SFS Group forecasts EUR 17.3 mln FY07 profits

SFS Group Pcl (SFS) has released details of its 2007-2009 Strategic Plan and Targets, with net profit after minority interest for 2007 seen climbing 24% YoY to CYP 10 mln or EUR 17.3 mln from EUR 13.9 mln in FY06.

The SFS Group wants to maintain leadership roles in all its core areas of activity, expand its financial services in Greece, Balkans and the Middle East and boost its shipping activities and target property investments in emerging east European countries.

SFS Group aims to maintain revenue growth rates of over 20% per annum during the next 3 years, contain fixed overhead growth below inflation rate plus 3%, sustain minimum Group Return on Equity of 20% and increase third party funds under management.

Larkos says the SFS Group wants to reduce debt at Group level by at least EUR 15 mln per annum over next three years, replace bank debt with own asset backed bonds and partly replace capital growth assets with income generating assets. The objective is to unlock shareholder value, increase the dividend pay out ratio and proceed with the spin off and listing of distinct sub-holding groups such as Shipping and Property.

Another objective is to increase own capital above EUR 100 mln by 2008 from EUR 65 mln end of 2006 and increase the dividend payout ratio to 30%.

The SFS Group employs 130 professional staff, and invests in its executive team and top management to maintain and improve the core competencies used to manage the challenges arising from its strategy. SFS is among the top 15 companies of Cyprus, listed on the Exchange with own funds of EUR 65 mln at end of FY06. Total turnover during FY06 was EUR 76 mln, with net profit at EUR 13.9 mln. Total assets at end of 2006 amounted to EUR 298 mln.

At the end of 2006, the Group had a total of 5.800 shareholders, with the founders, directors and staff holding less than 30%, making it one of the most widely held stocks listed in the Main Market of the CSE.