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CLR: Interim Management Statement

At the meeting held on Tuesday, November 18, 2008, the Board of Directors approved the Interim Management Statement of the Company and its subsidiaries for the period from July 1, 2008 to November 17, 2008, pursuant to article 11 of Law 190(1) of 2007. The interim management statement has not been audited by the external auditors of the Company.

Nature of activities

The main activities of the Group have not changed during the period and focus on the provision of financial and brokerage services, the portfolio management, the provision of consulting services, the buy/sell of securities for third parties and own benefit, the investment property, the strategic investments and other participations in private companies.

Facts during the period

At the meeting held on July 31, 2008, the Board of Directors approved the merger and reorganization plan of CLR Capital Public Ltd with Laiki Investment EPEY Public Company Ltd.

On October 17, 2008, the Extraordinary General Meetings of the secured and non-secured creditors approved the aforementioned plan. The shareholders of CLR Capital Public Ltd will participate in the new Group by 30%. The total assets, operations and liabilities will be undertaken by Laiki Investment and the shareholders will become shareholders of Laiki Investment and the Company will be dissolved without liquidation.

The merger was announced to the Commission for the Protection of Competition pursuant to the Business Concentration Law. On October 31, 2008, the Commission approved the merger of the Applicants and declared it compatible with the needs of the competitive market.

The Company expects the final application to the District Court for the approval of the Reorganization and Merger Plan so as to enforce the provisions of the Plan from January 1, 2009.

Under reservations for the final approval of the plan, the holding company is close to a compromising solution with Bank of Cyprus in relation to the guarantee given during 2003.

Due to the ongoing drop in the share prices in the CSE, the financial assets assessed in fair value showed increased losses of €1.5 million compared to the first half of 2008. The drop in the share prices has affected the results of the associated companies and pushed the losses of the Group up by €0.9 million. The volumes and the brokerage commissions as well as other similar services of the subsidiary CLR Securities & Financial Services Ltd fell. Also, due to the negative economic climate, the provision for bad debts recorded an increase of €1.3 million. As a result, the loss of the Group for the period recorded an increase of €4.2.

It is noted that with reference to the investment property and the strategic investments and participations in private companies, there were no significant changes during the period.

On July 11, 2008, the Annual General Meeting approved a special resolution for the redenomination of the nominal value of the share in euros. The nominal value of the share has been redenominated from £0.10 to €0.17.

Impact on financial statements

The slowdown in the international markets and the drop in the CSE and ASE share prices, as well as the investors’ unwillingness to involve in the stock markets with the subsequent drop of the volumes and commissions are expected to affect negatively the results for 2008.

Any reversal in the course of the CSE and ASE indices will improve the Group’s results. The Group will release an analytical report at the announcement of the six-month results.


Wednesday, 19 November, 2008 - 09:03