CYPRUS: Shacolas Group announces lower earnings in 1H

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The four main publicly-traded companies comprising the Shacolas Group reported reduced earnings in the first half of 2015, “due to low purchasing power of the consumers caused by the prolonged unemployment and the reduced household income,” that have impacted the retail operations, including its share in airports management.


The Group’s flagship company, Cyprus Trading Corp Plc (CTC), with retail consumer and property subsidiaries, suffered the most, as turnover dropped 5% from €142.54 mln in the first half of 2014 to €135.42 mln this year.
Gross profit and other income dropped nearly 8% from €38.96 mln to €35.89 mln. Profit from discontinued operations was drastically reduced from €45.1 mln to €5.1 mln in the first half, pushing into the red with a loss of €2.13 mln, compared to a profit of €39.96 mln last year. This resulted in a loss per share of -1.82c, compared to earnings per share of 39.15c in January-June 2014.
Post-results, the subsidiary companies Woolworth (Cyprus) Properties Plc and Ermes Department Stores Plc disposed of their shares held in ITTL Trade Tourist and Leisure Park Plc and Woolworth Commercial Centre Plc, owners of the Shacolas Emporium Park and of The Mall of Engomi, to the South African-owned Atterbury Cyprus Ltd.
Looking ahead, Uber (young fashion) and Next Kids and a cafeteria have commenced their operations at the Mall of Engomi and has enriched its product range within the fast moving consumer goods operations, which “by the end of the year is expected to be significantly increased.”
Finally, the construction of a new 4,000 sq.m. Super Home DIY Store in Spyros Kyprianou Avenue in Larnaca, opposite Debenhams Zenon, “is well under way and is expected to commence its operation before the end of 2015.”
Ermes Department Stores Plc, the holding company for Superhome Center (DIY) Ltd, C.W. Artopolis Ltd, Fashionlink S.A. and motor distributor Scandia Company Ltd. saw turnover drop 3% to €68.4 mln from €70.7 mln in the first half of 2014. Gross profit and other income dropped 7% to €24.4 from €26.4 mln, with the net loss for the period amounted to €2.79 mln compared to a profit of €7.79 mln in the same period in 2014.
Loss per share dropped to 1.71c from a EPS of 4.32c in the first half of 2014.
Profit from discontinued operations for the first six months of 2015 represents the share of profit from ITTL, while the profit shown for the same period of 2014 relates to the disposal of the investment of the Group in CTC-ARI Airports Ltd and in Cyprus Airports (F&B) Ltd.
Woolworth (Cyprus) Properties Plc reported a net profit of €3.2 mln, compared to €2.2 mln in the first half of 2014, or an EPS of 1.3c compared to 1.9c last year. The company’s investments include ITTL Trade Tourist and Leisure Park Plc, owner of the Shacolas Emporium Park that includes “The Mall of Cyprus” and IKEA, and Woolworth Commercial Centre Ltd, owner of land in Engomi housing the “The Mall of Engomi”.
Other investments include a 47% stake through associated companies in Cyprus Limni Resorts & Golf Courses Plc.
The last company, Cyprus Limni Resorts and Golf Courses Plc, owner and developer of the Group’s ambitious Limni Bay coastal leisure and golf resort at Polis Chrysochous, has had launch delays due to red tape and an inter-governmental conflict over environmental permits.
“The company currently proceeds with the completion of the detailed design work on the master plan and the various elements of the resort including infrastructure, golf courses and buildings and has submitted the necessary applications for building permits and submission in order to be able to progress with construction works as soon as possible. It has also applied for planning permits based on the new incentives for golf courses,” the company announcement said.
Limni has obtained written approvals by the Ministerial Council, through which it was encouraged to proceed with the development.
The loss attributable to shareholders for the first six months of 2015, reached €494,250 from €485,619 in the same period last year. The company has minor revenues from agricultural activities, while operational expenses relate to the maintenance of the immovable property.