Demetra profit surge to CYP 17.5 mln

Demetra Investments Pcl (DEM), the island’s largest investment company with 200.000 shareholders on its registry reported a spectacular increase in first half profit to CYP 17.5 mln on the back of a sharp jump in banking shares trading on the Cyprus Stock Exchange.

DEM reported total income of CYP 18.1 mln from CYP 8 mln a year ago, of which CYP 16.1 mln refer to investment gains made from the sharp jump in the value of local banking titles.

Demetra holds 19% of its portfolio in Bank of Cyprus, 11% in Laiki Bank shares and 3.1% in Hellenic Bank shares. All three stocks have been among the best performers on the local exchange.

The first half results were burdened by CYP 258k in forex valuation losses (2005 H1: CYP 104k profit) while administration and other costs amounted to CYP 325k from CYP 227k a year ago.

Net profit attributable to shareholders jumped to CYP 17.475,.301 for the first half of 2006 compared to CYP 7.806.017 a year ago in the same period and more than the CYP 14.34 mln booked for the whole of 2005.

EPS were 8.74 cent from 3.90 cent previously.

Shareholders equity improved to CYP 114.81 mln from CYP 97 mln end of 2005, boosting book value or net asset value to 57.41 cent. Despite the increase, the share price of DEM is still trading at a 44.6% discount to its NAV based on the prevailing 32 cent price on the CSE.

Demetra’s investment portfolio jumped to CYP 58.25 mln from CYP 47.35 mln end of 2005 of which CYP 51 mln are invested in CSE titles, CYP 1.4 mln in non-listed investments and CYP 6 mln overseas. The investment portfolio includes a mix of equity, bond and property investments.

For the first time, DEM reduced its cash balance held with the Coops. Such balances fell to CYP 34 mln from CYP 35.2 mln end of 2005 while cash under management jumped to CYP 5 mln from negligible amount of CYP 91k end of 2005 as part of the diversification drive.