Vassiliko declares higher profit, interim dividend

Vassiliko Cement Works Pcl posted another strong set of results with net profit in 9M07 reaching EUR 11.8 mln up 9.3% YoY on the back of satisfactory growth in total sales from cement and clinker, (price and volumes increases), and further cost savings. The Company’s Board approved an interim dividend payment of CYP 0.015 (EUR 0.026). Ex-dividend date is set on 21 November 2007.

Total sales increased 9.3% YoY to EUR 67.3 mln driven by increased local sales (up 19.2% YoY), while exports fell significantly by 71.8% YoY. Despite the significant improvement in local quantities sold (993k tones: up 14.8% YoY), total quantities of cement and clinker sold decreased to 1044k tons (-3.8% YoY), due to the significant reduction in export sales.

Gross profit advanced by 9.6% YoY to EUR 17.6 mln. Despite the higher energy, pet-coke prices and depreciation charges (+33% YoY), gross profit margin improved by 10bps to 26.2% due to changes in sales mix towards the higher yielding local sales as well as other cost savings efforts.

Total operating expenses were contained at 8.2% YoY.

In another development, the Company will hold an EGM on 19 December where shareholders will be called to decide on the following resolutions:

a) Increase the authorized share capital from CYP 15m divided into 60m shares to CYP 18m divided into 72m shares of nominal value CYP 0.25.

b) Authorise the BoD be to issue and allocate 18,199,794 shares of nominal value CYP 0.25 each at the price of CYP 1.69 (EUR 2.89) each, (i.e. EUR 52.59m) to ‘The Cyprus Cement Pcl’ (CCC) as a consideration for the transfer of the production operations and the disposal of cement of CCC to the Company, pursuant to the terms of agreement between the two companies dated 9 March 2007.