Indication of consolidated results for the year ended 31 December 2011
1. The Board of Directors during a meeting held on the 29th February 2012 has approved the indicative consolidated results for the year ending 31st December 2011. These results have not been audited by the external auditors of the company. The accounting policies followed are in line with those used for the preparation of the audited annual financial statements
2.The consolidated loss after tax for 2011 was €76.861 compared to a loss of €703.277 for 2010. The main reasons for the reduction of losses were:
• Increase of occupancy at the Alexander the Great Beach Hotel. It is noted that during the same period last year 11 January – 16 February 2010, the hotel was closed for renovations.
• Increase of the occupancy of the Elias Beach Hotel from May 2011 onwards. It is noted that the hotel was closed during the period 17 January 2011 – 19 February 2011 for renovations.
• Operation expenses were contained.
• Increase in energy costs
3.There was no income from non-recurring or extraordinary activities.
4.During 2011 the following important events took place:
•On the 1st January 2011 the lease agreement with Kanika Olympic Ltd was terminated. Kanika Hotels will only provide management services to Kanika Olympic Ltd owner of the hotels Olympic Lagoon Resort and Olympic Bay in Ay. Napa.
•On the 28th February 2011 the Executive Chairman of the company, Mr. Theodosis Karaolis has resigned from his duties and Mr. Spyros Th. Karaolis, Deputy Chairman took over as Executive Chairman.
5.The prospects of the company for the year 2012 depend to a large extent on the number and the quality of tourists arriving in Cyprus. As we are all aware the financial crisis has affected the Tourist industry of Cyprus with the worst hit location being Paphos where our Flagship hotel, Alexander The Great, is located. Due to the financial crisis the company has implemented a strategic plan since 2009 aimed at reducing costs, increasing productivity and finding new ways to increase its income via various marketing strategies aimed at increasing occupancies.
6.Copies of this announcement will be available at the Company’s offices, Seafront Avenue, Kanika Enaerios Complex, Apollo Court, 28th October 32A Makarios III avenue, Limassol. This announcement will also be published in the Phileleftheros newspaper on the 2nd March 2012 and can be obtained from www.kanikahotels.com