The Cyprus Stock Exchange announced that the titles of Global Consolidator Pcl (GLC) will continue trading in the Special Trading Category due to the uncertainty for its viability, as announced in the auditors report for the results of the year ended December 31, 2005 submitted to the CSE on June 8, 2006.
At the meeting held on June 6, 2006, the Board of Directors of Global Consolidator approved the final results for the year ended December 31, 2005 and also decided to make redundant all staff, including senior managers as well as sell and disband operations.
Turnover for 2005 stood at CYP 4,652,627 against CYP 9,630,575 in the corresponding period of 2004. The drop is attributable to the sale of Global IT (Cyprus) Ltd department on October 1, 2005 and the reduced turnover in the sector of collective betting due to the imposition of tax on April 10, 2005. Formerly, the tax burdened the Company.
The loss for the year after taxation and the write off of goodwill of CYP 753,306 stood at CYP 3,516,517 against CYP 5,239,672 in 2004. This drop is attributable to the dramatic decline in the Company’s expenses due to the reduced turnover.
The final results include CYP 677,613 in the write off of deferred taxation, since the company does not expect profits in the near future taking into account the latest developments. The sum of CYP 125,000 concerns the provision for the lawyers expenses due to the legal cases and the amount of CYP 114,693 concerns other provisions.
Disband
The Board of Directors also decided to liquidate its assets. The proceeds after the settlement of its obligations would be invested in the sector of property development (more than 75%).
On October 11 and 12, 2005, the Company reached an agreement for the sale of two plots to A. Panayides Contracting Public Ltd and Pharmakas Quarries Ltd against the sum of CYP 2,800,000. Unfortunately due to a misinterpretation of the Nicosia District Court decree dated July 21, 2005, the land registry did not allow the transfer and the Company has not received a large part of the sale price yet.
This delay for a period of more than 6 months has affected the company, which is unable to settle its obligations and has been burdened by an additional cost due to the additional interests, the imposition of fines and other expenses.
The company’s appeal with the Supreme Court was also turned down.
This delay led the company to a deadlock, due to its inability to settle its obligations and proceeded to the sale of its subsidiary Global Leisure Entertainment Ltd., Global Betting Ltd and other companies of the sector of collective betting. The agreement was completed on 31/5/2006. The sector was sold to KORONA BOOKMAKERS LTD against the sum of CYP 225,000. A large part of the sum was used for the payment of the Company’s obligations.
The Board also decided to proceed with the redundancy of almost all staff members, as well as the managerial staff including Lycourgos Kyprianou, Pavlos Meletiou and Yiannis Panayiotou. Their employment will be terminated on July 31, 2006.
The operations of Global Security Systems will also be suspended and all staff made redundant. The Board also decided to sell the sector of clubs and reaction centers.
