Significant increase in operating results for LAMDA Development in 1st quarter of 2001

LAMDA Development reports consolidated turnover of 1,945 million GRD for the first quarter of 2001, an increase of 697% on the corresponding period in 2000.

For the same period, the LAMDA Development Group reports consolidated pre-tax profits of 301 million GRD, an increase of 45% on the first quarter of 2000.

Summary of consolidated results

As anticipated, results for the 1st quarter of 2001 were adversely affected by the activities of the subsidiary Swissport LAMDA Hellas S.A. During this period, Swissport LAMDA Hellas S.A. was establishing the infrastructure for providing top-quality service for the ever-growing number of its clients at the Spata and Heraklion airports, where it commences operations at the beginning of the second quarter. Significant improvement in the results is anticipated by the end of the financial year, given that the company’s client base, which began with just four aviation companies at the “Hellinikon” Airport, has now expanded to include the 16 companies at Spata.
Turnover and results of the company, and its other subsidiaries, are growing at a satisfactory rate and the management believes that there is every chance of meeting the objectives set for the current year.
More specifically, in the words of the Chief Executive Officer Mr. Lambros Anagnostopoulos: “the first quarter’s results demonstrate that the company is moving ahead on schedule. The first difficult quarter, in which Swissport LAMDA Hellas had not yet begun to operate at Spata and Irakleio, although it had already set up its internal infrastructure and organisation, passed with relatively insignificant losses for our subsidiary and for LAMDA Development. The rapid growth of the companies in the LAMDA Development Group gives us every reason to look forward with optimism to the 2001 results. It’s significant that for the first time in this quarter the company’s profits were largely operating profits – which is exactly what the management wanted for the current year.”

Implementation of the investment programme for 2001

Our subsidiaries have made impressive progress to date in the property sector:

  • DIMIOURGIA S.A. (100%-owned by LAMDA Development) completed reconstruction work on the former Cecil Hotel in Kefalari and has already begun construction of an office building in the centre of Athens (Hilton area, total surface area 6,000m2, completion date 2002), as well as other buildings at key locations in Attica (in the centre of Marousi, office building with total surface area of 14,000m2). It is also proceeding with the construction management of a hospital burns unit in Elefsina, as well as the construction of a 200-apartment holiday complex at Xylokastro, Corinthia, budget 4 billion GRD. It also competed successfully, in association with other companies, for the contract to reconstruct and operate for 25 years a listed building in the centre of Athens.
  • OLYMPIA S.A. (100%-owned by LAMDA Development), owner of a 6,000m2 office building in Kifisia (former Hotel Cecil). The company anticipates an annual income of over 700 million GRD from leasing the building.
  • EFG Eurobank Properties S.A. (29.9%-owned by LAMDA Development) acquired a number of office buildings in the northern suburbs of Athens as well as in more central locations, and intends to operate them for profit, while the company’s service provision division is enjoying rapid growth, with income of over 670 million GRD in the financial year 2000.

In the service sector, the foundations have been laid for equally rapid growth:

  • HEPHAESTUS S.A. (75%-owned by LAMDA Development), the shipbuilding and ship repair business, seeks to increase its market share in the leisure craft service business and to break into the public- sector rapid vessel market.

Swissport LAMDA Hellas S.A. (50%-owned by LAMDA Development), in which a stake is also held by Swissport International, the world’s largest airport ground handling company, has already begun to provide services at the new Athens International Airport “Eleftherios Venizelos”, where it has secured one of the three passenger and baggage handling operating licences. It has also set up Swissport Hellas Cargo S.A. (80%-owned subsidiary) to operate cargo handling at the new airport, where it holds one of the three cargo handling licences. It has also founded Swissport Hellas Sud S.A to provide ground-handling services at the “Nikos Kazantzakis” Airport at Irakleio, where it has held the relevant licence since December 2000. Swissport Lamda Hellas S.A. is regarded by Swissport International as one of the most important and promising units in their international group.