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No more Demetra for Evagorou

03/09/2009 10:50
AKEL spokesman and MP, Stavros Evagorou handed in his resignation from the chairmanship of Demetra during the Annual General Meeting held on Wednesday. Mr. Evagorou decided not to put himself forward for reelection due to increased professional commitments. Mr. Michalakis Serafides, Board member, handed in his resignation too.

The two officers will be replaced by Messrs. Demetrakis Stavrou, General Manager of Strovolos Coop, and Nearchos Ioannou. Mr. Fotis Demetraides was reelected as Board member.

During his speech, Mr. Evagorou referred to the actions that the BoD took for the restructuring of the Company’s portfolio and the elimination of many operating and legal problems that it faced.

Mr. Evagorou said that “there has been a gradual regaining of the investments in non-listed companies with legal means” in the past few years and successful closing of a large number of cases”. “I am also pleased to announce that in the past four years we have settled all the legal impediments and threats that the Company faced”, he added.

Mr. Evagorou gave special emphasis to the expansion of the Company’s activities in sectors other than the financial. Today, the investments in stock exchanges are hardly 20% of its assets and its placements in bonds 11%. Demetra has around 33% of its investments in properties and the rest is cash.

The outgoing Chairman referred to Amathus Coastal Heights, for the development of the summer houses in Limassol in cooperation with Cybarco, which “had had startling results”. He also talked about Elea Golf Resort, which “concerns the construction of the first Signature Golf in Cyprus at Anatoliko in Geroskipou in cooperation with significant organizations from Cyprus and overseas” and will open in mid 2010.

Last year has been one of the toughest years for Demetra, which recorded losses of €84 million mostly due to the unrealized investment losses.

The recovery of the stock markets, however, raised hopes for an improvement of its returns. Already, Demetra shows profits of €10 million in the first quarter.

“The indications for 2009 raise hopes that we will be able to regain a large part of the losses, when things become clear in the second half of the year”, Mr. Evagorou stated.

Similarly, General Manager, Nicos Michaelas stressed that Demetra no longer depends on the stock market investments since it has expanded its activities to the development projects too.

“Demeta has significant investments in the property sector and significant cash available which enables it to claim a strategic alliance in development projects. We are optimistic that after the end of the crisis, those investments will be positive for the middle-long term future of the Group”, Mr. Michaelas concluded.