18 June 2010
Interim Financial Statements
Minoan Group Plc (“Minoan or “the Company”) presents its Unaudited Interim Financial Statements for the six months ended 31 March 2010
Chairman’s Statement
Since I last wrote to you the economic situation in Greece has received further adverse publicity. The rescue package, put in place by the IMF, the EU and the ECB and approved by the Greek Parliament, will entail considerable hardship for parts of Greek society. Although there have been a number of demonstrations against the economic measures being taken, there appears to be a consensus among the majority of the population that these actions, although painful, are necessary.
As I have stated previously, the importance of increasing foreign investment continues to be acknowledged by numerous Greek ministers and by the main opposition party.
In my last statement I referred to your Board’s intention to diversify the Company’s business with a view to providing strong cash flows and profit growth. As stated, we identified renewable energy and tourism and leisure - areas in which individual Board and management team members have considerable expertise and which are complementary to the Cavo Sidero Project.
The expansion of the Company into complementary businesses ensures that the Board remains focussed on future growth and increasing shareholder value whilst waiting for the court’s decision regarding the Cavo Sidero Project and its later implementation.
The Cavo Sidero Project
Earlier in the year the Company announced that the local infrastructure was being upgraded and that the road linking the Project to Sitia was almost complete. The majority of the new road is now in use.
We continue to await the court’s judgement. As soon as the decision is published we will update shareholders as to the main points of the judgement and how they might affect the development.
In the meantime, we are continuing to examine further improvements to the Project’s already excellent environmental credentials.
Financial Results
The unaudited interim results for the six months ended 31 March 2010 are set out below and are in line with the Board’s expectations.
The Unaudited Consolidated Statement of Comprehensive Income includes a charge in respect of share based payments as required under IFRS 2. The share based payments charge is an accounting entry required by International Financial Reporting Standards and involves no movement of cash (see Note 4).
In order to better reflect the changes in Minoan’s business, the remuneration committee is currently reviewing the Group’s Long Term Incentive Plan.
Outlook
Following the Company’s announcements regarding the agreements to acquire solar energy licences in Greece, the new Government has revised and now enacted new legislation for all renewable energy projects. We are currently examining the detailed terms of this legislation. We will resume our programme of licence acquisition when we are satisfied that the new law continues to allow strong cash generation from the relevant developments.
Chairman’s Statement (continued)
Outlook (continued)
Separately, the substantive discussions involving businesses in the tourism and leisure sector continue to make good progress. It is our intention that any acquisition will be made via a special purpose vehicle, almost certainly with external partners with whom parallel discussions are ongoing.
With the skills available, both at Board level and within the management team, I believe that the remainder of the current year will see significant progress in all the areas of Company’s business and I look forward to being able to inform you accordingly.
Conclusion
I and my fellow Directors remain fully committed to the success of the Company and to providing growing long term value for shareholders through the Cavo Sidero Project and other businesses.
Finally, I would like to take this opportunity to thank you, our shareholders, for your continued support throughout the period.
Christopher W Egleton
Chairman
18 June 2010
