+ 9.7% GROUP SALES INCREASE : euro 278.9 MILLION
+ 8.5% COMPANY SALES INCREASE : euro 252.1 MILLION
Anek Lines SA announces the Group?s financial highlights for the fiscal year 2008:
Turnover
Turnover of ANEK LINES SA for the year of 2008 amounted to euro 252.1 million, compared to euro 232.3 million for 2007, increased by 8.5%. Respectively, the group revenues stood at euro 278.9 million versus euro 254.3 million, increased by 9.7%.
Gross profit The Company's gross profit stood at euro 52.3 million versus euro 60.9 million for 2007 de-creased by euro 8.6 million. The Group's gross profit was euro 51.0 million versus euro 60.3 mil-lion the previous year. The gross profit of the Company and the Group were affected significantly by the huge increase in the fuel prices and the increase in the cost of repairs and maintenance of vessels. It is mentioned that the fuel cost in consolidated level affected the income by euro 23.2 million more than the previous year. Additionally, the fact that the vessel FB ELYROS started op-eration after the summer time because of delayed completion of retrofit in regards to the initial schedule, resulted in an negative impact in the results.
EBITDA
Due to the aforementioned factors the earnings before interest, taxes, depreciation and amortiza-tion (EBITDA) of the Company stood at 27.3 million versus 43.3 million for 2007 and for the Group amounted to euro 26.9 million versus euro 43.0 million for 2007. EBITDA was also de-creased by the increase in the ticket?s commissions ( as a result from the increase in sales) and from the fact that the Company recorded more provisions for the fiscal year of 2008.
Results after taxes
The Company?s results after taxes for 2008 amounted to losses euro 3.5 million compared to profit euro 13.6 million in the year of 2007. The results after taxes and minority interests for the Group stood at losses euro 5.9 million against profit euro 12.3 million in 2007.
Significant developments during 2008
? At 14 of March 2008 the procedure of company's long term loans restructuring completed successfully and this resulted in more favorable repayment terms and significant reduction of financing cost.
? At 18 of May 2008 the General Meeting of shareholders decided the distribution of dividends for the fiscal year of 2007 total amount euro 8.1 million or euro 0,05 per share and also ap-proved the decision of the BoD for extension until 31.12.2008 of the completion of allocation of funds raised from the share capital increase during 2007.
? During the 1st semester of 2008 ANEK started running business in new markets, providing service in the routes of Cyclades "Piraeus- Paros " Naxos " Ios " Santorini" with the F/B PREVELIS. Additionally, in the beginning of 2nd semester of 2008 the F/B LISSOS started serving the route "Piraeus " Chios " Mitilene? due to the strategic plan of the Company for re-organisation and for serving more profitable routes.
? The Company chartered the F/B El. Venizelos in a company of the State of Tunisia for the summer time and at the same time due to increased volume of passengers decided to charter the F/B Ariadne.
? In the end of September 2008, the new vessel's inauguration took place in Piraeus an in Cha-nia , in a brilliant ceremony where all the visitors pointed out ANEK LINES?s achievement and congratulated the Company for the decision to add a new modern vessel in the Greek coastal shipping. The F/B ELYROS is one of the biggest and most luxury vessel travelling in the Greek seas, built with the highest standards in order to provide high quality services and contribute in the development of Greek tourism. The company's decision to deploy the new vessel ELYROS on the Piraeus - Chania route is in accordance with the ANEK's strategy for renewal and expansion of its fleet. At the same time the operation of this additional vessel will develop the financial results since the company's owned fleet will be consisted of 11 vessels increasing the total transfer capacity in passengers and vehicles.
? In October of 2008 an ordinary tax audit for the fiscal years 2005, 2006 and 2007 was com-pleted, The tax audit resulted additional payable taxes amounted to euro 225 thousand , re-corded in the results of 2008.
? On Friday 12th of December 2008 Anek Lines was voted as the "Best Passenger Line of the Year 2008 "during the annual Awards Ceremony hosted by Lloyd's List. This award confirmed ANEK?s continuous efforts for high quality provided services, as well as the rapid growth of the Company.
? The BoD of the Company resolved to change the allocation of raised funds by euro 4.5 million for operational capital needs and to extend the completion for the disposal of the capital until the date of 31.03.2009, without such change of use to alter or effect the Company?s investing plan.
The Company, despite the hard competition in the business area of coastal shipping, managed to increase the market's share in the routes of Crete, while in the routes of North Italy remained in the same levels of sales as the previous year. As a conclusion, Anek Lines?s vessels executed less voy-ages by 2.5% in respect to 2007 and managed to transfer 23% more passengers, 14% more vehicles and 6% more tracks.
The extremely raise in the fuel prices during 2008 was the major characteristic that affected the results of the fiscal year of 2008. The significant decrease in the fuel prices during the last quarter of 2008 was a positive factor, and if this continues during the fiscal year of 2009, then the cost of sales will decrease and the Company will return to profitability. Strategic decisions such as the ac-cession of the new vessel F/B ELYROS in the Company?s fleet and the reorganisation of vessels