Louis loss widens to €18.7m as Cyprus’ tourism downturn hits half-year results

The net loss of Louis plc widened to €18.70 million in the first half of 2026, as the hotel and tourism group attributed weaker financial performance to a decline in tourist traffic to Cyprus amid geopolitical developments and uncertainty in the wider Middle East. The company’s net loss after tax attributable to shareholders increased by €7.60 million, or around 68 per cent, from €11.10 million in the first half of 2025 to €18.70 million in the six months to June 30, 2026. Louis plc said its turnover also fell, while operating profitability declined substantially during the period. Turnover stood at €44.80 million, down €4.50 million, or 9.20 per cent, from €49.30 million in the corresponding period of 2025. The group attributed the decline mainly to reduced tourist traffic to Cyprus, which it said had been affected by geopolitical developments and increased uncertainty in the wider Middle East. Earnings before interest, tax, depreciation and amortisation (EBITDA), a measure of operating performance before financing, tax and certain accounting costs, fell to €1.40 million from €5.10 million a year earlier. This represented a decline of €3.70 million, or 72 per cent. Moreover, the group’s operating profit margin also fell from 10.30 per cent to 3.20 per cent. Louis plc said changes in operating expenses and staff costs were mainly attributable to the decline in group turnover. The company said the war in the Middle East had negatively affected tourist flows to Cyprus, with the impact reflected in its first-half results. “Taking into account the current circumstances, we expect the final results of 2026 to be lower than those of the previous year,” the company said. Louis plc’s main activities during the first half of the year continued to include the ownership, operation and management of hotels and restaurants in Cyprus and Greece, as well as the purchase and disposal of movable and immovable property. The group also continued to provide financial facilities to companies within the group and associated companies. The financial statements covering the six months to June 30 were unaudited, with the board approving the condensed consolidated interim financial statements and interim management report at a meeting on September 21. The accounts were prepared in accordance with International Accounting Standard 34 on interim financial reporting and presented in euros. Louis plc said it had applied the same accounting policies used in its audited consolidated financial statements for the year ended December 31, 2025, apart from new and revised International Financial Reporting Standards adopted by the European Union that applied to periods beginning on or after January 1, 2026. These changes did not have a material effect on the group’s condensed interim consolidated financial statements for the first half of the year, according to the company. The company said its interim financial statements had not been audited by Louis plc’s independent external auditors. Sustainability reporting Louis plc also outlined its approach to environmental, social and governance (ESG) reporting, saying the group was investing in sustainability reporting and meeting its disclosure obligations. The group said it viewed transparency as central to corporate sustainability and highlighted its annual non-financial information report as evidence of its commitment to transparency and accountability. The report includes a range of non-financial corporate disclosures relating to sustainability and environmental, social and governance matters. Louis plc also referred to the EU Taxonomy, which provides a classification system for identifying economic activities considered environmentally sustainable under EU rules. The company said increasing corporate transparency under the EU Taxonomy would be supported through expanded reporting. It added that the adoption of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) would support the further integration of the EU Taxonomy into its business strategy, systems, investment processes and lending activities. Mandatory non-financial disclosures for 2026 are due to be published in the group’s non-financial information report in 2027. Risks and annual meeting Louis plc identified credit risk, interest rate risk, liquidity risk and risks linked to the tourism industry as its main risks. The company said details of these risks, the uncertainties facing the group and how they were monitored and managed were set out in note 22 of its interim consolidated financial statements. Transactions with related parties were covered in note 19 of the financial statements. Louis plc also said any significant events occurring after the reporting period were described in note 25. The company’s board also decided that its annual general meeting will be held on November 11, 2026, at 11am at Hilton Nicosia.