During the meeting held on 9 April 2010, the Board of Directors of Athens Stock Exchange decided to have the shares of SIDMA SA placed under Supervision category as of 12.04.2010 based on Article 3.1.2.5 of ASE Rulebook because the book losses of the year ended on 31.12.2009 had reached a level higher than 30% of the Company's equity.
2009 was one of the most difficult years for steel sector in Greece and internationally. Steel producers and manufacturers of a worldwide range registered unprecedented losses starting in the last quarter 2008, which is exclusively due to the unparalleled drop of steel international prices within a very short period of time. Already during the first quarter 2010, as announced by the Company to investors, Group results have been considerably improved compared to those of 2009, boosted by the continuous international increase of raw material prices during such period.
The Company makes special efforts to adapt to the new Greek market conditions as established after the imposition of the new economic measures. During Q1 2010, the Company has attained:
1.to improve the gross profit margin;
2.to reduce its operating expenses in relation to the respective quarter of 2009, as shown from the published results;
3.to maintain its liquidity and present positive cash flow and cash equal to 16 million euro;
4.to use only partially around 60% of the credit lines despite the increased needs for working capital following the international rise of raw material prices;
5.to have a high insurance coverage of its receivables in excess of 82%.
In addition, the Company is at the stage of being granted the approvals required for constructing new warehouses at Inofyta in order to fully transfer its various operations from Aspropyrgos to Inofyta by the first half 2011. The Company will gain a considerable financial benefit from the sale or leasing of Aspropyrgos facilities which have a surface area of approximately 35,000 m2.