The profit performance of the 21 public companies reporting their nine month results showed a mediocre performance, with total profits actually declining, if the spectacular results of Bank of Cyprus and Laiki Bank were to be excluded.
The 21 CSE listed companies that announced their results reported a total of CYP 109.82 mln in net profits for the period from January to September 2005, up by 33.8% compared to CYP 82.05 mln a year ago in the same period, according to a Financial Mirror survey.
However, most of the positive performance was due to the exceptional performance of the two largest banks — Bank of Cyprus and Laiki — which reported net profits of CYP 50.4 mln and CYP 30.4 mln respectively, contributing 74% of the total reported profits.
By excluding the results of BOC and Laiki, the Financial Mirror survey showed that the remaining 19 companies actually saw their combined profits decline 19% to CYP 28.9 mln from CYP 35.6 mln a year ago.
Spectacular
Bank of Cyprus was by far the most profitable company, reporting net profits of CYP 50.4 mln, while Laiki Bank was the company reporting the biggest percentage increase in profits, up 90% to CYP 30.5 mln.
Vassiliko Cement Works followed with a satisfactory 16% growth in profits to CYP 4.8 mln, followed by Lanitis Bros., which lifted profits by 13%, and Logicom, up 11% at CYP 1.1 mln.
A sharp advance in equity prices lifted the results of both SFS Group and Laiki Investments.
Not satisfactory
Hellenic Bank was the biggest disappointment of the nine month reporting season as its profits tumbled 27% to CYP 2.9 mln as costs and provisions for doubtful debts continued to rise. The bank was also saddled with heavy losses from its Greek operations, at a time when BOC and Laiki derive 36% and 17% of their profits from their operations in Greece.
Seasonality factors as well as higher energy costs and a rising dollar were cited as some of the reasons why the likes of Louis Public Co., Muskita, A. Zorbas and Vision reported a mild decline in nine month profits.
Alliance Re was haunted by the payment of back taxes, while the results from the Shacolas owned FWW and CTC were also not satisfactory as both reported a sharp decline in profitability.
Negative
Libra Holidays Group was the company reporting the biggest loss of CYP 6.8 mln in the first nine months of its financial reporting period ending July 2005, with results burdened by the Helios Airways disaster.
The only other company that reported a loss was Global Consolidator, listed in the Alternative market, which reported a loss of CYP 1.5 mln for the period.
