FBI lifts first half profit by 46%

Alkis Hadjikyriakos Frou-Frou Pcl (FBI) reported a sharp increase in first half profit on the back of a satisfactory 5.5% increase in sales and containment of costs, which helped lift net profit by 46% year-on-year.

Turnover increased by 5.5% YoY to CYP 6.29 mln from CYP 5.96 mln a year ago and CYP 12.2 mln for the whole of 2005. The Group’s manufacturing activities contributed CYP 2.15 mln in sale and imported goods CYP 4.14 mln.

Gross profit was CYP 2.8 mln from CYP 2.6 mln a year ago, with the gross profit margin improving to 44.26% from 43.6% a year ago but about the same compared to end of 2005.

The improvement in the Company’s profitability is attributed to a reduction of production expenditure and a net finance income of CYP 9k vs. net finance expenditure of CYP 43k in the previous year. Operating profit amounted to CYP 784k from CYP 574k a year ago, while net profit attributable to shareholders jumped 46.5% YoY to CYP 717.551 for the first half of 2006 from CYP 489.555 a year ago and CYP 1.3 mln for the whole of 2005.

EPS was recorded at 0.8 cent compared to 0.55 cent in 1H05. Based on the stocks annualised EPS and its most recent closing price, FBI trades at an annualised 2006 P/E ratio of 7x. Book value improved to 24.91 cent per share from 23.24 cent end of 2005.

FBI also revealed that the average age of debtors was stable at 80 days, creditor days were at 98 while stock turnover days were 81. The Group has CYP 3.58 mln in equity and bond investments in its name of which only CYP 262.500 are in non-listed companies.