Logicom up on overseas operations

Logicom Public Co. (LOG) reported a mild increase in first quarter profits, and for the first time revealed that operating profits from overseas operations were much bigger than profits from local operations.

Total turnover during the first quarter ending March 31, 2005 increased by 2.2% year-on-year to CYP 22.23 mln from CYP 21.7 mln with sales in Cyprus declining by 23% to CYP 3.8 mln while overseas turnover was up 9.9% to CYP 18.4 mln.

The overseas operations where Logicom is active also increased their share of total turnover from 77% in Q1 ‘04 to 83% in Q1 ‘05. The gross profit margin however improved to 8%, and with total expenses increasing by 15% to CYP 1.04 mln from CYP 900.000 a year earlier, operating profits were up 4.5% to CYP 788.141 from CYP 754.697 a year earlier.

Logicom revealed that operating profits from overseas operations increased 22% to CYP 401.232 while operating profits from local operations fell by 10% to CYP 386.909.

With finance costs mildly higher at CYP 237k from CYP 211k a year earlier, pretax profits were basically unchanged at CYP 550.417 from CYP 544.180 a year earlier.

A lower tax charge of CYP 27.639 in the first quarter of 2005 compared to CYP 57.944 a year ago helped lift net profits by 7.5% y/y to CYP 522.778 in Q1 2005 from CYP 486.236 in Q1 2004.

Earnings per share were 3.39 cent from 3.15 cent previously.

Book value per share improved to 27.86 cent from 26.2 cent on the back of CYP 522k in net profits generated in the first quarter as well as currency gains of CYP 480.712, which were booked through the Reserve account.