Associate companies help SFS results

A sharp rebound in share of profits from associated companies was instrumental in helping SFS Public Group to report a profit for the first quarter of 2005.

Gross profit from shipping and trading was stable at CYP 2.14 mln, unchanged from the same period last year but net income from financial activities fell sharply to CYP 436.434 from CYP 772.031 a year ago. A rebound in equity prices allowed SFS to book a CYP 464.616 profit from sale and revaluation of investments compared to CYP 116.000 in Q104.

In sharp contrast to previous years, SFS saw its expenses climb at all level. Selling and distribution expenses were up at CYP 501k vs. CYP 427k, administration expenses were up at CYP 1.2 mln from CYP 1.08 mln, while finance costs were also up at CYP 1.15 mln from CYP 960k a year ago.

The higher expenses combined with lower income forced SFS to report a loss from core activities amounting to CYP 263.323 in Q105 compared to CYP 9.080 profits recorded in Q104.

However, the group booked CYP 615.576 in profits from share of associated companies (mostly financial and investments), which helped pretax profits to CYP 352.253 compared to CYP 183.541 a year ago when share of associated related profits amounted to only CYP 174.461.

Net profits amounted to CYP 365.939 in the first quarter of 2005 from CYP 90.649 in the same quarter a year ago, with earnings per share amounting to 0.14 cent from 0.04 cent a year ago.