Zorbas profit at CYP 2.2 mln

A. Zorbas & Sons (ZRP) reported its preliminary 2005 results, with net profit at CYP 2.2 mln,11.5% lower than the corresponding 2004 profit of CYP 2.45 mln. Based on the current price of CYP 1.27 on the CSE, the price to earnings ratio of ZRP is at an attractive 8.8 times 2005 earnings.

Total turnover for 2005 reached CYP 30.36 mln recording a 16.6% year-on-year increase stemming from the increased number of retail outlets currently in operation, as well as the increase in the Company’s product range.

Gross profit advanced by 13.1% to CYP 11.39 mln yielding a gross profit margin of 37.5% (vs. 38.7% in 2004). Earnings before interest and tax reached CYP 2.48 mln down by 17.4% due to higher labour and energy costs as sales & distribution costs shot from CYP 5.55 mln in 2004 to CYP 7.15 mln in 2005.

The Company’s net profit reached CYP 2.207.493 mln, down 11.5% YoY from CYP 2.459.001 in 2004 yielding a net profit margin of 7.3% against 9.6% in the corresponding 2004 period. EPS stood at 14.43 cent vs. 16.08 cent in 2004.

The Extraordinary General Meeting of shareholders on February 17 meanwhile approved a buyback programme. According to the motion, the amount of shares to be purchased under the buyback programme will not exceed 10% of the issued share capital, or 25% of the average value of transactions that were made on the CSE. Another restriction is that the price at which the shares will be purchased will not exceed more than 5% the average price prevailing 30 days before the buyback period.