Caramondani profits triple in first half

Caramondani Bros. Pcl (CAR) announced that first half profit tripled, helped in part by higher sales, as well as profit from property sales, and although the company warned that second half profit will not match the performance reported in the first half, but overall, total profit for 2006 will exceed the profits of 2005.

Caramondani reported that construction works turnover increased to CYP 4.19 mln in the first half of 2006 from CYP 3.26 mln a year ago, while turnover from commercial activities was up at CYP 2.88 mln compared to CYP 2.55 mln a year ago, boosting total turnover to CYP 7.07 mln from CYP 5.52 mln for a 28% increase.

Gross profit was up at CYP 1.56 mln from CYP 1.21 mln in the first half of 2005. The ability of the company to contain cost increases, kept steady at CYP 1.02 mln compared to CYP 975k a year ago and the fact that finance costs were slightly lower at CYP 78k from CYP 82k previously, combined with a CYP 104.000 profit from sale of property included in other income helped boost pretax profit to CYP 595k from CYP 211 a year ago.

Net profit attributed to shareholders up till 30 June 2006 amounted to CYP 464.656 from CYP 154.026 a year ago with EPS up at 4.64 cent from 1.54 cent. Book value as calculated by the Financial Mirror improved to 58.67 cent compared to the CSE price of 25 cent only, indicating that the share price is grossly undervalued.

Total loans fell sharply to CYP 1.73 mln from CYP 2.31 mln end of 2005.

Caramondani said the second half profits will not match the spectacular performance of the first half, but promised that the full year results will exceed those of 2005, where the company had reported only CYP 180.000 in profit.