K + G Complex Public Company Limited
INTERIM MANAGEMENT REPORT
For the six months ended 30 June 2008
The Board of Directors, at a meeting held on 7 August 2008, considered and approved the unaudited
interim, condensed consolidated financial statements of K + G Complex Public Company Ltd for the six
months period ended 30 June 2008.
The consolidated results include the results of its subsidiary company Galatex Tourist Enterprises Ltd as
well as the share of profits of its associated company The Cyprus Cement Public Company Ltd.
The unaudited interim condensed consolidated financial statements, which are expressed in Euro, have
been prepared in accordance with IAS34 ‘Abridged Interim Financial Statements’ and comply with the
provisions of the Cyprus Stock Exchange Law and Regulations in relation to the announcement of interim
financial results.
The same accounting principles and bases of computation were applied in compiling the interim results for
the first six months period of 2008 as those applied for the preparation of the annual financial statements for
the year ended 31 December 2007. The results for the first six months period of 2008 have not been
audited by the external auditors of the Group.
The interim condensed financial statements must be read in conjunction with the annual financial
statements for the year ended 31 December 2007.
Principal activities of the Group
The principal activities of the Group, which are unchanged from last year, are the construction of residential
units and the development and sale of land located in the Amathus area of Limassol, the sale of shops at
Galatex Beach Centre in the tourist area of Yermasogia in Limassol and the holding of investments.
Review of the financial position of the Group
The net profit of the Group for the six months period ended 30 June 2008 are €2.438.412 compared to
€294.966 for the same period of 2007. This increase is mainly due to the share of profits of the Company’s
associated company The Cyprus Cement Public Company Ltd.
The total assets of the Group at the end of the six month period amounted to €92.303.304 (31.12.2007
€90.061.422) of which €67.262.970 (31.12.2007 €64.903.507) represent investments in associated
companies and stocks at cost €11.508.971 (31.12.2007 €11.405.888).
Risks and uncertainties
The Group’s activities are subject to various risks and uncertainties. The most significant of which are credit
risk, liquidity risk and market risk that arises from adverse movements in exchange rates, interest rates as
well as operational risks.
The operations are affected by a number of factors including but not limited to:
•
•
International and national economic and geopolitical conditions
The growth of the construction and real estate sectors
The Group monitors and manages these risks through various mechanisms.
Extracts of the results of the first six months of 2008 will be published in the newspaper ‘Phileleftheros’ on
11 August 2008.
Copies of the Group’s unaudited condensed consolidated financial statements for the period ended 30 June
2008 are available, free of charge, at the company’s registered office, 197 Makarios III Avenue, 3030
Limassol, tel: 25891000.
K + G Complex Public Company Limited
Condensed interim consolidated income statement
for the six months ended 30 June 2008
Gain on financial assets at fair value through profit or loss
Other income
Selling and marketing costs
Administrative expenses
Other operating expenses
Operating profit
Finance costs
Share of profit of associates
Profit before tax
Tax
Profit for the period
Earnings per share (cents per share)
30 June
2008
€
As restated
30 June
2007
€
215.555
155.162
(15.766)
(226.788)
________
128.163
(730.973)
3.051.115
_________
2.448.305
(9.893)
_________
2.438.412
=========
2,44
========
1.017.544
53.870
(10.038)
(241.770)
(415.190)
_________
404.416
(113.776)
96
_________
290.736
4.230
_________
294.966
=========
0,29
=========
K + G Complex Public Company Limited
Condensed interim consolidated balance sheet
as at 30 June 2008
30 June
2008
€
As restated
31 December
2007
€
40.332
67.262.970
4.870
__________
67.308.172
__________
400
64.903.507
4.870
__________
64.908.777
__________
11.508.971
2.774.110
4.976.739
88.737
5.646.575
__________
24.995.132
__________
92.303.304
==========
11.405.888
2.969.416
4.761.184
103.750
5.912.407
__________
25.152.645
__________
90.061.422
==========
17.000.000
86.014
1.757.006
68.219
155.788
(691.652)
45.763.529
__________
64.138.904
__________
17.086.014
1.757.006
68.219
3.432.746
40.048.159
__________
62.392.144
__________
26.798.752
58.323
__________
26.857.075
__________
26.957.193
58.323
__________
27.015.516
__________
512.530
582.847
794.795
__________
1.307.325
__________
28.164.400
__________
92.303.304
==========
19
70.896
__________
653.762
__________
27.669.278
__________
90.061.422
==========
Assets
Non-current assets
Property, plant and equipment
Investment in associates
Non-current receivables
Current assets
Inventories
Trade and other receivables
Financial assets at fair value through profit or loss
Current tax assets
Cash and cash equivalents
Total assets
Equity and liabilities
Capital and reserves
Share capital
Difference from the conversion of the share capital into Euro
Share premium
Reserve arising on share option scheme
Fair value reserve
Reserve arising on the adoption of the equity method
Retained earnings
Non-current liabilities
Borrowings
Deferred tax liabilities
Current liabilities
Trade and other payables
Special defence contribution payable to the
Company’s shareholders
Borrowings
Total liabilities
Total equity and liabilities