Leptos Calypso Hotels Public LTD

Quarterly Report • Sep 23, 2021

LEPTOS CALYPSO HOTELS PUBLIC LIMITED

Unaudited interim condensed consolidated financial statements for the six month period ended 30 June 2021

Unaudited interim condensed consolidated financial statements for the six month period ended 30 June 2021

Page

Contents

Board of Directors and other officers	1
Declaration of the members of the Board of Directors and the Financial Controller of the Company for the preparation of the interim condensed consolidated financial statements	2
Interim management report	3 - 4
Interim condensed consolidated statement of profit or loss and other comprehensive income	5
Interim condensed statement of comprehensive income	6
Interim condensed statement of financial position	7 - 8
Interim condensed statement of changes in equity	9
Interim condensed statement of cash flows	10
Notes to the interim condensed consolidated financial statements	11 - 20

Board of Directors and other officers

Board of Directors

Michael G. Leptos (Chairman and Managing Director) (passed away 3 January 2021) Pantelis M. Leptos (Substitute Chairman and Non-Executive Director until 13 January 2021) (appointed Chairman and Managing Director 13 January 2021) George M. Leptos (Non-Executive Director) (appointed Substitute Chairman and Non-Executive Director 13 January 2021) Ioannis Pantazis (Executive Director) Andreas Ataliotis (Non-Executive Director) (passed away 23 February 2021) Andreas Demetriades (Non-Executive Director) Andreas Iacovides (Non-Executive Director) Paris Gavriel (Non-Executive Director) Savvas Michael (Non-Executive Director) Aggelos Loizou (Non-Executive Director) (appointed 29 April 2021)

Company Secretary

Stavros N. Leptos 91 Aggelou Terzaki Street, 2402 Egkomi Cyprus

Registered office

111 Apostolou Pavlou Avenue P.O.Box 60146 8046 Paphos Cyprus

Legal Advisors

Stavros N. Leptos

Registration number

ΗΕ 18806

Declaration of the members of the Board of Directors and the Financial Controller of the Company for the preparation of the interim condensed consolidated financial statements

In accordance with Article 10 sections (3)(c) and (7) of the Transparency Requirements (Securities for Trading on Regulated Markets) Law of 2007 until 2016 (''Law''), we the members of the Board of Directors and the Financial Controller of Leptos Calypso Hotels Public Limited, responsible for the consolidated financial statements of Leptos Calypso Hotels Public Limited for the six months ended 30 June 2021 confirm that, based on our knowledge:

• (a) the unaudited interim condensed consolidated financial statements which are presented on pages 5 to 20:
  • (i) have been prepared in accordance with the IAS 34 ''Interim Financial Reporting'' as adopted by the European Union and in accordance with the provisions of Article 10, section (4) of the Law, and
  • (ii) give a true and fair view of the assets and liabilities, the financial position and the profit or loss of the Group and the Company and the businesses that are included in the consolidated financial statements as a total, and
• (b) the interim management report of the Board of Directors provide fair review of the information required by the Article 10, section (6) of the Law.

Name and surname	Capacity	Signature
Pantelis M. Leptos	Chairman and Managing Director
George M. Leptos	Substitute Chairman and Non-Executive Director
Ioannis Pantazis	Executive Director
Andreas Demetriades	Non-Executive Director
Andreas Iacovides	Non-Executive Director
Aggelos Loizou	Non-Executive Director
Paris Gavriel	Non-Executive Director
Savvas Michael	Non-Executive Director

Members of the Board of Directors:

Financial Controller

Name and surname	Capacity	Signature
Longginos Christodoulou	Financial Controller

Paphos, 22 September 2021

Interim management report

On 22 September 2021, the Board of Directors of the Company examined and approved the results of the Group Leptos Calypso Hotels Public Limited for the six month period ended 30 June 2021, which will be published on 24 September 2021.

The interim condensed consolidated financial statements, which have been prepared in accordance with the provisions of IAS 34 ''Interim Financial Reporting'', have not been audited by the external auditors of the Company.

Analysis of the Group's results for the six month period ended 30 June 2021

The results of the Group are shown in the interim condensed consolidated statement of profit or loss and other comprehensive income on page 5.

The turnover of the Group for the first half of 2021 amounted to €1,37 million compared to €2,13 million during the corresponding period of 2020. This decrease is due to the suspended operation of the hotel units of the group due to the Coronavirus pandemic but also the restrictive measures of the government.

The Group's loss from operations for the first half of 2020 amounted to €1,35 million compared to a loss of €2,84 million in the corresponding period last year.

During the first half of 2021, the loss after tax amounted to €2,69 million compared to a loss of €3,78 million in the corresponding period of last year. The Group showed a loss after tax corresponding to the shareholders of the Company amounting to €2,48 million against a loss of €3,56 million during the corresponding period of 2020.

The results of the Group for the first six months period of 2021 are not representative for the entire year, due to the seasonality of the operations of the Group's hotel units. The bulk of the operations of the hotels are contacted during the main touristic period which falls within the second six month period of the financial year of the Group.

During the period of the Group, has reached to an agreement with its main financing provider for the restructuring of the repayment terms of the existing loans as well as for the provision of new financial facilities. Discussions with other key lenders on a possible restructuring of existing loan terms are still in progress.

Principal risks and uncertainties

The principal risk and uncertainties faced by the Group are disclosed in Notes 4 and 5 of the interim condensed consolidated financial statements.The Cypriot economy and especially the tourism sector has been severely affected by the Coronavirus pandemic. In 2021 the total tourist arrivals in Cyprus are estimated to be reduced by more than 50%. The Cypriot government has supported the hotel industry with satisfactory unemployment programs, which continue to this day. The possibility of flexible hours must also be given, in order for the companies to deal with and manage the crisis more correctly. The future effects of these factors are difficult to predict, and management's current forecasts and calculations could differ from actual results. The Management takes the necessary measures to reduce any negative consequences of these factors, but based on current data the results of 2021 from the tourism sector are expected to be better than 2020 but much lower than those of 2019.

Definitions and use of Alternative Performance Measures (APMs)

Gross loss:

Includes operating income less cost of sales of the group. Depreciation of property, plant and equipment as well as depreciation of right of use-assets are included in the cost of sales.

Operating loss:

Includes the gross loss after deducting the following expenses: selling and marketing expenses, administrative expenses, impairment of trade receivables and non-operating other income.

Loss before income tax:

Includes the operating loss less any financing costs.

Loss after tax attributable to equity holders

It is the loss after tax.

Interim management report (continued)

Definitions and use of Alternative Performance Measures (APMs) (continued)

The use of the above alternative performance measurement indicators is done with the aim of adequate justification in the Management Report of the configuration of the results during the period as well as the changes of the results in relation to the corresponding previous period.

Use of financial instruments by the Group

The Group's activities expose it to a variety of financial risks: market risk (including fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The Group's risk management program focuses on the unpredictability of financial markets and seeks to minimise any potential adverse effects on the Group's financial performance. The Risk management is carried out by the Board of Directors. The Board of Directors identifies, evaluates and hedges financial risks in close co-operation with the Group's operating units.

It must be noted that the interim condensed consolidated financial statements do not include all the financial information and disclosures as required in the annual financial statements regarding the ''risk management'' and ''related party transactions'' and therefore these should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2020. There were no changes to the risk management department or any risk management policies from the end of the year onwards.

Disclosures of Related Parties

As specified by IAS 24 ''Related Party Disclosures'', for the purposes of those interim condensed consolidated financial statements, the parties are considered to be related if one party has the ability to control the other party or to exercise significant influence over the financial or operational decisions of the other party. Further details are set out in Note 15.

Issue of new shares

The Company has not issued shares with special control rights. Analytical information in relation to the share capital of the Company is presented in Note 11 of the interim condensed consolidated financial statements.

Contracts with Directors and connected persons

Other than the agreements disclosed in Note 15 of the condensed consolidated financial statements, at 30 June 2021 there were no other significant contracts with the Group in which Directors or persons connected to them had material interest.

Events after the balance sheet date

Any significant events that occurred after the reporting period are described in Note 16 of the interim condensed consolidated financial statements.

By order of the Board of Directors

Pantelis M. Leptos Chairman and Managing Director

Paphos, 22 September 2021

Interim condensed consolidated statement of profit or loss and other comprehensive income for the six month period ended 30 June 2021

	Note	30 June 2021 30 June 2020 €	€
Revenue Cost of sales	7	1.374.970 (2.195.902)	2.125.615 (3.816.643)
Gross loss		(820.932)	(1.691.028)
Selling and marketing costs Administrative expenses Impairment loss on trade receivables Other income		(80.557) (687.238) (54.000) 295.729	(166.730) (931.307) (54.000) 3.202
Operating loss		(1.346.998)	(2.839.863)
Finance expenses		(1.332.782)	(906.549)
Loss before income tax Income tax		(2.679.780) (10.910)	(3.746.412) (34.040)
Loss after tax for the period		(2.690.690)	(3.780.452)
Attributable to:
Equity holders of the Company Non-controlling interest		(2.476.771) (213.919)	(3.557.136) (223.316)
Loss after tax for the period		(2.690.690)	(3.780.452)
Loss per share attributable to equity holders of the Company
- Basic and diluted (cents)	8	(1,92)	(2,76)

Interim condensed statement of comprehensive income for the six month period ended 30 June 2021

	30 June 2021 €	30 June 2020 €
Loss after tax for the period	(2.690.690)	(3.780.452)
Other comprehensive income
Items that will not be reclassified to profit or loss: Deferred tax due to a change in the tax rate	159.500	-
Other comprehensive income for the period, net of tax	159.500	-
Total comprehensive loss for the period	(2.531.190)	(3.780.452)
Attributable to: Equity holders of the Company Non-controlling interest	(2.397.021) (134.169)	(3.557.136) (223.316)
	(2.531.190)	(3.780.452)

Interim condensed statement of financial position as at 30 June 2021

	30 June 31 December
		2021	2020
	Note	€	€
Assets
Non-current assets
Property, plant and equipment	9	119.093.008	119.179.250
Right-of-use assets	10	875.794	1.049.041
Investment property		15.574.940	15.574.940
Investment in a jointly controlled company		12.605.890	12.605.890
Financial assets at FVTPL		346.846	346.846
Trade and other receivables		1.900	1.900
Deferred tax assets		187.500	187.500
		148.685.878	148.945.367
Current assets
Inventories		487.470	386.138
Trade and other receivables		2.517.339	2.677.631
Cash and cash equivalents		1.792.841	2.215.311
		4.797.650	5.279.080
Total assets		153.483.528	154.224.447
Equity and liabilities
Capital and reserves
Share capital	11	43.856.392	43.856.392
Share premium	11	2.870.968	2.870.968
Other reserves		49.212.537	49.165.692
Accumulated losses		(30.340.053) (27.896.187)
		65.599.844	67.996.865
Non-controlling interest		3.088.447	3.222.616
Total equity
		68.688.291	71.219.481

Interim condensed statement of financial position as at 30 June 2021 (continued)

	30 June 31 December
	Note	2021 €	2020 €
Non-current liabilities
Borrowings	12	51.580.800	47.061.973
Lease liabilities	13	1.004.921	1.037.042
Deferred tax liabilities		19.703.466	19.852.056
Trade and other payables	14	605.284	605.284
		72.894.471	68.556.355
Current liabilities
Trade and other payables	14	6.640.763	6.542.281
Current tax liabilities		62.285	62.285
Borrowings	12	4.847.080	7.491.197
Lease liabilities	13	350.638	352.848
		11.900.766	14.448.611
Total liabilities		84.795.237	83.004.966
Total equity and liabilities		153.483.528	154.224.447

On 22 September 2021 the Board of Directors of Leptos Calypso Hotels Public Limited authorised these interim condensed consolidated financial statements for issue.

Pantelis M. Leptos George M. Leptos Chairman and Managing Director Substitute Chairman and Non-

Executive Director

Interim condensed statement of changes in equityfor the six month period ended 30 June 2021

	Attributable to equity holders of the Company
	Share			Accumulated		Non-controlling
	Share capital	premium	Other reserves	losses	Total	interest	Total equity
	€	€	€	€	€	€	€
Αt 1 January 2020	43.856.392	2.870.968	49.246.935	(23.794.204)	72.180.091	3.399.617	75.579.708
Comprehensive income
Net loss for the six months	-	-	-	(3.557.136)	(3.557.136)	(223.316)	(3.780.452)
Land and buildings:
Depreciation transfer, net of tax	-	-	(32.905)	32.905	-	-	-
Total other comprehensive (loss)/income	-	-	(32.905)	32.905	-	-	-
Total comprehensive loss for the six months	-	-	(32.905)	(3.524.231)	(3.557.136)	(223.316)	(3.780.452)
Αt 30 June 2020	43.856.392	2.870.968	49.214.030	(27.318.435)	68.622.955	3.176.301	71.799.256
Net loss for the six months until 31 December 2020	-	-	(48.338)	(577.752)	(626.090)	46.314	(579.776)
At 31 December 2020	43.856.392	2.870.968	49.165.692	(27.896.187)	67.996.865	3.222.615	71.219.480
Balance at 1 January 2021	43.856.392	2.870.968	49.165.692	(27.896.187)	67.996.865	3.222.615	71.219.480
Comprehensive income
Net loss for the six months	-	-	-	(2.476.771)	(2.476.771)	(213.919)	(2.690.690)
Other comprehensive (loss)/income
Land and buildings:
Depreciation transfer, net of tax	-	-	(32.905)	32.905	-	-	-
Deferred tax due to change in tax rate Total other comprehensive income	- -	- -	79.750 46.845	- 32.905	79.750 79.750	79.750 79.750	159.500 159.500
Total comprehensive income/(loss) for the six months	-	-	46.845	(2.443.866)	(2.397.021)	(134.169)	(2.531.190)
At 30 June 2021	43.856.392	2.870.968	49.212.537	(30.340.053)	65.599.844	3.088.446	68.688.290

Interim condensed statement of cash flows for the six month period ended 30 June 2021

		30 June 2021	30 June 2020
	Note	€	€
Cash flows from operating activities
Loss before income tax		(2.679.780)	(3.746.412)
Adjustments for:
Depreciation of property, plant and equipment and right of use assets	9,10	765.848	869.003
Impairment loss on trade receivables		54.000	54.000
Interest expense		1.261.466	906.549
		(598.466)	(1.916.860)
Changes in working capital:
Inventories		(101.332)	(201)
Trade and other receivables		106.292	1.140.488
Trade and other payables		98.482	(1.810.348)
Net cash used in operating activities		(495.024)	(2.586.921)
Cash flows from investing activities
Payment for purchase of property, plant and equipment	9	(506.359)	(681.890)
Net cash used in investing activities		(506.359)	(681.890)
Cash flows from financing activities
Payments of leases liabilities		(60.273)	(186.307)
Proceeds from borrowings		371.769	-
Interest paid		(104.263)	(5.176)
Net cash generated from/(used in) financing activities
		207.233	(191.483)
Net decrease in cash and cash equivalents
		(794.150)	(3.460.294)
Cash and cash equivalents at beginning of the period		(852.434)	2.384.216
Cash and cash equivalents at end of the period		(1.646.584)	(1.076.077)

The cash and cash equivalents include the following:

€ Cash and cash equivalents (i) 1.792.841 Bank overdrafts (Note 12) (3.439.425)	30 June 2021	30 June 2020
		€
		1.618.326
		(2.694.403)
(1.646.584)		(1.076.077)

(i) Cash and cash equivalents include an amount of €1,2 million, which comes from the indirect subsidiary Karkavatsos & Co. Tourist Enterprises SA.

Notes to the interim condensed consolidated financial statements

1. Interim condensed consolidated financial statements

The interim condensed consolidated financial statements have not been audited by the external auditors of the Company.

On 22 September 2021, the Board of Directors of the Company examined and approved the results of the Group Leptos Calypso Hotels Public Limited for the six month period ended 30 June.

2. General information

Country of incorporation

Leptos Calypso Hotels Public Limited (the 'Company') was incorporated in Cyprus on 29 December 1982, as a private limited liability company in accordance with the provisions of the Cyprus Companies Law, Cap. 113 and changed legal form to that of a public company. On 29 March 1996 the Company's shares were listed on the Cyprus Stock Exchange.

The Company's registered office is at 111 Apostolou Pavlou Avenue, CY 8046 Paphos, Cyprus. The Company and its subsidiaries together are referred to as ''Group''.

Principal activities

The principal activities of the Group, which are unchanged from last year, are the ownership and management of hotels and tourist resorts in Cyprus and Greece.

Operating environment of the Group

There were no significant changes on 30 June 2021 regarding the disclosed operating environment in the Group's consolidated financial statements for the year ended 31 December 2020.

3. Summary of significant accounting policies

The accounting policies that have been used in preparing these interim condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements for the year ended 31 December 2020.

Basis of preparation

The interim condensed consolidated financial statements for the six month period ended 30 June 2021 have been prepared in accordance with International Accounting Standard 34, '''Interim Financial Reporting''' as adopted by the European Union (EU). The interim condensed consolidated financial statements must be read in conjunction with the consolidated financial statements for the year ended 31 December 2020 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU - IFRS) and the requirements of the Cyprus Companies Law, Cap. 113. This set of financial statements represents an English translation of the original which have been prepared in Greek. In the event of any inconsistency between the Greek text and the English translation, the Greek text shall prevail.

Adoption of new and revised IFRSs

During the current period the Group adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2021. As a result of the adoption of the accounting policies, these have been updated according to the requirements of the new standards. This adoption did not have any material effect on the opening balances of the reserves or the comparative amounts presented in these condensed interim consolidated financial statements.

After issuance of the annual consolidated financial statements for the year ended 31 December 2020 until today there were no new issued standards and modifications that could bring significant changes in the accounting policies of the Group.

4. Financial risk management

The interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements and they should be read in conjunction with the Group's annual financial statements as at 31 December 2020. There have been no changes in risk management department or in any risk management policies since the year end.

(i) Financial risk factors

The Group's activities expose it to a variety of financial risks. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance. Risk management is carried out by the Board of Directors.

(ii) Fair value estimation

The table below analyses financial instruments carried at fair value by valuation method. The different levels have been identified as follows:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

The following table presents the Group's assets that are measured at fair value at 30 June 2021 and 31 December 2020.

	30 June 2021 Level 3 €	31 December 2020 Level 3 €
Assets Financial assets at fair value through profit or loss
 Equity securities	346.846	346.846
Total assets measured at fair value	346.846	346.846

There were no transfers between Levels 1, 2 and 3 during the period.

Note that all of the resulting fair value estimates are included in Level 3.

(a) Financial instruments in level 3

The fair value of Level 3 investments which relate to equity securities is determined based on the sales comparable method with regards to the properties held by the investments. The higher the selling price, the higher the fair value.

The carrying amount less provision for trade receivables and payables approximates their fair value. The fair value of financial liabilities is calculated based on the discounted future cash flows using the existing market interest rate which is available to the Group for similar financial instruments.

(b) Offsetting financial assets and liabilities

The Group does not have any financial assets or financial liabilities that are subject to offsetting, enforceable master netting arrangements or any similar agreements.

(iii) Classification and measurement of financial assets and financial liabilities measured at amortised cost

The fair value of the following financial assets and liabilities approximate their carrying amount:

• Trade and other receivables
• Cash and cash equivalents
• Trade and other payables
• Bank overdrafts
• Secured bank and other loans

5. Critical accounting estimates and judgements

The accounting estimates and judgements are assessed on a continuous basis and are based on historical experience and other factors, including expectations that relate to future events that are considered to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. As a result, the accounting estimates rarely equal to the actual results.

In preparing these interim condensed consolidated financial statements, the significant estimates made by the Management of the Group for the implementation of the Group's accounting policies and significant estimates and assumptions were applied as in the consolidated financial statements for the year ended 31 December 2020.

6. Nature of operations

On March 11, 2020, the World Health Organization declared the COVID 19 outbreak a pandemic, acknowledging its rapid spread throughout the world. Many countries that were sources of our tourist product in Cyprus, the situation continues to exist and many of them adopt restrictive measures and other precautionary measures that make it difficult for travelers to travel to tourist destinations. This is expected to have an impact on the results of the second half, which are expected to be much lower than last period.

The Management is not able to predict all the developments that could have an impact on the economy of Cyprus and consequently, what effect, if any, could have on the future financial performance, cash flows and financial position of the Group

Based on the evaluation made, the Management estimates that it takes all the necessary measures to maintain the viability of the Group and the corresponding conduct of its operations in the current business and financial environment.

7. Segmental reporting

The operating segments are presented on the basis of internal information that is being provided to the Group's Board of Directors (the highest level where operating decisions are taken). The Group's Board of Directors is responsible for the distribution of resources in the reported segments and the evaluation of their performance.

The Group has prepared the analysis of reporting segments in accordance with IFRS 8 ''Operating Segments''.

Description of the main segments and their operations

According to Management's approach regarding IFRS 8, the operating segments are presented on the basis of internal information that is being provided to the Board of Directors (the highest level where operating decisions are taken), which is responsible for the distribution of resources in the reported segments and the evaluation of their performance. All operating segments used by the Group meet the definition of reporting segment in accordance with IFRS 8.

At 30 June 2021, the Board of Directors identified the following three main operating segments, considering both the principal activities of the Group and the country in which they operate:

• Hotel operations Cyprus: The hotel operations in Cyprus comprise of the Company's hotel units, Coral Beach Hotel & Resort and Thalassa Coral Bay, both located in Paphos and the activities of the subsidiary, Vesta Tourist Management Limited, which is renting and managing tourist resorts in Paphos. The lease of Thalassa Coral Bay expired on31 December 2019. The lease provided for the right to extend the period of operation for 19 years, which the Company exercised, but the owners tried to cancel this right. As a result, the Company proceeded with legal proceedings while at the same time continuing to maintain the ownership of the hotel.
• Hotel operations Greece: The hotel operations in Greece comprise of the hotel of the indirect subsidiary, Karkavatsos & Co Touristikes Epichirisis S.A, ''Panorama Hotel'' located in Chania, Crete.
• Ownership of land: This operating segment comprises of investment property.

The main segments of the Group for which a segmental analysis is provided are the hotel operations and the ownership of land. All the operating segments of the Group are based in Cyprus, except from the operations of the hotel of the subsidiary, Karkavatsos & Co Touristikes Epichirisis S.A which are in Greece.

7. Segmental reporting (continued)

Description of the main segments and their operations (continued)

The Management of the Group, assesses the performance of the operating segments based on profit/(loss) before interest, tax, depreciation, amortisation and impairment (EBITDA).

This measurement excludes the effects of non-recurring expenditure from the operating segments, such as provisions for restructuring costs, legal expenses and impairment when the impairment is the result of an isolated, non-recurring event. Interest income and expenditure are not included in the result for each operating segment. Other information provided, except as noted below, are accounted for in accordance with the consolidated financial statements.

Results per segment

The segment results for the six months ended 30 June 2021 and 2020 are as follows:

30 June 2021	Hotel operations - Cyprus €	Hotel operations - Greece €	Total hotel operations €	Ownership of land €	Total €
Revenue/ per segment	1.364.237	10.733	1.374.970	-	1.374.970
Loss before interest, tax, depreciation, amortisation and impairment/ per segment Depreciation of property, plant and	(326.323)	(254.827)	(581.150)	-	(581.150)
equipment (Note 9) Finance expenses	(706.986) (1.229.543)	(58.862) (103.239)	(765.848) (1.332.782)	- -	(765.848) (1.332.782)
Loss before income tax	(2.262.852)	(416.928)	(2.679.780)	-	(2.679.780)
Income tax	-	(10.910)	(10.910)	-	(10.910)
Loss after tax for the period	(2.262.852)	(427.838)	(2.690.690)	-	(2.690.690)
30 June 2020	Hotel operations - Cyprus €	Hotel operations - Greece €	Total hotel operations €	Ownership of land €	Total €
Revenue/ per segment	2.125.615	-	2.125.615	-	2.125.615
Loss before interest, tax, depreciation, amortisation and impairment/ per segment Depreciation of property, plant and equipment (Note 9)	(1.712.266) (808.427)	(258.594) (60.576)	(1.970.860) (869.003)	- -	(1.970.860) (869.003)
Finance expenses	(813.126)	(93.423)	(906.549)	-	(906.549)
Loss before income tax Income tax	(3.333.819) -	(412.593) (34.040)	(3.746.412) (34.040)	- -	(3.746.412) (34.040)
Loss after tax for the period	(3.333.819)	(446.633)	(3.780.452)	-	(3.780.452)

Revenue from hotel operations in Cyprus consists of revenue amounting to €811.161 ( 2020: €1.283.393) generated from the Company's hotels and revenue amounting to €553.076 ( 2020: €842.222) generated from Vesta Tourist Management Limited. In addition, loss before interest, tax, depreciation, amortization and impairment consists of €303.866 ( 2020: €1.439.874) generated from the Company's hotels and loss €22.458 ( 2020: €272.392) generated from Vesta Tourist Management.

Of the Group's total revenue for the period 2021, approximately 47% ( 2020: 23%) relates to income derived from cooperation with three major tour operators, which individually exceeded 10% of total revenue .

7. Segmental reporting (continued)

Results per segment (continued)

Assets and liabilities per segment at 30 June 2021 for the six months then ended are as follows:

	Hotel operations - Cyprus €	Hotel operations - Greece €	Total hotel operations €	Ownership of land €	Total €
Assets	105.843.228	18.925.124	124.768.352	15.574.940	140.343.292
Liabilities	56.222.303	8.807.183	65.029.486	-	65.029.486

The assets and liabilities per segment at 31 December 2020 and the capital expenditure per segment for the six months ended at this date are as follows:

	Hotel operations - Cyprus €	Hotel operations - Greece €	Total hotel operations €	Ownership of land €	Total €
Assets	106.768.141	18.741.130	125.509.271	15.574.940	141.084.211
Liabilities	54.881.593	8.209.032	63.090.625	-	63.090.625

Assets per segment differ from the total assets as per the consolidated balance sheet as follows:

	30 June 2021	31 December 2020
	€	€
Total assets from reportable operating segments	140.343.292	141.084.211
Deferred tax assets	187.500	187.500
Financial assets at FVTPL	346.846	346.846
Investment in joint venture	12.605.890	12.605.890
Total assets as per consolidated statement of financial position	153.483.528	154.224.447

Liabilities per segment differ from the total liabilities as per the consolidated balance sheet as follows:

		31 December
	30 June 2021	2020
	€	€
Total liabilities from reportable operating segments	65.029.486	63.090.625
Deferred income tax liabilities	19.703.466	19.852.056
Current tax liabilities	62.285	62.285
Total liabilities as per consolidated statement of financial position	84.795.237	83.004.966

8. Loss per share

The basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of shares in issue during the year.

Loss attributable to equity holders of the Company (€)	30 June 2021 (2.476.771)	30 June 2020 (3.557.136)
Weighted average number of ordinary shares in issue during the six months and fully paid preference shares	128.989.389	128.989.389
Basic loss per share - basic and fully diluted (cents)	(1,92)	(2,76)

9. Property, plant and equipment

	Property, plant and equipment €
Period ended 30 June 2020
Opening net book amount	119.694.971
Additions	681.890
Depreciation charge	(742.716)
Closing net book amount	119.634.145
Period ended 30 June 2021
Opening net book amount	119.179.250
Additions	506.359
Depreciation charge	(592.601)
Closing net book amount	119.093.008

10. Right-of-use assets

The Group has leased a beach in front of the Coral Beach Hotel & Resort, located within the administrative boundaries of the Municipality of Pegeia after a tender. The lease for the right to use the beach is valid for a period of 4 years until November 30, 2022.

The Group has a lease on real estate (apartments) located within 2 of the hotels it manages. The group maintains various contracts with third parties (the legal owners of the apartments) with the right to use them for the agreed period. The contracts are valid for a specific period as agreed and there is no option to renew without reviewing all the terms at their expiration.

(i) Right of use

	Buildings	Land	Total
	€	€	€
Balance 1 January 2021	953.437	95.604	1.049.041
Amortisation charge	(149.346)	(23.901)	(173.247)
Net book value at the end of of the period	804.091	71.703	875.794
	Buildings	Land	Total
	€	€	€
Balance 1 January 2020	147.278	143.406	290.684
Additions	297.706	-	297.706
Amortisation charge	(102.386)	(23.901)	(126.287)
Net book value at the end of of the period	342.598	119.505	462.103

10. Right-of-use assets (continued)

(ii) Amounts recognisited in the statement of profit or loss

	Buildings	Land	Total
	€	€	€
2021 - Right of use under IFRS 16
Interest from lease liabilities	(24.293)	(1.649)	(25.942)
2020 - Right of use under IFRS 16
Interest from lease liabilities	(11.469)	(2.523)	(13.992)

(iii) Amounts recognised in the statement of cash flows

	Buildings €	Land €	Total €
2021 Cash outflows from leases	34.523	25.750	60.273
2020 Cash outflows from leases	160.557	25.750	186.307

11. Share capital and share premium

The Group and the Company

	Fully paid ordinary and preference
	shares	Share capital €	Share premium €	Total €
Αt 1 January 2020/30 June 2021	128.989.389	43.856.392	2.870.968	46.727.360

Authorised share capital

The authorised share capital is 1.000.000.000 shares (2020: 1.000.000.000 shares) with par value of €0,34 per share.

Issued share capital

The issued share capital is 101.683.294 ordinary shares and 27.306.095 preference shares with par value of € 0,34 per share.

Shares' rights

The preference shares have the same rights with the ordinary shares, but in the case of a dissolution of the Company they have priority against the ordinary shares in the distribution.

12. Borrowings

	30 June 2021 €	31 December 2020 €
Current
Bank overdrafts	3.439.425	3.067.745
Bank borrowings	1.407.655	4.423.452
	4.847.080	7.491.197
Non-current
Bank borrowings	48.516.675	44.053.348
Borrowings from third parties	3.064.125	3.008.625
	51.580.800	47.061.973
Total borrowings	56.427.880	54.553.170

Maturity of non-current borrowings (excluding finance lease liabilities)

	30 June 2021	31 December 2020
	€	€
Between 1 and 2 years	2.711.411	5.292.415
Between 2 and 5 years	12.345.696	17.013.685
Over 5 years	36.523.693	24.755.873
	51.580.800	47.061.973

(i) Out of the total bank loan, an amount of €1,2 million and an amount of €6,4 million, comes from short-term and long-term borrowing respectively, from the indirect subsidiary Karkavatsos & Co. Tourist Enterprises SA.

13. Lease liabilities

			The present value of minimum
	Minimum lease payments		lease payments
		31 December		31 December
	30 June 2021	2020	30 June 2021	2020
	€	€	€	€
Not later than 1 year	367.041	395.460	350.638	352.848
Later than 1 year and not later than 5 years	1.031.121	1.064.079	1.004.921	1.037.042
Later than 5 years	37.500	37.500	-	-
	1.435.662	1.497.039	1.355.559	1.389.890
Future finance charges	(80.103)	(107.149)	-	-
Present value of finance lease liabilities	1.355.559	1.389.890	1.355.559	1.389.890

All lease obligations are denominated in Euro.

14. Trade and other payables

		31 December
	30 June 2021	2020
	€	€
Trade payables	2.574.822	1.768.189
Payables to related companies (Note 15 (iii))	86.501	128.357
Accrued expenses	2.242.817	2.562.999
Contract liabilities received from tour operators (i)	2.096.907	2.443.020
Defence tax on deemed distribution	245.000	245.000
	7.246.047	7.147.565
Less: Non current trade and other payables	(605.284)	(605.284)
	6.640.763	6.542.281

(i) At the date of approval of the financial statements, an amount of € 1,8 million of the contractual liabilities collected by travel agents, have been repaid from bookings made during the tourist period from May to September 2021.

The fair value of current and non current trade and other payables approximates their carrying amount at the balance sheet date.

15. Related party transactions

The Company is controlled by the Chairman and Managing Director, Mr Pandelis M. Leptos and Substitute Chairman Mr George M. Leptos, who own directly or indirectly 74,94% of the Company's shares and are also the ultimate controlling parties of the Group.

The ultimate parent entity, Armonia Estates Limited prepares the consolidated financial statements of all the companies of the group which it belongs. The registered office is at 9 Dimitsani Street, Galeria Court, 1st floor, Apartment 101, Nicosia, Cyprus.

The following transactions were carried out with related parties.

(i) Sales of goods and services

	30 June 2021	30 June 2020
	€	€
Accommodation and other hotel services and goods:
Parent entity	65.479	88.233
Companies under common control	184.668	310.434
	250.147	398.667
(ii) Purchase of services
	30 June 2021	30 June 2020
	€	€
Management and other services and charges:
Parent entity	52.293	173.790
Companies under common control	101.789	117.833
	154.082	291.623

15. Related party transactions (continued)

(iii) Year end balances with related parties arising from sales/purchases of services and goods and financing facilities

	30 June 2021 €	31 December 2020 €
Receivables from related parties:
Receivables from fellow subsidiaries	79.827	64.490
Receivables from parent	1.320.683	1.299.064
	1.400.510	1.363.554
Payables to related parties (Note 14):
Payables to Jointly controlled entitites	86.501	128.357
	86.501	128.357

The balances with related companies are not secured, are payable on first demand and bear no interest, as they are balances arising from commercial activities between related companies.

16. Events after the balance sheet date

There were no other significant events after the balance sheet date, which have a bearing on the understanding of the consolidated financial statements.