TIDMHLS
RNS Number : 9099Z
Helesi PLC
30 September 2009
30 September 2009
Helesi PLC
("Helesi" or "the Group")
Interim results for the six months to 30 June 2009
Helesi PLC (AIM: HLS), the Greece, Italy and UK based waste management products
manufacturer and services supplier announces interim results for the six months
to 30 June 2009.
Highlights
* Group revenues increased by 18.9% to EUR39.2 million (2008: EUR33.0 million)
* Profit before tax down 20.1% to EUR3.01 million (2008: EUR3.77 million) due to
increase in finance costs
* Placing of new ordinary shares completed, raising EUR4.42 million in new capital
* New facilities in Italy and Greece commenced production
* Collection of EUR4 million from outstanding government and EU grants
* Net debt peaked at EUR71 million reflecting further outstanding grants, and
increases in receivables and inventories
Commenting on the results, Sakis Andrianopoulos, Chief Executive of Helesi,
said, "Helesi now has a manufacturing infrastructure that will accommodate
expansion in existing, and into new territories, for the foreseeable future. The
Group is also now able to offer a full suite of environmental products and
services to its markets as a result of the services and vehicles acquisitions of
the last two years. The Board believes we are ready to take maximum advantage of
a return to longer term growth levels in our markets."
For further information please visit www.helesi.com or contact:
+---------------------------------------------------+--------------------------+
| Helesi PLC | +30 (0) 210 60 47 971 |
+---------------------------------------------------+--------------------------+
| Sakis Andrianopoulos, Chief Executive | |
+---------------------------------------------------+--------------------------+
| Apostolos Binomakis, Finance Director | binomakis@helesi.com |
+---------------------------------------------------+--------------------------+
| Panmure Gordon (Nomad and broker) | +44 (0) 20 7459 3600 |
+---------------------------------------------------+--------------------------+
| Andrew Godber | |
+---------------------------------------------------+--------------------------+
| Ashton Clanfield | |
+---------------------------------------------------+--------------------------+
| Tavistock Communications | + 44 (0) 20 7920 3150 |
+---------------------------------------------------+--------------------------+
| Simon Hudson | shudson@tavistock.co.uk |
+---------------------------------------------------+--------------------------+
| Gemma Bradley | gbradley@tavistock.co.uk |
+---------------------------------------------------+--------------------------+
Chairman and Chief Executive's Review
Introduction
We announced at the end of June the appointment of Dimitri Goulandris as
Non-Executive Chairman of Helesi, replacing Sakis Andrianopoulos who, in
addition to his Chief Executive role, had also been acting as Interim Chairman
since the untimely death of Roger Parsons last year. Dimitri's strong
international investment experience will be a significant asset to Helesi. As
Dimitri has only been on the Board for a short time, we have again combined the
Chairman's statement with the Chief Executive's Review.
Financial Performance
The first half of 2009 has been a difficult period for many companies as the
recession in world markets took hold and we are therefore pleased to report that
Helesi has performed better than many of its peers and continues to look forward
with optimism.
Revenues in the six months to 30 June 2009 increased by 18.9% to EUR39.2 million
(2008: EUR33.0 million), with all of the increase representing organic growth. The
gross margin fell slightly in the first half but was still a creditable 42.4%,
compared to 46.6% in the same period of 2008.
Despite a 24% increase in employee numbers compared to the comparative period as
new manufacturing facilities in Italy and Greece commenced production, a
continued strong focus on costs meant that operating expenses increased by only
5.5% to EUR9.8 million (2008: EUR9.3 million), with earnings before interest, tax,
depreciation and amortisation ("EBITDA") increasing by 14.3% to EUR7.0 million
(2008: EUR6.2 million). However, with finance costs almost doubling to EUR2.38
million (2008: EUR1.28 million), pre-tax profits fell by 20.1% to EUR3.01 million
(2008: EUR3.77 million). Earnings per share were EUR0.08 (2008: EUR0.09).
A strong focus for the Company has been (and continues to be) on cash
management: deleveraging the Group and decreasing working capital requirements.
Collection of the outstanding government and EU grants due to the Company was
EUR4.0 million in the first half and monies still due at 30 June 2009 was EUR16.5
million.
As a result of the economic downturn, receivables increased significantly by 58%
to EUR56.1 million as the time debtors take to pay lengthened to 200 days against
a normalised 120 days. Inventories increased by 9% to EUR14.5 million (2008: EUR13.3
million) reflecting the purchase of equipment ahead of the commencement of a
major contract to supply the Municipality of Athens with specialised waste
collection vehicles.
As previously reported to shareholders, a placing of new ordinary shares was
completed in June at EUR0.64 per share, raising a total of EUR4.42 million in new
capital which is being used to strengthen the balance sheet and provide
additional working capital. The full benefit of these funds will start to be
seen in the second half of 2009.
Reflecting the outstanding grants and increases in receivables and inventories,
net debt at the period end was higher than expected at EUR71 million (2008: EUR55
million), up slightly on the year end figure of EUR67 million. 41%, or EUR29
million, of the borrowings is long term. The blended average rate for our
borrowings during the period was approximately 4% and finance costs of EUR2.38
million were covered 2.9 times by EBITDA (2008: blended rate of 6% and finance
costs of EUR1.28 million covered 4.8 times by EBITDA.
Dividend
Dividends will resume again once the operating cashflow of the Company improves
through the receipt of owed grants and normalizing debtor days.
Operations
In plastic products, despite volume growth, revenues decreased due to price
deflation caused by the sharp falls year-on-year in oil and HDPE prices which
were passed on to customers. Sales of pallet boxes from the new plant in Italy
commenced in April and are on target to meet our projections. Utilisation levels
in the new and expanded facilities in Italy and Komotini, northern Greece both
stood at 50%, providing headroom for expected growth in the future. As a result
of the available capacity, Helesi has temporarily ceased production in the UK
and will satisfy UK demand from unutilized Greek capacity with a consequent
benefit to overhead levels. The UK site will continue to operate as an assembly
and distribution center for the UK and Irish markets.
In Services, overall revenues declined year-on-year reflecting principally the
one-off contribution from the construction phase of the Cyprus joint-venture
last year. 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 Group is
presently negotiating the level of compensation that will be finally paid with
the appropriate authorities.
In the vehicles business, the focus has been on fulfilling the major contract
from the Municipality of Athens which will make a significant contribution in
terms of revenues during the period. The delivery of the specialist waste
vehicles and ancillary related equipment is scheduled for the second half of
2009, with the first deliveries currently taking place..
Board
In June, we announced the appointment of Dimitri Goulandris as non-executive
Chairman in succession to Sakis Andrianopoulos who had taken on the role on an
interim basis after the death of Roger Parsons. Dimitri is Managing Partner of
Cycladic Capital LLP, which he set up in November 2002 to focus on making public
and private investments in small and medium sized companies predominantly in
Europe. Previously, Dimitri set up and ran the European operations of the
private equity firm Whitney & Company and spent eight years at Morgan Stanley in
the private equity group, structuring derivative products and executing mergers
and acquisitions both in New York and in London. Dimitri has an MBA from
Harvard Business School and a Masters in Electrical and Information Sciences
from Cambridge University.
At the AGM in July, Frithjof Stoud Platou retired as a non-executive director.
Mr Platou had been a director of Helesi since its IPO and his advice, based on
long experience of commerce and finance will be missed. The Board wishes him a
very happy retirement.
Outlook
Helesi remains on track to grow its businesses for the year as a whole. This
growth will however be slower than previously anticipated due to the effects of
the recession on input plastic prices - causing selling prices to fall - and
budgetary constraints on local municipalities slowing expansion of Waste
Services. The Group's performance in the current very difficult economic
environment represents a very creditable achievement and thanks are due to all
the Group's management and staff for their hard work.
The principal focus for the remainder of the year is on cash collection and
management. In parallel, the Group will also focus on progressing its plans to
reduce net debt. With the EUR87 million investment programme complete, Helesi now
has a manufacturing infrastructure that will accommodate expansion in existing,
and into new territories, for the foreseeable future. The Group is also now able
to offer a full suite of environmental products and services to its markets as a
result of the services and vehicles acquisitions of the last two years. The
Board believes we are ready to take maximum advantage of a return to longer term
growth levels in our markets.
Dimitri Goulandris
Non-Executive Chairman
Sakis Andrianopoulos
Chief Executive Officer
29 September 2009
Statement of comprehensive income
for the six months to 30 June 2009
+---------------------------------+-------+-----------+----------+----------+
| |Notes | First | First | Year |
| | | half of | half of | |
+---------------------------------+-------+-----------+----------+----------+
| | | 2009 | 2008 | 2008 |
+---------------------------------+-------+-----------+----------+----------+
| | | EUR'000 | EUR'000 | EUR'000 |
+---------------------------------+-------+-----------+----------+----------+
| Sales revenue | 5 | 39,217 | 32,989 | 65,803 |
+---------------------------------+-------+-----------+----------+----------+
| Other revenue | | 737 | 459 | 1,061 |
+---------------------------------+-------+-----------+----------+----------+
| | | 39,954 | 33,448 | 66,864 |
+---------------------------------+-------+-----------+----------+----------+
| Changes in inventories of | | 1,337 | 12 | (521) |
| finished goods | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Cost of materials used | | (24,353) | (17,853) | (34,089) |
+---------------------------------+-------+-----------+----------+----------+
| Personnel-related costs | 6 | (3,980) | (2,753) | (6,552) |
+---------------------------------+-------+-----------+----------+----------+
| Depreciation and amortisation | | (1,646) | (1,115) | (2,374) |
| charges | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Other operating expenses | | (5,920) | (6,698) | (12,846) |
+---------------------------------+-------+-----------+----------+----------+
| Operating profit | | 5,392 | 5,041 | 10,482 |
+---------------------------------+-------+-----------+----------+----------+
| Finance income/ (costs) | | (2,384) | (1,276) | (3,200) |
+---------------------------------+-------+-----------+----------+----------+
| Profit before tax | | 3,008 | 3,765 | 7,282 |
+---------------------------------+-------+-----------+----------+----------+
| Income tax expense | 7 | (424) | (697) | (673) |
+---------------------------------+-------+-----------+----------+----------+
| Profit for the period | | 2,584 | 3,068 | 6,609 |
+---------------------------------+-------+-----------+----------+----------+
| Other comprehensive income | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Exchange differences on | | 709 | (494) | (860) |
| translation | | | | |
| of foreign operations | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Total comprehensive income | | 3,293 | 2,574 | 5,749 |
| for the period, net of tax | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Attributable to : | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Owners of the parent | | 3,293 | 2,574 | 5,749 |
+---------------------------------+-------+-----------+----------+----------+
| | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Basic earnings per share (in | 10 | 0.075 | 0.09 | 0.20 |
| Euro) | | | | |
+---------------------------------+-------+-----------+----------+----------+
| Diluted earnings per share (in | 10 | 0.075 | 0.09 | 0.20 |
| Euro) | | | | |
+---------------------------------+-------+-----------+----------+----------+
Statement of financial position
at 30 June 2009
+---------------------------------+-------+----------+----------+------------+
| |Notes | 30 | 30 June | 31 |
| | | June | | December |
+---------------------------------+-------+----------+----------+------------+
| | | 2009 | 2008 | 2008 |
+---------------------------------+-------+----------+----------+------------+
| | | EUR'000 | EUR'000 | EUR'000 |
+---------------------------------+-------+----------+----------+------------+
| Property, plant and equipment | 8 | 74,879 | 82,852 | 67,674 |
+---------------------------------+-------+----------+----------+------------+
| Intangible assets | | 1,347 | 665 | 833 |
+---------------------------------+-------+----------+----------+------------+
| Goodwill | | 12,559 | 12,559 | 12,559 |
+---------------------------------+-------+----------+----------+------------+
| Other non-current assets | | 86 | 50 | 76 |
+---------------------------------+-------+----------+----------+------------+
| Non-current assets | | 88,871 | 96,126 | 81,142 |
+---------------------------------+-------+----------+----------+------------+
| Inventories | | 14,473 | 13,329 | 18,680 |
+---------------------------------+-------+----------+----------+------------+
| Trade and other receivables | | 56,149 | 35,493 | 58,271 |
+---------------------------------+-------+----------+----------+------------+
| Cash and cash equivalents | | 4,267 | 2,094 | 2,360 |
+---------------------------------+-------+----------+----------+------------+
| Current assets | | 74,889 | 50,916 | 79,311 |
+---------------------------------+-------+----------+----------+------------+
| Total assets | | 163,760 | 147,042 | 160,453 |
+---------------------------------+-------+----------+----------+------------+
| Trade and other payables | | (29,893) | (43,234) | (39,193) |
+---------------------------------+-------+----------+----------+------------+
| Income tax payable | | (500) | (261) | (423) |
+---------------------------------+-------+----------+----------+------------+
| Short term borrowings | 9 | (46,007) | (41,483) | (42,424) |
+---------------------------------+-------+----------+----------+------------+
| Current liabilities | | (76,400) | (84,978) | (82,040) |
+---------------------------------+-------+----------+----------+------------+
| Long term borrowings | 9 | (29,041) | (16,038) | (26,778) |
+---------------------------------+-------+----------+----------+------------+
| Long term liabilities due to | | (1,700) | - | (3,000) |
| related parties | | | | |
+---------------------------------+-------+----------+----------+------------+
| Employee benefit liability | | (71) | (83) | (84) |
+---------------------------------+-------+----------+----------+------------+
| Deferred tax liabilitiy | | (1,990) | (1,779) | (1,706) |
+---------------------------------+-------+----------+----------+------------+
| Non current liabilities | | (32,802) | (17,900) | (31,568) |
+---------------------------------+-------+----------+----------+------------+
| Net assets | | 54,558 | 44,164 | 46,845 |
+---------------------------------+-------+----------+----------+------------+
| Share capital | | 3,981 | 3,278 | 3,278 |
+---------------------------------+-------+----------+----------+------------+
| Share premium | | 33,668 | 29,950 | 29,950 |
+---------------------------------+-------+----------+----------+------------+
| Capital reserves | | 8,903 | 6,202 | 8,903 |
+---------------------------------+-------+----------+----------+------------+
| Currency translation | | (952) | (801) | (1,661) |
| adjustments | | | | |
+---------------------------------+-------+----------+----------+------------+
| Retained earnings | | 8,958 | 5,535 | 6,375 |
+---------------------------------+-------+----------+----------+------------+
| Total equity | | 54,558 | 44,164 | 46,845 |
+---------------------------------+-------+----------+----------+------------+
Statement of changes in shareholders' equity
for the six months to 30 June 2009
+------------------------+---------+---------+----------+-------------+----------+--------+
| | Share | Share | Capital | Currency | Retained | Total |
| | capital | premium | reserves | translation | earnings | |
| | | | | adjustments | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| | | | | | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| As at 1 January 2008 | 3,278 | 29,950 | 6,202 | (307) | 2,861 | 41,984 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Profit for the period | - | - | - | - | 3,068 | 3,068 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Currency translation | - | - | - | (494) | - | (494) |
| adjustments | | | | | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Transfer to reserves | - | - | 920 | - | (920) | - |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Dividends paid | - | - | - | - | (394) | (394) |
+------------------------+---------+---------+----------+-------------+----------+--------+
| As at 30 June 2008 | 3,278 | 29,950 | 7,122 | (801) | 4,615 | 44,164 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Profit for the period | - | - | - | - | 3,541 | 3,541 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Currency translation | - | - | - | (860) | | (860) |
| adjustments | | | | | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Transfer to capital | | | 1,781 | - | (1,781) | - |
| reserves | | | | | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| As at 1 January 2009 | 3,278 | 29,950 | 8,903 | (1,661) | 6,375 | 46,845 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Profit for the period | - | - | - | - | 2,584 | 2,584 |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Currency translation | - | - | - | 709 | - | 709 |
| adjustments | | | | | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Proceeds from shares | 703 | 3,797 | - | - | - | 4,500 |
| issued | | | | | | |
+------------------------+---------+---------+----------+-------------+----------+--------+
| Capital increase cost | - | (79) | - | - | - | (79) |
+------------------------+---------+---------+----------+-------------+----------+--------+
| As at 30 June 2009 | 3,981 | 33,668 | 8,903 | (952) | 8,958 | 54,558 |
+------------------------+---------+---------+----------+-------------+----------+--------+
Statement of cash flows
for the six months to 30 June 2009
+------------------------------------------+------------+----------+----------+
| | First half | First | Year |
| | of | half of | |
+------------------------------------------+------------+----------+----------+
| | 2009 | 2008 | 2008 |
+------------------------------------------+------------+----------+----------+
| | EUR'000 | EUR'000 | EUR'000 |
+------------------------------------------+------------+----------+----------+
| Operating activities | | | |
+------------------------------------------+------------+----------+----------+
| Profit before tax | 3,008 | 3,765 | 7,282 |
+------------------------------------------+------------+----------+----------+
| Adjustments in respect of non-cash | | | |
| transactions: | | | |
+------------------------------------------+------------+----------+----------+
| Depreciation, amortisation and profit ?n | 1,541 | 1,138 | 2,370 |
| disposals | | | |
+------------------------------------------+------------+----------+----------+
| Finance cost, net | 2,384 | 1,441 | 4,230 |
+------------------------------------------+------------+----------+----------+
| Employee benefits | (14) | 26 | - |
+------------------------------------------+------------+----------+----------+
| Other adjustments | 469 | (110) | (403) |
+------------------------------------------+------------+----------+----------+
| | 7,388 | 6,260 | 13,479 |
+------------------------------------------+------------+----------+----------+
| (Increase)/ decrese in inventories | 4,206 | (1,485) | (6,539) |
+------------------------------------------+------------+----------+----------+
| (Increase)/ decrese in receivables | (1,191) | (3,901) | (8,291) |
+------------------------------------------+------------+----------+----------+
| Increase /(decrease) in payables | (8,746) | 5 | 12,123 |
+------------------------------------------+------------+----------+----------+
| | 1,657 | 879 | 10,772 |
+------------------------------------------+------------+----------+----------+
| Interest paid | (2,386) | (1,464) | (3,369) |
+------------------------------------------+------------+----------+----------+
| Income tax paid | (62) | (283) | (399) |
+------------------------------------------+------------+----------+----------+
| Net operating cash inflows (outflows) | (791) | (868) | 7,004 |
+------------------------------------------+------------+----------+----------+
| Cash flows related to investing | | | |
| activities | | | |
+------------------------------------------+------------+----------+----------+
| Purchase of property plant and equipment | (11,682) | (20,148) | (44,734) |
+------------------------------------------+------------+----------+----------+
| Proceeds from sale of property plant and | 228 | 22 | 130 |
| equipment | | | |
+------------------------------------------+------------+----------+----------+
| Investment grants received | 3,884 | - | 5,663 |
+------------------------------------------+------------+----------+----------+
| Purchase of intangible assets | (50) | (380) | (575) |
+------------------------------------------+------------+----------+----------+
| Interest received | 2 | - | 169 |
+------------------------------------------+------------+----------+----------+
| Acquisition of shares in subsidiary | - | (600) | (757) |
+------------------------------------------+------------+----------+----------+
| Net investment cash inflows (outflows) | (7,618) | (21,106) | (40,104) |
+------------------------------------------+------------+----------+----------+
| Cash flows related to financing | | | |
| activities | | | |
+------------------------------------------+------------+----------+----------+
| Loan repaid by Helesi AE | - | - | - |
+------------------------------------------+------------+----------+----------+
| Issuance of new shares | 4,421 | - | - |
+------------------------------------------+------------+----------+----------+
| Dividends paid | | (393) | (394) |
+------------------------------------------+------------+----------+----------+
| Loans contracted (repaid) | 5,845 | 14,135 | 25,860 |
+------------------------------------------+------------+----------+----------+
| Finance lease payments | - | (65) | (96) |
+------------------------------------------+------------+----------+----------+
| Net financing cash inflows (outflows) | 10,266 | 13,677 | 25,370 |
+------------------------------------------+------------+----------+----------+
| Net decrese /increase in cash and cash | 1,857 | (8,297) | (7,730) |
| equivalents | | | |
+------------------------------------------+------------+----------+----------+
| Cash and cash equivalents, at the | 2,360 | 10,396 | 10,396 |
| beginning | | | |
| of the period | | | |
+------------------------------------------+------------+----------+----------+
| Effect of currency translation | 50 | (5) | (306) |
| adjustments | | | |
+------------------------------------------+------------+----------+----------+
| Cash and cash equivalents, at the end | 4,267 | 2,094 | 2,360 |
| of the period | | | |
+------------------------------------------+------------+----------+----------+
Notes
1. Accounting policies
The 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 2008 and the six months ended 30 June 2009.
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. New activities
Early in 2009 Helesi commenced the waste management of the Western Macedonia
area under a profit sharing agreement with Mesogios AE, in which Mesogios AE is
entitled to a share of 40% of the profits generated. The Group is in full
control of the operations and is responsible for its financing and accordingly
has recognised all revenues and related costs in the Consolidated Financial
Statements. The project's contribution to sales in the period amounted to
EUR659,000 and the Group's share of net profit before tax amounted to EUR15,600.
Mesogios A.E earned an amount of EUR11,000 which has been recognised in other
operating expenses.
Additionally from April 2009 the factory in Italy commenced its operations.
3. Capital structure
By the decision of the General Shareholders Meeting, dated 7 April 2009 and the
Extraordinary General Shareholders Meeting dated 22 June 2009 the share capital
of the Company PLC increased by Euro 703,125 through the issuance of 7,031,250
new ordinary shares at a price of 0.64 Euro per share. The total of both
increases contributed by the company TECMEC S.A..
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.
4. 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.
5. 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 2009 |
+--------------------------------------+------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+--------------------------------------+---------------+---------------+----------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------+---------------+---------------+----------+
| Third-party sales | 35,543 | 3,674 | 39,217 |
+--------------------------------------+---------------+---------------+----------+
| Other third-party revenues | 684 | 53 | 737 |
+--------------------------------------+---------------+---------------+----------+
| Total revenues | 36,227 | 3,727 | 39,954 |
+--------------------------------------+---------------+---------------+----------+
| Cost of materials and accessories | (23,016) | - | (23,016) |
| used | | | |
+--------------------------------------+---------------+---------------+----------+
| Personnel-related costs | (2,397) | (1,583) | (3,980) |
+--------------------------------------+---------------+---------------+----------+
| Depreciation and amortisation | (1,456) | (190) | (1,646) |
+--------------------------------------+---------------+---------------+----------+
| Third-party costs and expenses | (4,446) | (1,474) | (5,920) |
+--------------------------------------+---------------+---------------+----------+
| Intersegment expenses | 102 | 102 | - |
+--------------------------------------+---------------+---------------+----------+
| Segmental profit, before finance | 5,014 | 582 | 5,392 |
| charges | | | |
+--------------------------------------+---------------+---------------+----------+
+--------------------------------------+---------------+---------------+----------+
| | First half of 2008 |
+--------------------------------------+------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+--------------------------------------+---------------+---------------+----------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------+---------------+---------------+----------+
| Third-party sales | 27,779 | 5,210 | 32,989 |
+--------------------------------------+---------------+---------------+----------+
| Other third-party revenues | 459 | - | 459 |
+--------------------------------------+---------------+---------------+----------+
| Total revenues | 28,238 | 5,210 | 33,448 |
+--------------------------------------+---------------+---------------+----------+
| Cost of materials and accessories | (17,841) | - | (17,841) |
| used | | | |
+--------------------------------------+---------------+---------------+----------+
| Personnel-related costs | (1,920) | (833) | (2,753) |
+--------------------------------------+---------------+---------------+----------+
| Depreciation and amortisation | (811) | (304) | (1,115) |
+--------------------------------------+---------------+---------------+----------+
| Third-party costs and expenses | (4,012) | (2,686) | (6,698) |
+--------------------------------------+---------------+---------------+----------+
| Intersegment expenses | 300 | (300) | - |
+--------------------------------------+---------------+---------------+----------+
| Segmental profit, before finance | 3,954 | 1,087 | 5,041 |
| charges | | | |
+--------------------------------------+---------------+---------------+----------+
+--------------------------------------+---------------+---------------+-----------+
| | 30 June 2009 |
+--------------------------------------+-------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+--------------------------------------+---------------+---------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------+---------------+---------------+-----------+
| Total Assets | 158,364 | 5,396 | 163,760 |
+--------------------------------------+---------------+---------------+-----------+
| Total Liabilities to third parties | (111,682) | 2,480 | (109,202) |
+--------------------------------------+---------------+---------------+-----------+
| Net Assets | 46,682 | 7,876 | 54,558 |
+--------------------------------------+---------------+---------------+-----------+
| | | | |
+--------------------------------------+---------------+---------------+-----------+
| | 30 June 2008 |
+--------------------------------------+-------------------------------------------+
| | Environmental | Environmental | Group |
| | products | services | |
+--------------------------------------+---------------+---------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------+---------------+---------------+-----------+
| Total Assets | 134,126 | 12,916 | 147,042 |
+--------------------------------------+---------------+---------------+-----------+
| Total Liabilities to third parties | (108,407) | 5,529 | (102,878) |
+--------------------------------------+---------------+---------------+-----------+
| Net Assets | 25,719 | 18,445 | 44,164 |
+--------------------------------------+---------------+---------------+-----------+
The Helesi PLC Group operates three production units - one in Greece, one in
the United Kingdom and one in Italy, under the corporate umbrellas of Helesi AE,
Helesi UK Ltd and Helesi Italia srl, respectively. The financial results and the
financial position of these three operations are set out below.
+--------------------------------------+----------+---------+--------------+----------+
| | Year 2008 |
+--------------------------------------+----------------------------------------------+
| | Greece | UK | Elimination | Group |
| | | | of | |
| | | | intersegment | |
| | | | transactions | |
+--------------------------------------+----------+---------+--------------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------+----------+---------+--------------+----------+
| Third-party sales | 58,512 | 7,291 | - | 65,803 |
+--------------------------------------+----------+---------+--------------+----------+
| Intersegment sales | 4,323 | 907 | (5,230) | 0 |
+--------------------------------------+----------+---------+--------------+----------+
| Total sales | 62,835 | 8,198 | (5,230) | 65,803 |
+--------------------------------------+----------+---------+--------------+----------+
| Other third-party revenues | 1,061 | - | - | 1,061 |
+--------------------------------------+----------+---------+--------------+----------+
| Total revenues | 63,896 | 8,198 | (5,230) | 66,864 |
+--------------------------------------+----------+---------+--------------+----------+
| Cost of materials and accessories | (29,070) | (5,540) | 0 | (34,610) |
| used | | | | |
+--------------------------------------+----------+---------+--------------+----------+
| Cost of intersegment use of | (3,889) | (816) | 4,705 | 0 |
| materials | | | | |
+--------------------------------------+----------+---------+--------------+----------+
| Personnel-related costs | (5,783) | (464) | - | (6,247) |
+--------------------------------------+----------+---------+--------------+----------+
| Directors' fees | (305) | - | - | (305) |
+--------------------------------------+----------+---------+--------------+----------+
| Depreciation and amortisation | (2,257) | (117) | - | (2,374) |
| expense | | | | |
+--------------------------------------+----------+---------+--------------+----------+
| Other operating expenses | (11,532) | (1,314) | - | (12,846) |
+--------------------------------------+----------+---------+--------------+----------+
| Segmental profit / (loss) before | 11,060 | (53) | (525) | 10,482 |
| finance charges | | | | |
+--------------------------------------+----------+---------+--------------+----------+
| Cost of financing | (3,066) | (134) | - | (3,200) |
+--------------------------------------+----------+---------+--------------+----------+
| Segmental profit (loss), before | 7,994 | (187) | (525) | 7,282 |
| taxes | | | | |
+--------------------------------------+----------+---------+--------------+----------+
| Elimination of intersegmental | (434) | (91) | 525 | - |
| profits | | | | |
+--------------------------------------+----------+---------+--------------+----------+
| Profit (loss), before tax | 7,560 | (278) | - | 7,282 |
+--------------------------------------+----------+---------+--------------+----------+
| Income tax | (673) | - | - | (673) |
+--------------------------------------+----------+---------+--------------+----------+
| Net profit /(loss), after tax | 6,887 | (278) | - | 6,609 |
+--------------------------------------+----------+---------+--------------+----------+
+----------------------------+----------+---------+----------+--------------+-----------+
| | 30 June 2009 |
+----------------------------+----------------------------------------------------------+
| | Greece | UK | ?? | Elimination | Group |
| | | | | of | |
| | | | | intersegment | |
| | | | | balances | |
+----------------------------+----------+---------+----------+--------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+----------------------------+----------+---------+----------+--------------+-----------+
| Intersegment investments | 5,046 | - | - | (5,046) | - |
+----------------------------+----------+---------+----------+--------------+-----------+
| Intersegment | 14,624 | (6,816) | (7,808) | - | - |
| receivables/payables | | | | | |
+----------------------------+----------+---------+----------+--------------+-----------+
| Unrealised intersegment | - | 50 | - | (50) | - |
| profits | | | | | |
+----------------------------+----------+---------+----------+--------------+-----------+
| Total other assets | 148,635 | 6,560 | 8,565 | - | 163,760 |
+----------------------------+----------+---------+----------+--------------+-----------+
| Total liabilities to third | (98,065) | (758) | (10,379) | - | (109,202) |
| parties | | | | | |
+----------------------------+----------+---------+----------+--------------+-----------+
| Net assets | 70,240 | (964) | (9,622) | (5,096) | 54,558 |
+----------------------------+----------+---------+----------+--------------+-----------+
+-------------------------------------+-----------+---------+--------------+-----------+
| | 30 June 2008 |
+-------------------------------------+------------------------------------------------+
| | Greece | UK | Elimination | Group |
| | | | of | |
| | | | intersegment | |
| | | | balances | |
+-------------------------------------+-----------+---------+--------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+-------------------------------------+-----------+---------+--------------+-----------+
| Intersegment investments | 46 | - | (46) | - |
+-------------------------------------+-----------+---------+--------------+-----------+
| Intersegment receivables/payables | 6,255 | (6,255) | - | - |
+-------------------------------------+-----------+---------+--------------+-----------+
| Unrealised intersegment profits | - | 50 | (50) | - |
+-------------------------------------+-----------+---------+--------------+-----------+
| Total other assets | 140,710 | 6,332 | - | 147,042 |
+-------------------------------------+-----------+---------+--------------+-----------+
| Total liabilities to third parties | (102,123) | (755) | - | (102,878) |
+-------------------------------------+-----------+---------+--------------+-----------+
| Net assets | 44,888 | (628) | (96) | 44,164 |
+-------------------------------------+-----------+---------+--------------+-----------+
+-------------------------------------+-----------+---------+--------------+-----------+
| | 31 December 2008 |
+-------------------------------------+------------------------------------------------+
| | Greece | UK | Elimination | Group |
| | | | of | |
| | | | intersegment | |
| | | | balances | |
+-------------------------------------+-----------+---------+--------------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+-------------------------------------+-----------+---------+--------------+-----------+
| Intersegment investments | 46 | - | (46) | - |
+-------------------------------------+-----------+---------+--------------+-----------+
| Intersegment receivables/payables | 7,286 | (7,286) | - | - |
+-------------------------------------+-----------+---------+--------------+-----------+
| Unrealised intersegment profits | - | 50 | (50) | - |
+-------------------------------------+-----------+---------+--------------+-----------+
| Total other assets | 153,921 | 6,532 | - | 160,453 |
+-------------------------------------+-----------+---------+--------------+-----------+
| Total liabilities to third parties | (112,540) | (1,068) | - | (113,608) |
+-------------------------------------+-----------+---------+--------------+-----------+
| Net assets | 48,713 | (1,772) | (96) | 46,845 |
+-------------------------------------+-----------+---------+--------------+-----------+
The third-party sales and the value of the related trade receivables outstanding
at year-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:
+--------------------+---------+---------+--------+------------+----------+--------+
| | Greece | United | Italy | Other | Other | Group |
| | | Kingdom | | European | (non-EU) | |
| | | | | Union | states | |
| | | | | states | | |
+--------------------+---------+---------+--------+------------+----------+--------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------+---------+---------+--------+------------+----------+--------+
| First half of 2009 | | | | | | |
+--------------------+---------+---------+--------+------------+----------+--------+
| Value of sales | 23,730 | 4,541 | 3,298 | 5,356 | 2,292 | 39,217 |
+--------------------+---------+---------+--------+------------+----------+--------+
| Trade receivables, | 35,815 | 2,751 | 10,787 | 5,237 | 559 | 55,149 |
| at period end | | | | | | |
+--------------------+---------+---------+--------+------------+----------+--------+
| First half of 2008 | | | | | | |
+--------------------+---------+---------+--------+------------+----------+--------+
| Value of sales | 11,065 | 2,221 | - | 18,166 | 1,537 | 32,989 |
+--------------------+---------+---------+--------+------------+----------+--------+
| Trade receivables, | 17,583 | 1,259 | - | 15,932 | 757 | 35,531 |
| at period end | | | | | | |
+--------------------+---------+---------+--------+------------+----------+--------+
| Year 2008 | | | | | | |
+--------------------+---------+---------+--------+------------+----------+--------+
| Value of sales | 28,921 | 6,308 | - | 27,552 | 3,022 | 65,803 |
+--------------------+---------+---------+--------+------------+----------+--------+
| Trade receivables, | 37,846 | 1,873 | - | 17,592 | 960 | 58,271 |
| at year end | | | | | | |
+--------------------+---------+---------+--------+------------+----------+--------+
6. Income taxes
+----------------------------------------------+-----------+----------+---------+
| | First | First | Year |
| | half of | half of | 2008 |
| | 2009 | 2008 | |
+----------------------------------------------+-----------+----------+---------+
| | EUR'000 | EUR'000 | EUR'000 |
+----------------------------------------------+-----------+----------+---------+
| | | | |
+----------------------------------------------+-----------+----------+---------+
| Profit, before taxes, per the statement of | 3,008 | 3,765 | 7,282 |
| earnings | | | |
+----------------------------------------------+-----------+----------+---------+
| Income taxes, at the nominal tax rate | (731) | (792) | (1,785) |
+----------------------------------------------+-----------+----------+---------+
| Taxes on permanent differences between | - | (135) | (366) |
| accounting and taxable profits | | | |
+----------------------------------------------+-----------+----------+---------+
| Group relief | - | - | 59 |
+----------------------------------------------+-----------+----------+---------+
| Income not subjected to taxation | 282 | - | 591 |
+----------------------------------------------+-----------+----------+---------+
| Tax relief due to reduction of the tax rate | - | - | 410 |
+----------------------------------------------+-----------+----------+---------+
| Adjustments in prior year expenses | - | - | (4) |
+----------------------------------------------+-----------+----------+---------+
| Tax relief associated with profits the | 25 | 230 | 422 |
| taxation of which is indefinitely deferred | | | |
+----------------------------------------------+-----------+----------+---------+
| Total tax charge | (424) | (697) | (673) |
+----------------------------------------------+-----------+----------+---------+
| Current tax charge | (139) | (312) | (369) |
+----------------------------------------------+-----------+----------+---------+
| Deferred tax charge | (285) | (385) | (304) |
+----------------------------------------------+-----------+----------+---------+
| Total tax charge | (424) | (697) | (673) |
+----------------------------------------------+-----------+----------+---------+
7. Property, plant and equipment
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| | Land | Buildings | Plant | Vehicles | Furniture | Assets | Total |
| | | and | and | | and other | under | |
| | | building | machinery | | equipment | constr. | |
| | | installations | | | | or | |
| | | | | | | installation | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| At cost or | | | | | | | |
| valuation | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 31 December | 2,987 | 8,867 | 23,820 | 2,611 | 434 | 23,462 | 62,181 |
| 2007 | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Effect of currency | - | - | (716) | (10) | (4) | - | (730) |
| translation | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Additions | - | 418 | 2,714 | 580 | 456 | 7,489 | 11,657 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Capitalised | - | - | - | - | - | 1,030 | 1,030 |
| interest charge | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Acquisitions | 74 | 9 | 57 | 1,948 | 53 | - | 2,141 |
| through business | | | | | | | |
| combinations | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Disposals | (147) | (9) | (123) | (2) | - | - | (281) |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Transfer | - | - | 2 | (1) | (1) | - | - |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 31 December | 2,914 | 9,285 | 25,754 | 5,126 | 938 | 31,981 | 75,998 |
| 2008 | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Effect of currency | - | - | 223 | 4 | 3 | - | 230 |
| translation | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Additions | - | 527 | 2,146 | 24 | 1 | 6,712 | 9,410 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Disposals | - | - | (32) | (225) | (5) | - | (262) |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Transfer * | (89) | 3,544 | 19,955 | (2) | 2 | (24,109) | (699) |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 30 June 2009 | 2,825 | 13,356 | 48,046 | 4,927 | 939 | 14,584 | 84,677 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Accumulated | | | | | | | |
| depreciation | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 31 December | - | (845) | (3,667) | (1,020) | (161) | - | (5,693) |
| 2007 | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Effect of currency | - | 1 | 202 | 9 | 3 | - | 215 |
| translation | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Depreciation | - | (218) | (1,409) | (633) | (100) | - | (2,360) |
| charge | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Acquisitions | - | - | (21) | (452) | (40) | - | (513) |
| through business | | | | | | | |
| combinations | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Disposals | - | - | 25 | 2 | - | - | 27 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 31 December | - | (1,062) | (4,870) | (2,094) | (298) | - | (8,324) |
| 2008 | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Effect of currency | - | - | (47) | (3) | 3 | - | (47) |
| translation | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Depreciation | - | (176) | (992) | (322) | (77) | - | (1,567) |
| charge | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Disposals | - | - | - | 139 | 1 | - | 140 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Transfers | - | - | - | 2 | (2) | - | - |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 30 June 2009 | - | (1,238) | (5,909) | (2,278) | (373) | - | (9,798) |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| Net book values | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 30 June 2009 | 2,825 | 12,118 | 42,137 | 2,649 | 566 | 14,584 | 74,879 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 30 June 2008 | 2,914 | 8,032 | 20,679 | 3,291 | 469 | 47,467 | 82,852 |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
| As at 31 December | 2,914 | 8,223 | 20,884 | 3,032 | 640 | 31,981 | 67,674 |
| 2008 | | | | | | | |
+--------------------+-------+---------------+-----------+----------+-----------+--------------+---------+
8. 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:
+--------------------+-------------+-------------+-------------+----------------------+
| 30 June 2009 | Short-term | Long-term | Scheduled | Applicable interest |
| | liabilities | liabilities | repayment | rate |
+--------------------+-------------+-------------+-------------+----------------------+
| | EUR'000 | EUR'000 | (to year) | |
+--------------------+-------------+-------------+-------------+----------------------+
| | | | | |
+--------------------+-------------+-------------+-------------+----------------------+
| Debenture loan | 3,731 | 29,041 | 2010-2017 | Euribor + 3,2% |
+--------------------+-------------+-------------+-------------+----------------------+
| Short term bank | 42,276 | - | 2009-2010 | Euribor + 3,2% |
| loans | | | | |
+--------------------+-------------+-------------+-------------+----------------------+
| | 46,007 | 29,041 | | |
+--------------------+-------------+-------------+-------------+----------------------+
+--------------------+---+-------------+-------------+-------------+----------------------+
| 30 June 2008 | Short-term | Long-term | Scheduled | Applicable interest |
| | liabilities | liabilities | repayment | rate |
+------------------------+-------------+-------------+-------------+----------------------+
| | EUR'000 | EUR'000 | (to year) | |
+--------------------+-----------------+-------------+-------------+----------------------+
| | | | | |
+--------------------+-----------------+-------------+-------------+----------------------+
| Debenture loan | 1,536 | 9,982 | 2012 | Euribor + 1,6% |
+--------------------+-----------------+-------------+-------------+----------------------+
| Long term bank | - | 6,056 | 2009 | Euribor + 1,5+1,65% |
| loans | | | | |
+--------------------+-----------------+-------------+-------------+----------------------+
| Short term bank | 39,947 | - | 2008-2009 | Euribor + 1,1+1,65% |
| loans | | | | |
+--------------------+-----------------+-------------+-------------+----------------------+
| | 41,483 | 16,038 | | |
+--------------------+-----------------+-------------+-------------+----------------------+
| Finance lease | 32 | - | | |
| obligations | | | | |
+--------------------+-----------------+-------------+-------------+----------------------+
| | 41,515 | 16,038 | | |
+--------------------+---+-------------+-------------+-------------+----------------------+
+--------------------+-------------+-------------+-------------+----------------------+
| 31 December 2008 | Short-term | Long-term | Scheduled | Applicable interest |
| | liabilities | liabilities | repayment | rate |
+--------------------+-------------+-------------+-------------+----------------------+
| | EUR'000 | EUR'000 | (to year) | |
+--------------------+-------------+-------------+-------------+----------------------+
| | | | | |
+--------------------+-------------+-------------+-------------+----------------------+
| Debenture loan | 1,969 | 26,778 | 2009-2017 | Euribor + 3% |
+--------------------+-------------+-------------+-------------+----------------------+
| Short term bank | 40,455 | - | 2009 | Euribor + 3% |
| loans | | | | |
+--------------------+-------------+-------------+-------------+----------------------+
| | 42,424 | 26,778 | | |
+--------------------+-------------+-------------+-------------+----------------------+
The interest charges generated in relation to the above loans, in the six month
period ended 30 June 2009, amounted to EUR2.510 thousand of which EUR126 thousand
was capitalised in property, plant and equipment under construction or
installation and EUR 2.384 thousand has been charged to operations.
On 30 June 2009, bank borrowings are secured by fixed charges over the company's
property plant and equipment for an amount of EUR 37,5 million (31 December 2008:
23 million).
9. Earnings per share
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 |
| | 2009 | 2008 | 2009 | 2008 |
+---------------------------+------------+-----------+-----------+-----------+
| | EUR000 | EUR000 | EUR000 | EUR000 |
+---------------------------+------------+-----------+-----------+-----------+
| | | | | |
+---------------------------+------------+-----------+-----------+-----------+
| Net profit attributable | 2.584 | 3.068 | 2.584 | 3.068 |
| to the shareholders (in | | | | |
| Euro thousand) | | | | |
+---------------------------+------------+-----------+-----------+-----------+
| Weighted average number | 34,413 | 32,775 | 35,031 | 33,393 |
| of issued shares (in | | | | |
| thousand pieces) | | | | |
+---------------------------+------------+-----------+-----------+-----------+
| Earnings per share (in EUR) | 0.075 | 0.094 | 0.074 | 0.092 |
+---------------------------+------------+-----------+-----------+-----------+
10. Research and 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 developments 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 | Year |
| | half | half | |
+--------------------------------------------------+---------+---------+--------+
| | 2009 | 2008 | 2008 |
+--------------------------------------------------+---------+---------+--------+
| | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------------------+---------+---------+--------+
| Personnel related costs | 182 | 27 | 56 |
+--------------------------------------------------+---------+---------+--------+
| Third parties | 3 | 10 | 20 |
+--------------------------------------------------+---------+---------+--------+
| Miscellaneous other expenses | 15 | 21 | 53 |
+--------------------------------------------------+---------+---------+--------+
| | 200 | 58 | 129 |
+--------------------------------------------------+---------+---------+--------+
11. Related party transactions and balances
The transactions of the Helesi PLC Group, in the period 30 June 2009 and the
year 2008, with and receivables from and payables to related parties, as at 30
June 2009 and 31 December 2008, are analysed as follows:
+-----------------------------------+---------+-----------+------------+-----------+
| The Group | Sales | Purchases | Receivable | Payable |
| | to | from | from | to |
+-----------------------------------+---------+-----------+------------+-----------+
| | EUR000 | EUR000 | EUR000 | EUR000 |
+-----------------------------------+---------+-----------+------------+-----------+
| TECMEC A.E | | | | |
+-----------------------------------+---------+-----------+------------+-----------+
| 30 June 2009 | 117 | 589 | - | 1,976 |
+-----------------------------------+---------+-----------+------------+-----------+
| | | | | |
+-----------------------------------+---------+-----------+------------+-----------+
| 31 December 2008 | 3,274 | 2,973 | - | 8,203 |
+-----------------------------------+---------+-----------+------------+-----------+
12. Capital commitments
The two major investment projects that were in progress, as at 31 December 2008,
were the upgrading/expansion of the Komotini production facilities and the
erection of the Italian production plant. As at 30 June 2009 the aforementioned
investment projects were fully completed.
+--------------------+-------------+----------+------------+------------+-------------+
| Investment project | Total | Approved | Net | Total | Outstanding |
| | capital | grants | investment | amount | commitment |
| | expenditure | | | already | as at 30 |
| | | | | incurred | June 2009 |
+--------------------+-------------+----------+------------+------------+-------------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------+-------------+----------+------------+------------+-------------+
| | | | | | |
+--------------------+-------------+----------+------------+------------+-------------+
| Upgrading of | 38,183 | (22,302) | 15,881 | 38,183 | - |
| production | | | | | |
| facilities at | | | | | |
| Komotini | | | | | |
+--------------------+-------------+----------+------------+------------+-------------+
| Erection of | 25,365 | (17,389) | 7,976 | 25,365 | - |
| Italian plant | | | | | |
+--------------------+-------------+----------+------------+------------+-------------+
| | 63,548 | (39,691) | 23,857 | 63,548 | - |
+--------------------+-------------+----------+------------+------------+-------------+
13. 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 Group is presently
negotiating the level of compensation that will be finally paid with the
appropriate authorities, but no provision has been made in these financial
statements as the final figure cannot be determined with any degree of accuracy
at the present time and will depend upon whether or not an alternative site will
be found and the estimated time required to be able to start its construction
and operation. Income from compensation will be realised as these uncertainties
are resolved.
14. Post Balance Sheet Events
There are no reportable post-balance sheets events.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PUURGBUPBGRB
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