Zorbas lifts dividend to 7.5c

A. Zorbas & Sons Public Co. Ltd. (ZRP) announced that it has lifted the 2004 dividend to 7.5 cent per share from 5.2 cent in 2003 on the back of a satisfactory performance during the year. The record date for participation in the dividend has been set for June 6, 2005.

Based on the 7.5 cent per share dividend, the dividend yield amounts to 5.36%, the second best yield among the Main Market stocks, after Muskita, but well above the 2.3% yield of BOC and Laiki.

Zorbas reported a 30.5% increase in turnover reaching CYP 26.0 mln in 2004 on the back of higher revenues per shop and the operation of six new outlets.

ZRP operated 6 new shops in 2004, which brings the total number of outlets to 33 against 27 in 2003.

Net profit after minority interest was slightly revised downward to CYP 2.459.000 from the CYP 2.505.000 reported at the preliminary stage and CYP 1.94 mln net profits for 2003.

Based on the reported profits of CYP 2.45 mln and the recent price of CYP 1.40, ZRP is trading on a historical p/e ratio of 9 times, while the book value per share amounts to 0.65 for a price to book value of 2.16x.

Cash at bank balances were CYP 2.14 mln, more than adequate to meet the dividend payment, while at the same time total bank overdrafts and loans fell from CYP 1.43 mln in 2003 to CYP 1.32 mln in 2004. During the year, ZRP spent CYP 3.29 mln on new premises and equipment.