The Company presents the First Interim Management Statement for 2014, which has been prepared pursuant to Article 11 of the Transparency Requirements Law 2007. The statement is based on the results of the first four months of 2013 and the indications for the period until May 14, 2014. The results and the indications have not been audited by the Company’s auditors.
Main activities
During period, the Group continued with the same activities as in 2013.
General description
a) As announced on February 27, 2014, the Board of Directors will propose to the AGM the payment of a dividend of €939.177 (2012: €919.405) that corresponds to €0,0095 per share or 3.7% on the nominal value of the share capital and corresponds to a 2.15% increase on the dividend for 2012 and a dividend yield of 6.% on the average closing price of the share of €0.159 on December 31, 2013. This is the 12th consecutive year that the Company pays increased dividend.
In relation to 2013, the Group is expected to be affected positively since in September 2013 it invested via the subsidiary Handy Snacks Ltd in the acquisition of the industrial unit and brand of Mon Ami products from EVRIKA Ltd and in June 2013 it signed an agreement with Thamira Food Manufacturers Ltd for the distribution of the Bakandy’s products in the Cypriot market.
The ongoing negative market conditions, the liquidity problems and the environment of uncertainty as well as the negative psychology of the Cypriot citizens will continue to affect negatively the restoration and development of the Group’s results.
Main risks and uncertainties
The main risks and uncertainties that the Company faces are the same as those described in the Annual Report 2013 except for a possibility of the need for a new recapitalization of the Cypriot banks, something that would have further negative impacts on all businesses. The huge delay in measure taking for the restoration of our banking system affects negatively the stabilization and the reversal of the downward trend of the economy since March 2013, despite the “prettification” of the situation by the competent authorities.
It is necessary both the state and the administrations of the banks to accelerate taking corrective measures so as to achieve economic recovery the soonest possible.
Main events and transactions
There were no other facts and transactions affecting the Company’s results during the period apart from its ordinary activities.
Transactions of associated persons
There were no significant transactions of associated persons other than the existing employment contracts of the Executive Board members.
Targets and prospects
This year will be more difficult than 2013. The economic “strangling” of our financial system and the Cypriot companies in general continue to have negative impact on the Group’s performance. The Management aims to minimize the impacts of restricted liquidity in the market so that the Group’s companies remain healthy and profitable until our exit from this unprecedented financial crisis. Therefore, it is expected that the strategic moves in 2013 will have positive impact on our financial results in 2014, which are expected to be comparatively improved on an annual basis.
