LAMDA Development: Even greater improvement inoperating figures for 2nd quarter of 2001

The LAMDA Development Group reports consolidated turnover of 5,497 billion GRD for the first six months of 2001, an increase of 455% over the same period of the previous year. During the same period, consolidated profits before tax were 371 million GRD, as compared to 1,054 billion GRD for the same half-year in 2000. However, the two figures are not comparable, since the first half figures for 2000 included by the 922 million GRD profits from the sale of the company’s construction business. It should be noted that the 2001 profits are for the most part operating profits. The total investments made by the group’s companies in the first half of 2001 amounted to more than 13 billion GRD.

Summary of consolidated results

Increased turnover by the Group subsidiaries HEPHAESTUS S.A. and Swissport LAMDA Hellas S.A. had a positive impact on the first-half results.

HEPHAESTUS S.A. (75%-owned by LAMDA Development)
Specifically in the service sector, the shipbuilding and ship repair business HEPHAESTUS S.A. reported increased profits, thanks to major yacht upgrading and conversion projects completed in July 2001. The company is currently negotiating other important projects, one of which is expected to commence before the end of 2001.

Swissport LAMDA Hellas (50%-owned by LAMDA Development)
The Swissport LAMDA Hellas S.A. results were, as in the previous quarter, adversely affected by the delay in commencement of operations at Spata airport, as well as by increased needs and adaptation costs during the first phase of operation. The overall trend of the Swissport LAMDA Hellas S.A. results is encouraging. Since July 2001, there has been a steadying of performance, and further improvement is forecast for the second half of the year. Swissport LAMDA Hellas S.A. is already operating at the new Athens International Airport “Eleftherios Venizelos” at Spata and the “Nikos Kazantzakis” Airport at Irakleio, while in August 2001 it was granted a licence to operate as a free-access ground handling service provider at the “Macedonia” Airport in Thessalonica.

DIMIOURGIA S.A. (100%-owned by LAMDA Development)
DIMIOURGIA S.A. has substantially increased its property development activities and is expected to give a significant boost to the year’s consolidated profits with the planned sale of one or more properties during the second half of the year. The company has already completed its reconstruction of the former Cecil Hotel in Kefalari, while it continues to work on a number of projects in the centre of Athens and other key locations in Attica:

  • Hilton area, erection of 6,000m2 office building – completion 2002
  • Central location in Marousi, 14,000m2 office building
  • Central location in Halandri, erection of 7,000m2 office building
  • Syngrou Ave., total renovation of six-floor, 3,000m2 office building - completion October 2001
  • Junction of Stadiou and Korai Streets in the centre of Athens, restoration, operation for profit and management (25 years) of a listed building – conversion to contemporary shop-and-office complex, total area 2,500m2

At the same time, DIMIOURGIA S.A. is also undertaking the construction management of a new hospital burns unit in Elefsina. Work on the first phase, to construct the bearing structure of the building (6,200m2, on three floors) will be completed by the end of September, while for the second phase a competition has been announced and tenders are due by 15/9/2001. The company is also engaged in the construction of a 200-apartment holiday complex at Xylokastro, Corinthia.

EFG Eurobank Properties S.A. (29.9%-owned by LAMDA Development)
EFG Eurobank Properties S.A. has continued to expand, with significant investment of 9 billion GRD. A number of one-off expenses had an adverse impact on figures for the first half, but the picture is expected to improve dramatically in the second half. EFG Eurobank Properties S.A. has acquired a significant number of office buildings in the northern suburbs of Athens and in more central locations, intending to operate them for profit. It has also made its first investment abroad, acquiring a holding in the Italian company Rio Nuovo Immobiliare, a subsidiary of SEI (member of the energy giant ENEL)

In the words of the Chief Executive Officer, Mr. Lambros G. Anagnostopoulos, commenting on the second quarter results: “We have already completed the basic core of our investment programme and each of our subsidiaries can now focus on its particular field of activity. Most of the Group’s profits are now operating profits, which is the objective we had set for the current year. We are confident that our targets for the current year of 11 billion GRD consolidated turnover, and of 2 billion GRD pre-tax profits, are still entirely feasible, provided only that there is no dramatic change in conditions on the property market before the end of the year.”