Louis plc held its 26th annual general meeting (AGM) on Thursday, discussing on a number of issues, including the company’s growth, future challenges, and reorganisation plans.

In addition, shareholders adopted the company’s annual report, which included the management report, audited consolidated financial statements for the year ending December 31, 2024, the auditor’s report, and the corporate governance report.

Moreover, shareholders approved the re-election of board members Costakis Loizou, Jason Perdios, and Louis Loizou.

The meeting also approved the company’s remuneration policy report and the remuneration of its executive directors.

Shareholders further approved the re-appointment of Deloitte Ltd as the company’s auditors for the current year and authorised the board of directors to determine their remuneration.

Participants were informed about the composition of the board committees under the corporate governance code.

The audit committee consists of Christos Mavrellis, Christakis Taousianis, and George Lyssiotis.

The remuneration committee consists of George Lyssiotis, Theodoros Middleton, and Christos Mavrellis.

The nominations committee consists of Theodoros Middleton, Louis Loizou, and Christakis Taousianis.

The risk management committee consists of Christakis Taousianis, Christos Mavrellis, Theodoros Middleton, and George Lyssiotis.

The ESG committee consists of Louis Loizou, Theodoros Middleton, and George Lyssiotis.

Chairman Costakis Loizou presented the main developments and events of 2024 and analysed the company’s outlook for the current year.

In his address to shareholders, Loizou said, “I welcome you once again to the annual general meeting of Louis plc.”

“The policy and goal of every company should be the growth of its operations and activities so that the value created enables the implementation of a consistent dividend policy that returns part of the profits to shareholders,” he added.

He explained that the company has not been in a position to pay a regular dividend for several years due to sustained losses, citing the global financial crisis of 2008 and the collapse of Cypriot banks and the economy in 2013.

“This resulted in our borrowing remaining at high levels, which significantly burdens the company’s annual cash flows for servicing its bank obligations,” Loizou said.

He noted that in 2019 Louis plc successfully sold five owned hotels in Greece to decisively reduce borrowing and improve its financial position and cash flows.

He added that the sale was completed in early 2020, just before the outbreak of the pandemic, which caused at least €100 million in losses for the group.

He remarked, “On the one hand, the sale of the five hotels was lifesaving at the time it was made, but on the other hand, it was not enough to cover the huge losses and wider effects of the pandemic.”

He explained that the board and management subsequently developed a reorganisation plan which still needs some time before being presented to shareholders and the investment community.

“In the meantime, it was deemed appropriate and necessary, due to a possible leak of confidential information concerning the potential reorganisation plan, to request from the CSE authorities the temporary suspension of Louis plc share trading,” said Loizou.

He stressed that this decision aimed to protect shareholders and investors.

He stated that a detailed announcement would be made in the coming weeks once final approvals are received from banks and authorities.

He also referred to the challenging international and regional environment in 2025, pointing to geopolitical uncertainty, trade tariff disputes, the war in Ukraine, and instability in the Middle East.

He said these factors are keeping governments and the business world alert and ready for the next potential crisis.

Tourism, which he described as a “very sensitive and fragile activity,” is directly impacted by such developments.

He explained that Cyprus and Greece rely heavily on European tourists, who are under financial pressure due to the energy crisis, defence dependence on the United States, and inflation.

Loizou pointed out that tourist arrivals in Cyprus in 2024 surpassed 2019 levels, rising 5.1 per cent compared with 2023.

He said that 2025 is showing similar positive trends in arrivals but noted that not all visitors stay in licensed accommodation.

He highlighted data showing that in March 2025 there were around 16,000 short-term rental listings on Airbnb and Booking.com in Cyprus, while the deputy ministry of tourism had only 8,172 licensed units in February 2025.

He stressed that only about 2,500 declare their income to the tax authorities.

He called on the government to intensify efforts to regulate this issue, as Greece has already done.

He urged authorities to perform in-depth analysis of tourist arrival data to avoid misleading impressions about the tourism sector.

Loizou further noted a trend of shorter visitor stays and lower spending power among travellers from traditional markets.

“Climate change has already started affecting people’s desire for summer holidays, with some choosing to stay in their own countries,” Loizou said.

He added that this trend, combined with increased hotel capacity in Greece, adds further uncertainty for the hospitality sector.

Despite these challenges, Louis plc improved its results in 2024 thanks to higher hotel capacity, better occupancy, and the team’s efforts.

Loizou said that 2025 results are expected to be broadly similar to those of 2024.

Group revenue for 2024 reached €128.1 million, up 12.2 per cent from €114.2 million in 2023, driven by a new hotel opening and higher occupancy rates.

What is more, EBITDA rose by €6.2 million, with the profit-to-sales ratio improving from 29.4 per cent to 31 per cent.

Net profit attributable to shareholders reached €3.9 million, compared to a loss of €0.4 million in 2023.

This improvement was mainly due to profit from operations after net financing costs of €2.6 million, compared to a loss of €2.2 million in 2023, a swing of €4.8 million.

The group also recorded a €1.2 million gain from the reversal of a provision for doubtful receivables from related parties.

Loizou acknowledged that Celestyal Cruises, in which Louis plc is now a minority shareholder, continued to record losses, with a net loss of €11.8 million in 2024 compared to €12.3 million in 2023.

He added that the company no longer consolidates Celestyal’s results and values its investment in it at zero, considering its future prospects limited.

Louis plc currently owns four hotels — two in Protaras (Nausicaa and Elias Resort) and two in Corfu (Kerkyra Blue and VALMAR) — with a total of 22 additional hotels leased or under management.

A major renovation was completed at VALMAR (formerly Ionian Sun) in Corfu during winter 2024–25.

2025 is also the first full year of operation for Cali Resort & Spa in Paphos, Louis Apostolata Island Resort in Kefalonia, and King Jason Zante in Zakynthos.

The company is investing in hotel automation, cybersecurity, and energy efficiency, including rooftop solar panel installations at its hotels.

“We remain grounded and competitive, continually upgrading the quality of our services and facilities,” Loizou concluded.