Cytrustees back into profits

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Cytrustees Investments (CYT) managed to overturn the 2003 losses and report profits for 2004 despite the 10% decline in local equity prices during the year.

Cytrustees reported net profits of CYP 240.000 for 2004 compared to CYP 686.000 losses for 2003, on the back of higher dividend income and reduced investment revaluation losses.

Income from dividend was up at CYP 82k vs. CYP 31k a year ago, while realised gains of CYP 231.000 partly offset the CYP 255.000 revaluation losses. With expenses declining to CYP 131.000 from CYP 151.000 a year ago, Cytrustees reported operating profits of CYP 268.000 compared to operating losses of CYP 666.000 a year ago. During 2003, the results were negatively affected by CYP 975.000 in revaluation losses.

Net after tax profits amounted to CYP 240.000 compared to net losses of CYP 686.000 in 2003, with earnings per share climbing to 1.16 cent from a loss of 3.32 cent in 2003.

A prudent decision to maintain a big exposure to the Bank of Cyprus shares in 2004 were instrumental in helping the turnaround, since the BOC shares gained 18% during 2004 in contrast to the CSE GENX performance, which fell 10% during 2004.

The net asset value (NAV) of the local shares was 67.08 cent at the end of 2004 compared to 65.94 cent at the end of 2003, for a 1.73% gain, beating the negative performance of the market. The traded price of CYT shares at the end of 2004 was 54 cent, or at a discount of 19.5% compared to its NAV.

Cytrustees issued a bullish forecast for 2005 expecting a better performance on the back of expectations that share prices, up by about 15% since the start of the year will continue to fare well. The investment firm is also counting on higher dividend income from the major blue-chips, which will further improve the results.

CYTRUSTEES INTERNATIONAL

Cytrustees International (CYI), which invests exclusively in international shares however, could not keep up with the turnaround scored by the local portfolio and ended 2004 with losses of CYP 213.000 compared to losses of CYP 129.000 in 2003. Losses per share increased to 10.65 cent from 6.43 cent.

The NAV of the international shares was 79.44 cent end of 2004 compared to 76.23 cent end of 2003.

Cytrustees is in the process of merging the two companies.