SFS lifts ’06 profits by 200%, higher dividend

SFS Group Pcl (SFS) announced its preliminary 2006 results reporting a spectacular 201% YoY increase in net profit to CYP 8.1 mln or EUR 13.98 mln from CYP 2.68 mln or EUR 4.65 mln in 2005. Earnings per share jumped 183% to CYP 0.0294 (EUR 0.051) from CYP 0.0104 (EUR0.018) in 2005.

SFS reported that total income was up 44% YoY to CYP 44 mln or EUR 76 mln in 2006 with operating profits improving 175% YoY to CYP 9 mln, while pretax profits were up 156% to CYP 12.73 mln.

The cost to income ratio fell 20% to 23.6% in FY06 from 29.5% in FY05 while return on equity (ROE) jumped 128% to 24.6% in FY06 from 10.8% in FY05 and 5.0% in FY04.

Group turnover was boosted mainly by the addition of Lemissoler Shipping, which was acquired in May 2005 and which saw the addition of four new vessels, the sharp jump in financial services business as the stock market roared higher as well as sales from the Larnaka Bay Resort complex.

The ability of SFS to keep cost increases at only 15% to CYP 10.4 mln or EUR 18 mln while revenue jumped 44% was instrumental in lowering the cost to income ratio. Results were further boosted by share of associate companies, mostly investment companies, with profits surging to CYP 3.7 mln or EUR 6.4 mln from CYP 1.7 mln or EUR 3 mln in FY05.