Vassiliko to pay 2c final dividend

The Board of Directors of Vassiliko Cement Works (VCW) announced the intention to pay a 2 cent per share final dividend, bringing its total dividend payout to 3.5 cent, considering that the company has already paid an interim dividend of 1.5 cent. The total dividend yield based on the company?s most recent stock price of CYP 1.34 comes to 2.6%.

The island’s largest cement producer and exporter posted a strong set of 2004 results with net income increasing by 48% to CYP 5.0 mln from CYP 3.4 mln in 2003. Net results were further burdened by CYP 513.000, which represents the permanent impairment in the fair value of the Company’s investments.

Sales rose by a robust 12.5% to CYP 39.7 mln. Higher sales figures were driven by the buoyant local real estate sector and the higher cement prices which became effective as of 17 May 2004.

Sales volume increased to 1.30 mln tons vs. 1.27 mln tons in 2003, up by 3%. Local sales remained strong at 1.1 mln tons compared to 848.000 tons in 2003 (+29%), bringing VCW’s market share within the local cement industry to 71.5% from 65.1% in 2003. Given production constraints, export sales were reduced significantly in order to meet the increased local demand. Specifically, export sales decreased by 51% to 205.000 tons.

The Company’s solid revenue generation and its high yield product mix are key factors contributing to the increase in the Net Income margin. Specifically, the Net Income margin improved by 3.0pps to 13% versus 9.7% in 2003.