Lordos United Public LTD

Earnings Release • Apr 27, 2016

ANNOUNCEMENT INTERIM MANAGEMENT STATEMENT FOR THE FIRST HALF OF 2016

At a scheduled meeting held on Wednesday, 27 April 2016, the Company's Board of Directors examined and approved the Interim Management Statement, prepared in accordance with Article 11 of the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law 190(I) of 2007. The report is based on the financial results as at 31 March 2016, which have not been audited.

Main activities of the Group

The Group's main activities have not changed during the period under review compared to the year ended 31 December 2015 and remain the production and sale of plastic items and investments in property.

General overview of the financial situation and performance of the Group

The Group's turnover in the period under review increased by 19% compared to the corresponding period of 2015, mainly due to the increase in the sales of pipes.

The Gross Profit Percentage increased by 13% while the results of the Group from ordinary business are also improved compared to the corresponding period of last year, despite the increase in sales and distributions costs.

Material events and transactions

There have been no material events during the period under review beyond the ordinary business of the Group as analysed above.

Income from non-recurring or extraordinary activities

During the period under review there have been sales of assets (machinery) amounting to €85,000.00.

Main risks and uncertainties

The Group's activities are affected by various risks and uncertainties - the most important of which include the purchase price risk, interest rate risk, credit risk and liquidity risk - as well as by a number of factors which have a significant impact on the Group's activities, such as the increase in the prices of raw materials and increased competition from within Cyprus and mostly from products imported from countries that produce raw materials and have low labour costs.

Objectives and Prospects

The Company is constantly striving to improve financial results by increasing sales deriving from new agreements and new contracts and decreasing costs through restructuring.

As regards prospects for the current year, considering developments to date in the Group's operations, we hope that the results will be improved compared to those of 2015.

Transactions with related parties

During the period under review, there have been no commercial transactions between the Company and related parties.

LORDOS UNITED PLASTICS PUBLIC LTD

Signed Demos Georgiades CFO