The seasonality in its activities forced Louis Group to accumulate losses in the first quarter of the year, since most ships and hotels are closed during winter.
Specifically, Louis Group accumulated losses of £10.1 million against £5.2 million in the corresponding period of 2005. The extended losses in the first quarter of the year are linked to:
- The adjustment in the provision for deferred taxation (drop in the tax ratios in the hotels in Greece), which had affected positively the results in 2005, does not exist.
- The increase in the number of cruise ships and the operation of a ship instead of two in 2005. According to the Group, all other ships were under maintenance and the company had expenses (salaries, administrative expenses, depreciations etc) but no revenues.
The income from operations recorded a drop of 21.9% to £12 million against £15.4 million in the first quarter of 2005, while the operating expenses and the finance cost showed an increase of 6% and 26.8% respectively.
The staff cost recorded a significant drop to £6.1 million against £6.7 million in the corresponding period of 2005.
Positive impact
The strengthening of the Cyprus pound against the dollar and the subsequent exchange profits of £0.4 million (compared to the unrealized losses of £2 million in the first quarter of 2005) affected positively the three-month results.
Oil forestalling
Louis Group announced that via oil forestalling contracts it has secured certain quantities of oil, able to cover 1/3 of the needs of 2006 for the cruise ships that are not yet chartered. The group has also imposed a surcharge in the case of oil forestalling.
Optimism for 2006
The Group anticipates that the results for the full year will be positive, since it expects an improvement in the operating profits and the profit before taxation.
As for the net profits attributable to shareholders, Louis expects that they will show an increase, although there will be no positive impact from the deferred taxation.
“The first quarter results are traditionally lower, since the Company is active in summer mostly. With the expansion of our activities and the increase in the number of cruise ships, we expect that the results for 2006 will be better”, a representative told StockWatch.
It is noted that the Group has 27 hotels and 4 cruise ships in Cyprus and Greece.
CGC Restructuring
The three-month results were approved by the Board of Directors, which proceeded to the restructuring of the Corporate Governance Code Committees.
Specifically, Louis Group accumulated losses of £10.1 million against £5.2 million in the corresponding period of 2005. The extended losses in the first quarter of the year are linked to:
- The adjustment in the provision for deferred taxation (drop in the tax ratios in the hotels in Greece), which had affected positively the results in 2005, does not exist.
- The increase in the number of cruise ships and the operation of a ship instead of two in 2005. According to the Group, all other ships were under maintenance and the company had expenses (salaries, administrative expenses, depreciations etc) but no revenues.
The income from operations recorded a drop of 21.9% to £12 million against £15.4 million in the first quarter of 2005, while the operating expenses and the finance cost showed an increase of 6% and 26.8% respectively.
The staff cost recorded a significant drop to £6.1 million against £6.7 million in the corresponding period of 2005.
Positive impact
The strengthening of the Cyprus pound against the dollar and the subsequent exchange profits of £0.4 million (compared to the unrealized losses of £2 million in the first quarter of 2005) affected positively the three-month results.
Oil forestalling
Louis Group announced that via oil forestalling contracts it has secured certain quantities of oil, able to cover 1/3 of the needs of 2006 for the cruise ships that are not yet chartered. The group has also imposed a surcharge in the case of oil forestalling.
Optimism for 2006
The Group anticipates that the results for the full year will be positive, since it expects an improvement in the operating profits and the profit before taxation.
As for the net profits attributable to shareholders, Louis expects that they will show an increase, although there will be no positive impact from the deferred taxation.
“The first quarter results are traditionally lower, since the Company is active in summer mostly. With the expansion of our activities and the increase in the number of cruise ships, we expect that the results for 2006 will be better”, a representative told StockWatch.
It is noted that the Group has 27 hotels and 4 cruise ships in Cyprus and Greece.
CGC Restructuring
The three-month results were approved by the Board of Directors, which proceeded to the restructuring of the Corporate Governance Code Committees.
3287.99
1275.09
