Interim / Quarterly Report • Nov 21, 2014
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
Report and Consolidated Interim Financial Statements Nine months ended 30 September 2014
| Contents | Page |
|---|---|
| Report for the Nine Months Ended 30 September 2014 | 1 |
| Consolidated Statement of Comprehensive Income | 2 |
| Consolidated Statement of Financial Position | 3 |
| Consolidated Statement of Changes in Equity | 4 |
| Consolidated Statement of Cash Flows | 5 |
| Notes to the Consolidated Interim Financial Statements | 6 |
| Statement of the members of the Board of Directors and other responsible persons of the Company for the interim financial statements |
7 |
On 20 November 2014, the Board of Directors of Vassiliko Cement Works Public Company Ltd approved the financial results of the Group for the first nine months of the year that ended on 30 September 2014.
The Board of Directors, taking into account the financial results, decided the payment of an interim dividend for 2014 of 2 cents per share to the entitled shareholders who will be registered on the CSE members register on 5 December 2014. The total interim dividend payable is €1.439.000. No interim dividend was paid during 2013.
The total revenues for the first nine months of 2014 reached €62.888.000 compared to €58.572.000 for the first nine months of 2013. The operating profit for the period reached €6.068.000 compared to a loss of €6.981.000 during the respective period of 2013.
Further to the normalisation of operations after the disruption at the first half of 2013, the improvement is also attributed to the increase of cement and clinker exports, as well as to further cuts in the cost structure of the Company and improving production efficiency. On the other hand the domestic market consumption continued its downward trend throughout the nine-month period of 2014.
Other operating income of €2.410.000 for the first nine months of the year (9-months 2013: €1.306.000) includes income from the trading of carbon emission rights of €1.539.000 (9-months 2013: €896.000).
The net profit for the first nine months of 2014 reached €4.245.000 as opposed to a loss of €9.485.000
The Company will continue pursuing its exports orientated sales strategy as the domestic market does not show any signs of haulting its downward trend; the management is monitoring carefully the market developments in the current uncertain environment and controlling its operating cost base to ensure competitiveness of its products.
The new alternative fuels feeding equipment that started operation during the third quarter of the year, will replace a substantial percentage of the use of traditional fossil fuels, with other alternative sources resulting in positive financial savings as well as improved environmental impact for the Company.
| Three months ended 30 September |
Nine months ended 30 September |
|||
|---|---|---|---|---|
| 2014 €000 |
2013 €000 |
2014 €000 |
2013 €000 |
|
| Revenue | 19.573 | 16.506 | 62.888 | 58.572 |
| Cost of sales | (16.494) | (16.734) | (52.219) | (58.992) |
| Gross profit/(loss) | 3.079 | (228) | 10.669 | (420) |
| Other operating income | 845 | 1.118 | 2.410 | 1.306 |
| Distribution expenses | (1.214) | (845) | (3.865) | (3.310) |
| Administrative expenses | (778) | (698) | (2.116) | (2.115) |
| Other operating expenses | (352) | (722) | (1.030) | (2.442) |
| Operating profit/(loss) before financing costs | 1.580 | (1.375) | 6.068 | (6.981) |
| Financial income | 8 | - | 11 | 6 |
| Financial expenses | (459) | (592) | (1.617) | (1.914) |
| Net financing costs | (451) | (592) | (1.606) | (1.908) |
| Loss from investing activities | (115) | - | (66) | (231) |
| Share of loss from equity-accounted investees | (60) | (102) | (148) | (361) |
| Profit/(loss) before tax | 954 | (2.069) | 4.248 | (9.481) |
| Taxation expense | (1) | (1) | (3) | (4) |
| Profit/(loss) for the financial period | 953 | (2.070) | 4.245 | (9.485) |
| Other comprehensive income for the period | - | - | - | - |
| Total comprehensive income/(loss) for the period | 953 | (2.070) | 4.245 | (9.485) |
| Profit/(loss) attributable to: Equity holders of the parent |
953 | (2.070) | 4.245 | (9.485) |
| Non-controlling interest | - 953 |
- (2.070) |
- 4.245 |
- (9.485) |
| Total comprehensive income/(loss) attributable to: Equity holders of the parent Non-controlling interest |
953 - |
(2.070) - |
4.245 - |
(9.485) - |
| 953 | (2.070) | 4.245 | (9.485) | |
| Basic and diluted earnings/(loss) per share (cents) | 1,3 | (2,9) | 5,9 | (13,2) |
30 September 2014
| 30/9/14 €000 |
31/12/13 €000 |
|
|---|---|---|
| ASSETS | ||
| Property, plant and equipment | 254.717 | 263.726 |
| Intangible assets | 12.778 | 12.777 |
| Investment property | 7.671 | 7.667 |
| Investments in equity-accounted investees | 3.743 | 3.890 |
| Available-for-sale financial assets | 314 | 299 |
| Total non-current assets | 279.223 | 288.359 |
| Inventories | 21.086 | 20.626 |
| Trade and other receivables | 6.161 | 7.044 |
| Assets classified as held for sale | 3.015 | 3.133 |
| Cash and cash equivalents | 1.243 | 3.533 |
| Total current assets | 31.505 | 34.336 |
| Total assets | 310.728 | 322.695 |
| EQUITY AND LIABILITIES | ||
| Equity and reserves | ||
| Share capital | 30.932 | 30.932 |
| Reserves | 189.946 | 186.765 |
| Total equity attributable to equity holders of the parent | 220.878 | 217.697 |
| Total equity | 220.878 | 217.697 |
| LIABILITIES | ||
| Interest bearing-loan and borrowings | 62.467 | 73.712 |
| Deferred tax liabilities | 11.490 | 11.490 |
| Provisions | 400 | 400 |
| Total non-current liabilities | 74.357 | 85.602 |
| Interest bearing-loan and borrowings | 9.972 | 13.400 |
| Tax payable | 20 | 20 |
| Trade and other payables | 5.501 | 5.976 |
| Total current liabilities | 15.493 | 19.396 |
| Total liabilities | 89.850 | 104.998 |
| Total equity and liabilities | 310.728 | 322.695 |
Consolidated Statement of Changes in Equity Nine months ended 30 September 2014
| Share Capital |
Share premium reserve |
Revaluation reserve |
Revaluation of investments available for sale reserve |
Retained profits | Equity attributable to holders of parent |
Non-controlling interest |
Total equity | |
|---|---|---|---|---|---|---|---|---|
| €000 | €000 | €000 | €000 | €000 | €000 | €000 | €000 | |
| Nine months ended 30 September 2014 | ||||||||
| Balance 1 January 2014 | 30.932 | 45.388 | 47.925 | - | 93.452 | 217.697 | - | 217.697 |
| Profit for the period | - | - | - | - | 4.245 | 4.245 | - | 4.245 |
| Total comprehensive income for the period | - | - | - | - | 4.245 | 4.245 | - | 4.245 |
| Dividends | - | - | - | - | (1.079) | (1.079) | - | (1.079) |
| Special contribution for defence | - | - | - | - | 15 | 15 | - | 15 |
| Balance 30 September 2014 | 30.932 | 45.388 | 47.925 | - | 96.633 | 220.878 | - | 220.878 |
| Nine months ended 30 September 2013 | ||||||||
| Balance 1 January 2013 | 30.932 | 45.388 | 51.925 | - | 102.193 | 230.438 | - | 230.438 |
| Loss for the period | - | - | - | - | (9.485) | (9.485) | - | (9.485) |
| Total comprehensive loss for the period | - | - | - | - | (9.485) | (9.485) | - | (9.485) |
| Balance 30 September 2013 | 30.932 | 45.388 | 51.925 | - | 92.708 | 220.953 | - | 220.953 |
Nine months ended 30 September 2014
| Nine months ended 30 September |
||
|---|---|---|
| 2014 €000 |
2013 €000 |
|
| Cash flows from operating activities | ||
| Profit/(loss) for the period | 4.245 | (9.485) |
| Adjustments for: | ||
| Depreciation and amortisation charges | 11.760 | 12.086 |
| Interest income | (11) | (6) |
| (Impairment reversal)/impairment of available-for-sale financial assets | (14) | 231 |
| Impairment of Αssets classified as held for sale | 152 | - |
| Interest expense | 1.588 | 2.034 |
| Share of loss of equity-accounted investees | 148 | 361 |
| (Gain)/loss on sale of property, plant and equipment | (1) | 23 |
| Taxation expense | 3 | 4 |
| Operating profit before changes in working capital Changes in: |
17.870 | 5.248 |
| Trade and other receivables | 883 | 422 |
| Inventories | (460) | 4.385 |
| Other current assets | - | 156 |
| Trade and other payables | (193) | (5.229) |
| Cash generated from operations | 18.100 | 4.982 |
| Interest paid | (1.886) | (2.127) |
| Taxes paid | (3) | (394) |
| Net cash inflow from operating activities | 16.211 | 2.461 |
| Cash outflows to investing activities | ||
| Proceeds from sale of property, plant and equipment | 1 | 5 |
| Interest received | 11 | 6 |
| Acquisition of property, plant and equipment | (2.775) | (1.304) |
| Net cash used in investing activities | (2.763) | (1.293) |
| Cash flows from financing activities | ||
| Proceeds from new loans raised | - | 870 |
| Repayment of loans | (14.674) | (9.242) |
| Dividends paid | (1.064) | (1.064) |
| Net cash outflows to financing activities | (15.738) | (9.436) |
| Net decrease of cash and cash equivalents | (2.290) | (8.268) |
| Cash and cash equivalents at 1 January | 3.533 | 3.390 |
| Cash and cash equivalents at 30 September | 1.243 | (4.878) |
The Company enters into various transactions with the Hellenic Mining Group, Italcementi Group, Cyprus Cement Group, associated and related companies. These transactions include the rendering of technical, administrative, commercial and other services to the Group as well as the purchase and sale of raw materials, spare parts and other goods and services at mutually agreed prices. During the period the transactions with the above were as follows:
| Sales | Purchases | |||
|---|---|---|---|---|
| 2014 €000 |
2013 €000 |
2014 €000 |
2013 €000 |
|
| Hellenic Mining Group | - | - | 180 | 244 |
| Italcementi Group | 8.374 | 9.623 | 350 | 1.307 |
| KEO Plc | 1 | - | 2 | 4 |
| Cyprus Cement Group | - | - | 46 | 15 |
| 8.375 | 9.623 | 578 | 1.570 |
Τhe main risks and uncertainties faced by the Group remain the same as those presented in Note 35 of the Annual Report and Financial Statements of the Group for the year ended 31 December 2013.
The uncertain economic conditions in Cyprus, the limited availability of financing for individuals and businesses by the banking system in general, the loss and/or blockage of funds, together with the resolution measures of the banking system and the potential continuation or worsening of the economic recession, could affect:
(1) the ability of the Group to obtain new borrowings, or re-finance its existing borrowings at terms and conditions similar to those applied to earlier transactions,
(2) the ability of the Group's trade and other debtors to repay the amounts due to the Group, and
(3) the cash flow forecasts of the Group and the assessment of impairment of other financial and non financial assets.
The uncertainty regarding the course of developments in the Cypriot economy does not allow a safe prediction for the remaining of the current year, which may affect negatively the future financial performance, cash flows and financial position of the Group. Considering the above uncertainties the Group's Management has taken increased measures to limit any negative consequences.
In accordance with Article 10 of the Transparency Requirements (Securities for Trading on Regulated Market) Law 190(I)/2007 ("Law"), we the members of the Board of Directors, the General Manager and the Financial Manager of Vassiliko Cement Works Public Company Ltd, confirm that to the best of our knowledge:
(a) The interim financial statements for the period from 1 January 2014 to 30 September 2014 that are presented on pages 1 to 6:
i. were prepared in accordance with the International Financial Reporting Standards and in accordance with the provisions of Article 10 (4) of the Law, and
ii. give a true and fair view of the assets and liabilities, the financial position and the profits or losses of Vassiliko Cement Works Public Company Ltd and the businesses that are included in the consolidated financial statements as a total, and
(b) the interim report gives a fair review of the information required under Article 10 (6) of the Law.
George Sideris General Manager
George Savva Financial Manager
20 November 2014
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.