Logicom Public LTD — Interim / Quarterly Report 2020

Oct 5, 2020

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME for the period ended 30 June 2020

	Period ended	Period ended	Year ended
	30 June 2020	30 June 2019	31 December
			2019
	€	€	€
Sales	414.295.318	465.601.440	946.797.978
Cost of sales	(380.625.579)	(430.449.752)	(875.437.919)
Gross profit	33.669.739	35.151.688	71.360.059
Other income	554.725	127.546	1.051.035
Losses from impairment of receivables	(433.624)	(293.168)	(535.970)
Administrative expenses	(20.730.604)	(21.342.461)	(41.230.338)
Other expenses	-	-	(34.376)
Profit from operating activities	13.060.236	13.643.605	30.610.410
Net loss from exchange difference	(258.932)	(243.435)	(313.338)
Interest receivable	311.559	266.146	537.784
Interest payable and bank expenses	(3.429.525)	(4.318.596)	(8.472.749)
Net finance cost	(3.376.898)	(4.295.886)	(8.248.303)
Share in profit from affiliates after taxation	427.812	3.471.414	39.789.625
Share in (loss)/ profit of joint ventures after taxation	(82.925)	96.176	31.627
Profit before taxation	10.028.225	12.915.309	62.183.359
Taxation	(1.456.561)	(1.735.106)	(3.508.446)
Profit for the period/year	8.571.664	11.180.203	58.674.913
Other comprehensive expenses not to be reclassified to
profit or loss in future periods
Surplus from revaluation of land and buildings	-	-	1.794.232
Increase in fair value from revaluation of investments at fair
value through other comprehensive income	-	418.385	213.099
Deferred taxation resulting from revaluation of land and
buildings	(86.394)	1.780	(172.787)
Adjustment from re-measurement of liability	-	-	(483.103)
Deferred taxation in adjustment from re-measurement of
liability	-	-	(1.704)
	(86.394)	420.165	1.349.737
Other comprehensive income to be reclassified to profit or
loss in future periods
Exchange difference from translation and consolidation of
financial statements from foreign operations	(1.838.695)	(593.494)	3.619.382
Exchange difference in relation to the offset of net
investment in a foreign operation	(114.469)	(214.886)	(671.698)
Share in loss from affiliate	(149.729)	-	(64.907)
	(2.102.893)	(808.380)	2.882.777
Other comprehensive income for the period/year	(2.189.287)	(388.215)	4.232.514
Total comprehensive income for the period/year	6.382.377	10.791.988	62.907.427
Profit for the period/year attributable to:
Shareholders of the Company	8.605.442	11.140.941	58.683.217
Non-controlling interest	(33.778)	39.262	(8.304)
Profit for the period/year	8.571.664	11.180.203	58.674.913
Total comprehensive income for the period/year
attributable to:
Shareholders of the Company	6.416.155	10.752.726	62.915.731

Non -controlling interest	(33.778)	39.262	(8.304)
Total comprehensive income	6.382.377	10.791.988	62.907.427
Basic earnings per share – cent s	11.62	15.04	79.22
Fully diluted earnings per share – cent s	11.62	15.04	79.22

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2020

	30 June	31 December
	2020	2019
	€	€
ASSETS
Property, plant and equipment	22.889.123	23.086.797
Assets with a right of use	6.047.826	6.644.304
Intangible assets and goodwill	9.263.010	9.391.507
Investments in associated companies and joint ventures	77.324.908	77.003.779
Investments at fair value through other total income	3.634.238	3.862.832
Trade and other debtors	22.466.557	22.416.171
Deferred taxation	1.941.176	1.944.689
Total non-current assets	143.566.838	144.350.079
Inventories	70.319.358	67.969.900
Trade and other debtors	197.905.192	211.413.123
Investments at fair value through profit and loss	19.284	19.284
Tax receivable	1.008.290	855.102
Cash and cash equivalents	36.055.722	29.761.787
Total current assets	305.307.846	310.019.196
Total assets	448.874.684	454.369.275
Equity
Share capital	25.187.064	25.187.064
Reserves	144.606.972	138.191.563
Equity attributable to the shareholders of the Company	169.794.036	163.378.627
Non-controlling interest	(2.457.033)	(2.423.254)
Total equity	167.337.003	160.955.373
Liabilities
Long-term loans	13.435.871	16.758.647
Liabilities from leases	4.541.825	5.399.600
Trade and other creditors	11.609.827	11.441.699
Deferred taxation	486.178	486.683
Contingent liabilities and termination of employment	3.267.042	3.090.779
Total long-term liabilities	33.340.743	37.177.408
Trade and other creditors	157.945.910	126.756.223
Bank overdrafts	36.519.569	50.873.720
Short-term loans	41.144.741	66.551.100
Current portion of long-term loans	7.942.292	8.289.819
Liabilities from leases	1.479.225	1.187.701
Promissory notes	592.460	130.549
Financial derivatives	592.564	946.831
Tax payable	1.979.912	1.460.282
Contingent liabilities and termination of employment	265	40.269
Total current liabilities	248.196.938	256.236.494
Total liabilities	281.537.681	293.413.902
Total equity and liabilities	448.874.684	454.369.275

CONSOLIDATED STATEMENT OF CASH FLOWS for the period ended 30 June 2020

	Period ended	Period ended
	30 June 2020	30 June 2019
Cash flow from operating activities	€	€
Profit for the period/year	8.571.664	11.180.203
Adjustments for:
Various exchange differences	(943.600)	(563.610)
Depreciation	666.882	649.464
Depreciation from lease of assets	122.189	156.175
Depreciation of assets with right of use	806.362	773.539
Interest payable	2.915.998	3.921.436
Interest receivable	(311.559)	(266.145)
Losses of impairment of receivables	433.624	293.168
Provision for decrease in the value of goods	140.163	164.628
Share in profit from investments in affiliates	(427.812)	(3.471.414)
Share in loss/(profit) in jointly controlled companies and partnership	82.925	(96.176)
Change in fair value of financial derivatives	(354.666)	(154.356)
Gain on sale of property, plant and equipment	(13.452)	(8.876)
Amortisation resulted from development costs	120.519	122.438
Charge to profit or loss for provisions for other obligations and termination
of employment	258.636	326.161
Taxation	1.456.561	1.735.106
	13.524.434	14.761.741
Increase in inventories	(2.489.621)	(4.542.803)
Decrease / (increase) in trade and other debtors	13.023.921	(17.201.144)
Increase in trade and other creditors	31.357.815	15.734.799
Increase/(decrease) in debenture stock	461.911	(489.326)
	55.878.460	8.263.267
Interest paid	(2.793.213)	(4.230.113)
Tax paid	(1.092.019)	(1.580.196)
Net cash flow from operating activities	51.993.228	2.452.958
Cash flow for investing activities
Proceeds from sale of property, plant and equipment	897.021	290.606
Payments for acquisition of investments at fair value through profit and loss	(1.000.800)	(3.434.818)
Decrease in provisions	(122.377)	(1.488)
Payments for purchase of property, plant and equipment	(1.448.178)	(678.881)
Interest received	311.559	266.145
Net cash flow for investing activities	(1.362.775)	(3.558.436)
Cash flow (for)/from financing activities
Proceeds from new loans	41.619.348	79.488.533
Repayment of loans	(70.696.010)	(66.476.119)
Repayment of liabilities from finance leases	(905.705)	(746.016)
Dividend paid	-	(5.185.572)
(Payments/)proceeds from financial derivatives	-	7.784
Net cash flow (for)/from financing activities	(29.982.367)	7.088.610
Net flow in cash and cash equivalents	20.648.086	5.983.132
Cash and cash equivalents at beginning of period	(21.111.933)	(18.318.669)
Cash and cash equivalents at end of period	(463.847)	(12.026.860)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period ended 30 June 2020

	Share Capital	Share premium reserve	Revaluation Reserve	Difference from conversion of share capital into Euro	Hedging reserve	Statutory reserve	Exchange difference reserve	Revenue reserve	Total	Non controlling interest	Total
	€	€	€	€	€	€	€	€	€	€	€
Balance as at
1 January 2019	25.187.064	10.443.375	4.764.386	116.818	(9.019.199)	1.872.251	(4.271.676)	76.193.168	105.286.187	(1.989.007)	103.297.180
Profit for the period	-	-	-	-	-	-	-	11.140.941	11.140.941	39.262	11.180.203
Other total comprehensive	-	-	1.780	-	(214.886)	-	(593.494)	418.385	(388.215)	-	(388.215)
income
Transactions with
shareholders recognised in
equity
Proposed dividend for
2018 paid in 2019	-	-	-	-	-	-	-	(5.185.572)	(5.185.572)	-	(5.185.572)
Transfer to revenue	-	-	-	-	-	1.071	-	-	1.071	-	1.071
reserve
Balance as at 30 June 2019	25.187.064	10.443.375	4.766.166	116.818	(9.234.085)	1.873.322	(4.865.170)	82.566.922	110.854.412	(1.949.745)	108.904.667
Balance as at
1 January 2020	25.187.064	10.443.375	6.385.831	116.818	(9.690.897)	2.435.557	(652.294)	129.153.173	163.378.627	(2.423.254)	160.955.373
Profit for the period	-	-	-	-	-	-	-	8.605.442	8.605.442	(33.778)	8.571.664
Other total comprehensive
income	-	-	(86.394)	-	(114.469)	-	(1.838.695)	(149.729)	(2.189.287)	-	(2.189.287)
Transactions with
shareholders recognised in
equity
Share of other
transactions with
shareholders from affiliate	-	-	-	-	-	-	-	(747)	(746)	-	(746)
Balance as at
30 June 2020	25.187.064	10.443.375	6.299.437	116.818	(9.805.366)	2.435.557	(2.490.989)	137.608.139	169.794.035	(2.457.032)	167.337.003

Companies which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, during the period of the two years after the end of the year of assessment to which the profits refer, will be deemed to have distributed this amount as dividend. Special contribution for defence of 17% will be payable on such deemed dividends to the extent that the shareholders at the end of the period of the two years

from the end of the year of assessment to which the profits refer are Cyprus tax residents and Cyprus domiciled. The amount of deemed dividend distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders.

Revenue reserve is the only reserve that is available for distribution.