Logicom lifts Q1 profits

Logicom Plc (LOG) reported its first quarter results ending March 31, 2006 posting a net profit of CYP 823.000 from CYP 630.000 a year earlier while its EPS improved to 5.33 cent from 4.08 cent a year ago.

Revenue increased by 86.7% to CYP 41.5 mln on the back of an increase in sales in UAE, Greece and Italy. Revenue from local operations posted an increase of 26% and an impressive 97% abroad.

Gross profit increased to CYP 2.48 mln compared to CYP 1.79 mln in 1Q ‘05. Gross profit margin fell to 6% from 8.1% a year ago. The reduction is attributed to an increase in revenues from lower yielding products distribution operations as a percentage of total revenues.

The Company’s expansion in new business segments burdened its operating cost base, mainly in the form of higher payroll expenses, which rose by 44% to CYP 1.5 mln. This caused further erosion to EBITDA margin calculated at 2.65% compared to 3.78% in 1Q’05.

Net Profit increased to CYP 822.998, up by 30.6% year-on-year from CYP 629.873 a year ago and CYP 1.5 mln for the whole of 2005 further

supported by lower finance expenses and despite an increase in tax charge. EPS was 5.33 cent compared to 4.08 cent in the corresponding 2005 period.