STELIOS KANAKIS ABEE

Transcription

1 STELIOS KANAKIS ABEE SUMMARY INTERIM FINANCIAL STATEMENTS For period from 1 January 2009 to 30 September 2009 Prepared in accordance with the International Financial Reporting Standards (IAS 34) It is confirmed that the attached Summary Interim Financial Statements for the period from 1 January 2009 to 30 September 2009 are those approved by the Board of Directors of STELIOS KANAKIS ABEE during the Board meeting on 20 November These Summary Interim Financial Statements for the period from 1 January 2009 to 30 September 2009 are posted on the Internet at where they will remain available to the investing public for a period of at least five (5) years from the date of preparation and publication. 1

2 TABLE OF CONTENTS Operating Statement...4 Comprehensive Income Statement...4 Statement of Financial Position...5 Statement of Changes in Equity...6 Cash Flow Data General information Framework for the preparation of Financial Statements...8 Information per sector...14 Notes on the Financial Statements Property, plant and equipment Intangible assets Deferred tax liabilities Stocks Accounts receivable Other current assets Cash and cash equivalents Equity accounts Short-term loan liabilities Suppliers and other short-term liabilities Sales Other operating income Expenses broken down by category Income tax

3 15. Events after the Financial Statements preparation date Current liens Contingent assets / liabilities Purchases and sales of tangible fixed assets Unaudited fiscal years Number of employees Transactions with parties related to the Company

4 Operating Statement Period Period Note 01 Jan-30 Sep Jan-30 Sep Jul-30 Sep Jul-30 Sep 08 Turnover , , , ,64 Cost of sales , , , ,09 Gross profit , , , ,55 Other operating income , , , ,68 Administrative expenses , , , ,79 Selling expenses , , , ,83 Other operating expenses , , , ,07 Operating profits , , , ,54 Financial income 569, ,13 41,06 876,67 Financial expenses , , , ,53 Profit before taxation , , , ,68 Income tax , , , ,17 Profit after taxation , , , ,51 Attributable to: Company shareholders , , , ,51 Basic earnings per share 0,166 0,161 0,063 0,052 Comprehensive Income Statement Period Period 01 Jan-30 Sep Jan-30 Sep Jul-30 Sep Jul-30 Sep 08 Net profit for the period , , , ,51 Other comprehensive income after taxation 0,00 0,00 0,00 0,00 Total comprehensive income for the period , , , ,51 4

5 Statement of Financial Position Balances Non-current assets Note 30 Sep Dec 2008 Tangible fixed assets for own use , ,68 Intangible assets , ,21 Other non-current assets , ,81 Total non-current assets , ,70 Current assets Inventories , ,13 Accounts receivable , ,75 Other current assets , ,66 Cash and cash equivalents , ,65 Total current assets , ,19 Total assets , ,89 Share capital , ,00 Share premium , ,69 Other reserves , ,18 Balance of retained earnings , ,70 Revaluation differences , ,76 Total equity , ,33 Retirement benefit liabilities , ,59 Deferred tax liabilities , ,68 Other provisions 5.516, ,00 Total non-current liabilities , ,27 Short-term loans 9 0, ,26 Current income tax , ,79 Suppliers and other liabilities , ,24 Total current liabilities , ,29 Total equity and liabilities , ,89 5

6 Statement of Changes in Equity Share Share Legal Other Revaluation Retained capital premium reserve reserves differences earnings Total Balance at 1 January , , , , , , ,86 Other comprehensive income after taxation Recognised net income for the first nine months of ,00 0,00 0,00 0,00 0, , ,35 Profits distributed by GM 0,00 0, ,00 0,00 0, ,00 0,00 Share repurchase 0,00 0,00 0,00 0,00 0,00 0,00 0, dividend approved by shareholders 0,00 0,00 0,00 0,00 0, , ,00 Balance at 30 September , , , , , , ,21 Share Share Legal Other Revaluation Retained capital premium reserve reserves differences earnings Total Balance at 1 January , , , , , , ,33 Other comprehensive income after taxation Recognised net income for the first nine months of ,00 0,00 0,00 0,00 0, , ,38 Profits distributed by General Meeting 0,00 0, ,00 0,00 0, ,00 0,00 Share repurchase 0,00 0,00 0,00 0,00 0,00 0,00 0, dividend approved by shareholders 0,00 0,00 0,00 0,00 0, , ,00 Balance at 30 September , , , , , , ,71 6

7 Cash Flow Data 01 Jan-30 Sep Jan-30 Sep 2008 Operating activities Profit before taxation (ongoing operations) , ,67 Plus / minus adjustments for: Depreciation , ,11 Provisions , ,00 Results (income, expenses, profit and loss) of investing activities Interest paid and related expenses , ,54 Plus / minus adjustments for changes in workingcapital accounts or relating to operating activities: Decrease / (increase) in inventories , ,15 Decrease / (increase) in accounts receivable , ,71 (Decrease) / increase in liabilities (save loan liabilities) , ,93 Less: Interest paid and related expenses paid , ,17 Taxes paid , ,40 Total inflows / (outflows) from operating activities (a) , ,68 Investing activities Purchase of tangible and intangible fixed assets , ,56 Interest received 569, ,13 Total inflows / (outflows) from investing activities (b) , ,43 Financing activities Loan repayment , ,18 Dividends paid , ,00 Total inflows / (outflows) from financing activities (c) , ,18 Net increase / (decrease) in cash and cash equivalents for period (a) + (b) + (c) , ,93 Cash and cash equivalents at beginning of period , ,49 Cash and cash equivalents at end of period , ,56 7

8 1. General information STELIOS KANAKIS ABEE is a purely commercial company engaging in confectionery, bakery and ice-cream ingredients. All the products it represents, distributes and transports are imported from Western Europe countries, in particular France, Belgium, Germany, Denmark and Italy. The Company s facilities and headquarters are located at 4 Anemonis St, , Municipality of Acharnes. It has a branch in Sindos Industrial Area, Zone C, Block No. 38, , Thessaloniki. The Company has the legal form of a joint-stock company and is listed on the Athens Stock Exchange. Its website is at < 2. Summary of important accounting policies 2.1 Framework for the preparation of Financial Statements The Company s summary Interim Financial Statements for the first nine months of 2009 (01 Jan Sep 09) have been prepared in accordance with the International Financial Reporting Standards (the IFRS) adopted by the European Union, and comply with the IAS 34 on interim financial statements. These Interim Financial Statements were approved for publication by the Company s Board of Directors at the meeting held on 20 November The Interim Financial Statements of 30 September 2009 have been prepared in compliance with the accounting principles of 31 December Important note: The preparation of financial statements in compliance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the period under examination. Although these estimates are based on the best knowledge possible that the Management of the Company has of current conditions and actions, actual results may differ. 8

9 3. Important accounting principles 3.1 Tangible fixed assets The property (land and buildings) is valuated at fair value by independent valuers at least every four (4) years. Other tangible fixed assets are valuated at acquisition cost less accumulated depreciation and impairment losses. Increases in the book value of tangible fixed assets arising from fair-value adjustments are entered in an equity reserve. Reductions in the book value reduce the reserve if this reserve has previously been built up for the same asset. Value reductions in excess of the reserve and reductions in the book value of assets for which there is no revaluation reserve are entered in the results as expenses. The difference between the depreciation (which is entered in the expenses) made on the adjusted value of the tangible fixed assets and the depreciation based on the acquisition cost of the tangible fixed assets is transferred from the revaluation reserve to the retained earnings once these assets are fully depreciated or sold. The value of land is not depreciated. The depreciation of other tangible fixed assets is calculated by the standard method over their useful life, which is as follows: - Buildings Years - Mechanical equipment 6-8 Years - Cars 8-10 Years - Other equipment 4-6 Years The residual values and the useful lives of tangible fixed assets are subject to review in each annual balance sheet. Additions are entered in the Company s books at the acquisition cost, which includes all costs directly attributable to the acquisition of assets. Subsequent expenses are entered so as to increase the book value of tangible fixed assets only if it is likely that future economic benefits will flow to the Company and if their cost can be reliably evaluated. Repair and maintenance costs (if any) are deducted from the operating results. 9

10 3.2 Intangible assets Software licences are valuated at acquisition cost less depreciation. Depreciation is calculated by the standard method over their useful life, which ranges from 4 to 5 years. 3.3 Deferred income tax The deferred income tax is determined using the liability method arising from the temporary differences between the book value and the tax base of assets and liabilities. The deferred tax is determined at the tax rates prevailing at the Balance-Sheet date. Deferred tax assets are entered to the extent that there will be a future taxable profit calling for the use of the temporary difference which creates a deferred tax asset. 3.4 Stocks Stocks are valuated at the lowest cost between the acquisition cost and the net realisable value. The acquisition cost is determined using the weighted-average method. Borrowing costs are not included in the acquisition cost of the stock. The net realisable value is estimated on the basis of the current selling prices of the stock in the ordinary course of business, less any selling expenses where applicable. 3.5 Accounts receivable Initially, accounts receivable are entered at fair value. Impairment losses (losses on doubtful debts) are recognised when there is objective evidence that the Company is unable to collect all amounts due under contract terms. The amount of the impairment loss is entered in the operating results as an expense. 10

11 3.6 Cash and cash equivalents Cash and cash equivalents include cash, demand deposits, and short-term investments (up to 3 months) which are readily realisable and involve low risk. 3.7 Foreign-currency transactions Transactions denominated in foreign currency are translated into euro at the exchange rate prevailing at the transaction date. At the date of financial-statement preparation, the monetary assets and liabilities which are denominated in foreign currency are translated into euro at the exchange rate prevailing at that date. Exchange differences arising from this translation are charged to the operating results of the current fiscal year. 3.8 Share capital Ordinary shares are classified as equity. Any direct costs associated with the issue of shares are shown after the deduction of the corresponding income tax, as deducted from the proceeds. Any direct costs associated with the issue of shares to acquire companies are included in the cost of the acquired company. The acquisition cost of own shares less income tax (if applicable) is shown as a deduction in the equity of the company until the same shares are sold or cancelled. Any profit or loss on the sale of own shares net of other direct transaction costs and income tax (if any) is shown in the equity as a reserve. 3.9 Dividends Dividends payable are shown as a liability at the time of approval from the Ordinary General Meeting of shareholders. 11

12 3.10 Employee benefits The company s obligation to the persons on its payroll with respect to the future payment of benefits depending on their length of service is measured and reported based on the accrued right expected to be paid of every worker at the balance-sheet date Provisions Provisions for environmental restoration, restructuring costs, and allowances are entered when: There is a current legal or constructive obligation as a result of past events; It is likely that an outflow of resources will be required to settle the obligation; The amount required can be measured reliably Financial instruments The Company s basic financial instruments are cash, bank deposits, and short-term accounts receivable and liabilities. Given the short-time nature of these items, the Company s Management believes that their fair value is equal to the value shown in the account books Revenue recognition Revenue comprises the fair value of sales of goods and services, net of recovered taxes, discounts and rebates. Revenue is recognised as follows: (a) Sales of goods Sales of goods are recognised when the Company delivers the goods to the customers, the goods are accepted by the customers, and the collection of the accounts receivable is reasonably assured. (b) Provision of services Revenue from provision of services is construed according to the completion stage of the service compared to its estimated total cost. 12

13 4. Critical accounting estimates and judgements The Management s estimates and judgements are under constant review based on historical data, and expectations of future events which are considered reasonable according to current standards. The estimates and assumptions that could cause adjustments to the book values of assets and liabilities within the next few years mostly concern unaudited tax years. The liabilities for anticipated tax audit issues are recognised through estimates based on previous audits. When the final result of the audit is different from what was initially recognised, the difference is charged to the income tax for the relevant period. Unaudited fiscal years: This concerns The tax, however undetermined, which will be established by the audit is believed to be insignificant in relation to the Company s sizes. 13

14 Information per sector The company is active in Greece and Cyprus. It markets its goods through its own distribution network mainly in the Prefectures of Attica and Thessaloniki, and through agents / distributors in the rest of Greece. The Company s sales through its own network and agents / distributors are as follows: 30 Sep 2009 Sales Cost of sales Gross profit % Wholesalers , , ,90 34,94 Network , , ,80 36,10 Totals , , ,70 35,72 30 Sep 2008 Sales Cost of sales Gross profit % Wholesalers , , ,99 33,31 Network , , ,35 34,19 Totals , , ,34 33,87 Sales by geographical region are as follows: REGIONS 30 Sep Sep ATTICA , ,55 2 MACEDONIA , ,11 3 PELOPONNESE , ,52 4 THESSALY , ,22 5 CONTINENTAL GREECE , ,00 6 CRETE , ,25 7 AEGEAN ISLANDS , ,27 8 THRACE , ,16 9 EPIRUS , ,41 10 IONIAN ISLANDS , ,32 11 EXPORTS , ,11 TOTAL , ,92 14

15 Notes on the Financial Statements 1. Property, plant and equipment Below are the changes to the fixed assets for the period from 01 Jan 09 to 30 Sep 09 and from 01 Jan 08 to 30 Sep 08. Land Buildings & Mechanical Other Total Acquisition or valuation cost facilities equipment fixed assets Inventory of 01 Jan , , , , ,71 Additions 0, , , , ,24 Balance at 30 Sep , , , , ,95 Accumulated depreciation Inventory of 01 Jan , , , , ,03 Additions 0, , , , ,84 Balance at 30 Sep , , , , ,87 At 01 Jan , , , , ,68 At 30 Sep , , , , ,08 Land Buildings & Mechanical Other Total Acquisition or valuation cost facilities equipment fixed assets Inventory of 01 Jan , , , , ,58 Additions ,48 680,00 0, , ,56 Balance at 30 Sep , , , , ,14 Accumulated depreciation Inventory of 01 Jan , , , , ,53 Additions 0, , , , ,01 Balance at 30 Sep , , , , ,54 Residual value At 01 Jan , , , , ,05 At 30 Sep , , , , ,60 15

16 Depreciation for the period from 01 Jan 09 to 30 Sep 09 amounted to ,12 euro (tangibles ,84, intangibles 4.443,28) and increased administrative expenses by 7.498,28 euro and selling expenses by ,84 euro. There are no liens on the fixed assets of the Company. 2. Intangible assets Below are the changes to intangible assets. Their balance relates only to software programs used in the period from 01 Jan 09 to 30 Sep 09 and from 01 Jan 08 to 30 Sep 08, respectively. Software Acquisition or valuation cost programs Inventory of 01 Jan ,80 Additions ,00 Balance at 30 Sep ,80 Accumulated depreciation Inventory of 01 Jan ,59 Additions 4.443,28 Balance at 30 Sep ,87 Residual value At 01 Jan ,21 At 30 Sep ,93 Software Acquisition or valuation cost Programs Inventory of 01 Jan ,80 Additions 2.500,00 Balance at 30 Sep ,80 Accumulated depreciation Inventory of 01 Jan ,68 Additions ,10 Balance at 30 Sep ,78 Residual value At 01 Jan ,12 At 30 Sep ,02 16

17 3. Deferred tax liabilities There follows a table showing the movements in and balances of deferred tax assets. Balances 30 Sep Dec 2008 Balances at beginning of year , ,47 Charges on net assets 0, ,00 Charges on operating results , ,21 Balances at end of year , ,68 4. Stocks The stock balances at 30 Sep 09 and 31 Dec 08 respectively are as follows: Balances Stocks 30 Sep Dec 08 Goods , ,13 Note that the cost of stocks entered in the cost of sales as an expense for the period from 01 Jan 09 to 30 Sep 09 amounted to ,40 euro, plus ,12 euro concerning direct selling expenses (total cost of goods sold over the period = ,52). 5. Accounts receivable The balances of other accounts receivable are broken down as follows: Balances Accounts receivable 30 Sep Dec 08 Customers , ,00 Notes and cheques receivable , ,16 Impairment provisions , ,41 Totals , ,75 17

18 Please note that the Company is at no significant credit risk mainly because of its widely dispersed customers (currently about 2.300). 6. Other current assets The balances of other current assets are broken down as follows: Balances 30 Sep Dec 08 Greek State - tax prepayment , ,42 Suspense accounts 9.388, ,35 Other current assets , ,89 Totals , ,66 7. Cash and cash equivalents The balances of cash and cash equivalents are broken down as follows: Balances 30 Sep Dec 08 Cash in hand , ,71 Balance with banks , ,94 Totals , ,65 8. Equity accounts The balances of equity accounts at 30 Sep 09 and 31 Dec 08 respectively are as follows: 30 Sep Dec 08 Share capital , ,00 Share premium , ,69 Other reserves , ,18 Balance of retained earnings , ,70 Revaluation differences , ,76 Total equity , ,33 18

19 All issued and fully paid-up shares comprise ordinary registered shares, with a nominal value of 0,51 euro each. The change in reserves, amounting to ,00 euro, is due to the distribution of profits for the fiscal year 2008 in accordance with a decision of the Ordinary General Meeting of shareholders. 9. Short-term loan liabilities The balances of short-term loan liabilities are broken down as follows: Balances 30 Sep Dec 08 Bank loans 0, ,26 Totals 0, , Suppliers and other short-term liabilities The balances of other short-term accounts are broken down as follows: Balances 30 Sep Dec 08 Suppliers , ,21 Cheques payable - Notes , ,46 Dividends payable 1.436, ,76 Other taxes , ,87 Social security institutions , ,84 Suspense accounts , ,17 Sundry creditors , ,93 Totals , ,24 19

20 11. Sales The Company s turnover, by main categories of goods, at 30 Sep 2009 and 30 Sep 2008 is broken down as follows: Balances Description 30 Sep Sep 2008 MIXES MARGARINE BUTTERS CREAMS ICE-CREAM PRODUCTS DELIFRUIT BREAD MIXES COUVERTURES ARTIFICIAL CREAM JELLIES DECORGEL PRALINES TRUFFLE CONFECTIONERY FONDANT OTHER PRODUCTS Total Cost of sales Gross profit Please note that the cost of goods sold includes a sum of ,12 euro concerning direct selling expenses. 20

21 12. Other operating income The Company s other income, by types, at 30 Sep 2009 and 30 Sep 2008 respectively is broken down as follows: 30 Sep Sep 2008 Subsidies Grants Income from sales discounts and supplier payment terms 9.769, ,07 0, ,92 Participation of foreign companies in exhibitions - Advertisements , ,00 TOTAL , , Expenses broken down by category The Company s expenses and their distribution to operations are broken down as follows: Period from 01 Jan 09 to 30 Sep 09 Cost Administrative Selling Financial Type of expenditure of sales expenses expenses expenses Total Staff payment and expenses 0, , ,59 0, ,84 Third-party payment and expenses , , ,25 0, ,25 Third-party benefits 0, , ,36 0, ,45 Taxes & duties 0,00 0, ,53 0, ,53 Sundry expenses , , ,54 0, ,27 Interest charges and related expenses 0,00 0,00 0, , ,43 Depreciation of tangible assets 0, , ,34 0, ,84 Depreciation of intangible assets 0, , ,50 0, ,28 Cost of stocks ,40 0,00 0,00 0, ,40 Totals , , , , ,29 21

22 Period from 01 Jan 08 to 30 Sep 08 Cost Administrative Selling Financial Type of expenditure of sales expenses expenses expenses Total Staff payment and expenses 0, , ,99 0, ,57 Third-party payment and expenses , , ,62 0, ,62 Third-party benefits 0, , ,98 0, ,29 Taxes & duties 0, , ,37 0, ,95 Sundry expenses , , ,43 0, ,32 Interest charges and related expenses 0,00 0,00 0, , ,54 Depreciation of tangible assets 0, , ,77 0, ,01 Depreciation of intangible assets 0, , ,99 0, ,10 Cost of stocks ,90 0,00 0,00 0, ,90 Totals , , , , , Income tax The movements in income tax for the period from 01 Jan-30 Sep 09 and from 01 Jan-30 Sep 08 are as follows: Balances Description 30 Sep Sep 08 Income tax , ,06 Deferred income tax , ,26 Total , , Events after the Financial Statements preparation date Apart from the events reported above, there are no events after the date of the Financial Statements that relate to the Company and which must be reported according to the International Accounting Standards (IAS). 16. Current liens There are no liens on the fixed assets of the Company. 22

23 17. Contingent assets / liabilities Information on contingent liabilities There are no disputed differences, differences under arbitration, judicial decisions or arbitration awards which have or may have a significant effect on the financial condition or operation of the Company. Information on contingent assets There are no contingent assets that must be included in the Company s financial statements. 18. Purchases and sales of tangible fixed assets Investments in fixed assets for the period from 01 Jan 2009 to 30 Sep 2009 amounted to , Unaudited fiscal years The regular audit of all types of the Company s tax liabilities for the fiscal years 2005 to 2007 was completed in March The tax audit revealed taxes payable and surcharges amounting to ,00. This sum had been fully provided in the 2008 Financial Statements. As a result, there was no charge in the period from 01 Jan to 30 Sep Number of employees Number of employees at 30 Sep 2009: 71 Number of employees at 30 Sep 2008: Transactions with parties related to the Company There are no holdings in subsidiary or associate companies, as defined in IAS 24. The Company s financial statements are not included in the consolidated statements of other companies. The transactions of the Company with related parties as defined in IAS 24 are as follows: 23

24 Benefits to management and executives of the Company 01 Jan-30 Sep Jan-30 Sep 2008 Sales of goods and services To subsidiaries 0,00 0,00 To other related parties 0,00 0,00 Purchases of goods and services From subsidiaries 0,00 0,00 From other related parties 0,00 0,00 Sales of fixed assets To subsidiaries 0,00 0,00 To other related parties 0,00 0,00 Accounts receivable From subsidiaries 0,00 0,00 From other related parties 0,00 0,00 Liabilities To subsidiaries 0,00 0,00 To other related parties 0,00 0,00 Benefits to management and executives of the Company Fees paid to managers and board members , ,00 Salaries and other short-term employment benefits , ,00 Total , ,00 Claims made by managers and board members 2.266, ,12 Liabilities to managers and board members , ,76 No loans were granted to members of the Board or other managers of the Company (or to their families). 24