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Hadjiioannou Farm: Interim Management Statement

The Board of Directors of Renos Hadjiioannou Farm Public Company Ltd approved the Interim Management Statement of the Company and its subsidiary for the period from 1/1/2013 to 23/5/2013 that has been prepared pursuant to Article 11 of the Transparency Requirements Law 2007 and has not been audited by the external auditors of the Company.

The most significant events during the period are:

1. The main activity, which is the production and sale of poultry products, has not changed. The Company continues to malfunction due to the liquidity problems. The chicken market conditions are difficult and there are no prospects of improvement in the near future. It is still too early to see the impacts of the May events, however, they will be negative at the beginning.
2. The financial condition of the Company is not expected to improve without the sale of assets. It is noted that there are legal actions on behalf of the creditors and the Company.
3. The agreement with Cyprus Popular Bank is still pending. The Company is affected negatively by this delay.
4. There were no significant events or transactions that could affect the results and there were no profits or losses from non-recurrent activities.
5. In March 2013, a Company’s plot in Pyrga was include din the housing zone. The Company has assets in other villages, where the zones might change as well. There is no indication of when or whether the Company’s properties will be affected. In view of the latest developments in the property market, even if the zones change, it is still doubtful whether the value of its properties will increase since the value of the housing land is not expected to worth more than the value of agricultural land.
6. Based on estimates in the past, the value of its properties is higher than its debts but in view of upcoming changes as a result of the memorandum, the Company is not in the position to predict the possible sale price of its properties in the new conditions. It is noted that all poultry businesses in Cyprus face difficulties and they are unable to purchase plants or poultry facilities from the Company. Under current circumstances, the sale of any property at a satisfactory price is not possible.
Friday, 24 May, 2013 - 11:52