The Shacolas Group of companies, the island’s leading retail consortium, said that first-half profits at its five main subsidiaries totalled €53.3 mln, paying €32.7 mln in dividends so far this year and reducing its debt levels by nearly €95 mln.
A Group announcement added that significant gains of €175mln were also recorded from the disposal of matured investments, with most of that amount reinvested in ongoing projects, helped with liquidity and will allow for new investments.
The following Group company results were announced, with four out of five recording significant profits: Cyprus Limni Resorts and Golf Courses Plc, operator of a new resort near Polis, loss of €485,619; ITTL Trade Tourist and Leisure Park Plc, operator of shopping malls, net profit €3.8mln; Ermes Department Stores Plc, operator of Debenhams stores and other retail outlets, net profit €7.8 mln; Woolworth (Cyprus) Properties Plc, owner of commercial properties, net profit €2.21 mln; Cyprus Trading Corporation Plc, flagship commercial and holding company, net profit €40 mln.
The Shacolas Group announcement said that “despite the difficulties and the continuous economic crisis, the companies have achieved very satisfactory results and significant profits. In December 2013, eight months ago, CTC paid its shareholders dividend of €16,971,209 and Ermes €3,489,994. Further, in August 2014, Ermes paid additional dividend of €12.25 mln. The total dividend paid amounts to €32,711,203.”
The announcement added that amid all the talk about recovery of assets by the crisis-hit banks and the foreclosures on non-performing loans, Group companies “do not have any outstanding financial obligations and are in a position to comply with and cover fully their financial obligations with all parties they have transactions with, including the financial institutions with which they have loan facilities, like any other business operation. From the beginning of 2013, the Shacolas Group has reduced its loans by €94.6 mln.”
The Group said it has also disposed of certain mature investments, made in the past, raising €175 mln and realising substantial profits and that the reduction of financial obligations also lowers its finance cost which in turn increases profitability.
In 2013 and 2014, the Shacolas Group disposed of its 50% stake in MTN Cyprus, its shareholding in the food and beverage operations as well as retail stores at Larnaca and Paphos airports, and transferred its shareholding in the Shacolas Emporium Park to a sister company, in which Debenhams Retail Plc of the UK also has a stake.
The Group said it also continued its community service through its various funds and trusts, including the Nicos and Elpida Shacola Foundation’s donation of €9 mln for the building that will house the University of Cyprus Medical School, which will be named the “Nicos K. Shacolas Faculty of Medicine and Health Sciences”.
Other contributions include donations for scholarships, to local administration nad other charities, while since January 2013 it has supplied basic breakfast offers worth €1 mln a year to needy students in public elementary and high schools.
