Aqua Sol: Six-month results 2002
29/8/2002 10:45
The Board of Directors has convened and approved the interim financial statements of the Group for the six-month period ending 30 June 2002.
The Board of Directors wishes to make the following comments regarding the interim financial statements:
FINANCIAL REVIEW
The Turnover has increased form £10,610,977 to £12,309,077 recording an increase of 16%. The increase for the period resulted from the commencement of operation of the new tourist village “ELENI” in Paphos and the fact that a number of hotels were not operational during the first half of 2001.
The increase would have been higher if the occupancy rates and the selling prices were not negatively affected by the drop of the tourist arrivals in Cyprus.
Even though turnover have increased by 16% the increase in general and administrative expenses was restricted to only 13.2%. This is due to the successful effort of the company in restricting the operating costs in anticipation of a difficult year.
The gross operating profit has increased from £4,263,356 or 40.1% of the turnover in 2001 to £5,122,974 or 41.6% of the turnover in 2002.
The rental expenses have increased by £629.461 or 59%. The increase is attributed to the rental of five new hotels in the second half of the 2001, which were not included in the first half of the 2001.
The depreciation charged for the period has increased by £268,275 or 55% and is due to the depreciation charged on the new tourist village in Paphos “ELENI” which commenced its operations in April as well as the depreciation charged for the two tourist villages in Ayia Napa, “PANAS” and “ELECTRA” which were bought in the second half of 2001.
The financing expenses have increased by £827,939 because of the withdrawal of new loans to finance the expansion program of the group in the second half of 2001 and the first half of 2002.
PROSPECTS FOR 2002
The current year has been a difficult year, because of the reduced tourist arrivals and reduced selling prices of available rooms.
Even though we believe that the results of the first six months are satisfactory when taking into account the negative trading conditions, it is prudent to inform our shareholders that the company’s total profitability for 2002 is expected to be less than that of 2001.
OTHER INFORMATION
The interim financial statements of the company will not be posted to the shareholders. Parts of these statements accompanied with the explanatory statement, will be published in all daily newspapers on Friday 30 August 2002.
The Board of Directors wishes to make the following comments regarding the interim financial statements:
FINANCIAL REVIEW
The Turnover has increased form £10,610,977 to £12,309,077 recording an increase of 16%. The increase for the period resulted from the commencement of operation of the new tourist village “ELENI” in Paphos and the fact that a number of hotels were not operational during the first half of 2001.
The increase would have been higher if the occupancy rates and the selling prices were not negatively affected by the drop of the tourist arrivals in Cyprus.
Even though turnover have increased by 16% the increase in general and administrative expenses was restricted to only 13.2%. This is due to the successful effort of the company in restricting the operating costs in anticipation of a difficult year.
The gross operating profit has increased from £4,263,356 or 40.1% of the turnover in 2001 to £5,122,974 or 41.6% of the turnover in 2002.
The rental expenses have increased by £629.461 or 59%. The increase is attributed to the rental of five new hotels in the second half of the 2001, which were not included in the first half of the 2001.
The depreciation charged for the period has increased by £268,275 or 55% and is due to the depreciation charged on the new tourist village in Paphos “ELENI” which commenced its operations in April as well as the depreciation charged for the two tourist villages in Ayia Napa, “PANAS” and “ELECTRA” which were bought in the second half of 2001.
The financing expenses have increased by £827,939 because of the withdrawal of new loans to finance the expansion program of the group in the second half of 2001 and the first half of 2002.
PROSPECTS FOR 2002
The current year has been a difficult year, because of the reduced tourist arrivals and reduced selling prices of available rooms.
Even though we believe that the results of the first six months are satisfactory when taking into account the negative trading conditions, it is prudent to inform our shareholders that the company’s total profitability for 2002 is expected to be less than that of 2001.
OTHER INFORMATION
The interim financial statements of the company will not be posted to the shareholders. Parts of these statements accompanied with the explanatory statement, will be published in all daily newspapers on Friday 30 August 2002.
