Helesi PLC | |
Interim Financial Statements as of and for the six months ended 30 June 2013 (compiled in accordance with the International Financial Reporting Standards that have been adopted by the European Union). This is to certify that the attached Interim condensed Financial Statements are those which were approved by the Board of Directors of Helesi PLC on 31/01/2014 Dimitris Kainaros Non - executive Chairman Helesi PLC | |
31 January 2014
Helesi PLC
("Helesi" or "the Group")
Interim results for the six months to 30 June 2013
Helesi PLC (AIM: HLS), the Greece, Italy and Cyprus based waste management products manufacturer and services supplier announces interim results for the six months to 30 June 2013.
Highlights
§ Group sales revenues remained stable with a slight decrease of 0.17% to €9.985 million (H1 2012: €10.002 million).
§ EBITDA performance improved by €1.45 million with positive EBITDA of €0.55 million (H1 2012: €0.9 million loss).
§ Losses were reduced by almost €1.7 million, €6.5 million in H1 2013 (H1 2012: €8.2 million)
§ The net debt of Helesi SA is € 62.2 million, We are undergoing a negotiation process with the 3 largest creditors of the Helesi SA holding 75% of total debt, namely Piraeus Bank €24.9 million, Alpha Bank €15 million, and Eurobank €6.5 million. The rest of creditors have expressed their will to follow the decision of the 3 most important creditors
Commenting on the results, Sakis Andrianopoulos, Chief Executive of Helesi, said, "Helesi is impacted by recession in Italy and Greece. This year we experienced a slowdown in Cyprus, which shows the first signs of a deep recession. The Greek recession continues, but the potentially disastrous event of default of the Greek state and the "Grexit" scenario are fading away. The Greek waste market is improving but funding problems are a setback for large waste projects. Helesi will continue to focus on exports of plastic products to utilize its production capacity."
For further information please visit www.helesi.com or contact:
Helesi PLC | +30 (0) 2299 0 82700 |
Sakis Andrianopoulos, Chief Executive | |
Christina Thanasoulia, Finance Director | thanassoulia@helesi.com |
Panmure Gordon (Nomad and broker) | +44 (0) 20 7886 2500 |
Andrew Godber |
Financial Performance
Sales revenues in the six months to 30 June 2013 slightly decreased by 0.17% to % €9.985 million (H1 2012: € 10.002 million), while total revenues slightly decreased as well. Tight inventory control and the change of the sales mix sustained gross margin levels slightly above 50%, same as in the previous year.
Personnel expenses decreased further by almost 0.6 million to €2.5 million (H1 2012: €3.1 million) and also cost of goods sold was also reduced €0.9 million to €3.5 million(H1 2012: €4.4 million) , as result of adjusting staff costs and reducing operational expenses as operations were slimmed down. As a result, the Group realized profit before interest, tax, depreciation and amortisation of €0.55 million (H1 2012: loss €0.9 million). It is the first time that the Group achieved EBITDA profitability after the H1 2011. Interest costs slightly decreased by 7.3% to €2.45 million (H1 2012: €2.64 million) leading to €4.4 million loss before tax (H1 2012: €6.3 million). The blended average rate for our borrowings remains at high levels of 7.2% (H2 2012:7.4 %).
Whilst these results demonstrate an improvement, the Group is still loss making and the net debt was € 62.2 million and current liabilities exceed its current assets by €24 million as of 30 June 2013. The Group's banks have continued to support the business with letters of credit and working capital facilities. The Group relies on its long term relationships and support with domestic banks and its suppliers in order to be able to continue as a going concern. As disclosed below, the Group continues to be in breach of some of its banking covenants. The Group's banks are actively engaging with Helesi on extending the maturity of the Group's borrowings and providing additional funding to facilitate the growth of the business. The directors are confident of obtaining the banks approval to a restructuring in the coming weeks and afurther announcement will be made at that time. Helesi's shares remain temporarily suspended on AIM and the directors will also provide an update on this matter when an announcement is made about the debt restructuring. Additional information about the Group's financial position and borrowings are further described in notes 4 and 10.
Dividend
Dividends will resume again once the operating cashflow of the Company improves.
Operations
In plastic products, revenues decreased due to lack of contribution from the Greek market and Italian market. The postponement of various projects in the Greek market, the restriction of credit risk in combination with constrains in new working capital sources held back operations. The structural reform of the Greek State affected also the Services and Vehicles business, and signs of recovery started to appear in the second half of 2012 and continue within 2013. Helesi is building a pipeline of new projects in the Greek market that in case of success, and in the event that funding can be secured, has the potential to benefit from over €40 million of revenues in future years.
Outlook
Helesi remains positive for the future once its funding position has been secured. Geographical diversification and product diversification reduces the downside risk of a prolonged recession scenario in Greece. The Group will continue to focus on overseas sales of plastic products, meanwhile taking the necessary steps to improve further all cost areas, and reduce the debt burden. Most importantly, the Group is negotiating with its creditors in order to improve working capital availability, which will enable the Group to realize its export growth potential.
Dimitri Kainaros
Non-Executive Chairman
Sakis Andrianopoulos
Chief Executive Officer
31 January 2014
Statement of the members of the Board of Directors and other responsible persons of the Company for the financial statements
In accordance with Article 9, sections (3) (c) and (7) of the Transparency Requirements (Securities for Trading on regulated Market) Law of 2007 ("Law"), we the members of the Board of Directors and the other responsible persons for the consolidated financial statements of Helesi Plc for the period ended 30 June 2012 we confirm that, to the best of our knowledge:
(a) the annual consolidated financial statements that are on pages 7 to21:
(i) were prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, and in accordance with the provisions of Article 9, 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 losses of Helesi Plc and the businesses that are included in the consolidated accounts as a total , and
(b) the directors' report gives a fair review of the developments and the performance of the business as well as the financial position of Helesi Plc and the businesses that are included in the consolidated accounts as a total, together with a description of the principal risks and uncertainties that they are facing.
Members of Board of Directors:
Kainaros Dimitrios Athanassios (Sakis) Andrianopoulos | Non-Executive Chairman Chief Executive Officer |
Christina Thanassoulia | Deputy Chief Executive |
Elena Paraskeva | Non Executive Director |
Nicosia, Cyprus
Statements of Comprehensive Income
The Group | The Company | |||||||
Notes | First half of | First half of | Year | First half of | First half of | Year | ||
2013 | 201 2 | 20 12 | 2013 | 201 2 | 20 12 | |||
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |||
Sales revenue | 9.985 | 10.002 | 28.795 | - | - | - | ||
Other revenue | 167 | 903 | 1.154 | 266 | 296 | 630 | ||
Changes in inventories of finished goods | (418) | (528) | (1.399) | - | - | - | ||
Cost of materials used |
Statements of Financial Position
The Group | The Company | ||||||
Notes | 30 June | 30 June | 31 December | 30 June | 30 June | 31 December | |
2013 | 201 2 | 20 12 | 2013 | 201 2 | 20 12 | ||
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | ||
Assets | |||||||
Non current assets | |||||||
Property, plant and equipment | 9 | 71.989 | 75.584 | 74.152 | - | 1 | - |
Goodwill | 7.259 | 7.659 | 7.259 | - | - | - | |
Other i ntangible assets | 1.054 | 1.427 | 1.303 | - | - | - | |
Investment in subsidiaries | - | - | - | 39.383 | 39.383 | 39.383 | |
Other non-current assets | 81 | 81 | 81 | - | - | - | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Total n on-current assets | 80.383 | 84.751 | 82.795 | 39.383 | 39.383 | 39.383 | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Inventories | 4.105 | 4.193 | 4.322 | - | - | - | |
Trade and other receivables | 23.724 | 30.846 | 24.081 | 100 | 645 | 193 | |
Cash and cash equivalents | 1.003 | 441 | 452 | 321 | - | 1 | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Total c urrent assets | 28.832 | 35.480 | 28.855 | 421 | 645 | 194 | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Total assets | 109.215 | 120.231 | 111.650 | 39.804 | 40.029 | 39.577 | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Share capital | (3.981) | (3.981) | (3.981) | (3.981) | (3.981) | (3.981) | |
Share premium | (33.641) | (33.641) | (33.641) | (33.641) | (33.641) | (33.641) | |
Capital reserves | (9.981) | (9.981) | (9.981) | - | - | - | |
Currency translation adjustments | - | - | - | - | - | - | |
Retained earnings | 38.484 | 25.537 | 31.966 | (845) | (603) | (638) | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Total equity | (9.119) | (22.066) | (15.637) | (38.467) | (38.225) | 38.260 | |
Non current liabilities | |||||||
Long term borrowings | 10 | (38.212) | (33.276) | (14.692) | - | - | - |
Current liabilities to supplier | (1.579) | (1.119) | (1.575) | - | - | - | |
Employee benefit | (425) | (299) | (381) | - | - | - | |
Deferred tax liabiliti es | (7.101) | (5.119) | (5.069) | - | - | - | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Total Non current liabilities | (47.317) | (39.813) | (21.717) | - | - | - | |
Current liabilities | |||||||
Trade and other payables | (22.294) | (25.982) | (22.568) | (1.336) | (1.803) | (1.294) | |
Income tax payable | (786) | (688) | (726) | - | (1) | (22) | |
Short term borrowings | 10 | (29.699) | (31.683) | (51.002) | (1) | - | (1) |
------ | ------ | ------ | ------ | ------ | ------ | ||
Current liabilities | (52.779) | (58.353) | (74.296) | (1.338) | (1.804) | (1.317) | |
------ | ------ | ------ | ------ | ------ | ------ | ||
Total liabilities and equity | (109.215) | (120.231) | (111.650) | (39.804) | (40.029) | (39.577) | |
The attached notes form an integral part of this interim condensed financial information |
Statements of Changes in Shareholders' Equity
The Group | ||||||
Share capital | Share premium | Capital reserves | Currency translation adjustments | Retained earnings | Total | |
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |
As at 1 January 20 12 | 3.981 | 33.641 | 9.981 | - | (17.351) | 30.252 |
Profit for the period | - | - | - | - | (8.186) | (8.186) |
------ | ------ | ------ | ------ | ------ | ------ | |
As at 30 June 20 12 | 3.981 | 33.641 | 9.981 | - | (25.537) | 22.066 |
Profit for the period | - | - | - | - | (6.104) | (6.104) |
Prior year adjustment | - | - | - | - | (325) | (325) |
------ | ------ | ------ | ------ | ------ | ------ | |
As at 1 January 201 3 | 3.981 | 33.641 | 9.981 | - | (31.966) | 15.637 |
Profit for the period | - | - | - | - | (6.495) | (6.495) |
Prior year adjustment | - | - | - | - | (23) | (23) |
------ | ------ | ------ | ------ | ------ | ------ | |
As at 30 June 201 3 | 3.981 | 33.641 | 9.981 | 38.484 | 9.119 | |
------ | ------ | ------ | ------ | ------ | ------ |
The Company | |||||||
Share capital | Share premium | Capital reserves | Currency translation adjustments | Retained earnings | Total | ||
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | ||
As at 1 January 20 12 | 3.981 | 33.641 | - | - | 453 | 38.075 | |
Profit for the period | - | - | - | - | 150 | 150 | |
------ | ------ | ------ | ------ | ------ | ------ | ||
A s at 30 June 201 2 | 3.981 | 33.641 | - | - | 603 | 38.225 | |
Profit for the period | |||||||
------ | ------ | ------ | ------ | ------ | ------ | ||
As at 1 January 20 13 | 3.981 | 33.641 | - | - | 638 | 38.260 | |
Profit for the period | |||||||
------ | ------ | ------ | ------ | ------ | ------ | ||
A s at 30 June 201 3 | 3.981 | 33.641 | - | - | 845 | 38.467 | |
------ | ------ | ------ | ------ | ------ | ------ | ||
The attached notes form an integral part of this interim condensed financial information |
Statements of cash flows
The Group | The Company | |||||
First half of | First half of | Year | First half of | First half of | Year | |
2013 | 201 2 | 20 12 | 2013 | 201 2 | 20 12 | |
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |
Operating activities | ||||||
Loss before tax | (4.399) | (6.296) | (12.406) | 207 | 150 | 209 |
Depreciation, amortisation and profit ο n disposals | 2.503 | 2.509 | 4.974 | - | - | - |
Interest payable | 2.447 | 2.609 | 4.205 | - | (1) | 1 |
Employee benefits | 43 | 48 | 130 | - | - | - |
Profit/loss from sale of fixed asset | - | 243 | 253 | - | - | - |
Profit from sales unit | - | - | - | - | ||
Other non cash item | (23) | (122) | - | - | - | - |
Impairment of goodwill | - | - | 400 | - | - | - |
------ | ------ | ------ | ------ | ------ | ------ | |
572 | (460) | (1.726) | 207 | 149 | 209 | |
(Increase)/ decre a se in inventories | 217 | 681 | 551 | - | ||
(Increase)/ decre a se in receivables | 357 | 2.929 | 9.695 | 92 | (446) | 221 |
Increase /(decrease) in payables | (270) | 1.654 | (1.305) | 43 | 358 | (368) |
------ | ------ | ------ | ------ | ------ | ------ | |
876 | 4.804 | 7.215 | 135 | 62 | 147 | |
Net i nterest received/ ( paid ) | (2.447) | (2.640) | (5.236) | - | (1) | - |
Income tax paid | (3) | (249) | (104) | (22) | (62) | - |
------ | ------ | ------ | ------ | ------ | ------ | |
Net operating cash inflows (outflows) | (1.574) | (1.641) | 1.875 | 320 | (1) | 62 |
------ | ------ | ------ | ------ | ------ | ------ | |
Cash flows related to investing activities | ||||||
Purchase of property plant and equipment | (91) | (1.330) | (2.251) | - | (1) | |
Proceeds from sale of property plant and equipment | - | 225 | 226 | - | - | |
Purchase of intangible assets | - | - | (39) | - | - | |
Interest received | - | 30 | 31 | - | - | 61 |
------ | ------ | ------ | ------ | ------ | ------ | |
Net investment cash inflows (outflows) | (91) | (1.074) | (2.033) | - | (1) | 1 |
------ | ------ | ------ | ------ |
Notes to the Interim Condensed Financial Statements
1. Accounting PoliciesThese interim financial statements have been compiled and are presented in accordance with IAS 34 Interim Financial Reporting. The accounting policies used in the preparation of the interim financial statements are consistent with those used in the compilation of the audited financial statements for the year ended 31 December 2012 and the six months ended 30 June 2013.
Costs that occur evenly during the financial year are anticipated or deferred in the interim financial statements, only if it would be appropriate to anticipate or defer such costs at the end of the financial year.
Income tax expense is recognised based on the best estimate of the weighted average annual income tax rate expected for the full financial year.
2. Capital Structure
The Helesi PLC Group operates an employee share options scheme (ESOS) under which employees of any of the entities forming part of the Group may be given the option to purchase shares of Helesi PLC . These options are exercisable not earlier than three years and not later than seven years after the grant date, at an exercise price which is specified, in Euros, at the time of granting the options.
Details of the share options granted to directors, to date, are set out below:
Elena Paraskeva 37,086
These options were granted on 23 November 2006, were exercisable between 23 November 2009 and 23 November 2013, at an exercise price of 116p, which is the IPO floating price. The options were not exercised by Ms. Paraskeva and as a result, they are not valid any more. The market price of the Helesi PLC shares, on the 7th of December 2013. The Helesi shares have been suspended from trading in the AIM market of the London stock exchange since 26 June 2013 (last transaction was made on the 7th of June 2013).
3. Economic Environment
The Greek economy is undergoing a severe recession for a sixth consecutive year, totalling a decrease in GDP larger than 25% without bearing in mind inflation. It is the worse recession for a country within the EU in peace time. The downgrade of the Greek State has resulted in a liquidity crisis and fall in consumer and business confidence. The Greek state has been forced to implement austerity measures which include Greek budget cuts and the postponement of public sector projects. Banks have generally ceased providing new finance to Greek businesses since 2010 and some foreign banks operating in Greece have been instructed not to undertake "state risk". These factors have resulted in fall in revenues, deteriorating cash flows and increased finance costs.
4. Going concern
As at 30 June 2013, the Group's current liabilities exceed its current assets by €24 million (H1 2012: €22.8 million) and the Group was in breach of several of its loan covenants. The Group's projections reflect sustainable net operating cashflow, and relies on its long term relationships and support with domestic banks and its suppliers. Helesi Italia is in the process of being divested and as a result, the Group expects not only to adjust productive capacity to current demand, but also to bolster its cash-flow with an amount near €2 million in 2014.
5. Earnings per Share
The basic earnings per share in a given period are calculated by dividing the net profit attributable to the Group by the weighted average number of issued and outstanding shares in that period.
The calculation of the diluted earnings per share takes into consideration the options on shares granted to employees of the Group. The equivalent of these share options to shares is quantified by
reference to the exercise price of the options granted and the average listed price (in the accounting period reported upon) of the shares on which the options have been granted.
6 . Segmental Analysis
As from 2007, the Helesi PLC Group recognises two business segments: the environmental products segment and the environmental services segment. The financial results and the financial position of these two business segments are set out below.
First half of 201 3 | |||
Environmental products | Environmental services | Group | |
€'000 | €'000 | €'000 | |
Third-party sales | 6.265 | 3.720 | 9.985 |
Other third-party revenues | 167 | - | 167 |
------ | ------ | ------ | |
Total revenues | 6.432 | 3.720 | 10.152 |
Cost of materials and accessories used | (2.765) | (1.180) | (3.945) |
Personnel-related costs | (1.232) | (1.216) | (2.447) |
Depreciation and amortisation | (2.275) | (229) | (2.504) |
Third-party costs and expenses | (2.686) | (521) | (3.207) |
------ | ------ | ------ | |
Segmental profit, before finance charges | (2.527) | 576 | (1.951) |
First half of 20 12 | |||
Environmental products | Environmental services | Group | |
€'000 | €'000 | €'000 | |
Third-party sales | 6.691 | 3.311 | 10.002 |
Other third-party revenues | 814 | 89 | 903 |
------ | ------ | ------ | |
Total revenues | 7.505 | 3.400 | 10.905 |
Cost of materials and accessories used | (4.540) | (392) | -(4.932) |
Personnel-related costs | (1.859) | (1.229) | (3.088) |
Depreciation and amortisation | (2.260) | (249) | (2.509) |
Third-party costs and expenses | (2.137) | (1.651) | (3.788) |
------ | ------ | ------ | |
Segmental profit, before finance charges | (3.291) | (121) | (3.412 ) |
------ | ------ | ------ |
30 June 201 3 | |||
Environmental products | Environmental services | Group | |
€'000 | €'000 | €'000 | |
Total Assets | 101.840 | 7.375 | 109.215 |
Total Liabilities to third parties | (95.546) | (4.550 | (100.096) |
The Helesi PLC Group operates two facilities - one in Greece and one in Italy, under the corporate umbrellas of Helesi SA and Helesi Italia srl, respectively. The Italian production unit is in the process of being divested though. The financial results and the financial position of these operations are set out below.
First half of 201 3 | ||||
Greece | ΙΤ | Elimination of intersegment transactions | Group | |
€'000 | €'000 | €'000 | €'000 | |
Third-party sales | 9.505 | 480 | - | 9.985 |
Intersegment sales | 674 | 198 | (872) | |
------ | ------ | ------ | ------ | |
Total sales | 10.179 | 678 | (872) | 9.985 |
Other third-party revenues | 157 | 10 | 167 | |
Intersegment other revenues | - | - | - | - |
------ | ------ | ------ | ------ | |
Total other revenues | 10.336 | 688 | (872) | 10.152 |
Total revenues | ||||
Cost of materials used | (3.570) | (375) | - | (3.945) |
Third-party costs and expenses | (7.190) | (968) | - | (8.158) |
------ | ------ | ------ | ------ | |
Segmental profit / (loss) before finance charges | (424) | (655) | (872) | (1.951) |
------ | ------ | ------ | ------ |
First half of 20 12 | ||||
Greece | IT | Elimination of intersegment transactions | Group | |
€'000 | €'000 | €'000 | €'000 | |
Third-party sales | 8.155 | 1.847 | - | 10.002 |
Intersegment sales | 1.296 | 641 | (1.937) | - |
------ | ------ | ------ | ------ | |
Total sales | 9.451 | 2.488 | (1.937) | 10.002 |
Other third-party revenues | 903 | - | - | 903 |
Intersegment other revenues | (22) | - | 22 | - |
------ | ------ | ------ | ------ | |
Total other revenues | 10.332 | 2.488 | (1.915) | 10.905 |
------ | ------ | ------ | ------ | |
Total revenues | ||||
Cost of materials and accessories used | (3.634) | (1.298) | - | (4.932) |
Cost of intersegment use of materials |
Year 201 2 | ||||
Greece | Italy | Elimination of intersegment transactions | Group | |
€'000 | €'000 | €'000 | €'000 | |
Third-party sales | 25.166 | 3.269 | - | 28.795 |
Intersegment sales | 2.289 | 1.252 | (3.541) | - |
------ | ------ | ------ | ------ | |
Total sales | 27.455 | 4.881 | (3.541) | 28.795 |
Other third-party revenues | 1.127 | 27 | - | 1.154 |
Intersegment other sales | - | 2.500 | (2.500) | - |
------ | ------ | ------ | ------ | |
Total revenues | 28.582 | 7.408 | (6.041) | 29.949 |
Cost of materials and accessories used | (10.544) | (3.553) | - | (14.097) |
Cost of intersegment use of materials | (651) | (22) | 673 | - |
Personnel-related costs | (5.500) | (1.050) | - | (6.550) |
Directors' fees | (73) | - | - | (73) |
Depreciation and amortisation expense | (4.363) | (611) | - | (4.974) |
Other operating expenses | (9.632) | (1.823) | - | (11.455) |
------ | ------ | ------ | ------ | |
(2.181) | 349 | (5.368) | (7.200) | |
Elimination of intercompany receivables/liabilities | (2.500) | - | 2.500 | - |
Segmental profit / (loss) before finance charges | (4.681) | 349 | (2.868) | (7.200) |
Cost of financing | (5.037) | (168) | - | (5.205) |
------ | ------ | ------ | ------ | |
Segmental profit (loss), before taxes | (9.718) | 181 | (2.868) | (12.405) |
------ | ------ | ------ | ------ | |
Income tax | (1.885) | - | - | (1.885) |
------ | ------ | ------ | ------ | |
Net profit /(loss), after tax | (11.603) | 181 | (2.868) | (14.290) |
------ | ------ | ------ | ------ |
30 June 201 3 | |||||
Greece | ΙΤ | Elimination of intersegment balances | Group | ||
€'000 | €'000 | €'000 | €'000 | ||
Intersegment investments | |||||
Intersegment receivables/payables | 3.822 | (3.822) | - | - | |
Total other assets | 95.261 | 13.954 | - | 109.215 | |
Total liabilities to third parties | (95.072) | (5.024) | (100.096) | ||
------ | ------ | ------ | ------ | ||
Net assets | 4.011 | 5.108 | - | 9.119 | |
------ | ------ | ------ | ------ | ||
30 June 20 12 | ||||
Greece | IT | Elimination of intersegment balances | Group | |
€'000 | €'000 | €'000 | €'000 | |
Intersegment investments | 7.446 | - | (7.446) | - |
Intersegment receivables/payables | 5.577 | (5.577) | - | - |
Total other assets | 103.859 | 16.372 | - | 120.231 |
Total liabilities to third parties | (92.127) | (6.038) | - | (98.165) |
------ | ------ | ------ | ------ | |
Net assets | 24.755 | 4.757 | (7.446) | 22.066 |
------ | ------ | ------ | ------ |
31 December 20 12 | |||||
Greece | Italy | Elimination of intersegment balances | Group | ||
€'000 | €'000 | €'000 | €'000 | ||
Intersegment investments | |||||
Intersegment receivables/payables | 2.992 | (2.992) | - | - | |
Total other assets | 94.880 | 16.770 | - | 111.650 | |
Total liabilities to third parties | (88.019) | (7.994) | - | (96.013) | |
------ | ------ | ------ | ------ | ||
Net assets | 9.853 | 5.784 | - | 15.637 | |
------ | ------ | ------ | ------ | ||
The third-party sales and the value of the related trade receivables outstanding at period-end, on the basis of the location at which the customers operate (inclusive of the balances that are doubtful of collection and have been provided for), are analysed as follows:
Greece | Italy | Other European Union states | Other (non-EU) states | Group | |
€'000 | €'000 | €'000 | €'000 | €'000 | |
First half of 201 3 | |||||
Value of sales | 6.470 | 515 | 2.400 | 600 | 9.985 |
Trade receivables, at period end | 10.898 | 1.235 | 1.410 | 146 | 13.689 |
------ | ------ | ------ | ------ | ------ | |
First half of 20 12 | |||||
Value of sales | 4.624 | 1.826 | 2.173 | 1.379 | 10.002 |
------ | ------ | ------ | ------ | ------ | |
Trade receivables, at period end | 23.518 | 5.541 | 1.565 | 222 | 30.846 |
------ | ------ | ------ | ------ | ------ | |
Year 20 12 | |||||
Value of sales | 17.093 | 3.654 | 4.467 | 3.581 | 28.795 |
------ | ------ | ------ | ------ | ------ | |
Trade receivables, at year end | 11.758 | 1.027 | 980 | 155 | 13.920 |
------ | ------ | ------ | ------ | ------ |
7. Persons Employed and Related Costs
The Group | The Company | |||||
30 June 201 3 | 30 June 20 12 | 31 December 20 12 | 30 June 201 3 | 30 June 2 012 | 31 December 20 12 | |
Number | Number | Number | Number | Number | Number | |
Number of persons employed (at period end) | 206 | 274 | 277 | - | 2 | 3 |
------ | ------ | ------ | ------ | ------ | ------ | |
First half of 201 3 | First half of 201 2 | Year 20 12 | First half of 201 3 | First half of 201 2 | Year 20 12 | |
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |
Salaries and wages | (1.858) | (2.362) |
8. Income Taxes
The Group | The Company | |||||
First half of 201 3 | First half of 20 12 | Year 20 12 | First half of 201 3 | First half of 20 12 | Year 20 12 | |
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |
Profit, before taxes, per the statement of earnings | (4.398) | (6.296) | (12.405) | - | 150 | 208 |
------ | ------ | ------ | ------ | ------ | ------ | |
Income taxes, at the nominal tax rate | (552) | (796) | (4.081) | - | 15 | 21 |
Taxes on permanent differences between accounting and taxable profits | 1.287 | 95 | 1.813 | - | - | - |
Effect of tax losses carried forward | (224) | (14) | - | |||
Income not subjected to taxation | 9 | (165) | 22 | - | (15) | - |
Income non taxable | - | - | - | - | 2 | |
Tax relief due to reduction of the tax rate | - | - | - | - | - | |
Tax losses previous years for which income tax assets was recognized | 1.352 | 2.980 | 4.145 | - | - | - |
------ | ------ | ------ - | ------ | ------ | ------ | |
Total tax charge | 2.096 | 1.890 | 1.885 | - | - | 23 |
------ | ------ | ------ | ------ | ------ | ------ | |
Current tax charge | 52 | 251 | 125 | - | - | 23 |
Deferred tax charge | 2.044 | 1.639 | 1.760 | - | - | - |
------ | ------ | ------ | ------ | ------ | ------ | |
Total tax charge | 2.096 | 1.890 | 1.885 | - | - | 23 |
9. Property, plant and equipment
The Group
Land | Buildings and building installations | Plant and machinery | Vehicles | Furniture and other equipment | Assets under constr. or installation | Total | |
€'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | |
At cost or valuation | |||||||
As at 31 December 201 1 | 2.609 | 25.093 | 59.211 | 4.689 | 1.698 | 2.708 | 96.008 |
Additions | - | 412 | 474 | 90 | 34 | 320 | 1.330 |
Disposals | - | (31) | (314) | (321) | (19) | - | (685) |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 3 0 June 201 2 | 2.609 | 25.474 | 59.371 | 4.458 | 1.713 | 3.029 | 96.653 |
Additions | - | - | 275 | 36 | 18 | 591 | 920 |
Disposals | - | - | (51) | (20) | - | - | (71) |
Transfers | - | - | (14) | - | - | - | (14) |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 31 December 20 12 | 2.609 | 25.474 | 59.581 | 4.474 | 1.731 | 3.620 | 97.489 |
Additions | - | - | - | - | 91 | - | 91 |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 30 June 201 3 | 2.609 | 25.474 | 59.581 | 4.474 | 1.731 | 3.620 | 97.489 |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
Accumulated depreciation | |||||||
As at 31 December 20 11 | - | (2.784) | (11.859) | (3.372) | (924) | - | (18.939) |
Effect of currency translation | - | - | - | - | (3) | - | (3) |
Depreciation charge | - | (359) | (1.600) | (224) | (161) | - | (2.344) |
Disposals | - | - | 68 | 143 | 6 | 217 | |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 3 0June 20 12 | - | (3.143) | (13.393 | (3.455) | (1.079) | - | (21.069) |
Effect of currency translation | - | - | - | - | 3 | - | 3 |
Depreciation charge | - | (370) | (1.589) | (219) | (108) | - | (2.306) |
Disposals | - | - | 41 | 21 | - | - | 61 |
Transfers | - | - | (27) | - | - | - | (27) |
------ | ------ | ----- | ------ | ------ | ------ | ------ | |
As at 31 December 20 12 | - | (3.513) | (14.967) | (3.653) | (1.204) | - | (23.337) |
Depreciation charge s | - | (364) | (1.578) | (191) | (121) | - | (2.254) |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 30 June 201 3 | (3.877) | (16.545) | (3.844) | (1.325) | - | (25.591) | |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
Net book values | |||||||
As at 30 June 201 3 | 2.609 | 21.597 | 43.036 | 630 | 494 | 3.620 | 71.986 |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 30 June 20 12 | 2.609 | 22.331 | 45.978 | 1.003 | 634 | 3.029 | 75.584 |
------ | ------ | ------ | ------ | ------ | ------ | ------ | |
As at 31 December 20 12 | 2.609 | 21.961 | 44.614 | 821 | 527 | 3.620 | 74.152 |
------ | ------ | ------ | ------ | ------ | ------ | ------ |
The Fixed Assets are insured for €32 million.
10. Interest-bearing loans and borrowings
The bank loans and other bank financing facilities (including the debenture loan) contracted by the Helesi PLC Groupare analysed as follows:
30 June 201 3 | Short-term liabilities | Long-term liabilities |
€'000 | €'000 | |
Debenture loan | 1.149 | 38.212 |
Short term bank loans | 28.550 | - |
------ | ------ | |
29.699 | 38.212 | |
------ | ------ |
30 June 20 12 | Short-term liabilities | Long-term liabilities |
€'000 | €'000 | |
Debenture loan | 5.200 | 32.915 |
Short term bank loans | 26.483 | 361 |
------ | ------ | |
31.683 | 33.276 | |
------ | ------ |
31 December 20 12 | Short-term liabilities | Long-term liabilities |
The interest charges generated in relation to the above loans, in the six month period ended 30 June 2013, amounted to €2.447 thousand (H1 2012 : €2.610 thousand). On 30 June 2013, bank borrowings are secured by fixed charges over the Group's property plant and equipment for amount of € 63.8 million (H1 2012 : €61 million).
Banks continued to pass on to Helesi their increased cost of borrowing. However, the weighted average cost of borrowing for H1 2013 slightly decreased to 7.2% (H1 2012:7.4%).
There are ongoing negotiations with all creditor banks, in order to restructure Helesi Group debt and to reduce financial costs.
11. Earnings per share and proposed dividends
Earnings per share are calculated by dividing the profit attributable to the shareholders of Helesi PLC by the weighted average number of issued and outstanding shares in the accounting period covered by the financial statements.
Basic EPS | Diluted EPS | |||||
The Group | 30 June 2013 | 30 June 2012 | 30 June 2013 | 30 June 2012 | ||
€000 | €000 | €000 | €000 | |||
Net profit attributable to the shareholders (in Euro thousand) | (6.495) | (8.186) | (6.495) | (8.186) | ||
Weighted average number of issued shares (in thousand pieces) | 39.806 | 39.806 | 39.806 | 39.806 | ||
------ | ------ | ------ | ------ | |||
Earnings/( loss) per share (in €) | (0,17) | (0,21) | (0,17) | (0,21) | ||
------ | ------ | ------ | ------ | |||
12. Related party transactions and balances
The transactions of the Helesi PLC Group, in the period 30 June 2013 and the year 2012, with and receivables from and payables to related parties, as on 30 June 2013 and 31 December 2012, are analysed as follows:
The Group | Sales to | Purchases from | Receivable from | Payable To | ||||||
€000 | €000 | €000 | €000 | |||||||
TECMEC S.A | ||||||||||
30 June 2013 | 12 | 94 | 3.192 | - | ||||||
30 June 2012 | 49 | 825 | 3.286 | - | ||||||
31 December 2012 | 115 | 1.326 | 3.056 | - | ||||||
The compensation of the members of the Board of Directors and certain other key management personnel executives for the group for the first half 2013 and 2012 was as follows:
The Group | The Company | ||||
First half of 2013 | First half of 2012 | First half of 2013 | First half of 2012 | ||
€000 | €000 | €000 | €000 | ||
Athanassios Andrianopoulos | (9) | (18) | (9) | (9) | |
Christina Thanassoulia | (9) | (18) | (9) | (9) | |
Dimitrios Kainaros | (6) | (12) | (6) | (7) | |
Elena Paraskeva | (7) | (13) | (7) | (7) | |
George Papagelis | - | (12) | - | (6) | |
(31) | (37) | ((31) | (37) | ||
13. Contingencies
The construction of one of the two waste transfer stations in Cyprus has not proceeded according to the contract with the Cyprus government as the local community of the original site strongly opposes its construction. In addition during the year, the government terminated the waste management project contracted with Helesi. In accordance with the contract, the Group is entitled to significant compensation for delays, non-performance and/or termination based upon a number of criteria. The Group is presently negotiating the level of compensation that will be finally paid with the appropriate authorities, but no provision has been made in these financial statements as the final figure cannot be determined with any degree of accuracy at the present time.
14. Post Balance Sheet Events
Helesi Italia ceased production operations in 2013. The Group's management is in negotiations to divest its investment in Helesi Italia either by disposing part of its operating unit or to dispose the assets of this subsidiary.
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