With an increase of 3, 8% in turnover, ended the first semester of 2005 for Autohellas / Hertz. More specifically the consolidated total turnover reached euros 47, 6 million from euros 45,9 million last year with earnings after taxes reaching euros 4,6 million from euros 5,9 million last year.
The decrease in profit resulted from the larger number of vehicles, remaining from the Olympic Games period, and not sold, as well as from a downturn in the short term rental market.
Even so there have been signs of the market recovering from mid June onwards. It is estimated that part of the decrease will be covered during the third quarter since it represents over 45% of the total short term rental revenue.
The first semester of 2005, was the first to report under the international financial reporting standards (IFRS).
One of the major impacts of the implementation of the IFRS is the strongest capital base, with Autohellas Net worth reaching euros 96 millions.
In addition, different depreciation rates resulted in a decrease of extraordinary profit from car sales together with a decrease on cost of sales, resulting in a more accurate representation of the company?s operating results.
It is worth mentioning that the acquisition value of the fleet at the end of the 1st Semester was euros 174 millions whereas total investment for the whole year of 2005 for fleet renewal and expansion will reach ?85 million.
In 2005 as well as in previous years the fleet of Autohellas is expected to remain the largest in the market with more that 23,500 vehicles from 8,500 in 1999. This fleet will be operated from a network of over 110 service locations in Greece.
In June 2005, Hertz Cyprus began its operation as a subsidiary of Autohellas, thus expanding the company?s presence in 3 Countries (Greece, Bulgaria, Cyprus) and increasing its growth potentials.
Also in July 2005, having received the approval of the Greek Anti-trust Committee, Autohellas has acquired 42,32 % of Eltreka S.A in addition to 7,68% already held, thus owing 50% of Eltreka S.A. with the remaining 50% owned by ELTRAK.
It is estimated that these investments will start to contibute in the company?s results from 2007 onwards.