LAMDA Development: Even greater improvement in operating results for the 3rd quarter of 2001

The LAMDA Development Group reports consolidated turnover of 9,317 billion GRD (27.3 million €), for the third quarter of 2001, an increase of 376% over the same quarter of the previous year.
During the same period consolidated pre-tax profits were 501 million GRD (1.469 million €), as against 1,228 billion GRD for the same nine months in 2000. However, the two figures are not really comparable, since the figures for 2000 were swollen by the 922 million GRD profits from the sale of the company’s construction business.

Summary of consolidated results

All the Group’s subsidiaries report increased turnover for the current nine-month period compared with 2000.

HEPHAESTUS S.A. (75%-owned by LAMDA Development)
In the service sector, HEPHAESTUS S.A. has been able to increase its turnover through a number of major yacht upgrading and conversion projects completed this summer. Meanwhile the strengthening of the management through the hiring of a distinguished executive, Mr. Marios A. Stergiou, as Chief Executive Officer, is expected to make a positive contribution to further growth in company activities and results.

Swissport LAMDA Hellas S.A. (50%-owned by LAMDA Development)
In the previous quarters, the results of Swissport LAMDA Hellas S.A. – affected by problems in commencing operations at Spata airport – had had an adverse impact on consolidated results. However, the company performance became steadier over the summer months and had begun to improve when the whole aviation industry was struck by the terrorist attacks of September 11th. As we are all aware, the crisis in the sector has damaged a significant number of companies and has led to a fall in the number of flights and a reduction in business activity and personnel numbers in such sector leaders as Delta, British Airways, Virgin Atlantic, Lufthansa, Swissair and Sabena.

Quick to appreciate the seriousness of the situation, the company management, in association with its employees, lost no time in taking steps to limit damage. The company has already introduced a series of measures to cut costs, while ensuring the high quality of the services it provides to its customers and its own long-term operations. Swissport LAMDA Hellas S.A. intends that these will be temporary measures, since it is anticipated that the market will have recovered by the spring of 2002, when the measures in question should no longer be necessary and the company can return to its normal level of operation.

DIMIOURGIA S.A. (100%-owned by LAMDA Development)
DIMIOURGIA S.A. has substantially increased its activities in property development and is expected to make a significant contribution to consolidated profits for 2001 through the sale of one or more properties during the final quarter of the year. A number of projects are currently under way 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, 3,100m2 office building - completed recently
  • Junction of Stadiou and Korai Streets in the centre of Athens, restoration, operation for profit and management (25 years) of listed building – conversion to contemporary shop-and-office complex, total area 2,500m2.

Meanwhile DIMIOURGIA S.A. is also engaged in:

  • The development and management of a commercial and leisure centre on a 62.5 acre site, owned by the Ecumenical Patriarchate, at the eastern exit of Thessalonica.
  • The construction management of a new hospital burns unit in Elefsina, where the first phase of the project, involving the construction of the bearing structure (6,200m2 on three floors) has already been completed.
  • Development for construction of 200-apartment holiday complex at Xylokastro, Corinthia, where work has already begun.

EFG Eurobank Properties S.A. (29.9%-owned by LAMDA Development)
EFG Eurobank Properties S.A. has acquired a significant number of office buildings in the northern suburbs of Athens and in central Athens locations, intending to operate them for profit. In 2001 it 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).