Queenco Leisure International Ltd
19 March 2008
Queenco Leisure International Ltd
('QLI' or the 'Company')
Preliminary Results for the year ended 31 December 2007
Queenco Leisure International Ltd, (LSE: QLI), the emerging markets casino
developer and operator, is pleased to report its preliminary results for the
year ended 31 December 2007.
Highlights
Financial Performance
• Gross revenues increased 19.2% to €205.7 million (2006: €172.6 million)
• Net Revenues increased 19.2% to €142.9 million (2006: €119.9 million)
• EBITDA increased by 19.9% to €62.0 million (2006: €51.8 million)
• Profit before tax increased 28.5% to €52.9 million (2006: €41.2 million)
• EPS was up 38.1% to 7.6c (2006: 5.5c)
• Earnings per GDR (each GDR representing 10 ordinary shares) increased to
76c (2006: 55c)
Contribution by casino:
Casino Net Revenue EBITDA Visitors ('000) Win per Visitor QLI's
(EURm) (EURm) (EUR) Economic
2007 2006 2007 2006 2007 2006 2007 2006 Interest
Loutraki 188.2 160.6 91.6 76.4 1,125 984 245 237 40.3%*
Rodos 27.7 23.6 11.8 9.0 177 162 221 205 91.6%
Palace 19.5 16.8 6.4 5.8 116 109 174 150 83.3%
*35.7% up to 30 September 2007
Operational Performance
• Successful admission to the main market of the London Stock Exchange in
July 2007
• Significant increases in gaming revenues across the casino portfolio,
driven by:
• highly targeted marketing strategies;
• programme of re-investment in the casinos; and
• operating in high growth emerging markets.
• Growth in number of visits and win per visit in all of the projects.
• Grand-Opening of Casino Beograd on 8 February 2008.
• Acquired a further 9 hectares of beachfront land in Sihanoukville,
Cambodia.
• Good progress with the pipeline portfolio.
Dror Mizeretz, Chief Executive Officer of QLI, commented:
'In 2007 each casino performed strongly, contributing to a positive overall
result which saw net revenues and EBITDA increase by 19.2% and 19.9%
respectively. These results reflect the benefit of our successful marketing
campaigns and re-investment in the individual casinos.
'We have made a solid start to the year, with positive trading performances from
Casino Palace and Loutraki, and we anticipate that Casino Rodos will again
benefit from this year's tourist season. The outlook for the year remains
positive. We operate in a traditionally resilient sector, and are confident we
can continue to generate growth in gaming revenues based on our established
business model.
'Looking further ahead, the next two years are expected to be particularly
important for the Group as we work towards significantly increasing our casino
portfolio.'
Analyst Presentation
There will be a presentation to analysts by management at 10.00am today at:
ING Bank N.V. (London Branch)
60 London Wall
London
EC2M 5TQ
Should analysts wish to come they must please confirm their attendance with
Daniela Cormano at Cardew Group either by email: daniela.cormano@cardewgroup.com
or by telephone: +44 (0)20 7930 0777.
Investor Conference Call
The Company will also be hosting a conference call today at 10:00 am Eastern
Daylight Time; 7:00am Pacific Time; 2:00pm GMT; and 4:00pm Israel Time. The
conference call will be accompanied by an investor presentation available to
download from the investor relations section of QLI's website:
www.queencoleisure.com
To participate in the conference call, please call one of the following
teleconferencing numbers. If you are unable to connect using the toll-free
numbers, please try the international dial-in number.
US Dial-in Number: 1-888-281-1167 UK Dial-in Number:0-800-051-8913
Israel Dial-in Number: 03-918-0691 International Dial-in Number: +972-3-918-0691
A replay of the call will be available from the day after the call for a period
of 30 days. The link to the replay will be accessible under the investor
relations section of QLI's website: www.queencoleisure.com
For further information and/or a copy of the Company's Audit Report please
visit: www.queencoleisure.com
Queenco Leisure International Ltd.
Dror Mizeretz, CEO
Effy Aboudy, CFO
Tel: +972 375 45555
ING
Chris Godman
Tel: +44 (0)20 7767 6896
Cardew Group
Tim Robertson
David Roach
Daniela Cormano
Tel: + 44 (0)20 7930 0777
Chairman's Statement
I am delighted to present an excellent set of financial results for the 12
months to 31 December 2007. This is our first full year results since our
successful admission to the main market of the London Stock Exchange in July
2007.
The Company delivered a strong financial performance in 2007. Net revenues
increased by 19.2% to €142.9m (2006: €119.9m), reflecting our ability to grow
gaming revenues through increases in win per visit and visit numbers and
increase ancillary sales from our first-rate complementary guest services such
as hotels, restaurants and conference facilities. The growth in revenues
translated into a 19.9% increase in EBITDA to €62.0 million (2006: €51.8
million), with EBITDA margins improving to 43.4%.
Basic and diluted pro forma EPS was up 38.1% to 7.6c (2006: 5.5c) and earnings
per GDR (each GDR representing 10 ordinary shares) increased to 76c (2006: 55c).
In line with the strategy stated at the time of the IPO, no dividend was
declared for the period under review. However, the Board is committed to
generating value for our shareholders, and so we are currently giving careful
consideration to paying a dividend in the future.
QLI was established to exploit gaming opportunities in emerging markets, and
currently operates four casinos, which together have 1,640 slot machines and 164
gaming tables, and employ around 2,500 people. Our largest casino, Club Hotel
Casino Loutraki, attracted well over 1 million visits during the year and is
Greece's leading casino by drop and win. Our strategy is to continually improve
our established highly cash generative market leading casinos in Greece and
Romania and use them as a base from which to expand our casino portfolio in
emerging markets.
The growth in licensed gaming in emerging markets has provided an opportunity on
which QLI is ideally positioned to capitalise, as we have the necessary
management and gaming experience to first identify and then pursue new gaming
projects. The Company is typically looking for new opportunities in well (or
soon to be) regulated markets with strong economic growth but a limited gaming
market, where there maybe an opportunity to establish a strong or even exclusive
position. QLI's operations are generally located in landmark properties in prime
locations and the availability of such property is another key consideration.
By following this strategy, the Company has developed a strong pipeline of new
projects and is currently at various stages of development on five new casino
projects. During 2007, QLI made significant progress on this pipeline, most
notably with the Grand-Opening of Casino Beograd on 8 February 2008.
Over the next two years we expect to complete a number of new project
developments: we continue to make good progress in the development of our
nightclub and gaming hall in Prague, and expect to open the development in the
summer; we have secured another parcel of land in Sihanoukville, Cambodia and
look forward to drawing up the plans for the development later this year; and,
in Constanta, Romania we expect to start the renovation of a historic building
this year which we intend to operate as 'Casino Constanta' .
I would like to take this opportunity to thank all the employees of QLI for
their dedication and continued efforts to grow and develop the business.
QLI continues to deliver solid and sustainable growth in all of its core
operations as well as seek out new opportunities to roll out our casino model.
QLI has a robust business model, and we remain positive that we can benefit from
the resilient nature of a growing worldwide gaming sector, which we anticipate
will continue to enhance our own revenues into 2008 from which we aim to deliver
significant shareholder value.
Yigal Zilkha
Chairman, Queenco Leisure International Limited
19 March 2008
Chief Executive's Review
Introduction
QLI has a controlling or significant interest in a portfolio of four casinos
operating within Greece, Romania and Serbia, including: Club Hotel Casino
Loutraki ('Casino Loutraki'), 80km west of Athens; Casino Rodos, the only casino
on the island of Rhodes; Casino Palace in the centre of Bucharest and Casino
Beograd, with an exclusivity licence for the next ten years within Belgrade.
Over the next two years we expect to announce the opening of a number of our new
project developments. Already, we held the Grand-Opening of Casino Beograd on 8
February 2008 which we anticipate having a successful first year of trading, and
by the summer of this year we expect to announce the opening of our nightclub
and slot machine hall (with approximately 60 slot machines) in Prague, which we
expect to develop into a full casino once the regulatory environment has become
more developed. Having announced on 5 February that we had purchased a nine
hectare parcel of land, in addition to the 48 hectares previously acquired, we
expect to be able to see the plans for the intended destination beachfront
resort and casino in Sihanoukville, Cambodia later this year. Having also won
the concession rights to a historic building in the Romanian seaside resort of
Constanta, QLI remains on track to begin renovating the site this year, which we
intend to open and operate as 'Casino Constanta', together with a boutique
hotel.
At the time of QLI's successful flotation on the main market of the London Stock
Exchange last year, we set out our intention to acquire minority interests in
our existing projects. In line with this strategy, we announced in October 2007
that we had increased our holding in Club Hotel Loutraki ('CHL') to 40.3%, and
going forward we continue this aim and remain open to future negotiations with
interested parties.
Within our existing projects, QLI has continued to expand the scope of
activities offered, particularly in Loutraki, which now operates 1,000 slot
machines, an increase from 750. We also intend to open our new 'VVIP' area later
this year, which will increase the number of tables at Loutraki from 80 to 95
tables. We believe that this focus on continually seeking to improve existing
assets, combined with our project pipeline in emerging markets, will serve us
well in continuing our track record of growth.
QLI's Operating Review
The success of our casino model is based on three key drivers:
1. highly targeted marketing programmes;
2. continual investment in improvement and expansion of existing casinos;
and,
3. benefits from operating in high growth emerging markets.
During the year, we have achieved positive results through all of our key
performance indicators, which are reflected in each of our casinos' increases in
gaming and ancillary revenues. Each of our casinos' targeted marketing
strategies are tailored for their respective customer bases, which as a result
have seen visit numbers across the portfolio increase significantly, which in
turn has driven gross gaming revenues and ancillary revenues. The success of
these marketing strategies, such as the 'Customer Loyalty Programme' in Casino
Palace, Bucharest which saw a 6.3% increase in visit numbers, and the premier
entertainment programme in Loutraki which has tapped into both the high roller
markets and the local market, continue to be successful. As a result, gross
gaming revenues for the Company grew by 19.7% to €199.3 million (2006: €166.5
million).
We continue to seek ways of improving the 'gaming experience' of our customers
whilst visiting our casinos, which is why QLI has continued throughout the year
to focus on expanding and improving its existing sites. The success of this
strategy has enabled us to remain competitive in our current markets, whilst
improving levels of drop and win in all of our casinos, and at the same time
increase the number of repeat visits and win per visitor.
Our Projects
Club Hotel Casino Loutraki ('Casino Loutraki')
Gross gaming revenues grew by 17.8% to €275.3 million (2006: €233.7 million),
while net revenues grew by 17.2% to €188.2 million (2006: €160.6 million). This
growth has been driven by a positive market environment, together with the
investment which increased the number of slot machines from 750 to 1,000 in July
2007, and the success of our marketing strategy, which primarily focuses on
targeting the local population to successfully grow visit, and repeat visit,
numbers and win per visitor. During the period, the casino generated EBITDA of
€91.6 million, an increase of 19.8% (2006: €76.4 million). EBITDA margins also
improved to 48.7% from 47.6%. Visit numbers increased by 14.3% to 1,125k (2006:
984k) and total drop for the period was €1.192 million with win of €275.3
million.
During the year, QLI continued its strategy of buying out minority interests, by
increasing its holding in CHL, from 35.7% to 40.3%. In line with our expansion
plans the casino also received approval during the year from the Greek gaming
board to operate 25 additional gaming tables which, following the opening of our
'VVIP area' later this year, will increase the total number from 80 to 95.
Casino Rodos
Gross gaming revenues for the year increased by 17.8% to €39.3 million (2006:
€33.3 million), while net revenues grew by 17.8% to €27.7 million (2006: €23.6
million). These increases in revenues reflect the success of our marketing
strategies to attract a greater number of VIPs, tourists, and visitors coming
from mainland Greece. As a consequence, the casino generated EBITDA of €11.8
million, an increase of 31.8% (2006: €9.0 million), and EBITDA margins also
improved to 42.6% from 38.1%. Total drop for the period was €183 million with
win of €39.3 million. Visit numbers increased by 9.2% to 177k (2006: 162k).
As part of our marketing strategy in 2008, Casino Rodos intends to focus on
expanding its presence in a number of other markets. In particular, we intend to
target high rollers in countries located near Greece through gaming agents. This
targeted marketing will enable Rodos to expand its high roller customer base
from abroad.
In September 2007 Casino Rodos signed a Memorandum of Understanding ('MOU') with
a local Greek company and Emporiki Bank in regards to the building of a marina
and a residential project on Rhodes Island. Under this MOU, Emporiki Bank
resolved to provide finance through non-recourse loans and by that to fulfil the
investment obligation within the terms of the casino license. Due to opposition
from Rhodes Municipality, the Gaming Committee did not opine on whether the MOU
fulfilled the aforementioned obligation. As such, according to the legal
advisors of the Company, it is expected that an extension will be granted to
allow Casino Rodos and Emporiki Bank more time to identify suitable projects in
order to satisfy the obligation.
Casino Palace
During the year, Casino Palace's gross gaming revenues grew 23.3% to €20.2
million (2006: €16.4 million), while net revenues grew by 15.8% to €19.5 million
(2006: €16.8 million). EBITDA also increased by 10.4% to €6.4 million, (2006:
€5.8 million), which reflects the strong growth in the Romanian economy. As a
result, we saw visitor numbers increase by 6.3% to 116k (2006: 109k).
Throughout 2008 we will focus on our targeted marketing strategy to further
increase our share in the already competitive market. Initiatives such as the
'Customer Loyalty Programme', the 'bus programme', and the entertainment we
offer our guests are giving us a competitive edge, and we will continue our
efforts in 2008. At the same time, we will continue to renovate our assets in
order to grow our casino offering. Following our decision to switch to gaming in
Euros from US Dollars on 1 September 2007, this has had the effect of reducing
the risks of unfavourable exchange rates and also attracted more visitors who
generally prefer gaming in Euros. We expect the benefits of this to continue
into 2008.
In 2008, we anticipate that the Romanian government will propose a new tax on
gaming for the Parlamentul Rom(R)?niei to consider. If approved, the new tax is
more likely to effect smaller casino operators in Romania, which in turn is
likely to benefit larger operators such as ourselves who have the ability to
absorb changes in taxation.
Casino Beograd
Casino Beograd began trading on 30 June 2007 and held its Grand Gala Opening on
8 February 2008. Since then it has increased its operations to 220 slot machines
and 25 tables up from 60 slot machines and 6 tables in June 2007. We believe the
casino has made a good start and we look forward to further updating you on its
progress.
Since QLI increased its holding in CHL, from 35.7% to 40.3% through the buyout
of minority interests, QLI has also increased its holding in Casino Beograd from
14.3% to 15.7%, as CHL is also the Holding Company for the Serbian operation.
New Projects
We are very pleased with the good progress being made on all five casino
projects, and over the next two years, expect through new openings to
significantly expand the size of the business.
The development of the Prague nightclub and slot machine hall (with
approximately 60 slot machines) is anticipated to open this summer, which at a
later stage we expect to develop into a full casino once the regulatory
environment in the Czech Republic has become more developed.
The progress we are making in Constanta, Romania is very encouraging. Having
finalised the terms of the Concession Agreement with Constanta Municipality
earlier in the year, granting us concession rights over a historic building in
the seaside resort of Romania's second largest city, we intend to start the
development of this site later this year. We intend to renovate and operate the
building as 'Casino Constanta', a comprehensive leisure venue in its own right,
with restaurants, boutique hotels and other entertainment facilities. The
Agreement with Constanta Municipality lasts for an initial period of 49 years,
but grants QLI the option to extend the terms for a further 24 years, subject to
the consent of both the Company and Constanta Municipality. Under the terms of
the Agreement, QLI will invest approximately €15 million and pay gross annual
royalties of €140,000 to Constanta Municipality. The building covers an area of
801m(2) and is located on Constanta's beachfront. It was built in 1909, and
declared a national architectural treasure in 1956. QLI plans to open Casino
Constanta in the second half of 2009, which will operate approximately 24 gaming
tables and 250 slot machines.
We also expect to see the development plans of our intended new project in
Sihanoukville, Cambodia later this year. The casino will be located in order to
benefit from customers in Thailand and Vietnam, neither of which currently
permits gambling. We believe that QLI can take advantage of the demand for
gambling from these countries, and the number of low-quality casinos that have
been established on the Cambodian borders. The Company was originally contracted
to acquire a 48 hectare plot of land in Sihanoukville, a coastal area of
south-west Cambodia. Since the year end, the Company has purchased an additional
9 hectares of land in an ideal location, situated along the picturesque
beachfront in Sihanoukville, an area which has over the last 12 months seen a
substantial increase in property prices following the announcement of plans by
the Cambodian Government to expand the local airport to cater for international
flights.
We continue to make progress in our developments at our Sofia and Varna projects
in Bulgaria as well, and look forward to updating you on their progress in the
near future as well.
Outlook
Current trading in the first quarter has started positively in Casino Palace and
Loutraki, and we anticipate that Casino Rodos will again benefit from this
year's tourist season. We will continue with our strategy of continual
improvement in our existing casinos and targeted marketing programmes, which
coupled with the completion of a number of new projects over the next two years,
we believe will significantly change the scale of the business.
QLI has a robust business model, and we remain positive that we can benefit from
the resilient nature of a growing worldwide gaming sector, which we anticipate
will continue to enhance our own revenues into 2008 from which we aim to deliver
significant shareholder value.
Dror Mizeretz
CEO, Queenco Leisure International Ltd
19 March 2008
QUEENCO LEISURE INTERNATIONAL LTD
Consolidated statements of income
(In thousands of €)
Notes Year ended 31 December
___________________________________
2 0 0 7* 2 0 0 6* 2 0 0 5*
___________ __________ __________
Revenues 4 142,895 119,858 103,328
Operating costs
Cost of revenues 5 (56,838) (48,874) (44,016)
Selling and marketing expenses 6 (14,942) (11,353) (10,252)
General and administrative expenses 7 (18,008) (16,258) (15,614)
Other operating expenses 8 (492) (861) (1,267)
Share of results of associates 16 (1,351) 86 (5)
___________ __________ __________
Operating profit 51,264 42,598 32,174
Investment income 9 4,933 1,188 1,247
Finance costs 10 (3,195) (2,476) (1,451)
Foreign exchange gain (loss) (61) (110) 609
___________ __________ __________
Profit before tax 52,941 41,200 32,579
Tax 11 (15,407) (14,761) (11,313)
___________ __________ __________
Profit for the year 37,534 26,439 21,266
=========== ========== ==========
Attributable to:
Equity holders of the parent 25,138 17,241 13,154
Minority interests 12,396 9,198 8,112
___________ __________ __________
37,534 26,439 21,266
=========== ========== ==========
Earnings per share
Basic pro forma (c)** 13 7.6 5.5 4.2
=========== ========== ==========
Diluted pro forma (c)** 13 7.5 5.5 4.2
=========== ========== ==========
Basic (c) 13 7.6 9.1 21.0
=========== ========== ==========
Diluted (c) 13 7.5 9.1 21.0
=========== ========== ==========
* The 2007, 2006 and 2005 amounts reflect the 12 months operations for the Group
for each year as if the restructuring described in Note 1 had occurred at the
beginning of the reporting period starting 1 January 2005.
** Pro forma earnings per share have been calculated as if the equity issue
described in Note 1 and in Note 27 had been performed on 1 January 2005
Consolidated Balance sheets
(In thousands of €)
Notes As at 31 December
_____________________
2 0 0 7* 2 0 0 6*
__________ __________
Non-current assets
Intangible assets 14 13,746 5,290
Property, plant and equipment 15 92,672 85,589
Investment property 33 7,652 7,500
Interests in associates 16 13,019 212
Deferred tax asset 17 2,465 2,220
Other long term receivables 18 12,178 9,099
__________ __________
Total non-current assets 141,732 109,910
__________ __________
Current assets
Inventories 19 782 574
Investments 20 8,894 863
Trade and other receivables 21 3,985 2,921
Cash and cash equivalents 22 76,011 35,239
__________ __________
Total current assets 89,672 39,597
__________ __________
Total assets 231,404 149,507
__________ __________
Current liabilities
Accounts payable (5,587) (3,642)
Current tax liabilities (11,314) (10,224)
Other current liabilities 23 (25,974) (37,376)
Bank overdraft and loans 24 (12,591) (11,984)
__________ __________
Total current liabilities (55,466) (63,226)
__________ __________
Net current assets (liabilities) 34,206 (23,629)
__________ __________
Total assets less current liabilities 175,938 86,281
__________ __________
Non-current liabilities
Long-term bank loans 24 (10,259) (21,910)
Other long-term liabilities 25 (11,003) (2,319)
Deferred tax 17 (3,471) (1,034)
Provision for retirement benefits 26 (4,835) (3,990)
__________ __________
Total non-current liabilities (29,568) (29,253)
__________ __________
Net assets 146,370 57,028
========== ==========
Shareholders' equity
Share capital 27 62,512 44,173
Share premium 130,998 84,827
Translation reserve 1,828 2,478
Accumulated Deficit 28 (80,009) (86,049)
__________ __________
Equity attributable to equity holders of the parent 115,329 45,429
Minority interest 31,041 11,599
__________ __________
Total Equity 146,370 57,028
========== ==========
* The 2007 and 2006 amounts reflect the balance sheets of the Group for 31
December of each year as if the reorganisation described in Note 1 had occurred
at the beginning of the reporting period starting 1 January 2005.
The financial statements were approved by the board of directors and authorised
for issue on 18 March 2008. They were signed on its behalf by:
Dror Mizeretz Effy Aboudy
Chief Executive Officer Chief Financial Officer
18 March 2008
Consolidated statements of changes in equity
(In thousands of €)
Minority Total
Interest Equity
Notes Share Share Translation Accumulated
Capital Premium reserve deficit Parent
_______________________________________________________________________________________________________________________
Balance as at 1 January 2005 - - 7,615 (116,444) (108,829) 8,707 (100,122)
Translation differences (10,862) (10,862) (645) (11,507)
Dividend (3,399) (3,399)
Profit share due to the
municipality of Loutraki 12 (3,364) (3,364)
Profit for the year 13,154 13,154 8,112 21,266
_______________________________________________________________________________________________________________________
Balance as at 31 December
2005 - - (3,247) (103,290) (106,537) 9,411 (97,126)
_______________________________________________________________________________________________________________________
Capital issue 44,173 84,827 129,000 129,000
Translation differences 5,725 5,725 222 5,947
Dividend (3,871) (3,871)
Profit share due to the
municipality of Loutraki 12 (3,361) (3,361)
Profit for the year 17,241 17,241 9,198 26,439
_______________________________________________________________________________________________________________________
Balance as at 31 December
2006 44,173 84,827 2,478 (86,049) 45,429 11,599 57,028
=======================================================================================================================
Minority Total
Interest Equity
Notes Share Share Translation Accumulated
Capital Premium reserve deficit Parent
_______________________________________________________________________________________________________________________
Balance as at 1 January 2007 44,173 84,827 2,478 (86,049) 45,429 11,599 57,028
=================================================================================
Translation differences (650) - (650) (16) (666)
Costs relating to the
Romanian transaction
under common control - - - (136) (136) - (136)
Capital issue 7,175 46,171 - - 53,346 - 53,346
Expense resulting from
grant of share options - - - 954 954 - 954
Issuance of shares in
relation to the Romanian
transaction under common
control 11,164 - - (11,164) - - -
Conversion of capital
notes to equity * - - - - - 9,816 9,816
Purchase of minority
interest - - - - - 5,468 5,468
Dividend ** - - - (8,752) (8,752) (3,553) (12,305)
Profit share due to the
municipality of Loutraki 12 - - - - - (4,669) (4,669)
Profit for the year - - - 25,138 25,138 12,396 37,534
_______________________________________________________________________________________________________________________
Balance as at 31 December
2007 62,512 130,998 1,828 (80,009) 115,329 31,041 146,370
=======================================================================================================================
* capital notes held with Milimor and Shachar Hamillenium (parent companies)
** representing 4 c per share
Consolidated cash flow statements
(In thousands of €)
Notes Year ended 31 December
________________________________
2 0 0 7* 2 0 0 6* 2 0 0 5*
__________ __________ __________
Net cash from operating activities 29 46,280 35,941 30,999
Investing activities
Interest received 4,801 478 577
Dividends received from trading
investments - - 39
Purchases of property, plant and
equipment (9,983) (9,972) (8,001)
Purchase of other intangibles (28) (27) (34)
Investment in an associate (9,754) (20) (220)
Proceeds on sale of marketable security - 2,465 -
Money on deposit - (715) -
Purchases of trading investments (7,923) (147) -
Instalments for the acquisition of a
subsidiary (714) (714) (714)
Loan to associate (7,585) (60) (3,900)
Purchase of additional interest in
joint venture entity (2,153) - -
Investment in a subsidiary net of cash
acquired 15 - (7,500) 104
__________ __________ __________
Net cash used in investing activities (33,339) (16,212) (12,149)
__________ __________ __________
Financing activities
Dividends paid to minority shareholders (3,402) (3,776) (3,313)
Dividends (8,752) - -
Repayments of long term receivables - - 484
Repayments of borrowings (11,730) (13,325) (5,000)
Receipt / (repayment) of other long
term liabilities 3,285 (4,266) (265)
Issue of shares, net of expenses 53,346 - -
Repayments of capital notes - (246) (5,609)
Repayments of obligations under finance
leases - - (18)
Share of profits paid to Municipality
of Loutraki (4,361) (2,911) (3,578)
Increase (decrease) in bank overdrafts (250) 245 (1,215)
__________ __________ __________
Net cash provided by (used in)
financing activities 28,136 (24,279) (18,514)
__________ __________ __________
Net increase (decrease) in cash and
cash equivalents 41,077 (4,550) 336
Effect of foreign exchange rate changes (305) 590 (581)
Cash and cash equivalents at beginning
of year 22 35,239 39,199 39,444
__________ __________ __________
Cash and cash equivalents at end of
year 76,011 35,239 39,199
========== ========== ==========
Tax cash flow (14,717) (11,891) (11,965)
========== ========== ==========
Interest paid (1,208) (4,074) (1,105)
========== ========== ==========
The 2007, 2006 and 2005 amounts reflect the 12 months operations for the Group
for each year as if the reorganisation described in Note 1 had occurred at the
beginning of the reporting period starting 1 January 2005.
NOTE 29 - NOTES TO THE CASH FLOW STATEMENTS
2 0 0 7 2 0 0 6 2 0 0 5
__________ __________ __________
Profit before tax 52,941 41,200 32,579
Adjustments for:
Depreciation of property, plant and equipment 8,315 7,822 8,044
Impairment - 755 -
Increase in provisions 670 114 1,036
Amortisation of intangible assets 1,219 1,116 1,217
Investment income (4,933) (1,188) (1,247)
Finance costs 3,195 2,476 1,451
Foreign exchange gain (loss) 61 110 (609)
Profit from negative goodwill (1,445) - -
Share of results of associates 1,351 (86) 5
Expense relating of grant of share options 954 - -
__________ __________ __________
62,328 52,319 42,476
Operating cash flows before movements in working
capital
Increase in inventories (196) (201) 5
Decrease/(increase) in receivables (399) 126 (968)
Increase/(decrease) in payables 472 (338) 2,556
__________ __________ __________
Cash generated by operations 62,205 51,906 44,069
Income taxes paid (14,717) (11,891) (11,965)
Interest paid (1,208) (4,074) (1,105)
__________ __________ __________
Net cash from operating activities 46,280 35,941 30,999
========== ========== ==========
Increase in interest in proportionally consolidated entity
2 0 0 7 2 0 0 6 2 0 0 5
__________ __________ __________
Consideration paid 3,500 - -
Less: cash received (1,347) - -
__________ __________ __________
Investment in subsidiary 2,153 - -
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