Options Cassoulides Co. (OPT) is aiming to improve its margins in order to boost profitability in tandem with the spectacular turnaround achieved last year and following a reorganisation of its capital base, return to a dividend paying policy.
Yiannos Cassoulides, CEO of OPT told the Financial Mirror that 55% of total turnover amounting in 2004 to CYP 21.5 mln originated from the conferences/events division, while 45% or CYP 9.7 mln from the print division of which 40% or CYP 3.8 mln was generated by the operations in Greece.
“We are sure that we shall be able to increase our sales at a satisfactory pace during 2005, but more emphasis will be placed on improving our profit margins,” said Cassoulides.
He said even a 2 basis points improvement in the margins of the conferences/events will have a profound impact on overall group profitability. Cassoulides has high hopes for the conferences/events division following the setting up of a new Commercial Department, based in the UK, which is aggressively chasing multinational clients.
The conferences/events division had total turnover of CYP 11.85 mln in 2004, of which only CYP 1 mln involved operations in Cyprus with total net after tax profits of CYP 67.000.
OPT reported net group profits of CYP 1.23 mln for 2004 compared to CYP 2.95 mln losses in 2003 with earnings per share climbing to 2.7 cent from losses of 6.4 cent in 2003.
NEW PRODUCTION
Cassoulides said that the print division will see a significant boost during 2005 after the launch of a new production unit in the second half of the year.
“The new facilities will house all the printing operations in Cyprus under roof, with new modern machines brought for high quality print newspapers,” said Cassoulides, who is determined to win back most of his print clients.
Cassoulides said his flagship J.G. Cassoulides Printing Offices is currently in the lead as the number one printers for magazines with 40 titles printed. The print group also enjoys a high market share of the government business, with Cassoulides expecting higher revenue from the government’s EU printing needs.
Polychromo S.A., the Greek digital printing unit in which OPT holds a 26.5% stake is also seen scoring higher profits as it proceeds with new expansions and sets its eyes for a listing on the ASE.
DIVIDENDS
As sales climb and profits increase, Cassoulides knows that the next ingredient to boost the share price higher is the need to pay dividend, which is why the Board is rushing to meet on March 17 in order to vote on a proposal to recapitalise the share premium account to over-turn CYP 3.5 mln in accumulated losses of the mother company, in order to leave sufficient funds to give an interim dividend for 2005 as soon as possible.
According to Cassoulides, OPT is a cash-rich company with ample cash surplus balances sufficient to meet its operational needs, possible expansions as well as any dividend that the Board decides to declare.
