Aqua Sol: Six-month results 2006
11/8/2006 10:49
Ιt is hereby announced that during the meeting of the Board of Directors of the company AQUA SOL HOTELS LTD which took place on Thursday 10/8/2006 at 16:00 p.m. at SUN HALL HOTEL Larnaca, the un-audited financial statements of the company for the first six months of 2006 ending on 30/6/06 were examined and approved. Copy of the said statements is attached both in Greek and English.
The above mentioned statements are available to the public, at the office of the company, Nissi 26 Ayia Napa.
Finally it is hereby announced that the above mentioned results of the company shall be published in daily newspapers as it is provided in the Law and the Regulations.
Explanatory Statement on the Results of
AQUA SOL HOTELS PUBLIC COMPANY LTD (ex AQUA SOL HOTELS LTD)
for the six month period ended 30 June 2006
The Board of Directors has convened on 10 August 2006 and approved the interim condensed consolidated financial statements of the Group for the six-month period ended at 30 June 2006.
The Board of Directors wishes to make the following comments regarding the interim condensed consolidated financial statements:
FINANCIAL REVIEW
The interim condensed consolidated financial statements are presented in Cyprus Pounds and have been prepared according to the International Accounting Standard 34 “Interim Financial Reporting” and are in accordance with the Cyprus Stock Exchange Laws and Regulations.
The interim condensed consolidated income statement presents a net loss for the first half of 2006 amounting to C£2.515.421 as compared to a net loss of C£1.443.102 during the corresponding period of 2005, indicating a negative fluctuation of C£1.072.319. The major reasons for this deviation were the reduction of the Group’s turnover due to the negative conditions which continue to affect the hotel industry during the first six months period of 2006.
The Group’s turnover for first half of 2006 has decreased by £1.717.408 or 15.4% compared to the corresponding period of 2005 (2006: £9.421.371 – 2005: £11.138.779). The decrease was mainly due to the diminished demand for commitment contracts, most of them, have been replaced by allotment contracts, as a result of the negative conditions affecting the hotel industry.
Operating loss for the first half of 2006 increased to C£1.337.189 as compared to C£652.015 during the corresponding period of 2005, or by C£685.174 and 105,1% as a percentage. This reduction was mainly caused by the decrease in Group’s turnover and to the fluctuation of operating expenses and other income as explained below.
The major fluctuations in operating expenses were as follows:
• Rent expense for first half of 2006 increased to C£2.359.967 as compared to C£2.234.287 during the corresponding period of 2005 or recording an increase of 5,6%, mainly due to increases in the lease agreements.
• Depreciation for the first half of 2006 increased to C£1.188.556 as compared to C£878.542 during the corresponding period of 2005, or recording an increase of 35,3%. This increase is mainly due to the change in allocation of the depreciation charge as compared to the corresponding period on 2005. Particularly, the depreciation charge included in the Income Statement for the first half of 2005 represents the 40% of total annual charge for the year 2005 (the remaining 60% allocated in the second half which is the main period for the company’s operations) whilst the charge for 2006 was equally allocated between the 2 six-month periods. Other reasons for the increase in depreciation charge were the amortisation of intangible asset as well as the change in the accounting treatment of the expenditure for linen, cutlery and crockery in order to comply with the provisions of the International Accounting Standard IAS16.
• The remaining operating expenses for the first half of 2006 have decreased to C£8.347.613 as compared to C£9.417.770 during the corresponding period of 2005 recording a decrease of 11,4%. This change is mainly the result of an increase in total payroll costs and cost of consumables as well as to the reduction in provision for bad debts.
The gain from disposal of property, plant and equipment of C£145.124 is a non-recurring amount.
Other gains for the first half of 2006 have increased to C£927.393 as compared to C£709.214 during the corresponding period of 2005, recording an increase of 30,8% mainly due to the increase in interest income.
Taxation for the first half of 2006 have increased to C£330.760 as compared to C£128.308 during the corresponding period of 2005, recording an increase on 157,8%. The main reasons for this increase were the capital gains taxes arisen from the disposal of property and prior years’ taxation adjustments.
PROSPECTS
The profitability of the Group for 2006 is expected to be lower than the previous year due to the continuing difficulties in the market conditions of the tourist industry. The Board of Directors will continue to take measures in order to maximise the shareholders’ long-term return.
OTHER INFORMATION
The interim condensed financial statements of the Group for the six-month period ended 30 June 2006 have not been audited by the external auditors of the company.
The interim condensed financial statements of the Group will not be mailed to the shareholders. Extracts of these financial statements accompanied with the explanatory statement, will be published in all daily newspapers on Monday 14 August 2006.
Copies of the interim financial statements can be obtained from the Company’s office at 26 Nissi Avenue, 5343 Ayia Napa, Tel: 23722964, and they will be available to the public for 5 years after the date of their publication.
The above mentioned statements are available to the public, at the office of the company, Nissi 26 Ayia Napa.
Finally it is hereby announced that the above mentioned results of the company shall be published in daily newspapers as it is provided in the Law and the Regulations.
Explanatory Statement on the Results of
AQUA SOL HOTELS PUBLIC COMPANY LTD (ex AQUA SOL HOTELS LTD)
for the six month period ended 30 June 2006
The Board of Directors has convened on 10 August 2006 and approved the interim condensed consolidated financial statements of the Group for the six-month period ended at 30 June 2006.
The Board of Directors wishes to make the following comments regarding the interim condensed consolidated financial statements:
FINANCIAL REVIEW
The interim condensed consolidated financial statements are presented in Cyprus Pounds and have been prepared according to the International Accounting Standard 34 “Interim Financial Reporting” and are in accordance with the Cyprus Stock Exchange Laws and Regulations.
The interim condensed consolidated income statement presents a net loss for the first half of 2006 amounting to C£2.515.421 as compared to a net loss of C£1.443.102 during the corresponding period of 2005, indicating a negative fluctuation of C£1.072.319. The major reasons for this deviation were the reduction of the Group’s turnover due to the negative conditions which continue to affect the hotel industry during the first six months period of 2006.
The Group’s turnover for first half of 2006 has decreased by £1.717.408 or 15.4% compared to the corresponding period of 2005 (2006: £9.421.371 – 2005: £11.138.779). The decrease was mainly due to the diminished demand for commitment contracts, most of them, have been replaced by allotment contracts, as a result of the negative conditions affecting the hotel industry.
Operating loss for the first half of 2006 increased to C£1.337.189 as compared to C£652.015 during the corresponding period of 2005, or by C£685.174 and 105,1% as a percentage. This reduction was mainly caused by the decrease in Group’s turnover and to the fluctuation of operating expenses and other income as explained below.
The major fluctuations in operating expenses were as follows:
• Rent expense for first half of 2006 increased to C£2.359.967 as compared to C£2.234.287 during the corresponding period of 2005 or recording an increase of 5,6%, mainly due to increases in the lease agreements.
• Depreciation for the first half of 2006 increased to C£1.188.556 as compared to C£878.542 during the corresponding period of 2005, or recording an increase of 35,3%. This increase is mainly due to the change in allocation of the depreciation charge as compared to the corresponding period on 2005. Particularly, the depreciation charge included in the Income Statement for the first half of 2005 represents the 40% of total annual charge for the year 2005 (the remaining 60% allocated in the second half which is the main period for the company’s operations) whilst the charge for 2006 was equally allocated between the 2 six-month periods. Other reasons for the increase in depreciation charge were the amortisation of intangible asset as well as the change in the accounting treatment of the expenditure for linen, cutlery and crockery in order to comply with the provisions of the International Accounting Standard IAS16.
• The remaining operating expenses for the first half of 2006 have decreased to C£8.347.613 as compared to C£9.417.770 during the corresponding period of 2005 recording a decrease of 11,4%. This change is mainly the result of an increase in total payroll costs and cost of consumables as well as to the reduction in provision for bad debts.
The gain from disposal of property, plant and equipment of C£145.124 is a non-recurring amount.
Other gains for the first half of 2006 have increased to C£927.393 as compared to C£709.214 during the corresponding period of 2005, recording an increase of 30,8% mainly due to the increase in interest income.
Taxation for the first half of 2006 have increased to C£330.760 as compared to C£128.308 during the corresponding period of 2005, recording an increase on 157,8%. The main reasons for this increase were the capital gains taxes arisen from the disposal of property and prior years’ taxation adjustments.
PROSPECTS
The profitability of the Group for 2006 is expected to be lower than the previous year due to the continuing difficulties in the market conditions of the tourist industry. The Board of Directors will continue to take measures in order to maximise the shareholders’ long-term return.
OTHER INFORMATION
The interim condensed financial statements of the Group for the six-month period ended 30 June 2006 have not been audited by the external auditors of the company.
The interim condensed financial statements of the Group will not be mailed to the shareholders. Extracts of these financial statements accompanied with the explanatory statement, will be published in all daily newspapers on Monday 14 August 2006.
Copies of the interim financial statements can be obtained from the Company’s office at 26 Nissi Avenue, 5343 Ayia Napa, Tel: 23722964, and they will be available to the public for 5 years after the date of their publication.
