Iktinos Hellas S.A.: steadily rising against the economic crisis
The Athens Stock Exchange may have scored low just 3,10%, having the largest fall of the last eleven months, however there are Greek companies that can make the difference. The listed “Iktinos Hellas S.A.” is steadily rising and has evolved into a stockbroking and business phenomenon: excellent results, new investments, opening up to new markets apart from core business (hotel industry) as well as impressive stock market rally.
More specifically, at the beginning of this week Iktinos stock closed up 1.38% at 5.86 €, falling just 2 cents from its record high of 5.88 € in August 9! It is also remarkable that since the start of July the price rises more than a euro per share, starting at 2.20 € at the beginning of 2018, rising up to more than 150%! In 2017, Iktinos share was one of the 3-4 more profitable in Athens Stock Exchange, having an increase of 188.31%, while at the 12-month level it gains about 300%, apart from the payout to shareholders.
As for business, 2018 is already excellent, since in the first half of the year the company’s turnover has been increased by 50%, while it is expected to follow the same pattern in the second half as well. The company implements a complex investment program that includes both its further strengthening in the marble industry and its opening to the hotel industry.
The marble industry
By the end of 2017, Iktinos had acquired the facilities of “G. Lazaridis – Kavala Marbles” company for 1.6 million euros. The company will invest a total of 10 million euros in modernising the facilities while new equipment of 4 million euros value has already been installed. The 6.9 million euros will come from a subsidized program, while at the finalisation of the work by the end of 2019, the new factory’s contribution to the company’s turnover is estimated at 10-12 million euros per annum, aiming to reach 20 million euros annually in the long run.
Moreover, at the beginning of July 2018 the company acquired the lease property rights of a 96,470 acres quarry area from “Kavala Marbles” company, in Pyrgoi of the municipality of Prosotsani in Drama. It is about a white dolomite marble quarry, whose lease was recently extended for 20 more years for a price of 7 million euros.
It is also positive that about 98% of the listed company’s turnover comes from abroad, while most of the projects are implemented with a prepayment, providing the group of companies with the fresh air of liquidity. The administration’s goal is to open their markets, achieve geographic diversification and spread of their sales, in order to reduce their dependence on Southeastern Asia and China. “Iktinos Hellas” has participated in many emblematic and luxurious projects and buildings such as Dubai Mall, Emirates Palace in Abu Dhabi, the French TV Tower in Paris, hotels of the American listed Wynn casino company in Las Vegas and is present in more than 90 countries worldwide such as Argentina, Armenia, Australia, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Cyprus, Egypt, France, Germany, Great Britain, Netherlands, Indonesia, Iran, Iraq, Israel, Japan, Hong Kong, Kuwait, Lebanon, Malaysia, Morocco, Oman, Pakistan, Peru, Poland, Romania, Russia, South Africa, Taiwan, Tunisia, Turkey, USA etc.
The tourism investment
At the same time, this year in April “Iktinos Hellas S.A.” spent 14 million euros for buying out 100% of Cypriot company Latirus Ltd. Through the subsidiary “Iktinos Technical and Tourism S.A.” and possibly in cooperation with a great international hotel name, a complex hotel facility will be developed at Ormos Faneromeni in Sitia, Crete, in an area of approximately 2,800 acres, which includes a 5-star hotel, a spa center for 100 people, a conference center of 200 people, a golf course with 18 holes, a marina for 85 leisure craft, two residential areas (Special Regulated Town Planning Area) where houses (maisonettes etc) will be built.
However, tourism is not something for the Chaidas family, as Evangelos Haidas has created “Rentinia Inn”, a 4-star stone guesthouse in the heart of Agrafa in his hometown of Karditsa, in order to help the region become known without aiming to any profit, as he claims.
The forthcoming placement
In the market, there is a whisper that a large placement in the company is coming forth sooner or later. According to the market, the company aims to expand even further, to internationalise their portfolio, to attract new capital for investments and to significantly strengthen the group’s status.
Sources have it, it is no coincidence that “Iktinos Hellas” (which has been a member of Mid Cap for more than a year now) is constantly participating in all roadshows of HELEX abroad, promoting the company in international investing galas. More specifically, the company was one of the 23 listed that travelled to N.Y. in June for the 7th Investment Forum, and it will be one of the 33 Greek listed that will take part in the 13th HELEX roadshow in London in September 19-20, 2018.
It was recently announced that the Amiral Gestion fund controls a little over 5% of Iktinos. Amiral Gestion is specialized in “stakes” in European small and mid-caps, investing in the long run where there is good business model and value creation.
Iktinos was founded in 1974 by Mr. Evangelos Chaidas, who started as an architect in the construction field, having a special love and preference for marble use. Understanding the export dynamic of the marble industry and the attractiveness of Greek marble, he decided to participate by the founding of Iktinos.
In 1998 the company acquired the marble factory in Vrilissia (Phidias), where the material is processed for third parties, while 2000 was a landmark year as on March 15 the company entered the Parallel Market of the Athens Stock Exchange, as a small, regional company.
The results of 2017
Last year, “Iktinos Marbles” sales were 51.7 million euros, compared to 35.70 million euros in 2016 (+ 49.9%), EBITDA 19 million euros, net profits 9 million euros (despite accounting for impairment 1.25 million euros. It also had positive free cash flow of 12.2 million euros, it reduced net borrowing by 8.5 million euros and it distributed dividends of 3.67 million euros value.
Exports of marble increased by 54% in 2017 compared to 2016, accounting for 95% of the company’s turnover. Iktinos employs about 370 employees.
11:51 am August 18, 2018
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Ali Shafiei – CMO
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Hossein Shafiei – CEO
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