Leptos Calypso Hotels Public LTD

Annual Report • Apr 30, 2018

Consolidated financial statements for the year ended 31 December 2017

Contents

Consolidated income statement	1
Consolidated statement of comprehensive income	2
Consolidated balance sheet	3
Consolidated statement of changes in equity	4 - 5
Consolidated statement of cash flows	6
Income statement	7
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Statement of cash flows	11

Important note

The attached statements are an extract from the audited financial statements. For fuller understanding we strongly recommend to refer to the full set of financial statements found in the web site of the Company and its announcement to the Cyprus Stock Exchange. The language of the financial statement is Greek. This report is a translation.

Consolidated income statement for the year ended 31 December 2017

	2017 €	2016 €
Revenue Cost of sales	29.898.149 (21.899.873)	26.396.743 (20.254.200)
	____	____
Gross profit	7.998.276	6.142.543
Selling and marketing costs	(662.690)	(794.328)
Administrative expenses	(2.768.931)	(3.370.358)
Other income	192.678	1.026.828
Other (losses)/gains – net	(1.222.536)	441.546
Operating profit	____ 3.536.797	____ 3.446.231
Finance costs	(2.495.522)	(1.659.295)
Gain on disposal of assets held for sale	-	7.307.874
Profit before income tax	____ 1.041.275	____ 9.094.810
Income tax expense	(201.826)	(169.311)
Profit for the year	____ 839.449	____ 8.925.499
Profit attributable to:	==========	==========
Equity holders of the Company	850.654	8.949.098
Non-controlling interest	(11.205)	(23.599)
	____ 839.449	____ 8.925.499
Profit per share attributable to equity holders of the Company	==========	==========
during the year
- Basic and diluted (cents)	0,66 ==========	6,94 ==========

Consolidated statement of comprehensive income for the year ended 31 December 2017

2017 €	2016 €
839.449	8.925.499
(3.259) - - ____	_ (3.153.736) (597.218) (220.095) _
(3.259)	(3.971.049)
836.190	____ 4.954.450
847.395 (11.205) ____ 836.190	========== 5.929.941 (975.491) ____ 4.954.450 ==========
	___ ____ ========== ==========

Consolidated balance sheet as at 31 December 2017

	2017	2016
	€	€
Assets
Non-current assets
Property, plant and equipment	120.959.888 14.997.409	121.251.961
Investment property Available-for-sale financial assets	17.750.283	14.997.409 17.602.570
Deferred income tax asset	42.706	42.706
Operating lease prepayments	600.000	2.428.170
	_____ 154.350.286	_____ 156.322.816
Current assets
Inventories	727.252	680.316
Trade and other receivables	3.501.571	3.119.292
Cash and cash equivalents	1.763.537 _____	3.633.366 _____
	5.992.360	7.432.974
Total assets	_____ 160.342.646	_____ 163.755.790
Equity and liabilities	===========	===========
Equity attributable to owners of the parent
Share capital	43.856.392	43.856.392
Share premium	2.870.968	2.870.968
Other reserves	49.106.639	49.251.445
Accumulated losses	(27.600.607)	(28.592.808
	_____ 68.233.392	_____ 67.385.997
Non-controlling interest	1.687.010	698.215
Total equity	_____ 69.920.402	_____ 68.084.212
Non-current liabilities	_____	_____
Borrowings	52.144.067	52.857.696
Deferred income tax liabilities	20.013.547	19.822.717
Trade and other payables	1.035.758	968.232
	__ 73.193.372 __	__ 73.648.645 __
Current liabilities
Trade and other payables	12.535.917	12.374.194
Borrowings Current income tax liabilities	4.678.700 14.255	9.648.739 -
	_____ 17.228.872	_____ 22.022.933
Total liabilities	_____ 90.422.244	_____ 95.671.578
Total equity and liabilities	_____ 160.342.646	_____ 163.755.790
	===========	===========

Consolidated statement of changes in equity for the year ended 31 December 2017

				Attributable to equity holders of the Company
	Share capital €	Share premium €	Other reserves €	Accumulated losses €	Total €	Non controlling interest €	Total €
Balance at 1 January 2016	43.856.392 2.870.968		69.260.259	(54.023.743)	61.963.876	2.261.068	64.224.944
Comprehensive income	____	____	____	_____	____	____	_____
Profit/(loss) for the year	-	-	-	8.949.098	8.949.098	(23.599)	(8.925.499)
Other comprehensive income/(losses): Land and buildings:	____	____	____	_____	______	____	_____
Depreciation transfer, net of tax	-	-	(323.883)	323.883	-	-	-
Deferred tax and adjustment	-	-	(2.431.154)	-	(2.431.154)	(722.582)	(3.153.736)
Revaluation, net of tax	-	-	(444.368)	-	(444.368)	(152.850)	(597.218)
Other losses from prior years	- ____	- ____	(67.899) ____	(75.736) _____	(143.635) ______	(76.460) ____	(220.095) ____
Total other comprehensive (loss)/income for the year	-	-	(3.267.304)	248.147	(3.019.157)	(951.892)	(3.971.049)
Total comprehensive (loss)/income for the year	____ -	____ -	____ (3.267.304)	_____ 9.197.245	______ 5.929.941	____ (975.491)	____ 4.954.450
	____	____	____	_____	______	____	____
Transactions with owners Transactions with non-controlling interest	-	-	-	(507.820)	(507.820)	(587.362)	(1.095.182)
Assets held for sale:
Gains recycled to profit or loss due to transfer	-	-	(16.741.510)	16.741.510	-	-	-
Total transactions with owners	____ -	____ -	____ (16.741.510)	_____ 16.233.690	______ (507.820)	____ (587.362)	____ (1.095.182)
Balance at 31 December 2016	____ 43.856.392	____ 2.870.968	____ 49.251.445	_____ (28.592.808)	______ 67.385.997	____ 698.215	____ 68.084.212
	==========	==========	==========	==========	==========	==========	==========

Consolidated statement of changes in equity for the year ended 31 December 2017 (continued)

				Attributable to equity holders of the Company
	Share capital €	Share Premium €	Other reserves €	Accumulated losses €	Total €	Non controlling interest €	Total €
Balance at 1 January 2017	43.856.392	2.870.968	49.251.445	(28.592.808)	67.385.997	698.215	68.084.212
Comprehensive income Profit/(loss) for the year	____ -	____ -	____ -	_____ 850.654	____ 850.654	____ (11.205)	____ 839.449
Other comprehensive income: Land and buildings: Depreciation transfer, net of tax Deferred tax adjustment	____ - -	____ - -	____ (141.547) (3.259)	_____ 141.547 -	____ - (3.259)	____ - -	____ - (3.259)
Total other comprehensive (loss)/income for the year	____ -	____ -	____ (144.806)	_____ 141.547	____ (3.259)	_____ -	____ (3.259)
Total comprehensive (loss)/income for the year	____ -	____ -	____ (144.806)	_____ 992.201	____ 847.395	_____ (11.205)	____ 836.190
Transactions with owners Transactions with non-controlling interest	____ -	____ -	____ -	_____ -	____ -	_____ 1.000.000	____ 1.000.000
Total transactions with owners	____ -	____ -	____ -	_____ -	____ -	____ 1.000.000	____ 1.000.000
Balance at 31 December 2017	____ 43.856.392 ==========	____ 2.870.968 ==========	____ 49.106.639 ==========	_____ (27.600.607) ===========	____ 68.233.392 ==========	____ 1.687.010 ==========	____ 69.920.402 ==========

Consolidated cash flow statement for the year ended 31 December 2017

	2017 €	2016 €
Cash flows from operating activities
Profit before income tax	1.041.275	9.094.810
Adjustments for:
Depreciation of property, plant and equipment	1.685.532	1.915.115
Amortisation of operating lease prepayments	605.634	911.268
Impairment of receivables	112.000	253.738
Impairment of operating lease prepayments	1.222.536	-
Gain from reduction of indemnification of investor	-	(441.546)
Gain on disposal of assets held for sale	-	(7.307.874)
Gain on derecognition of bank loans	-	(1.417.582)
Notional interest on receivable from joint venture classified
as available-for-sale financial asset Interest income	(147.713) (4.868)	(901.923) (10.545)
Interest expense	2.491.063	3.073.839
Foreign exchange losses on financing activities	4.459	3.038
	______	______
	7.009.918	5.172.338
Changes in working capital:
Inventories	(46.936)	(25.210)
Trade and other receivables	(382.279)	(1.559.385)
Trade and other payables	892.203	2.804.432
Net cash inflows from operating activities	__ 7.472.906 ____	__ 6.392.193 ____
Cash flows from investing activities
Purchases of property, plant and equipment	(1.393.459)	(1.270.063)
Interest income	4.868	10.545
Net cash outflows used in investing activities	______ (1.388.591)	______ (1.259.518)
Cash flows from financing activities	______	______
Repayment of bank borrowings	(3.346.555)	(1.842.247)
Interest paid	(2.300.613)	(1.701.909)
	______	______
Net cash outflows used in financing activities	(5.647.168)	(3.544.156)
Net increase in cash and cash equivalents	______ 437.147	______ 1.588.519
Cash and cash equivalents at beginning of year	906.896	(681.623)
Cash and cash equivalents at end of year	______ 1.344.043	______ 906.896

============ ============

Income statement for the year ended 31 December 2017

	2017 €	2016 €
Revenue	20.577.371	18.324.789
Cost of sales	(14.469.336)	(13.835.585)
Gross profit	_____ 6.108.035	_____ 4.489.204
Selling and marketing costs	(503.466)	(645.725)
Administrative expenses	(1.835.054)	(2.439.163)
Other income	495.245	1.119.065
Other (losses)/gains - net	(1.222.536)	(893.454)
Operating profit	_____ 3.042.224	_____ 1.629.927
Gains from disposal of assets held for sale	-	26.463.405
Finance costs	(2.229.658)	(1.320.705)
Profit before income tax	_____ 812.566	_____ 26.772.627
Income tax expense	(127.706)	(134.481)
Profit for the year	_____ 684.860	_____ 26.638.146
	===========	===========

Statement of comprehensive income for the year ended 31 December 2017

	2017 €	2016 €
Profit for the year	684.860	26.638.146
Other comprehensive loss: Items that will not be reclassified to profit or loss: Deferred tax adjustment Loss on revaluation of property, plant and equipment, net of tax	_____ (3.259) -	_____ (1.708.571) (291.520)
Other comprehensive loss for the year, net of tax	_____ (3.259)	_____ (2.000.091)
Total comprehensive income for the year	_____ 681.601	_____ 24.638.055

=========== ===========

Balance sheet as at 31 December 2017

	2017	2016
	€	€
Assets
Non-current assets
Property, plant and equipment	103.309.534	103.454.715
Investment property	14.997.409	14.997.409
Investments in subsidiaries	2.200.652	1.112.773
Available for sale financial assets	17.750.283	17.602.570
Operating lease prepayments	600.000	2.428.170
Trade and other receivables	3.135.215	5.914.872
	_____ 141.993.093	_____ 145.510.509
Current assets	_____	_____
Inventories	594.311	565.682
Trade and other receivables	3.913.171	2.313.727
Cash and cash equivalents	934.708	3.203.740
	_____ 5.442.190	_____ 6.083.149
Total assets	_____ 147.435.283	_____ 151.593.658
	===========	===========
Equity and liabilities
Capital and reserves
Share capital	43.856.392	43.856.392
Share premium	2.870.968	2.870.968
Other reserves	47.223.034	47.292.104
Accumulated losses	(26.180.337)	(26.931.008)
Total equity	_____ 67.770.057	_____ 67.088.456
	_____	_____
Non-current liabilities
Borrowings	46.995.080	47.357.377
Deferred income tax liabilities	17.254.821	17.123.856
Trade and other payables	568.183 _____	568.183 _____
	64.818.084 _____	65.049.416 _____
Current liabilities
Trade and other payables	10.968.795	11.609.326
Borrowings	3.878.347	7.846.460
	_____ 14.847.142	_____ 19.455.786
Total liabilities	_____ 79.665.226	_____ 84.505.202
Total equity and liabilities	_____ 147.435.283	_____ 151.593.658
	===========	===========

Statement of changes in equity for the year ended 31 December 2017

	Share capital €	Share premium €	Other reserves €	Accumulated losses €	Total €
Balance at 1 January 2016	43.856.392	2.870.968	49.616.078	(53.893.037)	42.450.401
Comprehensive income	___	____	____	_____	____
Profit for the year	-	-	-	26.638.146	26.638.146
Other comprehensive income/(losses) Land and buildings: Depreciation transfer, net of tax Deferred tax adjustment Revaluation, net of tax	___ - - -	____ - - -	____ (323.883) (1.708.571) (291.520)	_____ 323.883 - -	____ - (1.708.571) (291.520)
Total other comprehensive income/(loss)	___	____	____	_____	____
	-	-	(2.323.974)	323.883	(2.000.091)
Total comprehensive income/(losses) for	___	____	____	_____	____
the year	-	-	(2.323.974)	26.962.029	24.638.055
Balance at 31 December 2016/	___	____	____	_____	____
1 January 2017	43.856.392	2.870.968	47.292.104	(26.931.008)	67.088.456
Comprehensive income	___	____	____	_____	____
Profit for the year	-	-	-	684.860	684.860
Other comprehensive income/(loss) Land and buildings: Depreciation transfer, net of tax Deferred tax adjustment	___ - -	____ - -	____ (65.811) (3.259)	_____ 65.811 -	____ (3.259)
Total other comprehensive income/(loss)	___	____	____	_____	____
for the year	-	-	(69.070)	65.811	(3.259)
Total comprehensive income/(loss) for	___	____	____	_____	____
the year	-	-	(69.070)	750.671	681.601
Balance at 31 December 2017	___	____	____	_____	____
	43.856.392	2.870.968	47.223.034	(26.180.337)	67.770.057
	=========	==========	==========	===========	==========

Cash flow statement for the year ended 31 December 2017

	2017 €	2016 €
Cash flows from operating activities
Profit before income tax	812.566	26.772.627
Adjustments for:
Depreciation of property, plant and equipment	1.358.928	1.684.138
Gain from disposal of assets held for sale	-	(26.463.405)
Gain on derecognition of bank loans	-	(1.417.582)
Gain from reduction of indemnification of investor	-	(441.546)
Amortisation of operating lease prepayments	605.634	911.268
Impairment of receivables	84.000	235.738
Amortisation of operating lease rentals	1.222.536	-
Notional interest on receivable from joint venture classified as available-for-sale financial asset	(147.713)	(901.923)
Notional interest on receivable from subsidiary	(192.788)	(141.997)
Impairment of investments in subsidiaries	-	1.335.000
Dividend income	(150.000)	(65.000)
Interest income	(4.744)	(10.145)
Interest expense	2.229.658	2.738.287
	______ 5.818.077	_______ 4.235.460
Changes in working capital:
Inventories	(28.629)	(15.534)
Trade and other receivables	92.335	827.118
Trade and other payables	(547.408) _______	843.276 _______
Net cash inflows from/(outflows used in) operating activities	5.334.375 _______	5.890.320 _______
Cash flows from investing activities
Purchases of property, plant and equipment	(1.213.747)	(1.029.450)
Interest income	4.744	10.145
Net cash outflows used in investing activities	___ (1.209.003) _____	___ (1.019.305) _____
Cash flows from financing activities
Repayment of bank borrowings	(3.020.533)	(1.715.018)
Interest paid	(2.095.117)	(1.412.043)
Net cash outflows used in financing activities	_______ (5.115.650)	_______ (3.127.061)
Net (decrease)/increase in cash and cash equivalents	_______ (990.278)	_______ 1.743.954
Cash and cash equivalents at beginning of year	1.856.549	112.595
Cash and cash equivalents at end of year	_______ 866.271 =============	_______ 1.856.549 =============