Woolworth (Cyprus) Properties Plc reported a sharp swing to profit for the first half of 2025, driven by lower financing costs, reduced administrative expenses and the completion of major debt-related transactions.
According to the interim results, the group generated income of €647,000 for the six months to 30 June 2025, compared with €662,000 in the corresponding period of 2024.
Operating profit reached €555,000, compared with €115,000 last year.
Net profit amounted to €944,000, compared with a loss of €3,200,000 in 2024.
The 2024 loss stemmed mainly from a €10,000,000 reduction in the final disposal value of the Aura project and a €7,500,000 gain from the impairment of bank borrowings.
The date of the company’s annual general meeting will be announced at a later stage.
The board submitted the group’s unaudited condensed consolidated financial statements for the period ending 30 June 2025, noting that the company’s core activity remains the ownership, development, management and commercial exploitation of real estate.
The consolidated results include the performance of subsidiaries Zako Ltd, Apex Ltd and FWW Super Department Stores Ltd, which own various properties leased to ermes department stores plc for commercial use.
By the date of the report, ermes department stores plc had completed the disposal of its department store operations.
For the Zenon department store in Larnaca, owned by FWW Super Department Stores, a new agreement was signed with the new owners of the chain.
The consolidated figures also include LBSP Limassol Beach & Seaview Properties Ltd, which in 2020 recognised a contractual asset of €40,000,000 following a debt-for-assets swap with Bank of Cyprus.
On 30 April 2024, the Bank of Cyprus subsidiary that acquired the project sought a renegotiation of the outstanding amount and an amendment to the June 2020 sale agreement due to changed economic conditions since December 2018.
The group and the bank subsidiary agreed to reduce the outstanding amount from €40,000,000 to €30,000,000, and the transaction was completed on 26 March 2025.
Woolworth (Cyprus) Properties Plc also indirectly holds 11.7 per cent and 35 per cent of Cyprus Limni Resorts and GolfCourses Plc through Chrysochou Merchants Ltd and Arsinoe Investments Ltd respectively.
Although Cyprus Limni Resorts and GolfCourses Plc disposed of most of its land in Polis Chrysochous on 18 December 2018, reducing its net asset position to zero, the group continues to seek state compensation for environmental restoration works, for which it paid around €30,000,000.
The company’s legal advisers have stated that this compensation claim is fair and justified, and any amount received will first be applied against the company’s outstanding receivable.
The results also include the associated company Akínita Lakkos Mikelli Ltd.
During the period ending 30 June 2025, property-related income and other revenues remained broadly stable at €647,199 compared with €661,962 a year earlier, reflecting unchanged property usage terms.
Other net gains amounted to €138,327, compared with €165,071 in June 2024, relating to services provided to other ctc group companies.
General and administrative expenses fell by €187,213 or 23 per cent to €621,641, down from €808,854 in the first half of 2024, mainly due to reduced bank charges linked to borrowings that existed in the prior period.
Financing costs fell dramatically from €1,173,571 in June 2024 to €151,762, a reduction of 87 per cent, following the full repayment of all bank loans and facilities.
Operating profit rose to €555,381 from €115,284, an increase of 382 per cent, driven primarily by the reversal of €391,496 in expected credit loss provisions relating to contractual assets.
As part of the 2018 agreement between the ctc group and Bank of Cyprus, the group disposed of the Koroivos property while assuming responsibility for securing a final approval certificate and a modified planning permit for its redevelopment as a department store.
A planning permit for additions and alterations to the existing building was issued on 17 July 2025, shortly after €400,000 was paid on 11 July 2025 to the Paphos municipality as compensatory measures.
The company said it will continue efforts to secure the final approval certificate for the Koroivos commercial centre, following all required legal and procedural steps.
In December 2024, the appeal in the “Akínita Iliadis” case was heard, concerning a guarantee of €13,030,000 and restricted deposits of €5,901,308 provided on behalf of ermes department stores plc.
The court confirmed a liability of €10,684,887, of which €5,534,599 was paid using the restricted deposits, with the balance settled via new borrowing granted to an affiliated company in January 2025.
All related securities were subsequently cancelled.
On 26 March 2025, the final phase of the Aura project transaction in Limassol was completed with a full settlement of the contractual asset, with the €30,000,000 consideration credited against the parent company Cyprus Trading Corporation Plc’s borrowings.
After these developments, net profit after tax for the period reached €944,172 compared with a loss of €3,197,137 on 30 June 2024, marking an increase of 130 per cent.
Earnings per share amounted to 0.004 cents, compared with a loss of 0.01 cents per share in the same period last year.
As of 30 June 2025, the group’s total assets stood at €74,155,783 and equity at €60,571,607, compared with €78,828,529 and €59,627,436 respectively at 31 December 2024.
The company said there is no other material information requiring disclosure that would affect the assessment of its results.
Management noted that alternative performance measures, in line with ESMA guidelines, are used to support financial and strategic decision-making and to aid users in understanding operating performance.
It explained that these indicators, including operating profit, total assets, equity and internal share value, must always be considered alongside IFRS-compliant financial statements.
The company said the main risks faced by the group relate to interest rate exposure, credit risk and liquidity risk, managed by the finance department and the central accounting office of the ctc group.
The company noted that interest rate risk arises from assets and long-term borrowings, with variable-rate debt affecting cash flow risk and fixed-rate instruments affecting fair value risk.
Credit risk relates to cash, deposits and receivables from related parties, with counterparties assessed based on financial condition and past performance.
Liquidity risk is monitored through short-term cash flow projections and long-term forecasting when new financing arrangements are considered.
Information on related-party transactions is included in note 18 of the interim financial statements.
Looking ahead, the group expects to proceed with planning regularisations for several properties already disposed of, including the Superhome Strovolos property in Nicosia and the Koroivos department store in Paphos, as well as assets it retains such as the Zenon store in Larnaca.
It also continues efforts to dispose of other mature investment properties.
Management said its core objective remains the optimal utilisation of the group’s property portfolio and the maximisation of asset value.
The group will continue to monitor developments closely to mitigate potential risks and to enhance the value of its investments.
