February 25, 2005
With the opportunity of summary financial statements publication as of 31st December 2004, the companys management announces the following:
Parent and Consolidated turnover reached the amount of 37.8 and 45.1 million Euros respectively, in line with 2003 levels. This is the result of flat consumer spending for home and professional equipment, as well as the deflation effect of the Third Country imports, mainly, China, Indonesia, etc.
PROFITS BEFORE TAXES
Parent and Consolidated profits before taxes reached 2.1 and 2.2 million Euros respectively, significantly improved compared to the previous year. This improvement is due to satisfactory gross profit margins, but also to the reduction of participations depreciation that burdened the previous fiscal year.
An Important improvement was presented to the companys outstanding debt, since total liabilities were decreased during the 2004 fiscal year by 3.4 million Euros. It is estimated that they will be reduced by the amount of 1.0 million Euros by May 2005.
Aiming at improving the companys competitiveness through customer service, the Companys Management proceeded during 2004 and completed its organizational restructuring, with the hiring of three experienced executives for the Logistics, Sales and IT departments and since March 1st it has launched a Warehouse Management program.
Satisfactory have been the results of the subsidiaries EXCEL and YALCO HUNGARY. During the fiscal year 2004 EXCEL remained profitable and posted profits before taxes of 400,000 Euros, while YALCO HUNGARY achieved its sales objective of 1 million Euros with small losses of 100,000 Euros, stemming mainly from initial operation expenses.
Having invested in fixed as well as human assets, the Companys Management will utilize its domestic market momentum and will strengthen the good to-date course of export prospects. These activities combined with a consumer spending increase, will contribute to further improving the Companys results.
The Companys Management notifies that the Financial Statements of the current period will be formed in accordance with the requirements of the International Accounting Standards. Also it is notified that although it is based upon the current provisions the company could value its fixed assets (land, buildings) in their fair value and post significant gains, it postpones this valuation at an appropriate time period, since its current accounting position is satisfactory and of course much higher than the current Stock Exchange valuation.