LAMDA Development: 1st semester 2005 Results in accordance with IFRS

Tuesday, August 06, 2005


LAMDA Development: 1st semester 2005 Results
in accordance with International Financial Reporting Standards (IFRS)

LAMDA Development marked a decrease of 1,3% in its consolidated turnover during the first semester of 2005, amounting to € 33,493,000 compared to € 33,934,000 during the same period in 2004.

Consolidated revenue for the period amounted to € 1,121,000 compared to € 6,867,000 the same period last year.

The consolidated results after taxes and minority rights recorded a loss of € 6,850,000 compared to losses of € 315,000 in 2004. The basic reasons for the deterioration of the results are:

a) Losses to the tune of € 5,306,000 that were sustained by the company developing the Flisvos Marina which –as is known - is not fully operational due to the temporary suspension of the investment programme’s construction work for its completion by the Council of State. By applying the principle of prudence, as dectated by the International Accounting Standards, the company changed its financial results by the full amount of leasing fees payable to the Hellenic Tourist Properties (ETA). Nonetheless, the final amount will be determined by the arbitration that is currently in progress.

b) An increase of € 4,472,000 in expenditures (promotion of sales, advisory and legal services etc) related to the intensification of commercialization efforts for the two shopping and leisure centres in Maroussi, Athens and Pylea, Thessaloniki.

c) Lamda Shipyards & Marine Services S.A., which is specialized in integrated ship maintenance and repair services, recorded losses of € 1,852,000 due to reduced turnover.

Summary of consolidated financial data:

(Amount in ‘000 €)

6-month period 2005

6-month period 2004

Consolidated Revenue1.1216.867-83,7%
Results Before Taxes-9.985-1.226-
Results After Taxes-11.201-189-
Minority Rights-6.850-315-

It should be noted that the company’s investment programme is now at its peak and the opening of the two commercial and entertainment centres in Maroussi, Athens and Pylea, Thessaloniki is expected to contribute positively to the group’s results and alter substantially the group’s risk profile. In addition, the Management of LAMDA Development continues its efforts toward concentrating its business activity primarily in real estate development, in Greece and abroad.