Hellenic Defense Systems Undergoes Full Financial Audit

11:53 18/6/2025 - Πηγή: Dikaiologitika

Greece’s state-owned arms manufacturer, Hellenic Defense Systems (EAS), has launched a comprehensive financial and managerial audit for the period 2020 to 2024.

The review, commissioned by the company’s new leadership and assigned to global auditing firm Deloitte, is aimed at evaluating the financial health and governance of the organization during

the past five years. The initiative is seen as a move by CEO Christoforos Boutsikakis to assess the legacy left by his predecessor, Nikos Kostopoulos.

This audit goes beyond a simple accounting review. It represents an in-depth examination of the company’s financial trajectory and management decisions during a period marked by escalating economic challenges. The decision underscores a growing urgency within the company to stabilize its finances and chart a path forward after years of poor performance.

According to the latest published figures, EAS remains in a precarious financial position. In 2023, the company reported net losses of €29.8 million, up from €25 million the previous year. Its total accumulated losses by the end of 2023 stood at €1.82 billion. Despite having a nominal share capital of €1.79 billion, EAS’s equity had turned negative, with its own funds standing at -€25.6 million. This situation has triggered provisions under Greek corporate law that demand immediate restructuring action.

Further compounding the crisis is the company’s high debt burden. Total liabilities in 2023 amounted to €78 million, including a non-performing loan of €31.4 million linked to the now-liquidated Hellenic Postbank. The company’s liabilities exceed its assets by more than 6%, indicating a high level of debt dependency and a serious liquidity problem, as current assets are significantly outpaced by short-term obligations.

Operationally, EAS is also underperforming. Revenue plummeted to €4.9 million in 2023, a dramatic drop from €15.2 million in 2022. At the same time, administrative and unallocated production costs remain excessively high relative to the company’s shrinking income, placing additional strain on operations.

The company also faces a significant challenge in terms of human capital. With a workforce of just 288 employees—whose average age exceeds 59—EAS is confronting a slow but steady loss of institutional knowledge and technical expertise, raising long-term concerns about its ability to rebuild.

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