KANIKA HOTELS PLC
Approval of Audited Consolidated Financial Statements for the year ended 31 December 2009
The Board of Directors of Kanika Hotels Plc, in a meeting that took place on the 30th of April 2010, decided the following:
1. The approval of the audited consolidated financial statements for the year ended 2009. The net loss after taxation was €391,842 for the year ended 31 December 2009. Τhe indication of the results for the year that has been announced on the 26th of February 2010 was a net loss after taxation of €399,205. There were no significant variances that require further explanation. It is noted that the reduction in profits in comparison to the previous year is due to the following reasons:
a. Reduced occupancies at Alexander the Great Beach Hotel due to the reduced tourist flow which prevailed especially in Paphos from the UK.
b. Reduced occupancies at Olympic Lagoon Resort due to the reduced tourist flow which prevailed in general from the UK as well as the cancellation of a contract with a major tour operator which affected the beginning and the end of the tourist season.
c. Special discounts given to all Tour operators during the season in order to maximise occupancies.
d. Decrease of interest income from deposits.
e. Increase in depreciation due renovations.
f. Reduced purchasing power of tourists from England due to the reduction of the sterling pound value over the euro.
g. Increase in the provision of bad debts.
2. Not to propose to the Annual General Meeting of the shareholders that will take place on the 9th of June 2010, the payment of any dividend due to the results of 2009 and the continuation of the financial crisis.
3. The approval of the Corporate Governance Report for the year 2009.
Copies of this announcement as well as the audited consolidated financial statements for the year 2009 are available at the offices of the company on the seafront, Kanika Enaerios Complex, Apollo Court, Limassol The interested parties could also read and print copies from the company’s webpage : www.kanikahotels.com as well as at the Cyprus stock exchange webpage : www.cse.com.cy