Sha­co­las Group an­nounces lower earn­ings in 1H

Financial Mirror (Cyprus) - - FRONT PAGE -

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 EUR 142.54 mln in the first half of 2014 to EUR 135.42 mln this year.

Gross profit and other in­come dropped nearly 8% from EUR 38.96 mln to EUR 35.89 mln. Profit from dis­con­tin­ued oper­a­tions was dras­ti­cally re­duced from EUR 45.1 mln to EUR 5.1 mln in the first half, push­ing into the red with a loss of EUR 2.13 mln, com­pared to a profit of EUR 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 EUR 68.4 mln from EUR 70.7 mln in the first half of 2014. Gross profit and other in­come dropped 7% to EUR 24.4 from EUR 26.4 mln, with the net loss for the pe­riod amounted to EUR 2.79 mln com­pared to a profit of EUR 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 EUR 3.2 mln, com­pared to EUR 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 EUR 494,250 from EUR 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.

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