Leptos Calypso Hotels Public LTD

Quarterly Report • May 2, 2019

Consolidated financial statements for the year ended 31 December 2018

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 2018

	2018 €	2017 €
Revenue Cost of sales	30.364.016 (22.405.818)	29.898.149 (21.899.873)
	____	____
Gross profit	7.958.198	7.998.276
Selling and marketing costs	(711.325)	(550.690)
Administrative expenses	(2.648.797)	(2.768.931)
Impairment loss on trade receivables	(102.000)	(112.000)
Other income	1.265.297	192.678
Other (losses)/gains – net	-	(1.222.536)
Operating profit	____ 5.761.373	____ 3.536.797
Finance costs	(2.127.479)	(2.495.522)
Profit before income tax	____ 3.633.894	____ 1.041.275
Income tax	280.688	(201.826)
Profit for the year	____ 3.914.582	____ 839.449
Profit attributable to:	==========	==========
Equity holders of the Company	3.801.693	850.654
Non-controlling interest	112.889	(11.205)
	____ 3.914.582	____ 839.449
Profit per share attributable to equity holders of the Company	==========	==========
during the year
- Basic and diluted (cents)	2,95	0,66
	==========	==========

Consolidated statement of comprehensive income for the year ended 31 December 2018

	2018 €	2017 €
Profit for the year	3.914.582	839.449
Other comprehensive losses: Items that will not be reclassified to profit or loss	___	___
Deferred tax adjustment	45.533	(3.259)
Deferred tax on change in tax rate	103.506 ____	- ____
Other comprehensive income/ (loss) for the year, net of tax	149.039	(3.259)
Total comprehensive income for the year	____ 4.063.621	____ 836.190
Attributable to:	==========	==========
Equity holders of the Company	3.898.979	847.395
Minority interest	164.642 ____	(11.205) ____
	4.063.621	836.190
	==========	==========

Consolidated balance sheet as at 31 December 2018

33

	2018 €	2017 €
Assets
Non-current assets
Property, plant and equipment	120.709.391	120.959.888
Investment property	14.997.409 14.985.986	14.997.409 17.750.283
Financial asset at FVTPL Deferred income tax asset	500.000	42.706
Operating lease prepayments	-	600.000
Trade and other receivables	1.900	-
	_____ 151.194.686	_____ 154.350.286
Current assets Inventories	647.800	727.252
Operating lease prepayments	300.000	-
Trade and other receivables	4.485.580	3.501.571
Financial asset at FVTPL	4.000.000	-
Cash and cash equivalents	2.151.372 _____	1.763.537 _____
	11.584.752	5.992.360
Total assets	_____ 162.779.438	_____ 160.342.646
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	49.138.115	49.106.639
Accumulated losses	(23.733.104) _____	(27.600.607) _____
	72.132.371	68.233.392
Non-controlling interest	1.851.652 _____	1.687.010 _____
Total equity	73.984.023	69.920.402
Non-current liabilities	_____	_____
Borrowings	47.457.309	52.144.067
Deferred income tax liabilities	19.993.030	20.013.547
Trade and other payables	1.170.219 _____	1.035.758 _____
	68.620.558 _____	73.193.372 _____
Current liabilities
Trade and other payables	12.824.698	12.535.917
Borrowings Current income tax liabilities	7.287.821 62.338	4.678.700 14.255
	_____ 20.174.857	_____ 17.228.872
Total liabilities	_____ 88.795.415	_____ 90.422.244
	_____	_____
Total equity and liabilities	162.779.438 ===========	160.342.646 ===========

Consolidated statement of changes in equity for the year ended 31 December 2018

				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 statement of changes in equity for the year ended 31 December 2018 (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 2018	43.856.392	2.870.968	49.106.639	(27.600.607)	68.233.392	1.687.010	69.920.402
Comprehensive income Profit for the year	____ -	____ -	____ -	_____ 3.801.693	____ 3.801.693	____ 112.889	____ 3.914.582
Other comprehensive income: Land and buildings: Depreciation transfer, net of tax Deferred tax adjustment Deferred tax on change in tax rate	____ - -	____ - -	____ (65.810) 45.533 51.753	_____ 65.810 -	____ - 45.533 51.753	____ - - 51.753	____ - 45.533 103.506
Total other comprehensive (loss)/income for the year	____ -	____ -	____ 31.476	_____ 65.810	____ 97.286	_____ 51.753	____ 149.039
Total comprehensive (loss)/income for the year	____ -	____ -	____ 31.476	_____ 3.867.503	____ 3.898.979	_____ 164.642	____ 4.063.621
Balance at 31 December 2018	____ 43.856.392 ==========	____ 2.870.968 ==========	____ 49.138.115 ==========	_____ (23.733.104) ===========	____ 72.132.371 ==========	____ 1.851.652 ==========	____ 73.984.023 ==========

Consolidated cash flow statement for the year ended 31 December 2018

	2018 €	2017 €
Cash flows from operating activities
Profit before income tax Adjustments for:	3.633.894	1.041.275
Depreciation of property, plant and equipment	1.664.131	1.685.532
Amortisation of operating lease prepayments	300.000	605.634
Impairment allowance on trade receivables	102.000	112.000
Impairment of operating lease prepayments	-	1.222.536
Notional interest on receivable from joint venture classified as financial asset at FVTPL	(1.235.703)	(147.713)
Interest income	(286)	(4.868)
Interest expense	2.127.479	2.491.063
Foreign exchange losses on financing activities	-	4.459
	______ 6.591.515	______ 7.009.918
Changes in working capital:
Inventories Trade and other receivables	79.452 (1.087.800)	(46.936) (382.279)
Trade and other payables	382.738	892.203
Net cash inflows from operating activities	__ 5.965.905 ____	__ 7.472.906 ____
Cash flows from investing activities
Acquisition of property, plant and equipment	(1.415.663)	(1.393.459)
Interest income	286	4.868
Proceeds from the disposal of property, plant and equipment	1.919 ______	- ______
Net cash outflows used in investing activities	(1.413.458) ______	(1.388.591) ______
Cash flows from financing activities
Repayment of bank borrowings	(4.603.278)	(3.346.555)
Interest expense paid	(2.088.136)	(2.300.613)
Net cash outflows used in financing activities	______ (6.691.414)	______ (5.647.168)
Net (decrease)/increase in cash and cash equivalents	______ (2.138.967)	______ 437.147
Cash and cash equivalents at beginning of year	1.344.043	906.896
Cash and cash equivalents at end of year	______ (794.924) ============	______ 1.344.043 ============

Income statement for the year ended 31 December 2018

	2018 €	2017 €
Revenue	19.935.003	20.577.371
Cost of sales	(14.015.494)	(14.469.336)
Gross profit	_____ 5.919.509	_____ 6.108.035
Selling and marketing costs	(575.815)	(419.466)
Administrative expenses	(1.589.873)	(1.835.054)
Other income	1.874.056	495.245
Impairment loss on trade receivables	(84.000)	(84.000)
Other (losses)/gains - net	-	(1.222.536)
Operating profit	_____ 5.543.877	_____ 3.042.224
Gains from disposal of assets held for sale	-	-
Finance costs	(1.916.232)	(2.229.658)
Profit before income tax	_____ 3.627.645	_____ 812.566
Income tax expense	394.749	(127.706)
Profit for the year	_____ 4.022.394	_____ 684.860

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

Statement of comprehensive income for the year ended 31 December 2018

	2018 €	2017 €
Profit for the year	4.022.394	684.860
Other comprehensive loss: Items that will not be reclassified to profit or loss: Deferred tax adjustment	_____ 45.533	_____ (3.259)
Other comprehensive loss for the year, net of tax	_____ 45.533	_____ (3.259)
Total comprehensive income for the year	_____ 4.067.927 ===========	_____ 681.601 ============

Balance sheet as at 31 December 2018

	2018	2017
	€	€
Assets
Non-current assets
Property, plant and equipment	103.247.359	103.309.534
Investment property	14.997.409	14.997.409
Investments in subsidiaries	2.200.652 14.985.986	2.200.652 17.750.283
Financial assets at FVTPL Operating lease prepayments	-	600.000
Deferred tax asset	500.000
Trade and other receivables	2.964.156	3.135.215
	_____	_____
	138.895.562	141.993.093
	_____	_____
Current assets
Inventories	522.714	594.311
Operating lease prepayments	300.000	-
Trade and other receivables	4.879.096	3.913.171
Financial assets at FVTPL	4.000.000	-
Cash and cash equivalents	1.123.968	934.708
	_____ 10.825.778	_____ 5.442.190
Total assets	_____ 149.721.340	_____ 147.435.283
	===========	============
Equity and liabilities
Capital and reserves
Share capital	43.856.392	43.856.392
Share premium	2.870.968	2.870.968
Other reserves	47.202.757	47.223.034
Accumulated losses	(22.231.920)	(26.180.337)
Total equity	_____ 71.698.197	_____ 67.770.057
	_____	_____
Non-current liabilities
Borrowings	42.756.122	46.995.080
Deferred income tax liabilities	17.314.485	17.254.821
Trade and other payables	568.183 _____	568.183 _____
	60.638.790	64.818.084
	_____	_____
Current liabilities
Trade and other payables	11.186.953	10.968.795
Borrowings	6.197.400	3.878.347
	_____ 17.384.353	_____ 14.847.142
Total liabilities	_____ 78.023.143	_____ 79.665.226
Total equity and liabilities	_____ 149.721.340	_____ 147.435.283
	===========	===========

Statement of changes in equity for the year ended 31 December 2018

	Share capital €	Share premium €	Other reserves €	Accumulated losses €	Total €
Balance at 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/(losses) Land and buildings: Depreciation transfer, net of tax Deferred tax adjustment	___ - -	____ - -	____ (65.811) (3.259)	_____ 65.811 -	____ - (3.259)
Total other comprehensive income/(loss)	___ -	____ -	____ (69.070)	_____ 65.811	____ (3.259)
Total comprehensive income/(losses) for the year	_ - _	_ - _	_ (69.070) _	__ 750.671 __	_ 681.601 _
Balance at 31 December 2017/ 1 January 2018 as previously reported	43.856.392	2.870.968	47.223.034	(26.180.337)	67.770.057
Adjustment on initial application of IFRS 9				(139.787)	(139.787)
Balance at 1 January 2018 Comprehensive income Profit for the year	___ 43.856.392 -	____ 2.870.968 -	____ 47.223.034 -	_____ (26.320.124) 4.022.394	____ 67.630.270 4.022.394
Other comprehensive income/(loss) Land and buildings: Depreciation transfer, net of tax Deferred tax adjustment	___ - -	____ - -	____ (65.810) 45.533	_____ 65.810 -	____ 45.533
Total other comprehensive (loss)/income for the year	___ -	____ -	____ (20.277)	_____ 65.810	____ 45.533
Total comprehensive (loss)/income for the year	___ -	____ -	____ (20.277)	_____ 4.088.204	____ 4.067.927
Balance at 31 December 2018	___ 43.856.392 =========	____ 2.870.968 ==========	____ 47.202.757 ==========	_____ (22.231.920) ===========	____ 71.698.197 ==========

Cash flow statement for the year ended 31 December 2018

	2018 €	2017 €
Cash flows from operating activities
Profit before income tax Adjustments for:	3.627.645	812.566
Depreciation of property, plant and equipment	1.284.798	1.358.928
Gain from reduction of indemnification of investor Amortisation of operating lease prepayments	- 300.000	- 605.634
Impairment allowance on trade receivables	84.000 -	84.000 1.222.536
Amortisation of operating lease rentals Notional interest on receivable from joint venture classified
as financial asset at FVTPL	(1.235.703)	(147.713)
Notional interest on receivable from subsidiary Impairment of investments in subsidiaries	(408.171) -	(192.788) -
Dividend income	(230.000)	(150.000)
Interest income	(182)	(4.744)
Interest expense	1.916.232	2.229.658
	______ 5.338.619	______ 5.818.077
Changes in working capital:
Inventories	71.597	(28.629)
Trade and other receivables Trade and other payables	(603.263) 400.382	92.335 (547.408)
	_______	_______
Net cash inflows from operating activities	5.207.335 _______	5.334.375 _______
Cash flows from investing activities
Purchases of property, plant and equipment	(1.222.623)	(1.213.747)
Interest income	182	4.744
	_______	_______
Net cash outflows used in investing activities	(1.222.441) _______	(1.209.003) _______
Cash flows from financing activities
Repayment of bank borrowings	(4.155.542)	(3.020.533)
Interest paid	(1.875.728)	(2.095.117)
Net cash outflows used in financing activities	_______ (6.031.270)	_______ (5.115.650)
Net decrease in cash and cash equivalents	_______ (2.046.376)	_______ (990.278)
Cash and cash equivalents at beginning of year	866.271	1.856.549
Cash and cash equivalents at end of year	_______ (1.180.105)	_______ 866.271
	=============	=============