* “It’s a matter of time for the economy to recover,” says chairman
Last year was a difficult period for the economy because of the ongoing crisis and 2013 will see an even tougher year for the Cyprus economy, but the Shacolas Group of companies reported profits having diversified into all sectors with a significant reduction of labour and operational costs.
Group chairman Nicos Shacolas delivered an optimistic speech at the Group AGMs held last week saying that, “We believe in our country. It’s just a matter of time before it can stand on its feet again.”
Shacolas told the shareholders’ meeting of Woolworth (Cyprus) Properties Plc, Ermes Department Stores Plc and Cyprus Trading Corporation Plc that foreign investors are still keen on Cyprus and that the President was on the right track with incentives and plans to boost development.
Group Chairman Shacolas made five simple suggestions to change existing laws which he said will help overcome obstacles and boost development: suspension of the provision that obliges profit-making companies to pay out a dividend within two years; privateers to be allowed to appeal to the Council of Ministers for a rejection from the Environmental Authority; in the case of relaxation rejection by the minister, to be able to appeal to the Council of Ministers; co-owners of a property not to be able to block the separation of the plot if 80% already agree; and, the tourist schedule to be extended for the whole year, to boost tourism in winter as well.
CTC: EBITDA up in 2012
Cyprus Trading Corporation Plc, the core public company of the NK Shacolas Group, saw turnover drop from 443 mln euros in 2011 to 407.4 mln last year, mainly due to a decrease in retail sales, the distribution of tobacco products and heavy vehicles, due to the ongoing economic crisis.
However, Managing Director Marios Loucaides said in his annual report to shareholders, that earnings before interest, taxation and depreciation (EBITDA) increased from 46.9 mln in 2011 to 48.3 mln in 2012, while after tax profits dropped from 9.5 mln euros to 7.1 mln last year.
However, there was also a goodwill writeoff of 12.4 mln euros which is not included in the cash inflows and will enhance the company’s liquidity position.
Group chairman Nicos Shacolas said CTC is expanding its activities and cooperation with local and international partners and that the sale of the 50% stake in MTN Cyprus boosted profits and liquidity.
The board decided not to make a dividend payment. All three Shacolas Group public companies paid out a total dividend of 9.25 mln euros to shareholders last year.
Ermes: profit margin narrows
Ermes Department Stores plc, the retail division of the NK Shacolas Group, saw turnover drop to 242.9 mln euros in 2012, from 259.6 mln a year earlier, with after-tax profits reduced to 260,400, euros, compared to 1.4 mln in 2011.
Executive chairman Yiorgos Aniliades said that operating costs were reduced by 6.4% in 2012 but turnover also dropped and profit margins were reduced, due mainly to the economic crisis.
He added that the Eurogroup decision in March this year have created unprecedented troubles and challenges.
“We reacted with emergency measures and a further reduction in costs that has affected all stakeholders. However, our diversified portfolio also allows us the advantage of not depending on only one sector of the economy.”
Woolworth: Mall visits steady at 6.5 mln
Woolworth (Cyprus) Properties Plc, the property management and developer arm of the NK Shacolas Group, saw a small rise in operating profits from 17.99 mln euros in 2011 to 19 mln last year, with rent incomes from commercial properties dropping slightly from 21.1 mln euros to 20.6 mln in 2012. After tax profits were marginally dwon from 6.7 mln euros in 2011 to 6 mln last year.
Announcing the results to shareholders, Chairman Demetris Demetriou said visits to the Shacolas Commercial Park were unchanged in 2012 at 6.5 mln and that the Mall of Cyprus will see an extension of 4,000 sq.m. with more shopping space and parking.
Demetriou also said that in February of this year, Cyprus Limni Resorts & GolfCourses Plc, in which Woolworth has a significant stake, secured its initial permits for two golf courses in accordance with the plans set out for the creation of the Limni Bay resort near Polis Chrysochous. Further permits are expected “within the next few days,” he said.
The company is proceeding with various infrastructure projects and investor roadshows, while Limni has already invested some 40 mln euros in environmental projects in the area.
