KEO reports higher profit, MD resigns

KEO Plc issued its first half 2008 results recording a net profit of EUR 29.55 mln compared to EUR 0.7mln in the same period a year ago, of which EUR 27.8mln were gains from the disposal of a plot of land in the Paphos district. Sales improved by
13.6% yoy to EUR 32.5mln, while higher production costs led gross profit to deteriorate to EUR 12.1mln (-4.5% yoy). The increased selling and distribution expenses of KEO led to an operating loss (LBIT) of EUR 1.66mln vs. an EBIT of EUR 1.29mln in 1H07. Analysts at Marfin Egnatia also note the positive effect on bottom line profitability of taxation income amounting to EUR 3.85mln.
In another development, the Company’s Managing Director C. Ioannou submitted his resignation to the BoD, which was approved. According to sources, Ioannou has received a very attractive offer from a large company that he is reported as saying, “ I could not refuse” as well as because he was apparently at odds with the Board over a number of important decisions taken without his involvement.