Woolworth (Cyprus) Properties Plc
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD 01/01/2015 - 19/05/2015
Woolworth (Cyprus) Properties Plc, member of the Shacolas Group of Companies, presents the Interim Management Statement of the Group for the period from 1st January 2015 to $19^{th}$ May 2015. The Interim Management Statement has been prepared in accordance with the provisions of Article 11 of the Transparency Requirements (Traded Securities in a Regulated Market) Law of 2007 (N.190(I)/2007) and has not been audited by the external auditors of the Company.
The interim statement incorporates the results and activities of:
- The subsidiary companies of Woolworth (Cyprus) Properties Plc, which are owners of immovable properties,
- ITTL Trade Tourist and Leisure Park Plc, on the land of which the Shacolas Emporium Park has been developed, which includes "The Mall of Cyprus", and the widely known furniture and home equipment store IKEA and other operations.
- Woolworth Commercial Centre Plc, owner of land in Engomi, where "The Mall of Engomi" is operating and
- The associated company Akinita Lakkos Mikelli Ltd.
The accounts also include the 100% shareholding in Chrysochou Merchants Limited, which owns 11,73% of the share capital of Cyprus Limni Resorts & GolfCourses Plc, and the shareholding of 49,65% in Arsinoe Investments Co. Ltd, which owns 70,6% of the share capital of Cyprus Limni Resorts & GolfCourses Plc, owner of a large plot of land at Limni, Polis Chrysochou area.
The principal activities of the Group remain the same as the previous financial year. They continue to include the ownership and management of immovable properties.
The main events and transactions incurred during the period in review and their impact, where applicable, on the financial statements, are presented below:
- i. The first phase of the expansion of The Mall of Engomi is now completed thus creating new commercial spaces of 1.230 sq.m. on the 1st floor. As from April the new multibrand store UBER and the cafeteria Coffee & More are in operation and from mid-May the fashion store Next Kids as well.
- ii. The traffic in both «The Mall of Cyprus» and «The Mall of Engomi» during the reporting period in 2015 is increased compared to last year.
- iii. With the parliamentary vote and the final amendment of the legislation which allows for $\mathbf{1}$ the division of unallocated immovable property within a development area, Akinita Lakkos Mikelli Ltd, a company which owns a large parcel of land in the entrance of Nicosia, adjacent to the headquarters of the Electricity Authority of Cyprus, in cooperation with
Piraeus Bank, has now applied for a division of its property. This is expected to generate significant revenue in the future.
- iv. The Group expresses its gratification that the Government has realised the benefits to the economy, the retail trade, business, the state as well as the quality upgrade of the service level to the families and Tourism and has taken actions to apply to the Supreme Court as well as to issue a Decree to allow all shops to be open on Sundays. This is very important and beneficial.
- v. The results for the period in review are increased compared to the corresponding period of 2014, mainly due to the revenues from licensing of new spaces at the Shopping Malls. the non-recurring revenues and the reduction of the finance expenses due to the reduction of borrowings. More specifically, the results of the quarter ended 31.03.2015, compared to the results of the corresponding period of the previous year, are as follows:
- Rights for the use of spaces and other revenues for the first quarter of 2015 reached €5.188.000, compared to €4.942.000 in 2014, representing an increase of 5%.
- The operating profit and other revenues reached $64.830.000$ , compared to $64.412.000$ in 2014, representing an increase of 9,5%
- Following the deduction of operating expenses, the depreciation of fixed assets, the finance expenses and taxation the net profit of the Group for the first quarter of 2015 reached $\epsilon$ 1.836.000, compared to profit of $\epsilon$ 939.000 in 2014.
The Board of Directors and the Management of the Group note that despite the indications for stability, the overall situation in the economy remains difficult and uncertain and thus continue with the same care and diligence to manage it.
Woolworth (Cyprus) Properties Plc Nicosia 19 May 2015