Y.Z. QUEENCO LTD.
28 August 2014
Queenco Leisure International Ltd.
(The "Company" or "QLI", and together with its subsidiaries, associated
companies and joint ventures, the "Group"),
Financial Results for the 6 months ended 30 June 2014
Queenco Leisure International Ltd., the emerging markets developer and operator
of casinos and entertainment centers, is pleased to report its financial
results for the 6 months ended 30 June 2014.
Operating and Business Highlights
* The Group's activities are adversely affected by the global economic crisis
in general and the economic crisis in Greece in particular, and by various
disagreements with other shareholders of its subsidiaries and associated
companies (as further detailed in our annual report for the year ended
December 31, 2013), which lately have been settled (For more details please
see note 1.2 to the attached financial statements). As a result, the
Company was not able to meet its original repayment schedules of loans and
credits received from (Y.Z.) Queenco Ltd. (the Company's parent
corporation, "Y.Z.") and from a previous shareholder in one of the
Company's subsidiaries. So far, the Company has succeeded in reaching
understandings with Y.Z and the abovementioned previous shareholder
regarding a rescheduling of the repayment schedules such that they will
coincide with the Company's payment abilities (for more information please
see note 1.2 in the attached financial statements). As of 30 June 2014, the
Company's outstanding obligations to the previous shareholder and Y.Z.
amounted to €0.5 million and €2.4 million, respectively. Company's
management is of the opinion that the Company will succeed in the future,
if needed, in rescheduling the repayment schedules of loans Y.Z. and the
previous shareholder. However, the current payment schedule of the loans
from Y.Z. is in line with the repayment schedule of Y.Z. of debentures
issued by it. Accordingly, the ability of the Company to re-schedule the
payment terms of the loans from Y.Z. is dependent on the ability of Y.Z. to
obtain other alternative financing sources to repay its debentures
obligations. The Group is continuing in the implementation of its cost
savings plans and is in the process of expanding their scope, mainly in
Rhodes, due to the decrease in revenues caused by the economic crisis; and
is seeking to increase visitors' arrival to the Island through a newly
formed subsidiary which engages in the marketing and operation of flights
from Israel to Rhodes and in the management of a customers' club. The Group
is also in a process of realization of excess assets. The Company's ability
to meet all its obligations in the foreseeable future is highly dependent
on the Company's ability to successfully execute such plans. The aforesaid
raise substantial doubt about the Company's ability to continue as a going
concern. For a more detailed description of our financial condition, see
Note 1.2 to the attached financial statements.
* On 12 June 2014 the Company entered into several share purchase agreements
with non-affiliated investors (the "Investors"), pursuant to which the
Company issued to the Investors a total of 29,415,530 shares of the Company
(of which 21,723,091 shares were issued prior to 30 June 2014 in
consideration of € 0.6 million and the balance after that date) (the
"Issued Shares") for a total consideration of NIS 4 million (approximately
€ 0.85 million) representing a price per share of NIS 0.136 (equal to
approximately € 0.029). The Issued Shares constitute approximately 2.61% of
the Company's share capital after the issuance. These share issuances
reflect a Company's pre-money valuation of NIS 150 million (approximately €
32 million). For more details, see note 1.1 to the attached financial
statements.
* On 23 June ,2014 the general meeting of shareholders of the Company
resolved to effect a capital reorganization in order to reduce the par
value per share of the Company's registered and issued share capital, so
that each ordinary share of the Company of par value NIS 1 shall be divided
into 100 ordinary shares of the Company of NIS 0.01 par value each; and out
of each 100 ordinary shares of the Company of NIS 0.01 par value each
existing after the aforesaid subdivision in the issued and outstanding
share capital of the Company, 99 ordinary shares of the Company of NIS 0.01
par value each shall be cancelled; and the consideration paid for the par
value of these cancelled shares shall be recorded in the Company's books as
a capital reserve to be deemed for all intents and purposes as a premium
paid for the shares remaining in the issued share capital of the Company
(the "Special Capital Reserve"); and the Company shall be prohibited from
distributing the Special Capital Reserve to its shareholders without it
being approved as a "distribution" (as defined in the Israeli Companies
Law, 1999) to be subject to the receipt of all the approvals then required
for it under law.
* On 30 June 2014, the Company reached a comprehensive settlement agreement
(the "Agreement") with Club Hotel Investments (C.H.) Ltd. ("Club Hotel"),
which settled the parties' disputes. The Agreement principally provides for
the sale of the entire assets of the Joint Corporations (as defined below),
for the distribution of the sales' consideration among the shareholders of
such corporations and for the regulation of the joint control and
management of their operations, which will allow the Joint Corporations to
recover, for the purpose and until such sales. As part of the agreement,
the Company received at the beginning of July 2014 $ 3 million. For more
details, please see note 1.2 to the attached financial statements.
* In late April 2014, the board of directors of PBS, has authorized Mr. Yigal
Zilkha, the Company's Chairman (as the Company's representative), and a
representative of the Club Hotel group, to negotiate with the minority
shareholder of CHL (the "Investor") an investment in CHL by the Investor.
Accordingly, the parties are currently negotiating the terms of such
transaction, which is expected to result in a substantial dilution of the
Company's holdings in CHL and the transfer of control in CHL to the
investor.
As of the date hereof, there is an uncertainty concerning the terms of the
contemplated transaction with the Investor as well as an uncertainty whether a
transaction with the Investor shall materialize at all.
* As previously reported, on 2 October 2013 the Company entered into an
agreement with a third party for the sale of QLI's operation in Prague.
* The Group's strategy to diverse revenue mix is progressing:
*
+ Queenco Casino in Sihanoukville, Cambodia soft launched during 2012,
giving us a strong platform for the future.
+ Exploring online gaming in areas where the Group already operates
continues to progress well.
+ Developments in future South East Asia projects form part of our
long-term strategy.
Financial Highlights for the 6 months ended 30 June 2014 (as compared to the 6
months ended 30 June 2013)
* Net Revenues were €6.9 million (2013: €5.5 million)
* EBITDA was negative €3.3 million (2013: negative €2.5 million)
* Loss for the year was €3.9 million (2013: Loss of €20.4 million)
* Cash and cash equivalents were €1.1 million as of 30 June 2014
Yigal Zilkha, Chairman of QLI, commented on the Company's status:
"We have witnessed some progress in Greece, which in the long term will
hopefully allow Greece to turn a corner, but uncertainty remains as to the
manner and timeframe of Greece's recovery. This situation adversely affects our
Greece operations"
"Along with the implementation of our cost-saving plans and increased marketing
efforts in Rhodes, we have shifted our focus to South East Asia, although we
require additional capital in order to truly develop our current project in
Sihanoukville, Cambodia. The Company is now considering various options to
raise such capital".
Chief Executive's Review
Introduction
The Group decided to strategically move away from Europe towards South East
Asia, in order to decrease the losses we had previously incurred. Management
believes that its recent marketing efforts concerning Casino Rhodes have
already paid off and will continue to improve the casino's future prospects.
Summary of financial performance
Results for the 6 months ended 30 June 2014 (as compared to the 6 months ended
30 June 2013)
Net revenues increase by 25% to €6.9 million (2013: €5.5 million), an increase
of €1.4 million, which is mainly due to the new operations of flights to Casino
Rodos. Revenues continue to be suppressed by the prolonged economic crisis in
Greece where the Group generates 94.7% of its net revenue from Casino Rodos.
The Group remains a negative EBITDA at €3.3 million (2013: negative €2.5
million). The Company's net loss during the period amounts to €3.9 million
(2013: loss €20.4 million).
Cash and cash equivalents amounted to €1.1 million as of June 30, 2014. The
Company's management is of the opinion that the Company has good chances of
executing a major portion of its plans in a timely manner. Accordingly the
Company's management is of the opinion that its existing cash and the expected
inflow of cash through the successful execution of its plans, will enable the
Company to meet the needed cash levels required for the Group's operations and
the payment of its obligations when due.
Operational Review
For detailed results by project for the three months ended 30 June 2014 and
2013 see Note 4 of the attached financial statement: segment information.
Casino Rodos
Results for the 6 months ended 30 June 2014 (as compared to the 6 months ended
30 June 2013)
As would be expected, revenues at Casino Rodos, the only casino located on the
holiday island of Rhodes, continue to be impacted by the economic conditions in
Greece and the uncertainty in the Eurozone. Net revenues amounted to €6.6
million (2013: €5.1 million). The number of visitors have increased while the
win per visit has decreased. The main reason for the increase in net revenues
was the new operations of flights to Rodos.
Queenco Casino, Sihanoukville
The project in Cambodia has suffered significant losses amounting for the 6
months ended 30 June 2014, to € 0.9 million. Such losses and negative cash flow
were financed up to date by the Company. However, due to the financial
condition of the Company (see note 1.2 to the attached financial statements)
there is uncertainty as to the ability of the Company to continue to do so, if
needed.
Outlook
The sale of our Prague operations in late 2013 and our activities to sell our
assets in Bulgaria are in line with our current strategy to move away from
Europe and to continue to explore opportunities in South East Asia and online
gaming opportunities.
In addition to the development of the current project in Sihanoukville, the
Company would like to develop a new tourist project on a 9 hectare land it owns
in Sihanoukville, which is located near the current Cambodian project. The
Company intends to continue to try and locate investors and/or business
partners for the development of a tourist project on this land, which may
include a hotel, casino, commercial center and a convention center, pursuant to
the building permits for this land, which allow for the building of a 5 star
hotel, consisting of 3,000 rooms, a commercial center and a convention center.
However, due to the Company's cash flow distress, it may need to sell this
land. Indeed, the Company's board of directors resolved in February 2013 to
offer for sale the Company's 9 hectare land in Cambodia, if needed to enable
the Company to meet its obligations. The Company has contracted a selling agent
in Cambodia to help it in realizing the property. The Company also considers
raising funds through the issuance of equity or debt, in which event it may
re-consider its decision to sell the 9 hectare land.
Yariv Lerner
Chief Executive Officer, Queenco Leisure International Limited
28 August 2014
For further information about the Company, please visit www.queenco.comor
contact:
Queenco Leisure International Ltd.
Yariv Lerner, CEO T: +972 (0)3 756 6555
QUEENCO LEISURE INTERNATIONAL LTD
Interim condensed consolidated financial statements for
the interim periods ending 30 June 2014
(Unaudited)
QUEENCO LEISURE INTERNATIONAL LTD
Interim condensed consolidated financial statements
Page
Independent auditors review report 1
Statements of comprehensive income (loss) 2-3
Statements of financial position 4-5
Statements of changes in equity 6-8
Cash flow statements 9
Condensed notes to the interim financial statements 10-22
Review Report of the Independent Auditors to the shareholders of
Queenco Leisure International Ltd.
Introduction
We have reviewed the accompanying financial information of Queenco Leisure
International Ltd. and subsidiaries (hereafter- "the Group") which includes the
condensed consolidated statement of financial position as at 30 June 2014 and
the condensed consolidated statements of comprehensive income (loss), changes
in equity and cash flows for the six and three month periods then ended. The
board of directors and management are responsible for the preparation and
presentation of this interim financial information in accordance with IAS 34
"Interim Financial Reporting". Our responsibility is to express a conclusion on
this interim financial information based on our review.
We did not review the interim condensed financial information of a consolidated
company, whose assets included in the consolidation constitute approximately 7%
of the total consolidated assets as of 30 June 2014, and whose revenues
included in consolidation constitute approximately 4% and 5% of the total
consolidated revenues for the six and three month periods then ended. The
condensed financial information for the interim periods of this company was
reviewed by other auditors, whose review report have been submitted to us, and
our conclusion, insofar as it relates to the financial information included for
this company, is based on the review report of the other auditors.
Scope of Review
We conducted our review in accordance with Review Standard No.1 of the
Institute of Certified Public Accountants in Israel "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity". A
review of interim financial information consists of making inquiries, primarily
of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with accepted auditing standards in
Israel and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review and the report of the other auditors, nothing has come to
our attention that causes us to believe that the above financial information is
not prepared, in all material respects, in accordance with IAS 34.
Emphasis of matter
Without qualifying our above conclusion, we draw attention to the following
issues:
1. Note 1.2 as to the financial condition of the Group and the uncertainty
deriving from such condition. During the six month period ended 30 June
2014, the Company incurred a operating losses of € 3.6 million. As of that
date, the Company's current liabilities exceeded its current assets by €
12.3 million. These matters and other matters described in the note are
raising a substantial doubt about the Company's ability to continue as a
"going concern". Management's plans concerning these matters are also
described in Note 1.2. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
2. Note 1.2 as to developments and uncertainties regarding the dispute a
consolidated company is facing with the Greek tax authorities with respect
to a claim by the authorities for the payment of taxes in the amount of €23
million.
3. Note 1.2 as to the significant doubts regarding the ability of a
consolidated company and an associated company to continue their operations
as a "going concern".
4. Note 1.2 as to the comprehensive settlement agreement signed with a
co-shareholder of 50% in Vasanta.
Brightman Almagor Zohar & Co.
Certified Public Accountants
A member firm of Deloitte Touche Tohmatsu Limited
August 28, 2014
Tel Aviv, Israel
QUEENCO LEISURE INTERNATIONAL LTD
Consolidated Statements of Comprehensive Income (Loss)
(In thousands of €)
3 months 6 months Year ended
ended 30 June ended 30 June
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 3
unaudited unaudited unaudited unaudited
Revenues 4,247 3,103 6,961 5,505 15,287
Operating costs
Cost of revenues (3,592) (2,562) (7,124) (5,731) (11,952)
Selling and marketing (1,104) (516) (1,896) (943) (3,080)
expenses
General and administrative (607) (1,265) (2,176) (2,334) (4,812)
expenses
Other operating expenses (837) (478) (1,037) (478) (792)
Share of results of 1,935 (17) 1,713 (11) 34
associated company and joint
ventures
Impairment of investment in - (12,886) - (12,886) (14,586)
associated company
Operating profit (loss) 42 (14,621) (3,559) (16,878) (19,901)
Investment income 45 43 86 87 180
Finance costs (188) (225) (341) (757) (1,324)
Foreign exchange gain (loss) (74) 36 (27) (736) (1,048)
Profit (loss) before tax (175) (14,767) (3,841) (18,284) (22,093)
Tax benefit (expense) 7 108 33 202 136
Profit (loss) from continued (168) (14,659) (3,808) (18,082) (21,957)
operations
Loss from discontinued - (1,545) - (2,305) (1,583)
operations
Total profit (loss) for the (168) (16,204) (3,808) (20,387) (23,540)
period
Other comprehensive income
(loss) items to be
reclassified to profit or
loss in subsequent periods:
Exchange differences arising 128 (255) 109 1,004 (849)
on translation of foreign
operations
Net other comprehensive 128 (255) 109 1,004 (849)
income (loss) to be
reclassified to profit or
loss in subsequent periods
Items not to be reclassified
to profit or loss in
subsequent periods:
Re-measurements of net - - - - 208
defined benefit liability
Net other comprehensive - - - - 208
income (loss) not to be
reclassified to profit or
loss in subsequent periods
Net other comprehensive 128 (255) 109 1,004 (641)
income (loss)
Total comprehensive income (40) (16,459) (3,699) (19,383) (24,181)
(loss)for the period
QUEENCO LEISURE INTERNATIONAL LTD
Consolidated Statements of Comprehensive Income (Loss) (Cont.)
(In thousands of €)
3 months 6 months Year ended
ended 30 June ended 30 June
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 3
unaudited unaudited unaudited unaudited
Total profit (loss) for the
period attributable to:
Equity holders of the parent (13) (15,990) (3,261) (19,809) (22,914)
company
Non-controlling interest (155) (214) (547) (578) (626)
(168) (16,204) (3,808) (20,387) (23,540)
Total comprehensive income
(loss) for the period
Equity holders of the (170) (16,128) (3,383 ) (19,426) (23,907)
parentcompany
Non-controlling interest 130 (331) (316) 43 (274)
(40) (16,459) (3,699) (19,383) (24,181)
Profit (loss) per share for
the period attributable to:
Profit (loss) per share from - (1.68) (0.29) (2.04) (2.25)
continued operations (¢) -
basic and diluted
Profit (loss) per share from - (0.18) - (0.27) (0.17)
discontinued operations (¢)
- basic and diluted
- (1.86) (0.29) (2.31) (2.42)
QUEENCO LEISURE INTERNATIONAL LTD
Consolidated statements of Financial Position
(In thousands of €)
As at
30 June 31 December
2 0 1 4 2 0 1 3 2 0 1 3
Unaudited Unaudited
Non-current assets
Intangible assets 1,900 2,136 2,134
Property, plant and equipment 27,061 21,928 27,792
Investment in an associated company and 10,737 13,784 11,587
joint ventures
Deferred tax asset 470 522 458
Other long term receivables 1,482 2,509 1,654
Total non-current assets 41,650 40,879 43,625
Current assets
Inventories 178 284 118
Trade and other receivables 3,624 1,116 2,011
Cash and cash equivalents 1,116 2,416 1,679
4,918 3,816 3,808
Non - current assets held for sale - 9,111 -
Total current assets 4,918 12,927 3,808
Total assets 46,568 53,806 47,433
Current liabilities
Accounts payable 1,349 1,672 1,105
Current tax liabilities 1,556 1,602 1,551
Other current liabilities 8,525 10,847 6,136
Bank overdraft and loans 5,797 1,011 6,282
Total current liabilities 17,227 15,132 15,074
Total assets less current liabilities 29,341 38,674 32,359
Non-current liabilities
Long-term bank loans - 5,768 -
Other long-term liabilities 2,566 3,934 2,601
Deferred tax - 24 24
Provision for retirement benefits 611 776 575
Total non-current liabilities 3,177 10,502 3,200
Net assets 26,164 28,172 29,159
QUEENCO LEISURE INTERNATIONAL LTD
Consolidated Statements of Financial Position (Cont.)
(In thousands of €)
As at
30 June 31 December
2 0 1 4 2 0 1 3 2 0 1 3
Unaudited Unaudited
Shareholders' equity
Share capital 2,220 114,122 217,364
Share premium 565 83,597 -
Translation reserve 11,210 12,898 11,332
Reserve for the grant of share options 93 - -
Reserve for the waiver of options by a 2,739 2,739 2,739
controlling shareholder
Other reserves 200,871 (14,319) (14,319)
Accumulated deficit (202,819) (182,783) (199,558)
Equity attributable to equity holders of 14,879 16,254 17,558
the parent
Non-controlling interest 11,285 11,918 11,601
Total Equity 26,164 28,172 29,159
The financial statements were approved by the board of directors and authorised
for issue on August 28, 2014. They were signed on its behalf by:
Yigal Zilkha Yariv Lerner Arie Haviv
Executive Chairman of the Chief Executive Officer, Chief financial officer
Board Director
August 28, 2014
Consolidated Statements of Changes in Equity
(In thousands of €)
Share Share Reserve Translation Reserve for Other Accumulated Parent Non-controlling Total
capital premium for the reserve the waiver reserves deficit interest equity
grant of share
of options by
share o a
ptions controlling
shareholder
For the six
months
ended 30
June 2014
(unaudited)
Balance as 217,364 - - 11,332 2,739 (14,319) (199,558) 17,558 11,601 29,159
at 1
January
2014
Stock split (215,190) - - - - 215,190 - - - -
Expenses - - 93 - - - - 93 - 93
resulting
from grant
of share
options
Share 46 565 - - - - - 611 - 611
issuance
Translation - - - (122) - - - (122) 231 109
differences
Net loss - - - - - - (3,261) (3,261) (547) (3,808)
for the
period
Balance as 2,220 565 93 11,210 2,739 200,871 (202,819) 14,879 11,285 26,164
at 30 June
2014
(unaudited)
Share Share Translation Reserve for Other Accumulated Parent Non-controlling Total
capital premium reserve the waiver reserves deficit interest equity
of share
options by
a
controlling
shareholder
For the six months
ended 30 June 2013
(unaudited)
Balance as at 1 114,122 83,597 12,515 2,739 (14,319) (162,952) 35,702 11,875 47,577
January 2013
Effect of Changes in - - - - - (22) (22) - (22)
Accounting Policies
(see note 2)
Balance as at 1 114,122 83,597 12,515 2,739 (14,319) (162,974) 35,680 11,875 47,555
January 2013 restated
for changes in
accounting policies
Translation - - 383 - - - 383 621 1,004
differences
Net loss for the - - - - - (19,809) (19,809) (578) (20,387)
period
Balance as at 30 June 114,122 83,597 12,898 2,739 (14,319) (182,783) 16,254 11,918 28,172
2013 (unaudited)
Consolidated Statements of Changes in Equity (cont.)
(In thousands of €)
Share Share Reserve Translation Reserve for Other Accumulated Parent Non-controlling Total
capital premium for the reserve the waiver reserves deficit interest equity
grant of share
of options by
share o a
ptions controlling
shareholder
For the
three
months
ended 30
June 2014
(unaudited)
Balance as 217,364 - - 11,367 2,739 (14,319) (202,806) 14,345 11,155 25,500
at 1 April
2014
(unaudited)
Expenses - - 93 - - - - 93 - 93
resulting
from grant
of share
options
Translation - - - (157) - - - (157) 285 128
differences
Stock split (215,190) - - - - 215,190 - - - -
Share 46 565 - - - - - 611 - 611
issuance
Net loss - - - - - - (13) (13) (155) (168)
for the
period
Balance as 2,220 565 93 11,210 2,739 200,871 (202,819) 14,879 11,285 26,164
at 30 June
2014
(unaudited)
Share Share Translation Reserve for Other Accumulated Parent Non-controlling Total
capital premium reserve the waiver reserves deficit interest equity
of share
options by
a
controlling
shareholder
For the three months
ended 30 June 2013
(unaudited)
Balance as at 1 April 114,122 83,597 13,036 2,739 (14,319) (166,793) 32,382 12,249 44,631
2013 (unaudited)
Translation - - (138) - - - (138) (117) (255)
differences
Net loss for the - - - - - (15,990) (15,990) (214) (16,204)
period
Balance as at 30 June 114,122 83,597 12,898 2,739 (14,319) (182,783) 16,254 11,918 28,172
2013 (unaudited)
Consolidated Statements of Changes in Equity (Cont.)
(In thousands of €)
Share Share Translation Reserve for Other Accumulated Parent Non-controlling Total
Capital Premium reserve the waiver reserves deficit interest Equity
of options
by a
controlling
shareholder
Balance as at 114,122 83,597 12,515 2,739 (14,319) (162,974) 35,680 11,875 47,555
31 December
2012
Share issuance 103,242 (83,597) - - - (13,860) 5,785 - 5,785
Translation - - (1,183) - - - (1,183) 334 (849)
differences
Re-measurement - - - - - 190 190 18 208
of net defined
benefit
liability
Loss for the - - - - - (22,914) (22,914) (626) (23,540)
year
Balance as at 217,364 - 11,332 2,739 (14,319) (199,558) 17,558 11,601 29,159
31 December
2013
Consolidated Cash Flow Statements
(In thousands of €)
3 months 6 months Year ended
ended 30 June ended 30 June
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 3
unaudited unaudited unaudited unaudited
Net cash from (used in) (128) 8 (636) (551) (2,521)
operating activities of
continued operations (see Note
3)
Net cash used in operating - (23) - (201) (198)
activities of discontinued
operations
Net cash used in operating (128) (15) (636) (752) (2,719)
activities
Investing activities:
Interest received - - - 44 -
Purchases of property, plant (215) (308) (348) (322) (930)
and equipment
Realization of a deposit - - 351 - 500
Net cash from ( used in) (215) (308) 3 (278) (430)
investing activities
Net cash from investing - - 285 - 216
activities of discontinued
operation
Total net cash from ( used in) (215) (308) 288 (278) (214)
investing activities
Financing activities:
Repayments of borrowings - - (500) - (500)
Receipt of long term loan - 190 - 726 730
Repayment of long term loan (306) - (306) - (4,010)
Receipt of short term loan - 424 - 424 -
Share issuance 611 - 611 - 5,785
Net cash from financing 305 614 (195) 1,150 2,005
activities
Net increase (decrease) in (38) 291 (543) 120 (928)
cash and cash equivalents
Effect of foreign exchange (42) (249) (20) (110) 201
rate changes
Cash and cash equivalents at 1,196 2,374 1,679 2,406 2,406
beginning of period
Cash and cash equivalents at 1,116 2,416 1,116 2,416 1,679
end of period
Tax paid - (41) - (82) (139)
Interest paid (138) (167) (154) (167) (362)
NOTE 1 - GENERAL INFORMATION
1.1 Formation and equity developments
Queenco Leisure International Ltd (the "Company" or "QLI") is engaged, through
various Israeli and foreign subsidiaries, associated companies and joint
ventures (together with the Company the "Group") in emerging markets
development and operations of casinos and entertainment centers.
QLI was incorporated in Israel on 9 September 2002 by Milomor Ltd. ("Milomor")
(an Israeli company ) and (Y.Z) Queenco Ltd. ("Queenco" or "YZ") (an Israeli
public company whose shares are listed for trading in the Tel-Aviv stock
exchange), who held, equally, the entire issued and paid up capital of the
Company. The Company commenced its operating activities at the end of 2002. The
Company's address is 11 Menachem Begin road, Ramat Gan, Israel.
On 12 August 2013 the Company completed a rights issue of its ordinary shares
("New Shares") , of which a portion were offered in the form of Global
Depository Receipts (GDRs") for a total consideration of approximately € 5.8
million, net of expenses (including approximately € 4.4 million received from
the Company's controlling shareholders that was used for the repayment of a
portion of loans granted by a controlling shareholder ).
.
Upon completion of the rights issue, Queenco and its wholly owned subsidiary,
which held, together, prior to the completion of the rights issue approximately
67% of the Company's issued share capital, transferred the entire amount of New
Shares purchased by it in the rights issue to A.S.Y.V Hotels Ltd, a company
controlled by Mr Yariv Lerner, a director in the Company and its Chief
Executive officer. ("A.S.Y.V"), an Israeli corporation. A.S.Y.V held after the
issuance approximately 33.5% of the issued and outstanding share capital of the
Company; and Y.Z. and its wholly owned subsidiary, together with another
corporation controlled by Yigal Zilkha (one of the controlling shareholders of
Y.Z.), held, together, approximately 42.4% of the issued and outstanding share
capital of the Company. On 4 September 2013 Y.Z. and A.S.Y.V entered into a
shareholders' agreement (the "Shareholders Agreement") pursuant to which: (a)
the parties will not sell or otherwise transfer their shares of QLI such that
their aggregate voting rights in QLI shall decrease below 50.01% of the total
voting rights of QLI, unless the transferee who receives the shares shall
execute, prior to the consummation of the transfer and as a condition thereof,
an obligation to comply with the provisions of the Shareholders Agreement; (b)
the parties will coordinate their votes as much as possible prior to the
occurrence of each general meeting of QLI's shareholders, such that every
matter brought for the approval of the general meeting shall be discussed by
the parties at a preliminary meeting and the parties shall vote in every
general meeting of QLI's shareholders or every adjourned meeting thereof as
agreed in such preliminary meeting. In the event that the parties are unable to
agree on the manner of their vote regarding a certain matter, they will vote
against its approval; (c) any new appointment, re-election or termination of
office of a director of the Company shall be mutually agreed upon by the
parties.
NOTE 1 - GENERAL INFORMATION (Cont.)
1.1 Formation and equity developments (Cont.)
On 21 January 2014, the Company adopted a share option plan for the employees,
consultants and service providers of the Company and its related companies (the
"Option Plan"). The board of directors may grant up to 54,945,993 options to
purchase ordinary shares of the Company under the Option Plan, constituting 5%
of the Company's issued and outstanding share capital, at an exercise price per
share of €0.024. The Option Plan allows for a cashless exercise under certain
terms and is subject to the sole discretion of the plan's administrator.
Generally, the Option Plan sets forth a three-year vesting term and a 6 years
exercise period, and further provides for a limited exercise period in the
event of the grantee's termination of employment/service with the Company.
Until 30 June 2014, 23,626,777 share options were granted under the Option Plan
to the Company's employees and officers (who are not directors or controlling
persons), constituting 2.15% of the share capital of the Company. The fair
value of the options granted amounts to €237 of which €93 were charged to the
statement of comprehensive income (loss) in the six and three months periods
ended 30 June 2014.
On 12 June 2014 the Company entered several share purchase agreements with
non-affiliated investors (the "Investors"), pursuant to which the Company
issued to the Investors a total of 29,415,530 shares of the Company (of which
21,723,091 shares were issued prior to 30 June 2014 in consideration of € 0.6
million and the balance after that date) (the "Issued Shares") for a total
consideration of NIS 4 million (approximately € 0.85 million ) representing a
price per share of NIS 0.136 (equal to approximately € 0.029). The Issued
Shares constitute approximately 2.61% of the Company's share capital after the
issuance. These share issuances reflect a Company's pre-money valuation of NIS
150 million (approximately € 32 million).
Set forth below are the holding percentages of QLI's share capital before and
after the contemplated issuances:
Name of Shareholder Percentage of Holdings in QLI's Share Capital
Before the Issuance After the Issuance
(Y.Z.) Queenco Ltd. 21.53% 20.97%
Shahar Hamillennium (1991) 15.72% 15.31%
Ltd.
Yigal Muli Tourism Ltd. 5.15% 5.01%
Asyv Hotels Ltd 33.56% 32.69%
Public 24.04% 26.02%
On 23 June 2014, the Company affected a stock split of its shares according to
which each ordinary share of the Company of NIS 1 par value was divided into
100 ordinary shares of the Company of NIS 0.01 par value each. In addition, out
of every 100 ordinary shares of the Company of NIS 0.01 par value existing
after the above mentioned split , 99 ordinary shares were cancelled.
The consideration originally paid for the par value of the cancelled shares was
recorded in a capital reserve, deemed as a premium paid for the shares
remaining in the issued share capital of the Company (the "Special Capital
Reserve"). The Company may not distribute the Special Capital Reserve to its
shareholders without it being approved as a "distribution" (as defined in the
Israeli Companies Law, 1999) and subject to the receipt of all the required
approvals.
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition
The Group's activities are adversely affected by the global economic crisis in
general and the economic crisis in Greece in particular. The abovementioned,
along with the Company's inability to exercise its rights in Club Hotel
Loutraki S.A. ("CHL") due to disagreements with B.A.T (Management) 2004 Ltd.
(of the Club Hotel Group) ("B.A.T.") regarding the control of CHL and Casino
Austria International Holding GmbH's ("CAIH") unwillingness to comply with its
contractual obligations to transfer € 49.5 million to Powerbrook Spain S.L("PBS") (see below under "Project in Loutraki" for the settlement agreement
signed with Club Hotel Investments (C.H.) Ltd ), have brought the Company to
operating losses of approximately € 3.6 million and € 19.9 million for the six
month ended 30 June 2014 and the year ended 31 December, 2013, respectively.
The Company's net negative working capital amounted to approximately € 12.3
million at 30 June 2014.
As a result, the Company was not able to meet its original repayment schedules
of loans and credits received from Queenco (amounting at 30 June 2014 to €2.4
million) and from a previous shareholder in Dasharta (a company indirectly
jointly controlled by the Company), from whom the Company purchased residual
shares in said company in 2008. On 25 June 2014 the Company signed an amendment
to the loan agreement with the previous shareholder in Dasharta, according to
which loan will be linked to the Israeli CPI and bear annual interest of 7.5%.
Out of the € 520 standing at 30 June 2014, € 340 are to be paid in equal
monthly instalments of € 20 each over a 17 month period, and the remaining
balance will be paid on 31 January 2016.
The Company's management is of the opinion that the Company will succeed in the
future, if needed, in rescheduling the repayment schedules of loans from both
Queenco and the previous shareholder of Dasharta. However, the current payment
schedule of the loans from Queenco is in line with the repayment schedule of
Queenco of debentures issued by it. Accordingly, the ability of the Company to
re-schedule the payment terms of the loans from Queenco is dependent on the
ability of Queenco to obtain other alternative financing sources to repay its
debentures obligations.
During 2012, Casino Rhodes did not comply with its ongoing obligations to pay
revenue tax and national security taxes, but had agreed with the tax
authorities on a payment plan concerning these amounts. Recently Casino Rhodes
agreed with the tax authorities on an additional payment plan concerning its
payment obligations for the first quarter of 2014. The total liability under
the payments plans amounts to € 2 Million as of 30 June 2014. Non-compliance
with on-going tax obligations could lead to the termination of the license.
See note 1.3 to the Company's 2013 annual financial statements for details of
the tax claims in Casino Rhodes. If the court rules against Casino Rhodes,
neither Casino Rhodes nor the Group have the financial means to pay such amount
and Casino Rhodes will probably not be able to continue its operations. QLI and
Y.Z. have provided guarantees for the repayment of a loan extended to Casino
Rhodes by a bank. The balance of the liability as of 30 June 2014 amounts to
approximately € 5.8 million.
Due to the decrease in the expected revenue of Casino Rhodes, the Company made
an impairment test on the operating assets of Casino Rhodes. Based on a
valuation made by an independent appraiser, the Company recorded an impairment
charge of € 234. The impairment was allocated to goodwill for the investment in
Casino Rhodes and was recorded under "Other expenses" in the statement of
comprehensive income (loss) for the six and three month periods ended at 30
June 2014. The valuation was done using the DCF model (of the value in use)
using the following assumptions:
1. A discount rate before tax was 22.9%.
2. A growth rate of 1%.
The recoverable amount of Casino Rhodes based on the valuation performed is €
11.2 million. The balance of the goodwill after the impairment is € 1.9
million.
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition (Cont.)
There are substantial doubts as to the ability of the project in Cambodia to
continue its operations as a "going concern". The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
For more information see note 1.3 to Company's 2013 annual financial
statements.
On 30 June 2014, the Company reached comprehensive settlement agreement (the
"Agreement") with Club Hotel Investments (C.H.) Ltd. ("Club Hotel"), that
settled the parties' disputes. The Agreement principally provides for the sale
of all the assets of the Joint Corporations (as defined below), for the
distribution of the sales' consideration among the shareholders of such
corporations and for the regulation of the joint control and management of
their operations, which will allow the Joint Corporations to recover, for the
purpose and until such sales. As Further elaborated bellow under "Project in
Loutraki" and as part of the agreement, the Company received at the beginning
of July 2014 $ 3 million. The realization of the assets according to the
agreement may enable the Company to meet its obligations. In addition the
agreement may enable the Company to develop the operation in Cambodia and may
change the realization plan of other assets as mentioned below.
The Group is continuing the implementation of its cost saving and marketing
plans. AS part of its plans, the Group continues in its efforts to increase
tourists' arrival to the Rhodes Islands trough a newly formed subsidiary which
engages in the marketing and the operation of flights from Israel to the Rhodes
Island and in the management of a customers' club.
In addition, the Group is continuing its efforts to realize excess assets, such
as the planned sale of a real estate in Bulgaria (which is not in use by the
Group) and a 9-Hectare land in Cambodia. Although the Company would like to
develop a new tourist project on the 9-Hectare land, due to the Company's cash
flow distress, it may need to sell this land. The Company's Board of Directors,
in a meeting held in February 2013, resolved to offer for sale the 9-Hectare
land, if needed, to enable the Company to meet its obligations. The Company has
contracted a selling agent in Cambodia to help it in realizing the sale. The
Company has also contracted a selling agent in Bulgaria to help with its plans
in selling the real estate there. Until and including the third quarter of
2013, the assets were presented as held for sale. However, due to the extended
period in which such efforts were made, with no success, the Company has, in
the fourth quarter of 2013, reclassified the assets back to Property Plant and
Equipment, where they were originally presented, as the sale is no longer
considered highly probable within the context of IFRS 5.
The Company still considers raising funds through the issuance of equity or
debt, in which event it may re-consider its decision to sell the 9-Hectare
land.
The aforesaid raises substantial doubts as to the Company's ability to continue
as a "going concern". The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
The timing and scope of the success in the execution of some of the
abovementioned actions depend on agreements with third parties and/or are
affected by processes and other factors that are not under the Company's
control. Nonetheless, the Company's management is of the opinion that the
Company has good chances of executing the sale of the land in Cambodia and at
least a major portion of its other plans in a timely manner. Accordingly, the
Company's management is of the opinion that its existing cash and the expected
inflow of cash through the successful execution of the above mentioned plans,
will enable the Company to meet the needed cash levels required for its
operations and the payment of its obligations when due.
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition (Cont.)
Project in Loutraki
A. On 16 October 2013, the joint venture principally held by CHL and operating
the Casino Loutraki (the "JV"), filed a petition with the court to allow the JV
to reach a settlement with its creditors. Recently, the Greek court has
approved the JV's proposed settlement with its creditors (the "Settlement").
The Settlement relates to the debt existing on the date of filing the petition,
and provides that most of the debt will be paid over a period of approximately
7 years, without interest or penalty. On 29 May 2014, the JV has also reached a
settlement for the payment of the obligations incurred between 1 August 2013
and 30 April 2014 over a year.
B. On 6 November 2013, the Greek Gamming Committee for the Supervision and
Audit of Games (the "Gamming Committee") invited the JV for a hearing to answer
claims that it has allegedly breached Casino Loutraki's license terms due to
its failure to transfer certain payments to the Greek authorities (which may
result in the evocation of the licence). At the said hearing, which took place
on 18 November 2013, the Gamming Committee instructed CHL to submit in writing
its position concerning the claims raised by the Committee. CHL submitted its
position on 26 November 2013 and paid on May 2014, as required by Gamming
Committee, part of its overdue liabilities.
The Gamming Committee's decision has not yet been delivered.
The Company is unable to estimate if and to what extent the Committee's
decision shall affect the license granted to the JV for the operations of
Casino Loutraki.
The above further supports the Company's management's opinion that there are
significant doubts as to the ability of CHL to continue its operations as a
"going concern".
Except for an agreed loan to be provided by PBS to CHL as part of the
settlement agreement (see below), the Company is not obligated to provide a
capital injection to CHL or to cover its liabilities.
In late April 2014, the board of directors of PBS, has authorized Mr. Yigal
Zilkha, the Company's Chairman (as the Company's representative), and a
representative of the Club Hotel group, to negotiate with the minority
shareholder of CHL (the "Investor") an investment in CHL by the Investor.
Accordingly, the parties are currently negotiating the terms of such
transaction, which is expected to result in a substantial dilution of the
Company's holdings in CHL and the transfer of control in CHL to the investor.
As of the date hereof, there is an uncertainty concerning the terms of the
contemplated transaction with the Investor as well as an uncertainty whether a
transaction with the Investor shall materialize at all.
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition (Cont.)
Project in Loutraki (Cont.)
C. Agreement with Club Hotel
On 30 June 2014, the Company entered into the Agreement with Club Hotel, which
settled the parties' disputes.
Background
The Company and Club Hotel (the "Parties") hold, directly and indirectly,
through a chain of Israeli and foreign companies (the Joint Corporations")
various operations, shares, assets and rights, which include, among others:
(1) An hotel and casino in Loutraki, Greece and a casino in Belgrade, Serbia -
(the "CHL's Operations")
(2) A land parcel of approximately 50 hectares in Sihanoukville, Cambodia,
which is indirectly owned by Agastia (as defined below)(the "Cambodian Land");
(3) Cash and cash equivalents in an amount of approximately € 8 million, held
by Powerbrook Spain SL ("PBS") and Agastia Holdings Ltd. ("Agastia"), two of
the Group's Corporations;
(4) A put option granted to Vasanta Holdings Ltd. ("Vasanta"), one of the
Group's Corporations, by Casino Austria according to an August 31, 2008
document, which was exercised by Vasanta, and which is under dispute between
Casino Austria and Vasanta (the "Casino Austria Option").
Certain disputes arose between the Parties and/or their related entities (as
reflected, among other things, by various claims filed by the Parties against
each other), which prevented the Company during the past few years from
exercising its rights in, and fulfill the full potential of, the above assets.
Set forth below are the principal terms of the Agreement:
1. Regulation of the control and management mechanisms in a manner that will
allow the improvement and sale of the assets
In order to regulate the joint control and management of the Joint Corporations
in a manner that will allow the improvement and sale of the assets of the Joint
Corporations, the Parties undertook to amend the articles of associations of
Vasanta, Dasharta and Agastia, and to regulate the composition of the board of
directors of the Group's Corporations, such that in addition to an identical
number of directors who shall be recommended by each of the Parties, there
shall be appointed, through a committee appointed by the Parties, an
administrator (the "Administrator"), an individual, who shall serve as a
director in some of the Joint Corporations, thus allowing these corporations to
adopt resolutions in the event that the representatives of each of the Parties
are in a deadlocked. In addition, and as described below, the administrator
shall serve as a trustee for the sale of the assets of the Joint Corporations.
The parties have yet to nominate an Administrator.
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition (Cont.)
Project in Loutraki (Cont.)
C. Agreement with Club Hotel (Cont.)
2. Sale of the Cambodian Land
1. Agastia has irrevocably resolved to sell the Cambodian Land, immediately
following the execution of the Agreement and to the best bidder, provided
it is a third party unrelated to either of the Parties, directly or
indirectly.
2. As soon as possible after its appointment, the Administrator shall be
irrevocably appointed as a sale trustee, to act in the name of Agastia as
its sole and only representative for selling the Cambodian Land. It is
clarified that any proposal received by the Administrator shall be brought
for a discussion and approval before the Agastia's board of directors so
that the Administrator shall not be able to bind the parties in a sales
agreement or in granting any right to a third party.
3. Settlement concerning the Casino Austria Option
Mr. Moshe Bublil has been appointed, on behalf of Vasanta, to advance the
settlement negotiations with Casino Austria concerning the Casino Austria
Option. In any event, a settlement proposal shall be brought for the approval
of Vasanta's board of directors. The current arbitration proceedings between
Vasanta and Casino Austria shall continue simultaneously, without delay, unless
Vasanta shall resolve otherwise.
4. Sale of the CHL Operations
4.1 No later than the lapse of 15 months from the date of the Agreement, CHL
Operations shall be put up for sale to the best bidder, provided it is a third
party unrelated to either of the Parties, directly or indirectly, through the
Administrator, who shall serve as a sale trustee. Until then, the Parties
intend to act through a joint management for the improvement of the CHL
Operations.
4.2 Any offer received by the Administrator shall be brought for the discussion
and approval of the relevant board of directors so that the Administrator shall
not be able to solely bind the Parties in a sales agreement or in granting any
right to a third party.
5. Loans, Assignments and Payments
5.1 PBS has resolved to loan to the CHL Operations an amount of € 6.8 million.
The Company estimates that the CHL Operations shall require additional funding
during the next few months however, as mentioned above, the Group has no
obligation to provide any such funding. Until the sale of the CHL Operations,
the Parties intend to collaborate in order to find funds sources and maximize
the operations value.
5.2 The Company shall transfer 4% of the share capital of Dasharta Holdings
Ltd. ("Dasharta") to Club Hotel and shall irrevocably assign to Club Hotel
loans extended by it to Agastia and capital notes of Agastia in such amounts
that shall result in Agastia's owing to each of the Parties identical amounts
of shareholders loans and capital notes.
5.3 In consideration thereof, Club Hotel shall pay to the Company an amount of
$2.8 million, as follows:
5.3.1 $2.2 million shall be immediately paid to the Company;
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition (Cont.)
Project in Loutraki (Cont.)
C. Agreement with Club Hotel (Cont.)
5. Loans, Assignments and Payments (Cont.)
5.3.2 $0.5 million shall be paid to the Company by 30 October 2014;
5.3.3 $0.16 million shall be paid to the Company by 31 December 2014.
5.4 As a final and sole payment in respect of the claims to receive money from
the Joint Corporations by the Company and any person on its behalf, Agastia has
resolved to pay the Company $1 million (€--- 0.7 million) , of which $0.2
million (€0.15 million) were paid prior to the execution of the Agreement.
6. Termination of Pending Legal Proceedings
On the date of the Agreement, petitions to terminate all the pending legal
proceeding between the Parties and/or to accept the Agreement as a ruling of
the court, as the case may be, were executed (except a libel lawsuit filed by
(Y.Z.) Queenco Ltd. ("Y.Z.")).
7. Securities of Y.Z. and the Company
As long as Mr. Moshe Bublil and any corporation under his control (and in this
respect "control" means the holding of at least 20% of the voting rights of
such corporation), hold any kind of securities of Y.Z. or the Company, which
were issued and listed for trading on a Stock Exchange in Israel or outside of
Israel, including on the London Stock Exchange, no direct or indirect use of
their voting rights shall be made, and such voting rights shall not be
transferred or assigned, including by way of granting a proxy to vote such
shares; and no additional securities of Y.Z. or the Company shall be purchased
or received for any consideration or for no consideration, whether directly or
indirectly.
To date, except for the nomination of the Administrator, substantially all of
the actions that were to take place were complotted. In addition, the €--- 6.8
million loan is to be converted into equity.
The provisions under section 5.1 to 5.3 above resulted in a net loss of €---
603 included in "Other operating expenses" in the consolidated statements of
comprehensive income (loss). An amount of $0.7 million (€ 0.5 million) of the
total amount under section 5.4 above was deducted from "administrative
expenses" for the three and six-month periods ended 30 June 2014.
As a result, on 30 June 2014, PBS re-gained its control over the operations of
CHL. The Company approached an independent appraiser for the preparation of a
Purchase Price Allocation study for assets acquired and liabilities assumed.
Due to the tight time framework, the work of the appraiser is not yet
completed, particularly regarding property plant and equipment whose book value
amounts to approximately € 90 million. Considering the above mentioned, the
Company has applied a provisional allocation assuming that the fair value of
its property plant and equipment equals its book value. The provisional
treatment resulted in a gain of €--- 4.6 million from the negative goodwill
arose. The Company's share of € 2.3 million in this gain is included in the
statement of comprehensive income (loss) under "Share of results of associated
company and joint ventures".
NOTE 1 - GENERAL INFORMATION (Cont.)
1.2 Financial Condition (Cont.)
Project in Loutraki (Cont.)
For the year ended 31 December 2013, the Company recorded an impairment charge
of € 14.6 million with respect to its investment in CHL under "impairment of
investment in an associated company" reducing the carrying amount in its
financial statements to zero.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with
generally accepted accounting principles for the preparation of financial
statements for interim periods, as prescribed in IAS 34, "Interim Financial
Reporting". The significant accounting policies and methods of computation
adopted in the preparation of the interim Condensed financial statements are
consistent with those followed in the preparation of financial statements as of
December 31, 2013.
NOTE 3 - NOTE FOR THE CONSOLIDATED CASHFLOW STATEMENTS
3months ended 6months ended Year ended
June 30 June 30 December 31
2 0 1 4 2 0 1 3 2 0 1 4 2 0 1 3 2 0 1 3
Unaudited Unaudited
Net profit (loss) (168) (16,204) (3,808) (20,387) (23,540)
Adjustments for:
Depreciation of 484 483 960 968 1,954
property, plant and
equipment
loss as a result of the 603 - 603 - -
Agreement
Increase (Decrease) in (31) (88) 32 (64) (169)
provisions
Loss on sale of - - - - 296
property, plant and
equipment and disposals
Impairment of - 12,886 12,886 14,586
investment
Impairments and 234 478 434 478 478
disposals
Loss on disposal of - 1,545 - 2,305 1,583
discontinued operation
Loss from deem disposal (870)
Investment income (45) (43) (86) (87) (180)
Finance costs 188 225 341 757 1,324
Foreign exchange loss 74 (36) 27 736 1,048
(gain)
Share of result of (1,935) 17 (1,713) 11 (34)
associated company and
joint ventures
Expense relating to 93 - 93 - -
grant of share options
Operating cash flows (503) (737) (3,117) (2,397) (3,524)
before movements in
working capital
Decrease (increase) (66) (24) (60) (3) 6
inventories
Decrease in receivables (425) 309 43 475 279
Increase in payables 1,004 668 2,652 1,623 1,219
Cash generated by 10 216 (482) (302) (2,020)
operations
Income taxes paid - (41) - (82) (139)
Interest paid (138) (167) (154) (167) (362)
Net cash from (used in) (128) 8 (636) (551) (2,521)
operating activities
NOTE 4 - SEGMENT INFORMATION
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the chief
operating decision maker in order to allocate resources to the segment and to
assess its performance.
Segmental Revenues and Profit:
Rhodes Cambodia Adjustments Total
Six months ended June 30,2014
Revenues 6,597 311 53 6,961
Segment profit (EBITDA (2,176) (822) (277) (3,275)
before other operating
expenses)
Depreciation & Amortization 866 45 49 960
Other expenses (603)
Impairment of non-current (434)
assets
Share of results of 1,713
associates and joint
ventures
Operating loss (3,559)
Finance costs, investment (282)
income and Foreign exchange
gain
Loss before tax (3,841)
Rhodes Cambodia Adjustments Total
Six months ended June 30,2013
Revenues 5,076 281 148 5,505
Segment profit (EBITDA before other (939) (752) (844) (2,535)
operating expenses)
Depreciation & Amortization 864 37 67 968
Impairment of investment in (12,886)
associated company
Impairment of non - current asset (478)
held for sale
Share of results of associates and (11)
joint ventures
Operating loss (16,878)
Finance costs, investment income and (1,406)
Foreign exchange gain
Loss before tax (18,284)
NOTE 4 - SEGMENT INFORMATION (Cont.)
Segmental Revenues and Profit:
Rhodes Cambodia Adjustments Total
Three months ended June 30, 2014
Revenues 3,998 228 21 4,247
Segment profit (EBITDA before (365) (229) 22 (572)
other operating expenses)
Depreciation & Amortization 431 22 31 484
Other expenses (603)
Impairment of non - current asset (234)
Share of results of associates 1,935
and joint ventures
Operating loss 42
Finance costs, investment income (217)
and Foreign exchange gain
Loss before tax (175)
Rhodes Cambodia Adjustments Total
Three months ended June 30, 2013
Revenues 2,897 117 89 3,103
Segment profit (EBITDA before 24 (381) (400) (757)
other operating expenses)
Depreciation & Amortization 429 19 35 483
Impairment of investment in (12,886)
associated company
Impairment of non - current asset (478)
held for sale
Share of results of associates (17)
and joint ventures
Operating loss (14,621)
Finance costs, investment income (146)
and Foreign exchange gain
Loss before tax (14,767)
NOTE 4 - SEGMENT INFORMATION (Cont.)
Segmental Revenues and Profit:
Rhodes Cambodia Adjustments Total
The year ended December 31 2013
Revenues 14,385 677 225 15,287
Segment profit (EBITDA before 668 (1,418) (1,853) (2,603)
other operating expenses)
Depreciation & Amortization 1,724 109 121 1,954
Impairment of investment in (14,586)
associated company
Impairment of non - current (478)
asset held for sale
Other expenses (314)
Share of results of associates 34
and joint ventures
Operating profit (19,901)
Finance costs, investment income (2,192)
and Foreign exchange gain
Profit before tax (22,093)
NOTE 5 - Other information
Fair value disclosures:
Carrying amounts for all financial instruments as at 30 June 2014 approximate
fair value.QUEENCO LEISURE : Half-yearly Report
August 29, 2014 at 02:01 am EDT
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