CTC Group: Still no results, shareholders on hold

The CTC Group is under pressure to put an end to its practice of failing to publish its listed companies’ financial results on time.

Last week, the Cyprus Securities and Exchange Commission (CySEC) called on the Cyprus Stock Exchange (CSE) to suspend trading of shares of its three listed companies – Cyprus Trading Corporation Plc, Woolworth (Cyprus) Properties Plc and Ermes Department Stores Plc – effective from 1 August until the group complies with its obligations. It has until 31 October the latest.

And CTC Group has plenty of work ahead considering its most recent results – published just last February – were for the financial year 2020. Which means it has both the interim financial reports and annual financial reports for the years 2021 and 2022 to submit.

Citing market sources, INBusinessNews reported that it is normal practice for CTC Group to file its results late and of course, this is not in line with the law and regulations for corporate transparency and protecting shareholders’ best interests – that is, the investing public.

According to the three companies’ share capital dispersion statements for the second quarter of 2023, the general public held a 12.95% share in Cyprus Trading Corporation Plc (87.03% is held by N.K. Shacolas (Holdings) Ltd), 21.59% share in Woolworth (Cyprus) Properties Plc (Cyprus Trading Corporation Plc: 78.30%) and 21.65% share in Ermes Department Stores Plc (Cyprus Trading Corporation Plc has 66.99% and Debenhams Retail Plc 10%).

It is noted that CySEC fined each company €13,000 last December for its failure to publish its audited accounts for the financial year 2020.

CTC has at times brought out announcement to explain the delays, invoking “significant and complex accounting calculations required to give a true and fair view of the companies' financial statements".

With all the above in mind, InBusinessNews contacted CTC Group to comment, on both last week’s decision as well as its delays in publishing its results.

A representative said there was nothing to be said on the matter and that regarding the financial reports, both CySEC and the CSE have been notified about when the companies’ results will be published.

He further referred to the final paragraph of the three companies’ announcements of their financial results back in February, which said: “The audited financial reports of all three public companies, Cyprus Trading Corporation Plc, Ermes Department Stores Plc and Woolworth (Cyprus) Properties Plc, for the years 2021 and 2022, as well as the interim financial reports for 2022, will be published in the second half of 2023.”