Logicom lifts profit by 73%

Logicom Pcl (LOG) announced that net profit during the first half of 2006 amounted to CYP 2.12 mln, up by 72.8% YoY compared to CYP 1.22 mln a year ago and CYP 1.5 mln for the whole of 2005. EPS were up at 3.43cent even though the company announced that based on an annualised basis and on forecasted net profit of CYP 4.3 mln, its EPS were 6.86 cent.

Revenue increased by 55% YoY to CYP 77.6 mln primarily attributed to an increase in sales from overseas operations. Revenue from local operations posted an increase of 16% YoY to CYP 11.25 mln whilst revenue from overseas operations surged by 64% YoY to CYP 77.6 mln.

Gross Profit increased to CYP 6.0 mln compared to CYP 3.75 mln in 1H05. Gross Profit margin increased marginally to 7.7% compared to 7.5% in 1H05 and 6.8% for whole of 2005. The Company’s expansion in new business segments burdened its operating cost base, mainly in the form of higher payroll expenses, which rose by 69% YoY to CYP 3.78 mln.

Operating profit were up at CYP 2.33 mln from CYP 1.62 mln a year ago. Net profit was recorded at CYP 2.1 mln, up by 72.8% YoY further supported by lower finance expenses and despite an increase in tax charge.

LOG also recorded significant improvements in its balance sheet. Stock of goods fell to CYP 10.4 mln from CYP 15.8 mln, cash balances were up at CYP 9.8 mln from CYP 7.9 mln end of 2005 while shareholders funds jumped to CYP 19.3 mln from CYP 17.73 mln end of 2005. Total loans also fell to CYP 22.5 mln from CYP 23.1 mln while debtors were slightly up at CYP 33.12 mln from CYP 32.4 mln end of year. Book value per share improved to 31.2 cent per share.