAMDA Development Montenegro DOO | Montenegro | 100,00% | ATHENS METROPOLITAN EXPO SA | Greece | 11,67% | ||
| LAMDA Development Romania SRL | Romania | 100,00% | Piraeus Metropolitan Center SA | Greece | 19,50% | ||
| Robies Proprietati Imobiliare SRL | Romania | Indirect | 90,00% | SC LAMDA MED SRL | Romania | Indirect | 40,00% |
| SC LAMDA Properties Development SRL | Romania | Indirect | 95,00% | EFG PROPERTY SERVICES SA | Romania | 20,00% | |
| LAMDA Development Sofia EOOD | Bulgaria | 100,00% | EFG PROPERTY SERVICES DOO BEOGRAD | Serbia | 20,00% | ||
| LAMDA Development South EOOD | Bulgaria | 100,00% | EFG PROPERTY SERVICES SOFIA AD | Bulgaria | 20,00% | ||
8. Available-for-sale financial assets
| GROUP COMPANY |
|||||
|---|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 31.12.2008 |
30.06.2009 | 31.12.2008 | ||
| Balance at 1 January | 38.675 | 56.712 | 56.712 | 42.428 | |
| Additions | 7.042 | 4.237 | 33.653 | 33.653 | |
| Reserves from revaluation recognised directly in equity | 11.363 | (22.273) | 11.363 | (19.369) | |
| Balance at 30 June | 57.080 | 38.675 | 101.728 | 56.712 |
The total amount of available-for-sale financial assets refers to 8.039.425 shares (31/12/2008: 6.931.038 shares) of the listed company Eurobank Properties R.E.I.C., which have been revaluated at fair value at June 30, 2009 and December 31, 2008 and the result (profit / loss) has been transferred to the relevant reserves in equity.
During 2009, the Company acquired 1.108.387 shares for € 7.041.640. As a result, the Company's participation increased to 13,18% (31/12/2008: 11,36%).
Regarding the afore-mentioned financial assets, we should mention that no impairment loss has been transferred from reserves to the income statement, since there was not any indication for impairment of this investment on June 30, 2009 and December 31, 2008.
9. Derivative financial instruments
| GROUP | COMPANY | |||||||
|---|---|---|---|---|---|---|---|---|
| 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 | |||||
| all amounts in € thousands | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities |
| Interest rate swaps - fair value hedges | 29 | - | 71 | - | - - |
- - |
||
| Interest rate swaps - cash flow hedges | - | 3.003 | - | 2.063 | - - |
- - |
||
| Total | 29 | 3.003 | 71 | 2.063 | - - |
- - |
The above mentioned derivative financial instruments refer to interest rate swaps.
The total fair value of the derivative financial instrument is presented in the balance sheet as long-term liability since the remaining duration of the loan agreement which is hedged, exceeds the 12 months.
The loss relating to the ineffective portion of the cash flow hedge which corresponds with the fair value movement is recognised in the income statement and amounts to €940k (30/06/2008: 0). The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedge during 31/12/2008 remains in certain reserves in equity where is amortized through profit and loss statement until its maturity (30/06/2009: €289k). The effectiveness test of the cash flow hedges is based on discounted cash flows according to the forward rates (3-month Euribor) and the their volatility rating.
The nominal value of interest rate swaps in abeyance at June 30, 2009 was € 65.105.000 (31/12/2008: €68.250.000) and has been measured at fair value stated by the counterpart bank. On December 31, 2008 the long-term borrowings floating rates are secured with interest risk derivatives (swaps) ranged according to 3 month Euribor plus 1,05%.
10. Trade and other receivables
In Group level "Trade and other receivables" include receivables from the Greek State which are related to VAT paid for construction costs of the shopping and leisure centres, according to art.24 of Law 3522/22.12.2006. The right to rebate the tax or compensate the above amount with future tax liabilities is established with the supplementary provision of POL 1112 (05/12/2007). Part of the receivables € 5.7m has been offset during the year. On June 30, 2009 the balance of VAT receivable regarding the construction of the shopping and leisure centers amount to € 22m. Despite the opening of the shopping centre Golden Hall, the offset rate of VAT receivable was not affected significantly during the current semester of 2009, due to the construction VAT increase.
During the current period, the Company received approximately the total amount of receivables € 64,3m which is related to the sale of 50% of its participation in "LAMDA Olympia Village SA" (note 7).
11. Cash and cash equivalents
| GROUP | COMPANY | |||
|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
| Cash at bank | 27.323 | 27.777 | 1.559 | 1.384 |
| Cash in hand | 184 | 389 | 2 | 2 |
| Short-term bank deposits | 203.188 | 138.959 | 168.245 | 100.795 |
| Restricted cash (1) | - | 10.055 | - | 10.055 |
| Total | 230.696 | 177.180 | 169.806 | 112.236 |
The above comprise the cash and cash equivalents used for the purposes of the cash flow statement.
The significant increase in cash and cash equivalents in Group and Company figures during the current period is mainly due to the funds that were drawn by the Company's borrowings, which remain unused.
(1) The Company's restricted cash in the amount of €10m was reclassified in the non-current assets since it is not regarded as cash available to cover current needs.
12. Borrowings
| GROUP | COMPANY | |||
|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
| Non-current | ||||
| Bank borrowings | 14.229 | 14.898 | - | - |
| Bond borrowings | 564.005 | 488.509 | 235.000 | 215.000 |
| Finance lease liabilities | 9.660 | 10.168 | - | - |
| Total non-current | 587.894 | 513.575 | 235.000 | 215.000 |
| Current | ||||
| Bank borrowings | 829 | 61.426 | - | - |
| Bond borrowings | 8.447 | 4.784 | - | - |
| Finance lease liabilities | 886 | 759 | - | - |
| Total current | 10.163 | 66.968 | - | - |
| Total borrowings | 598.056 | 580.543 | 235.000 | 215.000 |
The movements in borrowings are as follows:
| all amounts in € thousands | GROUP | COMPANY |
|---|---|---|
| Balance at 1 January 2008 | 376.078 | 103.000 |
| Bank borrowings | 76.538 | 8.000 |
| Bond borrowings | 184.300 | 132.000 |
| Borrowings transaction costs - amortization | 294 | - |
| Borrowings transaction costs | (371) | - |
| Borrowings repayments | (55.573) | (28.000) |
| Finance lease repayments - additions | 14 | - |
| Finance lease repayments | (737) | - |
| Balance at 31 December 2008 | 580.543 | 215.000 |
| 6 months ended 30 June 2009 (amounts in € thousands) | GROUP | COMPANY |
|---|---|---|
| Balance at 1 January 2009 | 580.543 | 215.000 |
| Bank borrowings | 5.350 | - |
| Bond borrowings | 85.000 | 20.000 |
| Refinancing | (65.000) | - |
| Borrowings repayments | (6.006) | - |
| Borrowings transaction costs - amortization | 127 | - |
| Borrowings transaction costs | (4) | - |
| Reclassification in liabilities | (932) | - |
| Currency translation differences | (641) | - |
| Finance lease repayments | (381) | - |
| Balance at 30 June 2009 | 598.056 | 235.000 |
Borrowings are secured with mortgages on the Group's land and buildings (note 4 and 5) and in certain cases by additional pledges of parent company's shares and by assignment of subsidiaries' receivables and insurance compensations.
Part of the borrowings which amount to € 64,7m that are assigned to subsidiaries and associates are secured by the parent company.
The maturity of non-current borrowings is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
| Between 1 and 2 years | 42.618 | 37.354 | 30.000 | 30.000 |
| Between 2 and 5 years | 281.358 | 226.123 | 205.000 | 185.000 |
| Over 5 years | 263.918 | 250.098 | - | - |
| 587.894 | 513.575 | 235.000 | 215.000 |
Parts of the borrowings that are assigned to subsidiaries are secured with assignment of receivables.
The effective weighted average interest rates at June 30, 2009 are as follows:
| Bank borrowings (current) | 2.57% |
|---|---|
| Bank borrowings (non-current) | 2.57% |
| Bonds (current) | 5.05% |
| Bonds (non-current) | 3.47% |
By taking into account the participation interest held of each company, it is noted that on June 30, 2009, the average base effective interest rate that the Group is borrowed is 2.36% and the average bank spread is 1.29%. Therefore, the Group total effective borrowing rate is 3.65%.
During the second quarter of 2009, the following movements in borrowings per company took place:
The Company proceeded with the repurchase of a series of bonds for the amount of € 20m from Millennium Bank with the same conditions of the other series.
Also, the Company's subsidiary "LAMDA Domi SA" enforced the current borrowings by €5m using the overdraft bank account in Alpha Bank and therefore the balance amounts to € 65m with average 1 month Euribor plus margin 2.7%.
The subsidiary "LAMDA Technol Flisvos Marina SA" in May proceeded in partial premature repayment of €2m of the bond loan that it has signed with Bank of Cyprus. Finally, the below mentioned scheduled capital repayments per company were realised: "PYLEA SA" (€3.145m), "LAMDA Technol Flisvos Marina SA" (€0.4m), "LAMDA Prime Properties SA" (€0.36m).
It should be noted that on July 30, 2009 the subsidiary LAMDA Domi SA proceeded to refinancing of its borrowings regarding the construction of the shopping centre Golden Hall. More specifically, the company repaid the borrowings of €65m. granted from Alpha Bank, guaranteed from LAMDA Development SA. The subsidiary moved to the signing and disbursal of bond loan with the banks EFG Eurobank, HSBC Bank and Alpha Bank according to the following main clauses: capital of €67.5m. duration 5 years, grace period 1 year (only interest payments), balloon 87% on the investment facility, spread 2.50%. The basic two financial covenants of the loan are: a) the loan to value should not exceed 65% and b) the interest cover ratio should be higher than 1.15.
The Company loans have to fulfil the following financial covenants: at Company level (issuer) the total borrowings (current and non-current) to total equity should not exceed 1.5 and at Group level the total borrowings to total equity should not exceed 3. There has been no change to the above mentioned financial covenants and the Company and the Group fulfil them as in the last reporting period.
Finance leases
| GROUP | COMPANY | |||
|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
| Finance lease liabilities- minimum lease payments | ||||
| Not later than 1 year | 1.168 | 1.356 | - | - |
| Later than 1 year but not later than 5 years | 4.628 | 5.572 | - | - |
| Over 5 years | 6.355 | 7.630 | - | - |
| Total | 12.152 | 14.559 | - | - |
| Less: Future finance charges on finance leases | (1.606) | (3.632) | - | - |
| Present value of finance lease liabilities | 10.546 | 10.927 | - | - |
The present value of finance lease liabilities is analyzed as follows:
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
|---|---|---|---|---|
| Not later than 1 year | 886 | 759 | - | - |
| Later than 1 year but not later than 5 years | 3.756 | 3.624 | - | - |
| Over 5 years | 5.904 | 6.544 | - | - |
| Total | 10.546 | 10.927 | - | - |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| all amounts in € thousands | Note | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
| Profit for the period | 753 | 17.176 | 5.267 | 811 | |
| Adjustments for: | |||||
| Tax | 917 | 5.861 | 548 | 290 | |
| Depreciation of property, plant and equipment | 5 | 1.075 | 924 | 94 | 146 |
| Depreciation of intangible assets | 6 | 70 | 70 | - | - |
| Proceeds from participation sale | - | (2.000) | - | (2.000) | |
| Provisions for bad debts | 1.611 | 112 | - | - | |
| Other provisions | 153 | 188 | 120 | 159 | |
| Share of profit of associates | 7 | (148) | (390) | - | - |
| Proceeds from dividends | (2.859) | (997) | (9.338) | (3.198) | |
| Proceeds from unused provisions | - | (342) | - | - | |
| Share option scheme | 313 | - | 313 | - | |
| Loss from available-for-sale financial assets | 940 | - | - | ||
| Interest income | (3.531) | (1.952) | (4.944) | (2.909) | |
| Interest expense | 13.465 | 11.694 | 4.027 | 3.855 | |
| Fair value gains / (losses) of investment property | 4 | 4.753 | (18.579) | - | - |
| Other non cash income / (expense) | 231 | (18) | 5 | 1 | |
| 17.743 | 11.747 | (3.909) | (2.845) | ||
| Changes in working capital: | |||||
| (Increase) / decrease in inventories | (411) | 2.686 | - | - | |
| (Increase) / decrease in receivables | 7.048 | 5.130 | 686 | (1.748) | |
| (Decrease) / increase in payables | (8.892) | 4.792 | (1.829) | (851) | |
| (2.255) | 12.609 | (1.142) | (2.599) | ||
| Cash generated from operations | 15.488 | 24.356 | (5.051) | (5.443) |
13. Cash generated from operations
14. Commitments
Capital commitments
There is no capital expenditure that has been contracted for but not yet incurred at the balance sheet date.
Operating lease commitments
The Group leases tangible assets, land, buildings, vehicles and mechanical equipment under operating leases. Total future lease payments under operating leases are as follows:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 | |
| No later than 1 year | 16.656 | 16.737 | 961 | 1.123 | |
| Later than 1 year and not later than 5 years | 74.605 | 74.222 | 3.494 | 3.550 | |
| Later than 5 years | 923.557 | 950.792 | 4.816 | 5.187 | |
| Total | 1.014.819 | 1.041.750 | 9.271 | 9.859 |
The aggregate floating remuneration has been adjusted according to the Consumer Price Index of June 30, 2009 for the short-term part which amounts to 0.5% and 3% for the long-term part.
The Group has no contractual liability for investment property repair and maintenance services.
15. Contingent liabilities and assets
The Group and the Company have contingencies in respect of bank guarantees, other guarantees and other matters arising in the ordinary course of business, for which no significant additional burdens are expected to arise as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Liabilities (all amounts in € thousands) | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 |
| Letters of guarantee to creditors | 25.436 | 36.150 | 5.791 | 5.791 |
| Letters of guarantee to customers securing contract performance | 5.823 | 13.277 | - | - |
| Mortgages over land & buildings | 181.746 | 181.746 | - | - |
| Guarantees to banks on behalf of subsidiaries | 160.600 | 160.600 | 160.600 | 160.600 |
| Other | 82.427 | 80.938 | 80.816 | 80.816 |
| Total | 456.032 | 472.711 | 247.207 | 247.207 |
Other Liabilities include pledged shares of subsidiaries. According to the terms of the pledge, the assigned right of the pledge extends to the potential revenues of such shares.
Part of the borrowings € 64,7m that have been given to subsidiaries and associates have been granted from the parent company.
In addition to the issues mentioned above there are also the following particular issues:
- The Company has been tax audited until the year 2005. For further information regarding the Group's unaudited fiscal years, refer to note 18. Consequently, the Group tax obligations have not been defined permanently.
- At the subsidiary company "LAMDA Olympia Village SA" (ex DIMEPA) a property transfer tax of € 9,8m approximately has been imposed. The Company has appealed to the administrative courts, paying during 2005 € 836k and € 146k approximately during 2006 and € 27k during 2007 (which is included in Deposits and Other Debtors). The estimate of the management is that the imposition of the income tax is without base due to the special law provisions on the law for Olympic works. In any case, if the outcome of the case is negative, according to the share sale agreement between the Municipality of Amaroussion and the Company, the total obligation will be on the Municipality, as it relates to transfers of properties before the acquisition of the shares of the subsidiary by the Company.
- There are disagreements between Company's subsidiary "PYLEA SA" and the constructing company "MHXANIKH SA", concerning the evaluation of constructing company's works at the trading center Mediterranean Cosmos of "PYLEA SA". Lawsuit and agreements about the height of claims have been made whose the hearing took place on 01.04.2009. The amount of the total receivables of "PYLEA SA" against "MHXANIKH SA" is € 18.340m (out of which € 2m regards moral damage) while "MHXANIKH SA" requests the amount of € 34.755m (out of which € 10m regards moral damage). It is noted that "PYLEA SA" legal consultants estimate that their claims are far greater than "MHXANIKH SA" ones.
- At the subsidiary LAMDA TechnolFlisvos Marina, there stand in front of the State of Council two requests for cancellation of the environmental terms for the development and refurbishment of Flisvos Marina which were heard on 04.03.2009 and the decision of the Ministry of Development with which the existing waterbase has been surveyed which hearing (following many postponements) has been scheduled on 04.11.2009. Those requests are expected to be judged during June 2009. The Group foresees a favorable outcome on these cases.
- Five (5) petitions of annulment have been filled and are pending before the State Council for the subsidiary company "LAMDA Olympia Village SA", in relation to the plot of land where the Olympic Press Village (or "Olympiako Chorio Typou") and the Commercial Centre "The Mall Athens" were built. More specifically: the first of these petitions was heard on 03.05.2006 and the decision no 391/2008 of the Fifth Department of the State Council was issued committing for the Plenary Session of the State Council. Following successive continuances on 07.11.2008 and 08.05.2009, the hearing of the said petition has been scheduled on 09.10.2009. The hearing of the second petition has been re - scheduled on 02.12.2009. Following successive continuances, the hearing of the remaining three petitions has been scheduled on 12.10.2010. In accordance with the Company's legal consultants' estimate and without excluding any other outcome, should the State Council uphold its
jurisprudence to date, the first petition is not expected to be sustained. The outcome of the hearing of the other four petitions will be fully connected to the Court's precedent regarding the first one.
- In the subsidiary company "LAMDA Domi SA" the following are pending: a) five petitions before the Plenary Session of the State Council for annulment which have been scheduled to be heard on the 25.09.2009 after postponement at 07.11.2008 and 06.03.2009. "LAMDA Domi SA" has exercised intervention in all cases. The first petition for annulment turns against an agreement executed by and between "OLYMPIC PROPERTIES SA", the second petition turns against the validity of 101576/22.02.2008 common decision of Ministry for the Environment, Physical Planning and Public Works and Ministry of Culture, regarding the approval of the environmental conditions of the project, the third, fourth and fifth petitions turn against the afore-mentioned decision as well as the building permit for the refit of the building to Complex. The applicants of the first petition for annulment exercised a suspension which was rejected with the nr.1329/2008 decision of the Administrative Court of Appeals. The applicant of the third and fifth petition for annulment exercised a petition for suspension, which included a request for the issuance of an interim order for the suspension of the execution of works. This petition was rejected by the Chair of the State Council and the petition for suspension was rejected with decision nr.1327/2008 and 1328/2008, b) before the Athens Administrative Court of Appeals, two petitions for annulment which seeks the annulment and contests the validity of the original building permit for which no hearing has been scheduled yet. It is noted that for this petition, a request for the issuance of an interim order for the suspension of the execution of works. This request was rejected according to the decision 178/2008 of the judge of the Administrative Court of Appeals. The hearing of the first petition has been scheduled to be heard on the 11.11.2009 after a postponement on 04.03.2009 and 06.05.2009, while the second petition has been scheduled for hearing on 02.02.2010. According to the legal counsels who represent the company in these cases, if the State Council upholds its jurisprudence on the admissibility for hearing of a petition for annulment, the petition is not likely to be successful.
Additionally, there are various legal cases of the Group's companies, which are not expected to create material additional liabilities.
16. Related party transactions
In Group's related parties, apart from the ones related to it, Group "EFG Eurobank Ergasias SA" is included.
The following transactions were carried out with related parties:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| all amounts in € thousands | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
|
| i) Sales of goods and services | |||||
| - sales of services | 1.578 | 1.253 | 547 | 535 | |
| - sales of investment property | - | 8.385 | - | - | |
| 1.578 | 9.638 | 547 | 535 | ||
| ii) Purchases of goods and services | |||||
| - purchases of services | 2.861 | 2.935 | 488 | 261 | |
| - purchases of fixed assets / inventories | - | - | 32 | - | |
| 2.861 | 2.935 | 520 | 261 | ||
| iii) Dividend income | 2.859 | 997.128 | 9.338 | 3.198 | |
| iv) Benefits to management | |||||
| - salaries and other short-term employment benefits | 413 | 354 | 413 | 354 | |
| - sales of services to management | - | 27 | - | - | |
| 413 | 381 | 413 | 354 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| all amounts in € thousands | 30.06.2009 | 31.12.2008 | 30.06.2009 | 31.12.2008 | |
| Receivables from related parties: | |||||
| - parent | 25 | - | - | - | |
| - associates | 215 | 88 | 415 | 546 | |
| 241 | 88 | 415 | 546 | ||
| Receivables from dividends from related parties: | |||||
| - associates | - | - | 1.898 | - | |
| - | - | 1.898 | - | ||
| Payables to related parties: | |||||
| - parent | 20 | 11 | - | - | |
| - associates | 1.661 | 2.204 | 20 | 37 | |
| 1.681 | 2.215 | 20 | 37 | ||
| vi) Loans to associates: | |||||
| Balance at the beginning of the period | 4.896 | 2.165 | 75.847 | 71.132 | |
| Loans given during the period | - | 2.650 | 360 | 540 | |
| Loans repaid during the period | - | (50) | - | - | |
| Loans impairment | - | - | - | (497) | |
| Reversal of loans impairment | - | - | 1.827 | 3.511 | |
| Interest charged | 47 | 131 | 583 | 1.162 | |
| Balance at the end of the period | 4.943 | 4.896 | 78.617 | 75.847 | |
| vii) Loans from associates: | |||||
| Balance at the beginning of the period | 49.648 | 34.174 | 45.458 | 33.284 | |
| Loans received during the year | 350 | 15.300 | - | 12.000 | |
| Loans repaid during the period | (59) | - | - | - | |
| Interest paid | (1.064) | (2.059) | (1.010) | (1.909) | |
| Interest charged | 827 | 2.232 | 773 | 2.083 | |
| Balance at the end of the period | 49.701 | 49.648 | 45.220 | 45.458 | |
| viii) Cash at bank - related parties | 91.771 | 41.990 | 78.549 | 29.373 |
v) Period-end balances from sales-purchases of goods / servises
Services from and to related parties, as well as sales and purchases of goods, are based on the price lists in force with non-related parties.
The Group loans to and from related parties are included in note 12.
17. Earnings per share
Basic
Basic earnings per share are calculated by dividing profit attributable to ordinary equity holders of the parent entity, by the weighted average number of ordinary shares outstanding during the period
| GROUP | COMPANY | |||
|---|---|---|---|---|
| all amounts in € thousands | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
| Profit attributable to equity holders of the Company | 219 | 16.053 | 5.267 | 811 |
| Weighted average number of ordinary shares in issue | 41.154 | 43.791 | 41.154 | 43.791 |
| Basic earnings per share (Euro per share) | 0,01 | 0,37 | 0,13 | 0,02 |
Diluted
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| all amounts in € thousands | 01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
01.01.2009 to 30.06.2009 |
01.01.2008 to 30.06.2008 |
|
| Profit used to determine dilluted earnings per share | 219 | 16.053 | 5.267 | 811 | |
| Weighted average number of ordinary shares in issue | 41.154 | 43.791 | 41.154 | 43.791 | |
| Adjustment for share options: | |||||
| Employees share option scheme | 180 | 37 | 180 | 37 | |
| Weighted average number of ordinary shares for dilluted earnings | |||||
| per share | 41.334 | 43.828 | 41.334 | 43.828 | |
| Diluted earnings / (losses) per share (Euro per share) | 0,01 | 0,37 | 0,13 | 0,02 |
There were no dilutive potential ordinary shares. Therefore, the diluted earnings per share are the same as the basic earnings per share for all periods presented.
18. Fiscal years unaudited by the tax authorities
The income tax expense is based on the Management estimations of the weighted average tax rate that is expected to be applicable to profits throughout the year. Due to the increased transactions during to the ordinary course of business, the ultimate tax determination is uncertain. The Group's companies are subject to income taxes in numerous jurisdictions. In addition, the tax rate for the subsidiaries registered in foreign countries differs from country to country as follows: Romania 16%, Serbia 10%, Bulgaria 10%, Montenegro 9% and Netherlands 25.5%.
The annual weighted average tax rate for the current period has been affected by the Group results before tax which derive mainly from the Group's companies with registered offices in Greece, including the parent company. During current period, this rate presents a variation from the anticipating one due to the elements in the income statement that has significant contribution in the results before tax. These elements are basically non-taxable income (dividends), other non-offset taxes, differences due to tax rate decrease as well as period losses to be transferred, for which a provision of deferred tax has not been made.
The Company has been tax audited until the year 2005. During the reporting period, "LAMDA Olympia Village SA" has been tax audited and the amount of €320k in company level has occurred as additional taxes while the Company as well as "PYLEA SA" is in course of tax audit. From the chart above, it is obvious that the Group's tax obligations have not been defined permanently.
Financial report for the six-month period ended June 30, 2009
| Fiscal years unaudited by the tax |
Fiscal years unaudited by the tax |
||
|---|---|---|---|
| authorities | authorities | ||
| Company | Company | ||
| LAMDA Development SA | 2006-2008 | ||
| LAMDA Estate Development SA | 2007-2008 | LAMDA Redding Contracting Consortium | 2006-2008 |
| KRONOS PARKING SA | 2007-2008 | MC Property Management SA | 2007-2008 |
| LAMDA Prime Properties SA | 2005-2008 | ECE LAMDA HELLAS SA | 2007-2008 |
| PYLAIA SA | 2005-2008 | ATHENS METROPOLITAN EXPO SA | 2007-2008 |
| LAMDA Technol Flisvos Holding SA | 2007-2008 | LAMDA Olympia Village SA | 2008 |
| LAMDA Technol Flisvos Marina SA | 2007-2008 | LAMDA Akinhta SA | 2006-2008 |
| LAMDA Erga Anaptyxis SA | 2007-2008 | Piraeus Metropolitan Center SA | 2008 |
| LAMDA Domi SA | 2003-2008 | SC LAMDA MED SRL | 2005-2008 |
| LAMDA Property Management SA | 2007-2008 | EFG PROPERTY SERVICES SA | 2005-2008 |
| LAMDA Hellix SA | 2007-2008 | EFG PROPERTY SERVICES DOO BEOGRAD | 2005-2008 |
| LAMDA Ανάδειξη SA | 2007-2008 | EFG PROPERTY SERVICES SOFIA AD | 2005-2008 |
| LAMDA Protypi Anaptyxi SA | 2007-2008 | LAMDA Development Montenegro DOO | 2007-2008 |
| LAMDA Waste Management SA | 2007-2008 | LAMDA Development (Netherlands) BV | 2007-2008 |
| GEAKAT SA | 2006-2008 | Robies Services Ltd | 2007-2008 |
| LAMDA Development DOO Beograd | 2003-2008 | Robies Proprietati Imobiliare SRL | 2007-2008 |
| Property Development DOO | 2007-2008 | SC LAMDA Properties Development SRL | 2007-2008 |
| Property Investments DOO | 2008 | SC LAMDA Olympic SRL | 2002-2008 |
| LAMDA Development Romania SRL | 2003-2008 | Singidunum-Buildings DOO | 2007-2008 |
| LAMDA Development Sofia EOOD | 2006-2008 | Rang Nekretnine DOO | 2007-2008 |
| LAMDA Development South EOOD | 2007-2008 | GLS OOD | 2006-2008 |
| LAMDA Development Vitosha EOOD | 2007-2008 | S.L. Imobilia DOO | 2008 |
| TIHI EOOD | 2007-2008 |
19. Number of employees
Number of employees at the end of the period: Group 138, Company 70 (six-month period ended June 30, 2008: Group 145, Company 77) from which the seasonal are: Group 2, Company 0 (six-month period ended June 30, 2008: Group 5, Company 0).
20. Events after the balance sheet date
It should be noted that on July 30, 2009 the subsidiary LAMDA Domi SA proceeded to refinancing of its borrowings regarding the construction of the shopping centre Golden Hall. More specifically, the company repaid the borrowings of €65m. granted from Alpha Bank and then moved to the signing and disbursal of bond loan with the banks EFG Eurobank, HSBC Bank and Alpha Bank according to the following main clauses: capital of €67.5m. duration 5 years
No event has arisen after the balance sheet date that would have significant influence on these consolidated financial statements.
21. Seasonality
The Group activities, and consequently the turnover are not expected to be substantially influenced by seasonal fluctuations.
Financial report for the six-month period ended June 30, 2009
| LAMIA DEVELOPMENT S.A. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| L.A. EXC. P. L. MONGOLIA AND | HOLDING AND REAL ESTATE DEVELOPMENT COMPANY S.A. | |||||||||
| LAMDA | Registered address \$10.000 class Arts, 2012 St Marssent | FOR A ROLL DATA AND INFORMATION FOR THE PERFORMANCE. | ||||||||
| (a province with 40070004.000 modulus of Ambred Capat Market Counciler) | ||||||||||
| To be adjubute this trial professor and the significant into all a best not in the first of the company into the company interest in the permetric process provided from the distinguish to be and research and response to th | ||||||||||
| COMPANY'S BATA Separating Ladisation |
Makery of Development (Department of Basical companies) | Baard of Directors | ||||||||
| Campagna redaks | mini and a dealership and last | Cloime d'infort Corpo EPopperper Virepresident Aposides 3 Statements |
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| Date of opposed of the Remedal statements by the Teard of Diversions. | 34.4 agost 3000 | Chief Europee (Mires Odysses E. Advancing | ||||||||
| Name of the modified Jackley Area |
Inche Derein (808), Sap. No. 1489 () PrintmatchmatCoopers &A |
Hookers Deggins Library |
Direktor Sh Papel repulse | |||||||
| Type of sections reports | Unneklink | Paint S.Astronom Tennand Locald Report |
Spielin L'Unederspolis Georgias S. Genetics |
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| Parts / Falering | Addition V Empression video | |||||||||
| REATEMENT OF FINANCEAL POSITION (Agrees) in 6 Gawcash) | 102211-0 | CASH PLOW STATEMENT (Ammunity Cilipponity), lading Metadi | County | |||||||
| 3016.2008 | 1003200 | 1011204 | 21120900 | Lis Houston | Lis Natures | 10110-00902 | 198.5000.000 | |||
| ARRETT Leversees property |
414,900 | 422,594 | 1.840 | 1.840 | adulters from graving univities mitt before have from realisating specifican |
1476 | 28,007 | 3.884 | 1,561 | |
| Chance compled property, plant and againment | 139,252 | 18.87 | 2HL | est. | hold before twins them the national operations | r a | ||||
| Science Win seems | 4,118 | 4.508 | Adjustment for: | |||||||
| inversents in vahildierin and are misin- | 4.422 | 430 | 10.277 | 116.73 | o via più alternazione poste | 4.753 | (16.776) | |||
| Analishte the sale Rosseal sante Citize manufactured model |
21090 22,806 |
39, 874 | 17000 | 16,673 73.928 |
armiai us real and |
110 | 99 | $\blacksquare$ | 146 18 |
|
| 34.008 | 作出 | nda (k e, represen, gains and house) of law science |
1.794 | 60 | m | |||||
| Service in Engle and other researching |
46,222 | 41,706 12, 98 |
38.160 | \$2,211 | Night ford e manue / financia |
追敲符 | (1330) | 6300 | (1190) | |
| Cash and cost expendents | 41008 236.609 |
177.180 | 109.806 | 111.230 | German sub flow items | 8.014 164 |
10.189 (10) |
dtt 15 318 |
946 $\mathbf{I}$ |
|
| TOTAL ARTIS | 1,181,111 | 1.001310 | 491,129 | HILELL | Inegrate models replied a | |||||
| mati former in ensuing | $\langle 011 \rangle$ | 1,486 | ||||||||
| REPORTED AND LOCATED FEED. | massis I discussed in court reliable | Tour | 1,139 | MS | (1.760) | |||||
| Sure rapid. Citize equality components |
200,000 2011/01 |
211.770 100.700 |
218,993 19, 807 |
118,770 2.831 |
(Domest) / Loneson in payables insi |
(6.992) | 4.792 | 0.820 | (870) | |
| Total change sapked and inventors and | 498,176 | 433,568 | 337,098 | 227,781 | inni prif | (14.387) | (11.503) | (1.45) | (1190) | |
| Meanly interest (b) | 36016 | 41,293 | en margarit | 73323 | (1.47) | 0011 | (70) | |||
| Total equity (e) = 00 + 00 | 066,170 | 401.000 | 327,096 | 111,781 | which we have fitted up welling addition and | 408 | 11.716 | (Falle) | (1482) | |
| Long term have ones | 101,634 | 122.573 | 237,000 | 211,000 | Cush there from lares fag a strider | |||||
| Delayed he building | 78.179 | 44 023 | AZT | 7.14 | rdnos zlynych), plat, upipuni milio situai pras | (5.347) | (38.091) | (177) | 600 | |
| Roma con / Other man surveys Sabilities | 1716 | 4944 | 234 | THE | nooch französ of jerg wit, plant, ngapmaat and investmen بحجب |
$\overline{a}$ | $\overline{z}$ | 3,730 | ||
| River news born recings | 50100 | 441908 | lividanda comived | 1899 | SO | 1.08 | 1,838 | |||
| Often short-term behind an | 88,100 | 43.774 | 11148 | 11,746 | and monitored | 3,900 | 130 | 3,422 | $\frac{1}{2}$ | |
| Total Buildings (d) | 701,000 | tutaks | 348248 | 116,218 | nas probil is releval parties | (2.65) | casts. | (150) | ||
| TOTAL ROUTEY AND LEASELEDED IN + 00. | 1,181,110 | DREAMS | 494,139 | NICKLE | as repayments recovered to our catalog parties. cents from suite of participations. |
64196 | × | 64.256 | - | |
| enam la parti su ad con | (2.481) | (czh | 作用口 | (1.120) | ||||||
| STATIONENT OF CHANGES IN HIGHITY (Assessed in 6 december) | tosada freis starr nyétél deutszt in rékaldatos | 4381 | 26.034 | |||||||
| GEOUT | COMPANY | edman of analytic for sub Samuini same. | (7.842) | chatta | ||||||
| 104,566 | 1944190 | 10411046 | 18/06/2008 | old from from 1941 keys they are bles . and | 88,368 | (19,662) | 64,679 | 15,811 | ||
| Render an darking koning of the product (RIRECOMP and RENDERED emporation); | 101210 | 433,804 | 227,791 | 396,616 | Code Easter from Themseleg antistries | |||||
| Total manps thousand interest what the foundation operational Changes in participation to avoid theme. |
1178 (2.410) |
8:028 | 14.430 | (1966) | Heidman of Answerp shares onds into rahaldades' duro repial docente |
道方符 063909 |
(6,306) (11.950) |
at my | (4:180) | |
| Denvise in scheidurg dans agind | (4.196) | (\$1,850) | × | Similanda pend | (41) | 00 | 400 | dю | ||
| Shere options relaters | 124 | 2M | estago control | 21341 | 103,598 | 33,000 | 18,890 | |||
| Dividuals approval by the durated firm | (1.38) | 6903 | lasts an insurance of found bonus | (30) | ||||||
| Benkan of answer dans | at TTTS | 01,309 | 04/17/9 | H2R | qiridi veyayanana of Kumee basee | (331) | (334) | |||
| Typelry at the seal of the period (2010) 2009 and 31900 2001 sequested () | 664, 191 | 406,007 | 337.09 | TIERAL | leptymous of brewstrap | (8.006) 1,862 |
01.629 34.163 |
13, 191 | (8.000) 45,718 |
|
| ish Euro from Descring wel-bloc : and Net bussays for redinant with equivalents |
63,568 | 11,858 | 67,635 | 43,847 | ||||||
| lah asl sek opindem a de tryang si de yer | 177,188 | 44,330 | 012.099 | 2.217 | ||||||
| od nači rota vrena to Executables | 0.8859 | (2012) 17 | ||||||||
| SEALEMENT OF COMPRESSION INCOME CAR | when the state significant and a state figure sich fibrastiff |
2084296 | 129, 618 | 138,556 | 45,844 | |||||
| 420017 | COMPANY Costs PE IN 1979 |
Easter comp | COMPAYS Confession edge |
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| Remarks from arrastment property | 140-140-2200 30,800 |
ALC: ADPINE WAS 1987 |
LIGE ANTIQUINE 101.0060000 |
GALLAGE 11,132 |
Life: Number and 1,956 |
Marketing | I Go Livia Lista | |||
| Executes from persons and other consum- | 49.931 | 0.700 | 1,001 | 4.907 | 1.100 | 120 | 1,347 | |||
| Rale na hos galaxi al la composat peoposto | Not H.180 |
18,879 | (4,733) | 1,487 1,589 |
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| Prodit (should from only of lovest more proposity Mass Direction retirent projects reported |
(11.110) | (11.0) (4.006) |
(0.235) | 0.15 (LETT) |
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| Mesa Cat of investory ades Masa Olive reporter |
(178) (RIM) |
(4.000) ON |
06309 gate |
(2.594) (110) |
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| Chass Encours Rendings / (Desser) for their bettered and day ed |
23,728 SAFT |
41,736 18,839 |
$\rightarrow$ (9,446) |
1,803 (3,156) |
3:341 | 06210 96,753 |
121 (1.141) |
1247 (1400) |
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| Profit / class) Indian function to a | 1478 | 13.877 | 5,816 | 1.181 | m 0.818 |
tám | 3,160 | 1411 | ||
| Prodit (date) offer forest (3) Attributebla.com |
793 | 15.176 | 8.287 | m | NUM! | 3.363 | 4.361 | 1,701 | ||
| Course of the Company Missoult induced |
zn. 334 |
15.833 1.133 |
1.207 | 321 | (4.507) | 4314 387 |
4.261 | 1.71 | ||
| Other comprehensive laseness' (look) after tax (II). Total effort compenhensive income / (free) after too (A) + (R). |
mass 11.700 |
(3.149) BATE |
11,367 NAME |
(8,733) CMB1 |
器 4911 |
dutt's 12% |
1.148 7,409 |
(fash) (1,810) |
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| Artefast ship to: | ||||||||||
| Owens of the Company | 11134 | 7.830 | 36,050 | (7.814) | (811) | 1.8% | 7.428 | (1.912) | ||
| Missourity induced | 623 | 1.800 | 16 | $\alpha$ | 122 | 1773 | ||||
| Davings : (Enc) per than from surfacing upwarden (representing per dure) | ||||||||||
| Said. Saidh |
0,003 0.0003 |
0.3643 | 6120 6.1234 |
6,0083 6.0883 |
4,1083 4,0138 |
0,1130 0.1134 |
0,2002 8,2282 |
0208 0,838 |
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| Eurology / (Institution between Lease, depended to and association | 9741 | 39,932 | (0.346) | $0.3611$ | \$53 | 11,241 | (2,288) | 1970 | ||
| ADDITIONAL BATA AND INFORMATION | ||||||||||
| gers has been andered by my units which until the search of the Northern Information expanding for Compare manufacult and yourse who to until the World the protest maintainer 10, 1989 The announced in regards any protected process of an internal and a security administration and a security and a security and the form of the form of the form of the form of productions, also well the security and change i of the Company and are Cerrap for the year readed Created or 14, 2000. |
iti Koronyntasistimasi (ing'ahria) sekita di Intil (ing'ibrahakas) malale iku atrikansi awa, a Deyayani Grig (milli Kitle | |||||||||
| The company Constituted Lunch Robby Da regiment to Lunchborg pertripation Company's door regist by SUDAS and developmentary floored interactions busheld in Constituted Lasa's Hubbags City's consulate of the solal manages by the followers in the perfect |
108 Bal- | |||||||||
| f. Companies included to the meantident islam and minimized in police with country of makin during participation (development) development and/ordinal manufacture for the time of a month probe ta Neil José 16, 2009 are gammand in sate "I of the instrime toulesant Boardolf and i. Dety bi polit, čas neposobite uplávana alb program in 1914 obstav Lakški čem la, Lukški Dedagam (CO bispat Lakški Terkovna Mozkob P), Popre ženisnostičiž ari Lukški českopničkoterpi čiti trčila (Ulba, M.) in, ad Ulba, n |
11. If Then as critics sensories duple, liquitor, as altitudes ray interference durant limits in a regulated countries the Company's Campai ramanský bengárantal mád harði. 2019 á Rupströkka har mað hynkig sam vald sigur Jágova, atlentist er ved dráma (Chráná mend síða vennakir perísku svá bedra Jengi að Empere mankel (eðara mádarinna) ar ranki ara 19. septi fr |
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| does a quiad decessor and therefore Company's participation. Generated by A.T.m. | tene for curiosers' wite off and compensation of successive filtures. | |||||||||
| r. Or 2003101 to Concernmentin a law of inputation to negativity Concidentially Editor (idea of a year of the interest of the acts are underty or $^{-12}$ between theory or deal of the life of the party based of the subject FLIDIOS DELENIS Lutharizashmoldurala oliv dam vladu 194 olike dan opral ada priz diti in. Tio usundu mekalai olismen kumpayi uman mpayinyil 6 ha |
48.925 | STATISTICS 10040 |
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| 7. Sed enter best ad per sales over stats, assistant (11, 26 valencing guarantee to had have | $\frac{1}{2}$ 11222 |
讍 譳 |
ж | |||||||
| 8. The sender of registers at the sel of the protot was Green 18, Compact 18, China 2004. Compact 75, The sender of required implement of the protot was Clemp 2, | e bone. | *# | 419 | |||||||
| Company & Childhistings: Company & Company & L. 9. At the motor like point, the Consumer acquired 1,007.144 companies wanted a more are a proportioned. College than up an appropriate total value of 40.4 hm. |
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| Neveau, 14 August 1969 | ||||||||||
| THE CRASSMAN OF THE SCARD OF DERIVING | THE CREW TERRATIVE CITEERS | THE PROJECTAL DEED TOOL | ||||||||
| CONSIDERATE PAPAGEORSKIE 12:Mellioniste |
CONSIDERED R. ATHAMATICUS LO IV. ARCONI |
VARIEUDEA BALDIMIE 10.3% Tatistic |