TIDMHLS
RNS Number : 4978N
Helesi PLC
28 September 2012
28 September 2011
Helesi PLC
("Helesi" or "the Group")
Interim results for the six months to 30 June 2012
Helesi PLC (AIM: HLS), the Greece, Italy and Cyprus based waste
management products manufacturer and services supplier announces
interim results for the six months to 30 June 2012.
Summary
-- Group revenues decreased by 33% to EUR10 million (H1 2011:
EUR15 million).
-- Loss before tax of EUR6 million (H1 2011: Loss EUR4.9 million)
due to lower sales across all regions.
-- Net debt decreased to EUR64.95 million versus EUR66.3 million
reflecting partial collection of receivables.
Commenting on the results, Sakis Andrianopoulos, Chief Executive
of Helesi, said, "Helesi is impacted by recession in Italy and
Greece. This year we experienced a slowdown in Cyprus, which shows
the first signs of a deep recession. The Greek recession continues,
but the potentially disastrous event of default of the Greek state
and the "Grexit" scenario are fading away. The Greek waste market
is improving but funding problems are a setback for large waste
projects. Helesi will continue to focus on exports of plastic
products to utilize its production capacity."
For further information please visit www.helesi.com or
contact:
Helesi PLC +30 (0) 2299 0 82700
Sakis Andrianopoulos, Chief Executive
Ioannis Tolias, Finance Director itolias@helesi.com
Panmure Gordon (Nomad and broker) +44 (0) 20 7886 2500
Andrew Godber
Tavistock Communications + 44 (0) 20 7920 3150
Simon Hudson shudson@tavistock.co.uk
Kelsey Traynor ktraynor@tavistock.co.uk
Financial Review
The Greek plastic bin, and waste vehicles market has barely been
operating since the second half of 2010. However, since November
2011, new waste projects have been released in the Greek Market and
more are in the pipeline for the second half of 2012. The revenue
of "won projects" by Helesi has not been reflected in the first
half of 2012.
Revenues in the six months to 30 June 2012 decreased by 33% to
EUR10million (H1 2011: EUR15million), reflecting the drop in sales
mainly in Greece. Tight inventory control and the change of the
sales mix sustained gross margin levels slightly above 50%, same as
in the previous year.
Operating expenses decreased further by 17% to EUR6.8 million
(H1 2011: EUR8.2 million) as result of adjusting staff costs and
reducing operational expenses as operations were slimmed down.
However, the Group realized a loss before interest, tax,
depreciation and amortisation of EUR903,000 (H1 2011: EUR52,000
loss). Interest costs increased by 8% to EUR2.6 million (H1 2011:
EUR2.4million) as some banks increased their profit margins over
the last 12 months, leading to EUR6 million loss before tax (H1
2011: EUR4.8 million).
Partial collection in the first half of 2012 of due receivables
from the Greek State, allowed net debt to drop to EUR64.9 million
(H1 2010: EUR66.3million). Since the first half of 2010 where
recession effected Helesi operations, the Group managed to reduce
debt levels by EUR10 million. However the blended average rate for
our borrowings remains at high levels of 7.4% (H1 2011:7 %). As
disclosed, the Group continues to be in breach of some of its
banking covenants. It is in discussion with its banks about
extending the maturity of its borrowings and seeking additional
headroom to help fund the growth of the business. Additional
information about the Group's financial position and borrowings are
further described in notes 4 and 10. We also draw your attention to
the emphasis of matter in the auditor's report.
Dividend
Dividends will resume again once the operating cashflow of the
Company improves.
Operations
In plastic products, revenues decreased due to lack of
contribution from the Greek Market and Italian market. The
postponement of various projects in the Greek market, the
restriction of credit risk in combination with constrains in new
working capital sources held back operations. The majority of
revenues from plastic products were derived from overseas sales.
The structural reform of the Greek State affected also the Services
and Vehicles business, and signs of recovery are expected to appear
in the second half of 2012. The majority of projects due for 2010
and 2011 were postponed for 2012. Helesi has built a pipeline of
new projects in the Greek Market that in case of success, and in
the event that funding can be secured, will benefit from over EUR50
million of revenues for the following years.
Outlook
Helesi remains positive for the future. Geographical
diversification and product diversification reduces the downside
risk of a prolonged recession scenario in Greece. The Group will
continue to focus on overseas sales of plastic products, meanwhile
taking the necessary steps to improve further all cost areas, and
reduce the debt burden.
Dimitri Kainaros
Non-Executive Chairman
Sakis Andrianopoulos
Chief Executive Officer
29 September 2011
Statement of the members of the Board of Directors and other
responsible persons of the Company for the financial statements
In accordance with Article 9, sections (3) (c) and (7) of the
Transparency Requirements (Securities for Trading on regulated
Market) Law of 2007 ("Law"), we the members of the Board of
Directors and the other responsible persons for the consolidated
financial statements of Helesi Plc for the period ended 30 June
2012 we confirm that, to the best of our knowledge:
(a) the annual consolidated financial statements:
(i) were prepared in accordance with the International Financial
Reporting Standards as adopted by the European Union,
and in accordance with the provisions of Article 9,
section (4) of the Law, and
(ii) give a true and fair view of the assets and liabilities,
the financial position and the profit or losses of Helesi
Plc and the businesses that are included in the consolidated
accounts as a total , and
(b) the directors' report gives a fair review of the developments
and the performance of the business as well as the financial
position of Helesi Plc and the businesses that are included
in the consolidated accounts as a total, together with
a description of the principal risks and uncertainties
that they are facing.
Members of Board of Directors:
Kainaros Dimitrios Non-Executive Chairman
Athanassios (Sakis) Andrianopoulos Chief Executive Officer
Christina Thanassoulia Deputy Chief Executive
George Papaggelis Non-Executive Director
Elena Paraskeva Non Executive Director
Nicosia, Cyprus
28 September 2012
Report on Review of Interim Financial Information
To the Shareholders of Helesi PLC
Introduction
We have reviewed the accompanying interim consolidated condensed
financial information of Helesi PLC (the "Company") and its
subsidiaries (the "Group"), which comprise the statement of
financial position and the consolidated statement of financial
position of the Company and the Group, as at 30 June 2012, and the
respective statements of comprehensive income, the statements of
changes in shareholders' equity and the statements of cash flows
for the six-month period then ended, and the notes thereon.
Management is responsible for the preparation and fair presentation
of this interim condensed consolidated financial information in
accordance with the International Financial Reporting Standard 34
'Interim Financial Reporting' as issued by International Financial
Reporting Standard Board (IASB) and adopted by the European Union.
Our responsibility is to express a conclusion on this interim
financial information based on our review.
Scope of Review
We conducted our review in accordance with the International
Standard on Review Engagements 2410, "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity". A
review of interim financial information consists of making
inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying interim financial
information does not give a true and fair view of the financial
position of the Helesi Group and of Helesi PLC, as at 30 June 2012,
and of their financial performance and their cash flows for the
six-month period then ended, in accordance with the International
Financial Reporting Standard 34 'Interim Financial Reporting'.
Emphasis of matter - Going concern
We draw attention to note 4 to the interim condensed
consolidated financial statements which indicates that the Group's
current liabilities exceed its current assets by EUR22.9 million.
The Group also incurred a loss of EUR8.2 million for the period
ended 30 June 2012 and as explained in note 10 is in breach of
various loan covenants. One of its banks has demanded the repayment
of its overdraft facility of EUR2.3 million and negotiations are
currently on-going regarding the terms of the repayment of the
balance due. The Group's ability to continue as a going concern is
dependent upon receiving the continuing support of domestic and
other financial institutions. These factors together with the
continuing financial crisis of the Greek economy and public sector
indicate the existence of a material uncertainty that may cast
significant doubt about the Group's ability to continue as a going
concern.
Other Matter
This report, including the conclusion, has been prepared for and
only for the Company's members as a body in accordance with Section
34 of the Auditors and Statutory Audits of Annual and Consolidated
Accounts Law of 2009 and for no other purpose. We do not, in giving
this report, accept or assume responsibility for any other purpose
or to any other person to whose knowledge this report may come
to.
BDO Ltd
Certified Public Accountants (CY) and Registered Auditors
Nicosia, Cyprus
September 2012
Statement of Comprehensive Income
The Group
Notes First First Year
half half
of of
2012 2011 2011
EUR'000 EUR'000
Sales revenue 10.002 15.057 33.929
Other revenue 903 669 781
Changes in inventories
of finished goods (528) 33 (1.451)
Cost of materials used (4.404) (7.537) (16.165)
Personnel-related costs 7 (3.088) (3.444) (6.732)
Director's emoluments (37) (109)
Depreciation charges (2.509) (2.368) (4.718)
Impairment of goodwill - - (4.900)
Other operating expenses (3.751) (4.830) (12.425)
------ ------ ------
Operating (loss) /
profit (3.412) (2.420) (11790)
Net finance cost (2.884) (2.449) (6.263)
------ ------ ------
(Loss) / profit before
taxes (6.296) (4.869) (18.053)
Income tax expense 8 (1.890) (597) (2.379)
------ ------ ------
(Loss) / profit for
the period (8.186) (5.466) (20.432)
------ ------ ------
EBITDA (903) - (2.173)
Currency translation - 70 -
adjustments
- - - - - - - - -
- - - - - - - - -
Total comprehensive
(loss) income (8.186) (5.396) (20.432)
------ ------ ------
Basic and diluted earnings(loss)
per share (in Euro) 11 (0,21) (0,14) (0,51)
Statement of Financial Position
The Group
Notes 30 June 30 June 31 December
2012 2011 2011
EUR'000 EUR'000 EUR'000
Assets
Non current assets
Property, plant and
equipment 9 75.584 78.593 77.069
Goodwill 7.659 12.559 7.659
Other intangible assets 1.427 1.499 1.593
Investment in subsidiaries - -
Other non-current
assets 81 738 81
------ ------ ------
Total non-current
assets 84.751 93.389 86.402
------ ------ ------
Inventories 4.193 8.602 4.873
Trade and other receivables 30.846 38.259 33.776
Cash and cash equivalents 441 1.006 1.198
------ ------ ------
Total current assets 35.480 47.867 39.847
------ ------ ------
Total assets 120.231 141.256 126.249
------ ------ ------
Share capital (3.981) (3.981) (3.981)
Share premium (33.641) (33.641) (33.641)
Capital reserves (9.981) (9.981) (9.981)
Currency translation
adjustments - 959 -
Retained earnings 25.537 2.385 17.351
------ ------ ------
Total equity (22.066) (44.259) (30.252)
Non current liabilities
Long term borrowings 10 (33.276) (32.417) (36.651)
Current liabilities
to supplier (1.119) (1.258)
Employee benefit (299) (204) (251)
Deferred tax liabilitiy (5.119) (1.678) (3.309)
------ ------ ------
Total Non current
liabilities (39.813) (34.299) (41.469)
Current liabilities
Trade and other payables (25.982) (26.932) (24.191)
Income tax payable (688) (803) (706)
Short term borrowings 10 (31.683) (34.963) (29.631)
------ ------ ------
Current liabilities (58.353) (62.698) (54.528)
------ ------ ------
Total liabilities
and equity (120.231) (141.256) (126.249)
Statements of Changes in Shareholders' Equity
Currency
Share Share Capital translation Retained
capital premium reserves adjustments earnings Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
As at 1 January
2011 3.981 33.641 9.981 (1.029) 3.081 49.655
Profit for the
period (5.466) (5.466)
Currency translation
adjustments 70 70
------ ------ ------ ------ ------ ------
As at 30 June
2011 3.981 33.641 9.981 (959) (2.385) 44.259
Profit for the
period (294) (14.966) (15.260)
Currency translation
adjustments 1.253 1.253
Capital increase
cost
------ ------ ------ ------ ------ ------
As at 1 January
2012 3.981 33.641 9.981 - (17.351) 30.252
Profit for the
period (8.186) (8.186)
Currency translation
adjustments - - -
------ ------ ------ ------ ------ ------
As at 30 June
2012 3.981 33.641 9.981 - (25.537) 22.066
------ ------ ------ ------ ------ ------
Statements of Cash Flows
The Group
First First Year
half half
of of
2012 2011 2011
Operating activities EUR'000 EUR'000 EUR'000
Loss before tax (6.296) (4.869) (18.053)
Adjustments in respect -
of non-cash transactions:
Depreciation, amortisation
and profit n disposals 2.509 2.368 4.720
Interest payable 2.609 2.449 5.010
Employee benefits 48 54 102
Profit/loss from sale of
fixed asset 243 528
Profit from sales unit - 251
Other non cash item (122) 75 1.026
Impairment of goodwill - 4.900
Exchange differences reconciled
in P&L - 1.253
------ ------ ------
(460) 328 (514)
(Increase)/ decrese in
inventories 681 248 3.977
(Increase)/ decrese in
receivables 2.929 (2.415) 2.725
Increase /(decrease) in
payables 1.654 1.489 -
------ ------ ------
4.804 (350) 6.188
Net interest received /
(paid) (2.640) (2.451) (5.027)
Exchange differences reconcilied
in P&L - (1.253)
Income tax paid (249) (269) (513)
------ ------ ------
Net operating cash inflows
(outflows) (1.641) (3.070) (605)
------ ------ ------
Cash flows related to investing
activities
Purchase of property plant
and equipment (1.330) (316) (1.451)
Proceeds from sale of property
plant and equipment 225 26 132
Purchase of intangible
assets - (160) (323)
Interest received 30 2 18
------ ------ ------
Net investment cash inflows
(outflows) (1.074) (448) (1.624)
------ ------ ------
Cash flows related to financing
activities
Loans contracted / (repaid) (1.176) 3.525 2.286
Finance lease payments (148) (3) 139
------ ------ ------
Net financing cash inflows
(outflows) 1.324 3.522 2.425
------ ------ ------
Net decrese /increase in
cash and cash equivalents (758) 4 196
Cash and cash equivalents,
at the beginning of the
period 1.198 1.002 1002
------ ------ ------
Cash and cash equivalents,
at the end of the period 440 1.006 1.198
The attached notes form
an integral part of this
interim financial information
Notes to the Interim Condensed Financial Statements
1. Accounting Policies
These interim financial statements have been compiled and are
presented in accordance with IAS 34 Interim Financial Reporting.
The accounting policies used in the preparation of the interim
financial statements are consistent with those used in the
compilation of the audited financial statements for the year ended
31 December 2011 and the six months ended 30 June 2011.
Costs that occur evenly during the financial year are
anticipated or deferred in the interim financial statements, only
if it would be appropriate to anticipate or defer such costs at the
end of the financial year.
Income tax expense is recognised based on the best estimate of
the weighted average annual income tax rate expected for the full
financial year.
2. Capital Structure
The Helesi PLC Group operates an employee share options scheme
(ESOS) under which employees of any of the entities forming part of
the Group may be given the option to purchase shares of Helesi PLC.
These options are exercisable not earlier than three years and not
later than seven years after the grant date, at an exercise price
which is specified, in Euros, at the time of granting the
options.
The Board of Directors is empowered to grant options on a
maximum of 10%of the outstanding shares. As at 30 June 2009 and 31
December 2008, the options granted under this scheme, which were
outstanding, covered a total of 618,100 shares.
The terms under which these options were granted, in the year
ended 31 December 2007, are described in the notes to the audited
financial statements as of 31 December 2008.
3. Economic Environment
The downgrade of the Greek State has resulted in a liquidity
crisis and fall in consumer and business confidence. The Greek
state has been forced to implement austerity measures that include
Greek budget cuts and the postponement of public sector projects.
Banks have generally ceased providing new finance to Greek
businesses since 2010 and some foreign banks operating in Greece
have been instructed not to undertake "state risk". These factors
have resulted in fall in revenues, deteriorating cash flows and
increased finance costs.
4. Going concern
As at 30 June 2012 the Group's current liabilities exceed its
current assets by EUR22.6 million (H1 2011: EUR14.8 million) and
the Group was in breach of various of its loan covenants. One of
the banks has demanded the repayment of its overdraft facility of
EUR2.3 million and negotiations are currently ongoing regarding the
terms of the repayment of the balance due (note 10). The Group
projection reflect sustainable net operating cashflow, and relies
on its long term relationships and support with domestic banks and
its suppliers. The collection of EUR1.7 million from the Italian
State is still due, along with EUR1.6 million from Greek State
receivables funded by "Theseus" program in 2012. Their collection
will reduce net debt levels further and allow banks to provide
additional headroom.
5. Earnings per Share
The basic earnings per share in a given period are calculated by
dividing the net profit attributable to the Group by the weighted
average number of issued and outstanding shares in that period.
The calculation of the diluted earnings per share takes into
consideration the options on shares granted to employees of the
Group. The equivalent of these share options to shares is
quantified by
reference to the exercise price of the options granted and the
average listed price (in the accounting period reported upon) of
the shares on which the options have been granted.
6. Segmental Analysis
As from 2007, the Helesi PLC Group recognises two business
segments: the environmental products segment and the environmental
services segment. The financial results and the financial position
of these two business segments are set out below.
First half of 2012
Environmental Environmental
products services Group
EUR'000 EUR'000 EUR'000
Third-party sales 6.691 3.311 10.002
Other third-party revenues 814 89 903
------ ------ ------
Total revenues 7.505 3.400 10.905
Cost of materials and
accessories used (4.540) (392) -(4.932)
Personnel-related costs (1.859) (1.229) (3.088)
Depreciation and amortisation (2.260) (249) (2.509)
Third-party costs and
expenses (2.137) (1.651) (3.788)
------ ------ ------
Segmental profit, before
finance
charges (3.291) (121) (3.412)
First half of 2011
Environmental Environmental
products services Group
EUR'000 EUR'000 EUR'000
Third-party sales 11.133 3.924 15.057
Other third-party revenues 669 - 669
------ ------ ------
Total revenues 11.802 3.924 15.726
Cost of materials and
accessories used (7.280) (224) (7.504)
Personnel-related costs (2.005) (1.439) (3.444)
Depreciation and amortisation (2.074) (294) (2.368)
Third-party costs and
expenses (3.314) (1.516) (4.830)
------ ------ ------
Segmental profit, before
finance charges (2.871) 451 (2.420)
------ ------ ------
30 June 2012
Environmental Environmental
products services Group
EUR'000 EUR'000 EUR'000
Total Assets 112.888 7.343 120.231
Total Liabilities to
third parties (93.654) (4.511) (98.165)
------ ------ ------
Net Assets 19.234 2.832 22.066
------ ------ ------
30 June 2011
Environmental Environmental
products services Group
EUR'000 EUR'000 EUR'000
Total Assets 130.722 10.534 141.256
Total Liabilities to
third parties (92.652) (4.345) (96.997)
------ ------ ------
Net Assets 38.070 6.189 44.259
------ ------ ------
The Helesi PLC Group now operates two production units - one in
Greece and one in Italy, under the corporate umbrellas of Helesi SA
and Helesi Italia srl, respectively. The financial results and the
financial position of these operations are set out below.
First half of 2012
Elimination
of intersegment
Greece transactions Group
EUR'000 EUR'000 EUR'000 EUR'000
Third-party sales 8.155 1.847 - 10.002
Intersegment sales 1.296 641 (1.937) -
------ ------ ------ ------
Total sales 9.451 2.488 (1.937) 10.002
Other third-party revenues 903 - - 903
Intersegment other revenues (22) - 22 -
------ ------ ------ ------
Total other revenues 10.332 2.488 (1.915) 10.905
Total revenues
Cost of materials used (3.634) (1.298) - (4.932)
Third-party costs and
expenses (8.018) (1.367) - (9.385)
------ ------ ------ ------
Segmental profit / (loss)
before finance charges (1.320) (177) (1.915) (3.412)
------ ------ ------ ------
First half of 2011
Elimination
of intersegment
Greece UK IT transactions Group
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Third-party sales 12.076 39 2.942 - 15.057
Intersegment sales (1.441) - (215) 1.656 0
------ ------ ------ ------ ------
Total sales 10.635 39 2.727 1.656 15.057
Other third-party revenues 425 - 244 - 669
Intersegment other revenues (369) - (30) 399 0
------ ------ ------ ------ ------
Total other revenues 56 - 214 399 669
Total revenues ------ ------ ------ ------ ------
Cost of materials and
accessories used 10.691 39 2.941 2.055 15.726
Cost of intersegment
use of materials (5.021) - (2.483) - (7.504)
Third-party costs and
expenses (8.924) (145) (1.573) (10.642)
------ ------ ------ ------ ------
Segmental profit / (loss)
before finance charges (3.254) (106) (1.115) 2.055 (2.420)
------ ------ ------ ------ ------
Year 2011
Elimination
of intersegment
Greece Italy transactions Group
EUR'000 EUR'000 EUR'000 EUR'000
Third-party sales 27.211 6.718 - 33.929
Intersegment sales 4.312 550 (4.862) 0
------ ------ ------ ------
Total sales 31.523 7.268 (4.862) 33.929
Other third-party revenues 678 103 - 781
------ ------ ------ ------
Total revenues 32.201 7.371 (4.862) 34.710
Cost of materials and
accessories used (12.396) (5.220) - (17.616)
Cost of intersegment
use of materials (3.881) (495) 4.376 -
Personnel-related costs (5.858) (874) - (6732)
Directors' fees (109) - - (109)
Depreciation and amortisation
expense (9.011) (607) - (9.618)
Other operating expenses 9.957) (2.468) - (12.425)
------ ------ ------ ------
(9.011) (2.293) - -
(2.400) 2.400 0 0
------ ------ ------ ------
Segmental profit / (loss)
before finance charges (11.411) 107 (486) (11.790)
Cost of financing (6.068) (195) - (6.263)
------ ------ ------ ------
Segmental profit (loss),
before taxes (17.479) (88) (486) (18.053)
Elimination of intersegmental
profits (431) (55) 486 -
------ ------ ------ ------
Loss before tax (17.910) (143) - (18.053)
Income tax (2.108) (271) - (2.379)
------ ------ ------ ------
Net profit /(loss),
after tax (20.018) (414) - (20.432)
------ ------ ------ ------
30 June 2012
Elimination
of intersegment
Greece balances Group
EUR'000 EUR'000 EUR'000 EUR'000
Intersegment investments 7.446 - (7.446) -
Intersegment receivables/payables 5.577 (5.577) - -
Total other assets 103.859 16.372 - 120.231
Total liabilities to
third parties (92.127) (6.038) - (98.165)
------ ------ ------ ------ ------
Net assets 24.755 4.757 (7.446) 22.066
------ ------ ------ ------ ------
30 June 2011
Elimination
of intersegment
Greece UK IT balances Group
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Intersegment investments 5.046 - - (5.046) 0
Intersegment receivables/payables 12.651 (3.125) (9.526) - 0
Total other assets 122.188 485 18.583 - 141.256
Total liabilities to
third parties (90.077) (253) (6.667) - (96.997)
------ ------ ------ ------ ------
Net assets 49.808 (2.893) 2.390 (5.046) 44.259
------ ------ ------ ------ ------
31 December 2011
Elimination
of intersegment
Greece Italy balances Group
EUR'000 EUR'000 EUR'000 EUR'000
Intersegment investments 5.046 - (5.046) -
Intersegment receivables/payables 5.935 (5.935) - -
Total other assets 108.541 17.708 - 126.249
Total liabilities to
third parties (89.827) (6.170) - (95.997)
------ ------ ------ ------
Net assets 29.695 5.603 (5.046) 30.252
------ ------ ------ ------
The third-party sales and the value of the related trade
receivables outstanding at period-end, on the basis of the location
at which the customers operate (inclusive of the balances that are
doubtful of collection and have been provided for), are analysed as
follows:
Other
European Other
United Union (non-EU)
Greece Kingdom Italy states states Group
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
First half of 2012
Value of sales 4.624 - 1.826 2.173 1.379 10.002
Trade receivables,
at period end 23.518 - 5.541 1.565 222 30.846
------ ------ ------ ------ ------ ------
First half of 2011
Value of sales 5.354 995 2.691 3.770 2.247 15.057
------ ------ ------ ------ ------ ------
Trade receivables,
at period end 28.581 441 6.533 2.031 673 38.259
------ ------ ------ ------ ------ ------
Year 2011
Value of sales 14.328 - 6.860 9.345 3.396 33.929
------ ------ ------ ------ ------ ------
Trade receivables,
at year end 23.072 - 6.441 3.969 294 33.776
------ ------ ------ ------ ------ ------
7. Persons Employed and Related Costs
30 June 30 June 31 December
2012 2011 2011
Number Number Number
Number of persons
employed (at period
end) 274 280 290
------ ------ ------
First First Year 2011
half half
of 2012 of 2011
EUR'000 EUR'000 EUR'000
Salaries and wages (2.362) (2.791) (5.284)
Social security costs (638) (657) (1.437)
Other personnel costs (15) (18) (85)
Employment termination
benefits (73) (95) (146)
Employment related
costs, capitalised - 117 220
------ ------ ------
(3.088) (3.444) (6.732)
------ ------ ------
Cost per employee
(in Euro) 11.270 12.300 (23.213)
------ ------ ------
8. Income Taxes
First First Year 2011
half of half
2012 of 2011
EUR'000 EUR'000 EUR'000
Profit, before taxes,
per the statement
of earnings (6.296) (4.866) (18.053)
------ ------ ------
Income taxes, at
the nominal tax
rate (796) 1.070 (3.292)
Taxes on permanent
differences between
accounting and taxable
profits 95 (60) 909
Effect of tax losses
carried forward (224) (1.842) 2.044
Income not subjected
to taxation (165) 23 (21)
Income non taxable - 222 -
Tax relief due to
reduction of the
tax rate - (10) 53
Tax losses previous
years for which
income tax assets
was recognized 2.980 - 2.686
------ ------ -------
Total tax charge 1.890 (597) 2.379
------ ------ ------
Current tax charge 251 (70) 221
Deferred tax charge 1.639 (527) 2.158
------ ------ ------
Total tax charge 1.890 (597) 2.379
------ ------ ------
9. Property, plant and equipment
Assets
Buildings Furniture under
and building Plant and other constr.
Land installations and machinery Vehicles equipment or installation Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
At cost or
valuation
As at 31 December
2010 2.609 23.878 57.139 5.054 1.486 5.493 95.659
Effect of currency
translation - - (7) - (1) - (8)
Additions 109 560 (59) 207 (500) 317
Disposals - - (198) (320) (13) - (531)
Transfers - - - - 4 - 4
------ ------ ------ ------ ------ ------ ------
As at 30 June
2011 2.609 23.987 57.494 4.675 1.683 4.993 95.441
Effect of currency
translation - - 12 - 1 - 13
Additions - 1.106 2.175 121 16 (2.285) 1.133
Disposals - - (470) (107) (2) - (579)
Transfers - - - - - - -
------ ------ ------ ------ ------ ------ ------
As at 31 December
2011 2.609 25.093 59.211 4.689 1.698 2.708 96.008
Effect of currency
translation - - - - - - -
Additions - 412 474 90 34 320 1.330
Disposals - (31) (314) (321) (19) - (685)
Transfers - - - - - - -
------ ------ ------ ------ ------ ------ ------
As at 30 June
2012 2.609 25.474 59.371 4.458 1.713 3.029 96.653
------ ------ ------ ------ ------ ------ ------
Accumulated
depreciation
As at 31 December
2010 0 (2.102) (9.020) (3.028) (656) 0 (14.806)
Effect of currency
translation - - 3 - 1 - 4
Depreciation
charge (337) (1.512) (295) (155) (2.299)
Disposals - - 10 242 2 - 253
------ ------ ------ ------ ------ ------ ------
As at 30 June
2011 0 (2.438) (10.519) (3.082) (808) 0 (16.848)
Effect of currency
translation - - (4) - (1) - (5)
Depreciation
charge - (345) (1.513) (310) (115) - (2.283)
Disposals - - 177 19 - - 197
------ ------ ------ ------ ------ ------ ------
As at 31 December
2011 - (2.784) (11.859) (3.372) (924) - (18.939)
Effect of currency
translation - - - - (3) - (3)
Depreciation
charge - (359) (1.600) (224) (161) - (2.344)
Disposals - - 68 143 6 217
------ ------ ------ ------ ------ ------ ------
As at 30 June
2012 - (3.143) (13.393 (3.455) (1.079) - (21.069)
------ ------ ------ ------ ------ ------ ------
Net book values
As at 30 June
2012 2.609 22.331 45.978 1.003 634 3.029 75.584
------ ------ ------ ------ ------ ------ ------
As at 30 June
2011 2.609 21.548 46.975 1.598 875 4.993 78593
------ ------ ------ ------ ------ ------ ------
As at 31 December
2011 2.609 22.309 47.352 1.317 774 2.708 77.069
------ ------ ------ ------ ------ ------ ------
The Fixed Assets are insured for EUR32 million.
10. Interest bearing loans and borrowings
The bank loans and other bank financing facilities (including
the debenture loan) contracted by the Helesi PLC Group are analysed
as follows:
Short-term Long-term Scheduled
30 June 2012 liabilities liabilities repayment
EUR'000 EUR'000 (to year)
Debenture loan 5.200 32.915 2012-2013
Short term bank loans 26.483 361 2013-2017
------ ------
31.683 33.276
------ ------
Short-term Long-term Scheduled
30 June 2011 liabilities liabilities repayment
EUR'000 EUR'000 (to year)
Debenture loan 4.350 32.413 2011-2017
Short term bank loans 30.613 4 2011-2012
------ ------
34.963 32.417
------ ------
Short-term Long-term Scheduled
31 December 2011 liabilities liabilities repayment
EUR'000 EUR'000 (to year)
Debenture loan 2.192 36.648 2013-2017
Short term bank loans 27.439 3 2012
------ ------
29.631 36.651
------ ------
The interest charges generated in relation to the above loans,
in the six month period ended 30 June 2012, amounted to EUR2.610
thousand (H1 2011 : EUR2.449 thousand). On 30 June 2012, bank
borrowings are secured by fixed charges over the company's property
plant and equipment for amount of EUR 61 million (H1 2012 : EUR51,4
million).
Banks continued to pass on to Helesi their increased cost of
borrowing. Consequently the weighted average cost of borrowing for
H1 2012 increased to 7,4% (H1 2011:7%).
In August 2012, HSBC called the overdraft agreement with the
Greek company Helesi S.A. The outstanding exposure was EUR2.261
thousand. At the present time, Helesi is in discussions with HSBC
to cover the outstanding exposure partially with Greek State
receivables and agree on long term repayment schedule.
Finally, the negotiations with RBS on the schedule of payments
for a EUR6.5 million of outstanding loans are not completed yet.
Helesi and RBS have reached a first agreement on the additional
forms of security the group will provide to RBS, but the structure
of payments is not complete yet.
11. Earnings per share and proposed dividends
Earnings per share are calculated by dividing the profit
attributable to the shareholders of Helesi PLC by the weighted
average number of issued and outstanding shares in the accounting
period covered by the financial statements.
Basic EPS Diluted EPS
------------------- ------------------
The Group 30 June 30 June 30 June 30 June
2012 2011 2012 2011
EUR000 EUR000 EUR000 EUR000
Net profit attributable
to the shareholders
(in Euro thousand) (8.186) (5.466) (8.186) (5.466)
Weighted average number
of issued shares (in
thousand pieces) 39.806 39.806 39.806 39.806
------ ------ ------ ------
Earnings/( loss) per
share (in EUR) (0,21) (0,14) (0,21) (0,14)
------ ------ ------ ------
12 Research & Development (R & D)
The Helesi Group invests substantial amounts in research and
development and, in particular, in the development of new moulds
and techniques that are instrumental in the lowering of costs and
in attaining higher levels of operational efficiency. Such
development costs are capitalised if, and only if, the following
conditions are satisfied:
(a) the technical feasibility of completing the work undertaken
(so that it will be available for use) is evident;
(b) the commitment and ability to complete such work and
use its outcome exists;
(c) the generation of future economic benefits through
the use of such R & D work is highly probable;
(d) the necessary technical, financial and other resources
to complete the development work and to place it into
use are available;
(e) the ability to measure reliably the expenditure attributable
to such development work exists
The development costs that have satisfied these criteria are
analysed as follows:
First First
half half Year
2012 2011 2011
EUR'000 EUR'000 EUR'000
Personnel related
costs - 117 220
Miscellaneous other
expenses - 18 3
------ ------ ------
- 135 223
------ ------ ------
13 Related party transactions and balances
The transactions of the Helesi PLC Group, in the period 30 June
2012 and the year 2011, with and receivables from and payables to
related parties, as at 30 June 2012 and 31 December 2011, are
analysed as follows:
The Group Purchases Receivable
Sales to from from Payable to
EUR000 EUR000 EUR000 EUR000
TECMEC A.E
30 June 2012 49 825 3.286 0
30 June 2011 22 478 4.851 0
31 December 2011 133 2.183 2.152 0
The compensation of the members of the Board of Directors and
certain other key management personnel executives for the group for
the first half 2012 and 2011 was as follows:
The Group
First half First half
of 2012 of 2011
EUR000 EUR000
Athanassios Andrianopoulos (9) (32)
Christina Thanassoulia (9) (16)
Apostolos Binomakis - (17)
John Riskakis (7) (26)
Elena Paraskeva (6) (13)
George Papaggelis (6) (1)
---------- ----------
(37) (105)
---------- ----------
14 Contingencies
The construction of one of the two waste transfer stations in
Cyprus has not proceeded according to the contract with the Cyprus
government as the local community of the original site strongly
opposes its construction. In accordance with the contract, the
group is entitled to significant compensation for delays and
non-performance based upon a number of criteria.
The recently enacted L. 3480/2010 is bringing about drastic
changes in the corporate tax environment of Greece. In particular,
the new tax law introduces essentially two corporate tax rates for
the profits of Greek companies depending on whether profits are
distributed or not. If the company's profits are not distributed,
then the applicable corporate tax rate is 24% for the profits of
fiscal year starting on January 1 2010 up to December 31 2010 and
is gradually reduced by one percentage point each year to reach 20%
for the profits of fiscal years starting on January 1 2014. On the
other hand, if the company's profits are distributed, then the
corporate tax rate is 40% and is imposed on the company's profits,
which arise in fiscal years starting from December 31 2010 onwards,
while no withholding tax is imposed on the dividends
distributed
15 Post Balance Sheet Events
As of 15 August 2012, by order of the Ministry of Interior of
Cyprus, the Joint Venture Perivallontiki - Mesogeios in Cyprus was
called to abandon the construction of the new transhipment station.
The Ministry and the Joint Venture will renegotiate the content of
the initial contract to include only the operation of the one waste
transfer station. The Joint Venture is in the process to calculate
the damages and lost income that is entitled to receive as a result
of this development. On 30 June 2012 the revenues from operations
were EUR533 thousand. The Gross Profit from operations was EUR142
thousand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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