First quarter profits triple

Outlook positive for Main Market stocks

The first quarter results reported by 23 of the 165 CSE listed companies surged by an impressive 156%, leading many to expect that at least one quarter of the listed stocks will manage to report impressive profit increases for the whole of 2005.

The combined results of the reporting companies showed total profits of CYP 29.78 mln for the first quarter of 2005 compared to CYP 11.6 mln reported in the first quarter of 2004 for a 156.75% increase.

Bank of Cyprus reported the most profits, amounting to CYP 16.05 mln, up 49% over the Q1’04, followed closely behind by Laiki Bank, lifting its Q1’05 profits by 42.5% to CYP 8.9 mln.

Hellenic Bank made an impressive 105% gain in Q1’05 profits to CYP 2.96 mln, signifying that the worst is over for the Bank and reinforcing expectations that it will join its peers in reporting bumper profits.

Vassiliko Cement Works reported yet another impressive performance, having lifted Q1’05 profits by 81% to CYP 1.8 mln, while Orphanides Public Co. also staged a strong performance during the period.

The 25% rally in share prices during the first quarter helped financial services firms like SFS and Laiki Investments report sharp increases in profitability, with SFS lifting profits by 302% while LI lifted profits by 104%. Athena and Interfund Investments also reported a sharp increase in profits.

Among the companies involved in tour and travel, Louis Public Co. managed to maintain its losses at last year’s level but is on track to report between CYP 9.5 to CYP 10 mln in profits for the whole of 2005, while Libra Holidays Group, staged a sharp improvement in results, halving its Q1?05 losses to CYP 4.5 mln from CYP 10.2 mln in Q1’04 losses.