Helesi PLC : • Half Yearly Report 2013, 31 Jan 14

Helesi PLC
Interim Financial Statements as of and for the six months ended 30 June 2013 (compiled in accordance with the International Financial Reporting Standards that have been adopted by the European Union). This is to certify that the attached Interim condensed Financial Statements are those which were approved by the Board of Directors of Helesi PLC  on 31/01/2014 Dimitris Kainaros Non - executive Chairman      Helesi PLC

31 January 2014

Helesi PLC

("Helesi" or "the Group")

Interim results for the six months to 30 June 2013

Helesi PLC (AIM: HLS), the Greece, Italy and Cyprus based waste management products manufacturer and services supplier announces interim results for the six months to 30 June 2013.

Highlights

§ Group sales revenues remained stable with a slight decrease of 0.17% to €9.985 million (H1 2012: €10.002 million).

§ EBITDA performance improved by €1.45 million with positive EBITDA of €0.55 million  (H1 2012: €0.9 million loss).

§ Losses were reduced by almost €1.7 million, €6.5 million in H1 2013 (H1 2012: €8.2 million)

§ The net debt of Helesi SA is € 62.2 million, We are undergoing a negotiation process with the 3 largest creditors of the Helesi SA holding 75% of total debt, namely Piraeus Bank €24.9 million, Alpha Bank  €15 million, and Eurobank €6.5 million. The rest of creditors have expressed their will to follow the decision of the 3 most important creditors

Commenting on the results, Sakis Andrianopoulos, Chief Executive of Helesi, said, "Helesi is impacted by recession in Italy and Greece. This year we experienced a slowdown in Cyprus, which shows the first signs of a deep recession. The Greek recession continues, but the potentially disastrous event of default of the Greek state and the "Grexit" scenario are fading away. The Greek waste market is improving but funding problems are a setback for large waste projects. Helesi will continue to focus on exports of plastic products to utilize its production capacity."

For further information please visit www.helesi.com or contact:

Helesi PLC	[phone]
Sakis Andrianopoulos, Chief Executive
Christina Thanasoulia, Finance Director	[e-mail]
Panmure Gordon (Nomad and broker)	[phone]
Andrew Godber

Financial Performance

Sales revenues in the six months to 30 June 2013 slightly decreased by 0.17% to % €9.985 million (H1 2012: € 10.002 million), while total revenues slightly decreased as well. Tight inventory control and the change of the sales mix sustained gross margin levels slightly above 50%, same as in the previous year.

Personnel expenses decreased further by almost 0.6 million  to €2.5 million (H1 2012: €3.1 million) and also cost of goods sold was also reduced €0.9 million to €3.5 million(H1 2012: €4.4 million) , as result of adjusting staff costs and reducing operational expenses as operations were slimmed down. As a result, the Group realized profit before interest, tax, depreciation and amortisation of €0.55 million (H1 2012: loss €0.9 million). It is the first time that the Group achieved EBITDA profitability after the H1 2011. Interest costs slightly decreased by 7.3% to €2.45 million (H1 2012: €2.64 million) leading to €4.4 million loss before tax (H1 2012: €6.3  million). The blended average rate for our borrowings remains at high levels of 7.2% (H2 2012:7.4 %).

Whilst these results demonstrate an improvement, the Group is still loss making and the net debt was € 62.2 million and current liabilities exceed its current assets by €24 million as of 30 June 2013. The Group's banks have continued to support the business with letters of credit and working capital facilities. The Group relies on its long term relationships and support with domestic banks and its suppliers in order to be able to continue as a going concern.  As disclosed below, the Group continues to be in breach of some of its banking covenants. The Group's banks are actively engaging with Helesi on extending the maturity of the Group's borrowings and providing additional funding to facilitate the growth of the business. The directors are confident of obtaining the banks approval to a restructuring in the coming weeks and afurther announcement will be made at that time. Helesi's shares remain temporarily suspended on AIM and the directors will also provide an update on this matter when an announcement is made about the debt restructuring.  Additional information about the Group's financial position and borrowings are further described in notes 4 and 10.

Dividend

Dividends will resume again once the operating cashflow of the Company improves.

Operations

In plastic products, revenues decreased due to lack of contribution from the Greek market and Italian market. The postponement of various projects in the Greek market, the restriction of credit risk in combination with constrains in new working capital sources held back operations. The structural reform of the Greek State affected also the Services and Vehicles business, and signs of recovery started to appear in the second half of 2012 and continue within 2013. Helesi is building a pipeline of new projects in the Greek market that in case of success, and in the event that funding can be secured, has the potential to benefit from over €40 million of revenues in future years.

Outlook

Helesi remains positive for the future once its funding position has been secured. Geographical diversification and product diversification reduces the downside risk of a prolonged recession scenario in Greece. The Group will continue to focus on overseas sales of plastic products, meanwhile taking the necessary steps to improve further all cost areas, and reduce the debt burden. Most importantly, the Group is negotiating with its creditors in order to improve working capital availability, which will enable the Group to realize its export growth potential.

Dimitri Kainaros

Non-Executive Chairman

Sakis Andrianopoulos

Chief Executive Officer

31 January 2014

Statement of the members of the Board of Directors and other responsible persons of the Company for the financial statements

In accordance with Article 9, sections (3) (c) and (7) of the Transparency Requirements (Securities for Trading on regulated Market) Law of 2007 ("Law"), we the members of the Board of Directors and the other responsible persons for the consolidated financial statements of Helesi Plc for the period ended 30 June 2012 we confirm that, to the best of our knowledge:

(a)        the annual consolidated financial statements that are on pages 7 to21:

(i)         were prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, and in accordance with the provisions of Article 9, section (4) of the Law, and

(ii)        give a true and fair view of the assets and liabilities, the financial position and the profit or losses of Helesi Plc and the businesses that are included in the consolidated accounts as a total , and

(b)        the directors' report gives a fair review of the developments and the performance of the business as well as the financial position of Helesi Plc and the businesses that are included in the consolidated accounts as a total, together with a description of the principal risks and uncertainties that they are facing.

Members of Board of Directors:

Kainaros Dimitrios Athanassios (Sakis) Andrianopoulos	Non-Executive Chairman Chief Executive Officer
Christina Thanassoulia	Deputy Chief Executive
Elena Paraskeva	Non Executive Director

Nicosia, Cyprus

Statements of Comprehensive Income

		The Group			The Company
	Notes	First half of	First half of	Year	First half of	First half of	Year
		2013	201 2	20 12	2013	201 2	20 12
		€'000	€'000	€'000	€'000	€'000	€'000
Sales revenue		9.985	10.002	28.795	-	-	-
Other revenue		167	903	1.154	266	296	630
Changes in inventories of finished goods		(418)	(528)	(1.399)	-	-	-
Cost of materials used

Statements of Financial Position

		The Group			The Company
	Notes	30 June	30 June	31 December	30 June	30 June	31 December
		2013	201 2	20 12	2013	201 2	20 12
		€'000	€'000	€'000	€'000	€'000	€'000
Assets
Non current assets
Property, plant and equipment	9	71.989	75.584	74.152	-	1	-
Goodwill		7.259	7.659	7.259	-	-	-
Other i ntangible  assets		1.054	1.427	1.303	-	-	-
Investment in subsidiaries		-	-	-	39.383	39.383	39.383
Other non-current assets		81	81	81	-	-	-
		------	------	------	------	------	------
Total n on-current assets		80.383	84.751	82.795	39.383	39.383	39.383
		------	------	------	------	------	------
Inventories		4.105	4.193	4.322	-	-	-
Trade and other receivables		23.724	30.846	24.081	100	645	193
Cash and cash equivalents		1.003	441	452	321	-	1
		------	------	------	------	------	------
Total c urrent assets		28.832	35.480	28.855	421	645	194
		------	------	------	------	------	------
Total assets		109.215	120.231	111.650	39.804	40.029	39.577
		------	------	------	------	------	------
Share capital		(3.981)	(3.981)	(3.981)	(3.981)	(3.981)	(3.981)
Share premium		(33.641)	(33.641)	(33.641)	(33.641)	(33.641)	(33.641)
Capital reserves		(9.981)	(9.981)	(9.981)	-	-	-
Currency translation adjustments		-	-	-	-	-	-
Retained earnings		38.484	25.537	31.966	(845)	(603)	(638)
		------	------	------	------	------	------
Total equity		(9.119)	(22.066)	(15.637)	(38.467)	(38.225)	38.260
Non current liabilities
Long term borrowings	10	(38.212)	(33.276)	(14.692)	-	-	-
Current liabilities to supplier		(1.579)	(1.119)	(1.575)	-	-	-
Employee benefit		(425)	(299)	(381)	-	-	-
Deferred tax liabiliti es		(7.101)	(5.119)	(5.069)	-	-	-
		------	------	------	------	------	------
Total Non current liabilities		(47.317)	(39.813)	(21.717)	-	-	-
Current liabilities
Trade and other payables		(22.294)	(25.982)	(22.568)	(1.336)	(1.803)	(1.294)
Income tax payable		(786)	(688)	(726)	-	(1)	(22)
Short term  borrowings	10	(29.699)	(31.683)	(51.002)	(1)	-	(1)
		------	------	------	------	------	------
Current liabilities		(52.779)	(58.353)	(74.296)	(1.338)	(1.804)	(1.317)
		------	------	------	------	------	------
Total liabilities and equity		(109.215)	(120.231)	(111.650)	(39.804)	(40.029)	(39.577)
The attached notes form an integral part of this interim condensed financial information

Statements of Changes in Shareholders' Equity

	The Group
	Share capital	Share premium	Capital reserves	Currency translation adjustments	Retained earnings	Total
	€'000	€'000	€'000	€'000	€'000	€'000
As at 1 January 20 12	3.981	33.641	9.981	-	(17.351)	30.252
Profit for the period	-	-	-	-	(8.186)	(8.186)
	------	------	------	------	------	------
As at 30 June 20 12	3.981	33.641	9.981	-	(25.537)	22.066
Profit for the period	-	-	-	-	(6.104)	(6.104)
Prior year adjustment	-	-	-	-	(325)	(325)
	------	------	------	------	------	------
As at 1 January 201 3	3.981	33.641	9.981	-	(31.966)	15.637
Profit for the period	-	-	-	-	(6.495)	(6.495)
Prior year adjustment	-	-	-	-	(23)	(23)
	------	------	------	------	------	------
As at 30 June 201 3	3.981	33.641	9.981		38.484	9.119
	------	------	------	------	------	------

	The Company
	Share capital	Share premium	Capital reserves	Currency translation adjustments	Retained earnings	Total
	€'000	€'000	€'000	€'000	€'000	€'000
As at 1 January 20 12	3.981	33.641	-	-	453	38.075
Profit for the period	-	-	-	-	150	150
	------	------	------	------	------	------
A s at 30 June 201 2	3.981	33.641	-	-	603	38.225
Profit for the period
	------	------	------	------	------	------
As at 1 January 20 13	3.981	33.641	-	-	638	38.260
Profit for the period
	------	------	------	------	------	------
A s at 30 June 201 3	3.981	33.641	-	-	845	38.467
	------	------	------	------	------	------
The attached notes form an integral part of this interim condensed financial information

Statements of cash flows

	The Group			The Company
	First half of	First half of	Year	First half of	First half of	Year
	2013	201 2	20 12	2013	201 2	20 12
	€'000	€'000	€'000	€'000	€'000	€'000
Operating activities
Loss  before tax	(4.399)	(6.296)	(12.406)	207	150	209
Depreciation, amortisation and profit ο n disposals	2.503	2.509	4.974	-	-	-
Interest payable	2.447	2.609	4.205	-	(1)	1
Employee  benefits	43	48	130	-	-	-
Profit/loss from sale of fixed asset	-	243	253	-	-	-
Profit from sales unit	-	-		-	-
Other non cash item	(23)	(122)	-	-	-	-
Impairment of goodwill	-	-	400	-	-	-
	------	------	------	------	------	------
	572	(460)	(1.726)	207	149	209
(Increase)/ decre a se in inventories	217	681	551			-
(Increase)/ decre a se in receivables	357	2.929	9.695	92	(446)	221
Increase /(decrease) in payables	(270)	1.654	(1.305)	43	358	(368)
	------	------	------	------	------	------
	876	4.804	7.215	135	62	147
Net i nterest received/ ( paid )	(2.447)	(2.640)	(5.236)	-	(1)	-
Income tax paid	(3)	(249)	(104)	(22)	(62)	-
	------	------	------	------	------	------
Net operating cash inflows (outflows)	(1.574)	(1.641)	1.875	320	(1)	62
	------	------	------	------	------	------
Cash flows related to investing activities
Purchase of property plant and equipment	(91)	(1.330)	(2.251)	-	(1)
Proceeds from sale of property plant and equipment	-	225	226	-	-
Purchase of intangible  assets	-	-	(39)	-	-
Interest received	-	30	31	-	-	61
	------	------	------	------	------	------
Net investment cash inflows (outflows)	(91)	(1.074)	(2.033)	-	(1)	1
	------	------	------	------

Notes to the Interim Condensed Financial Statements

1.    Accounting Policies

These interim financial statements have been compiled and are presented in accordance with IAS 34 Interim Financial Reporting. The accounting policies used in the preparation of the interim financial statements are consistent with those used in the compilation of the audited financial statements for the year ended 31 December 2012 and the six months ended 30 June 2013.

Costs that occur evenly during the financial year are anticipated or deferred in the interim financial statements, only if it would be appropriate to anticipate or defer such costs at the end of the financial year.

Income tax expense is recognised based on the best estimate of the weighted average annual income tax rate expected for the full financial year.

2.    Capital Structure

The Helesi PLC Group operates an employee share options scheme (ESOS) under which employees of any of the entities forming part of the Group may be given the option to purchase shares of Helesi PLC .  These options are exercisable not earlier than three years and not later than seven years after the grant date, at an exercise price which is specified, in Euros, at the time of granting the options.  

Details of the share options granted to directors, to date, are set out below:

Elena Paraskeva 37,086

These options were granted on 23 November 2006, were exercisable between 23 November 2009 and 23 November 2013, at an exercise price of 116p, which is the IPO floating price. The options were not exercised by Ms. Paraskeva and as a result, they are not valid any more. The market price of the Helesi PLC shares, on the 7th of  December 2013. The Helesi shares have been suspended from trading in the AIM market of the London stock exchange since 26 June 2013 (last transaction was made on the 7th of June 2013).

3. Economic Environment

The Greek economy is undergoing a severe recession for a sixth consecutive year, totalling a decrease in GDP larger than 25% without bearing in mind inflation. It is the worse recession for a country within the EU in peace time. The downgrade of the Greek State has resulted in a liquidity crisis and fall in consumer and business confidence. The Greek state has been forced to implement austerity measures which include Greek budget cuts and the postponement of public sector projects.  Banks have generally ceased providing new finance to Greek businesses since 2010 and some foreign banks operating in Greece have been instructed not to undertake "state risk". These factors have resulted in fall in revenues, deteriorating cash flows and increased finance costs.

4. Going concern

As at 30 June 2013, the Group's current liabilities exceed its current assets by €24 million (H1 2012: €22.8 million) and the Group was in breach of several of its loan covenants. The Group's projections reflect sustainable net operating cashflow, and relies on its long term relationships and support with domestic banks and its suppliers. Helesi Italia is in the process of being divested and as a result, the Group expects not only to adjust productive capacity to current demand, but also to bolster its cash-flow with an amount near €2 million in 2014.

5.  Earnings per Share

The basic earnings per share in a given period are calculated by dividing the net profit attributable to the Group by the weighted average number of issued and outstanding shares in that period.

The calculation of the diluted earnings per share takes into consideration the options on shares granted to employees of the Group.  The equivalent of these share options to shares is quantified by

reference to the exercise price of the options granted and the average listed price (in the accounting period reported upon) of the shares on which the options have been granted.

6 .   Segmental Analysis

As from 2007, the Helesi PLC Group recognises two business segments: the environmental products segment and the environmental services segment. The financial results and the financial position of these two business segments are set out below.

	First half of 201 3
	Environmental products	Environmental services	Group
	€'000	€'000	€'000
Third-party sales	6.265	3.720	9.985
Other third-party revenues	167	-	167
	------	------	------
Total revenues	6.432	3.720	10.152
Cost of materials and accessories used	(2.765)	(1.180)	(3.945)
Personnel-related costs	(1.232)	(1.216)	(2.447)
Depreciation and amortisation	(2.275)	(229)	(2.504)
Third-party costs and expenses	(2.686)	(521)	(3.207)
	------	------	------
Segmental profit, before finance charges	(2.527)	576	(1.951)

	First half of 20 12
	Environmental products	Environmental services	Group
	€'000	€'000	€'000
Third-party sales	6.691	3.311	10.002
Other third-party revenues	814	89	903
	------	------	------
Total revenues	7.505	3.400	10.905
Cost of materials and accessories used	(4.540)	(392)	-(4.932)
Personnel-related costs	(1.859)	(1.229)	(3.088)
Depreciation and amortisation	(2.260)	(249)	(2.509)
Third-party costs and expenses	(2.137)	(1.651)	(3.788)
	------	------	------
Segmental profit, before finance charges	(3.291)	(121)	(3.412 )
	------	------	------

	30 June 201 3
	Environmental products	Environmental services	Group
	€'000	€'000	€'000
Total Assets	101.840	7.375	109.215
Total Liabilities to third parties	(95.546)	(4.550	(100.096)

The Helesi PLC Group operates two facilities - one in Greece and one in Italy, under the corporate umbrellas of Helesi SA and Helesi Italia srl, respectively. The Italian production unit is in the process of being divested though. The financial results and the financial position of these operations are set out below. 

	First half of 201 3
	Greece	ΙΤ	Elimination of intersegment transactions	Group
	€'000	€'000	€'000	€'000
Third-party sales	9.505	480	-	9.985
Intersegment sales	674	198	(872)
	------	------	------	------
Total sales	10.179	678	(872)	9.985
Other third-party revenues	157	10		167
Intersegment other revenues	-	-	-	-
	------	------	------	------
Total other revenues	10.336	688	(872)	10.152
Total revenues
Cost of materials  used	(3.570)	(375)	-	(3.945)
Third-party costs and expenses	(7.190)	(968)	-	(8.158)
	------	------	------	------
Segmental profit / (loss) before finance charges	(424)	(655)	(872)	(1.951)
	------	------	------	------

	First half of 20 12
	Greece	IT	Elimination of intersegment transactions	Group
	€'000	€'000	€'000	€'000
Third-party sales	8.155	1.847	-	10.002
Intersegment sales	1.296	641	(1.937)	-
	------	------	------	------
Total sales	9.451	2.488	(1.937)	10.002
Other third-party revenues	903	-	-	903
Intersegment other revenues	(22)	-	22	-
	------	------	------	------
Total other revenues	10.332	2.488	(1.915)	10.905
	------	------	------	------
Total revenues
Cost of materials and accessories used	(3.634)	(1.298)	-	(4.932)
Cost of intersegment use of materials

	Year 201 2
	Greece	Italy	Elimination of intersegment transactions	Group
	€'000	€'000	€'000	€'000
Third-party sales	25.166	3.269	-	28.795
Intersegment sales	2.289	1.252	(3.541)	-
	------	------	------	------
Total sales	27.455	4.881	(3.541)	28.795
Other third-party revenues	1.127	27	-	1.154
Intersegment other sales	-	2.500	(2.500)	-
	------	------	------	------
Total revenues	28.582	7.408	(6.041)	29.949
Cost of materials and accessories used	(10.544)	(3.553)	-	(14.097)
Cost of intersegment use of materials	(651)	(22)	673	-
Personnel-related costs	(5.500)	(1.050)	-	(6.550)
Directors' fees	(73)	-	-	(73)
Depreciation and amortisation expense	(4.363)	(611)	-	(4.974)
Other operating expenses	(9.632)	(1.823)	-	(11.455)
	------	------	------	------
	(2.181)	349	(5.368)	(7.200)
Elimination of intercompany receivables/liabilities	(2.500)	-	2.500	-
Segmental profit / (loss) before finance charges	(4.681)	349	(2.868)	(7.200)
Cost of financing	(5.037)	(168)	-	(5.205)
	------	------	------	------
Segmental profit (loss), before taxes	(9.718)	181	(2.868)	(12.405)
	------	------	------	------
Income tax	(1.885)	-	-	(1.885)
	------	------	------	------
Net profit /(loss), after tax	(11.603)	181	(2.868)	(14.290)
	------	------	------	------

	30 June 201 3
	Greece	ΙΤ	Elimination of intersegment balances	Group
	€'000	€'000	€'000	€'000
Intersegment investments
Intersegment receivables/payables	3.822	(3.822)	-	-
Total other assets	95.261	13.954	-	109.215
Total liabilities to third parties	(95.072)	(5.024)		(100.096)
	------	------	------	------
Net assets	4.011	5.108	-	9.119
	------	------	------	------

	30 June 20 12
	Greece	IT	Elimination of intersegment balances	Group
	€'000	€'000	€'000	€'000
Intersegment investments	7.446	-	(7.446)	-
Intersegment receivables/payables	5.577	(5.577)	-	-
Total other assets	103.859	16.372	-	120.231
Total liabilities to third parties	(92.127)	(6.038)	-	(98.165)
	------	------	------	------
Net assets	24.755	4.757	(7.446)	22.066
	------	------	------	------

	31 December 20 12
	Greece	Italy	Elimination of intersegment balances	Group
	€'000	€'000	€'000	€'000
Intersegment investments
Intersegment receivables/payables	2.992	(2.992)	-	-
Total other assets	94.880	16.770	-	111.650
Total liabilities to third parties	(88.019)	(7.994)	-	(96.013)
	------	------	------	------
Net assets	9.853	5.784	-	15.637
	------	------	------	------

The third-party sales and the value of the related trade receivables outstanding at period-end, on the basis of the location at which the customers operate (inclusive of the balances that are doubtful of collection and have been provided for), are analysed as follows:

	Greece	Italy	Other European Union states	Other (non-EU) states	Group
	€'000	€'000	€'000	€'000	€'000
First half of 201 3
Value of sales	6.470	515	2.400	600	9.985
Trade receivables, at period end	10.898	1.235	1.410	146	13.689
	------	------	------	------	------
First half of 20 12
Value of sales	4.624	1.826	2.173	1.379	10.002
	------	------	------	------	------
Trade receivables, at period end	23.518	5.541	1.565	222	30.846
	------	------	------	------	------
Year 20 12
Value of sales	17.093	3.654	4.467	3.581	28.795
	------	------	------	------	------
Trade receivables, at year end	11.758	1.027	980	155	13.920
	------	------	------	------	------

7.    Persons Employed and Related Costs

	The Group			The Company
	30 June 201 3	30 June 20 12	31 December 20 12	30 June 201 3	30 June 2 012	31 December 20 12
	Number	Number	Number	Number	Number	Number
Number of persons employed (at period end)	206	274	277	-	2	3
	------	------	------	------	------	------
	First half of 201 3	First half of 201 2	Year 20 12	First half of 201 3	First half of 201 2	Year 20 12
	€'000	€'000	€'000	€'000	€'000	€'000
Salaries and wages	(1.858)	(2.362)

8.    Income Taxes

	The Group			The Company
	First half of 201 3	First half of 20 12	Year 20 12	First half of 201 3	First half of 20 12	Year 20 12
	€'000	€'000	€'000	€'000	€'000	€'000
Profit, before taxes, per the statement of earnings	(4.398)	(6.296)	(12.405)	-	150	208
	------	------	------	------	------	------
Income taxes, at the nominal tax rate	(552)	(796)	(4.081)	-	15	21
Taxes on permanent differences between accounting and taxable profits	1.287	95	1.813	-	-	-
Effect of tax losses carried forward		(224)	(14)		-
Income not subjected to taxation	9	(165)	22	-	(15)	-
Income non taxable		-	-	-	-	2
Tax relief due to reduction of the tax rate		-	-	-	-	-
Tax losses previous years for which income tax assets was recognized	1.352	2.980	4.145	-	-	-
	------	------	------ -	------	------	------
Total tax charge	2.096	1.890	1.885	-	-	23
	------	------	------	------	------	------
Current tax charge	52	251	125	-	-	23
Deferred tax charge	2.044	1.639	1.760	-	-	-
	------	------	------	------	------	------
Total tax charge	2.096	1.890	1.885	-	-	23

9.   Property, plant and equipment

          The Group

	Land	Buildings and building installations	Plant and machinery	Vehicles	Furniture and other equipment	Assets under constr. or installation	Total
	€'000	€'000	€'000	€'000	€'000	€'000	€'000
At cost or valuation
As at 31 December 201 1	2.609	25.093	59.211	4.689	1.698	2.708	96.008
Additions	-	412	474	90	34	320	1.330
Disposals	-	(31)	(314)	(321)	(19)	-	(685)
	------	------	------	------	------	------	------
As at 3 0 June 201 2	2.609	25.474	59.371	4.458	1.713	3.029	96.653
Additions	-	-	275	36	18	591	920
Disposals	-	-	(51)	(20)	-	-	(71)
Transfers	-	-	(14)	-	-	-	(14)
	------	------	------	------	------	------	------
As at 31 December 20 12	2.609	25.474	59.581	4.474	1.731	3.620	97.489
Additions	-	-	-	-	91	-	91
	------	------	------	------	------	------	------
As at 30 June 201 3	2.609	25.474	59.581	4.474	1.731	3.620	97.489
	------	------	------	------	------	------	------
Accumulated depreciation
As at 31 December 20 11	-	(2.784)	(11.859)	(3.372)	(924)	-	(18.939)
Effect of currency translation	-	-	-	-	(3)	-	(3)
Depreciation charge	-	(359)	(1.600)	(224)	(161)	-	(2.344)
Disposals	-	-	68	143	6		217
	------	------	------	------	------	------	------
As at 3 0June 20 12	-	(3.143)	(13.393	(3.455)	(1.079)	-	(21.069)
Effect of currency translation	-	-	-	-	3	-	3
Depreciation charge	-	(370)	(1.589)	(219)	(108)	-	(2.306)
Disposals	-	-	41	21	-	-	61
Transfers	-	-	(27)	-	-	-	(27)
	------	------	-----	------	------	------	------
As at 31 December 20 12	-	(3.513)	(14.967)	(3.653)	(1.204)	-	(23.337)
Depreciation charge s	-	(364)	(1.578)	(191)	(121)	-	(2.254)
	------	------	------	------	------	------	------
As at 30 June 201 3		(3.877)	(16.545)	(3.844)	(1.325)	-	(25.591)
	------	------	------	------	------	------	------
Net book values
As at 30 June 201 3	2.609	21.597	43.036	630	494	3.620	71.986
	------	------	------	------	------	------	------
As at 30 June 20 12	2.609	22.331	45.978	1.003	634	3.029	75.584
	------	------	------	------	------	------	------
As at 31 December 20 12	2.609	21.961	44.614	821	527	3.620	74.152
	------	------	------	------	------	------	------

The Fixed Assets are insured for €32 million.

10. Interest-bearing loans and borrowings

The bank loans and other bank financing facilities (including the debenture loan) contracted by the Helesi PLC Groupare analysed as follows:

30 June 201 3	Short-term liabilities	Long-term liabilities
	€'000	€'000
Debenture loan	1.149	38.212
Short term bank loans	28.550	-
	------	------
	29.699	38.212
	------	------

30 June 20 12	Short-term liabilities	Long-term liabilities
	€'000	€'000
Debenture loan	5.200	32.915
Short term bank loans	26.483	361
	------	------
	31.683	33.276
	------	------

31 December 20 12	Short-term liabilities	Long-term liabilities

The interest charges generated in relation to the above loans, in the six month period ended 30 June 2013, amounted to €2.447  thousand  (H1 2012 : €2.610 thousand). On 30 June 2013, bank borrowings are secured by fixed charges over the Group's property plant and equipment for amount of € 63.8 million (H1 2012 : €61 million).

Banks continued to pass on to Helesi their increased cost of borrowing. However, the weighted average cost of borrowing for H1 2013 slightly decreased to 7.2% (H1 2012:7.4%).

There are ongoing negotiations with all creditor banks, in order to restructure Helesi Group debt and to reduce financial costs.

11. Earnings per share and proposed dividends

Earnings per share are calculated by dividing the profit attributable to the shareholders of Helesi PLC by the weighted average number of issued and outstanding shares in the accounting period covered by the financial statements.

	Basic EPS				Diluted EPS
The Group	30 June 2013	30 June 2012		30 June 2013		30 June 2012
	€000	€000		€000		€000
Net profit attributable to the shareholders (in Euro thousand)	(6.495)	(8.186)		(6.495)		(8.186)
Weighted average number of issued shares (in thousand pieces)	39.806	39.806		39.806		39.806
	------	------		------		------
Earnings/( loss)  per share (in €)	(0,17)	(0,21)		(0,17)		(0,21)
	------	------		------		------

12. Related party transactions and balances

The transactions of the Helesi PLC Group, in the period 30 June 2013 and the year 2012, with and receivables from and payables to related parties, as on 30 June 2013 and 31 December 2012, are analysed as follows:

The Group			Sales to		Purchases from		Receivable from		Payable To
			€000		€000		€000		€000
	TECMEC S.A
30 June 2013			12		94		3.192		-
30 June 2012			49		825		3.286		-
31 December 2012			115		1.326		3.056		-

The compensation of the members of the Board of Directors and certain other key management personnel executives for the group for the first half 2013 and 2012 was as follows:

		The Group		The Company
		First half of  2013	First half of  2012	First half  of  2013	First half of  2012
		€000	€000	€000	€000
	Athanassios Andrianopoulos	(9)	(18)	(9)	(9)
	Christina Thanassoulia	(9)	(18)	(9)	(9)
	Dimitrios Kainaros	(6)	(12)	(6)	(7)
	Elena Paraskeva	(7)	(13)	(7)	(7)
	George Papagelis	-	(12)	-	(6)
		(31)	(37)	((31)	(37)

13. Contingencies

The construction of one of the two waste transfer stations in Cyprus has not proceeded according to the contract with the Cyprus government as the local community of the original site strongly opposes its construction. In addition during the year, the government terminated the waste management project contracted with Helesi. In accordance with the contract, the Group is entitled to significant compensation for delays, non-performance and/or termination based upon a number of criteria. The Group is presently negotiating the level of compensation that will be finally paid with the appropriate authorities, but no provision has been made in these financial statements as the final figure cannot be determined with any degree of accuracy at the present time.

14. Post Balance Sheet Events

Helesi Italia ceased production operations in 2013. The Group's management is in negotiations to divest its investment in Helesi Italia either by disposing part of its operating unit or to dispose the assets of this subsidiary.

This information is provided by RNS

The company news service from the London Stock Exchange

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