Cyprus’s Debenhams stores saw a marginal fall

Ermes, which operates the Debenhams Department stores on the island, said its net profit fell to 8.06 million euros ($11.04 million) last year, from 8.22 million in 2009. Turnover for the year fell 0.7 percent to 269.1 million euros.

The group was buffered from a deeper slump on the retail market because of its diverse portfolio of business activities, Ermes said. Ermes has stakes in commercial operations at Cyprus's two airports, has DIY stores and also operates high street clothing brands Next and Peacocks.

A difficult year lay ahead in the retail sector because despite signs of economic recovery, consumer sentiment could be crimped by recent tax increases and fuel costs, and that could have a possible impact on profitability for retail businesses, Ermes said in a statement.