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Analysts: Estimates for 11 companies

31/01/2005 07:21
The revenues and the profitability of the Main Market companies are expected to show significant improvement in the next two years, analysts anticipate, according to a survey which reflects the estimates for 11 companies of the Main Market, evaluated by the analysis departments of CLR, Egnatia and Sharelink. The estimates concern the results of 2004 and 2005. StockWatch requested by the three firms to give their estimates on the revenues, profitability, dividend policy and book value of the 11 companies according to a methodology based on the international analysis models. The consensus estimates of the three firms are presented by StockWatch.

After examining the economic data of 11 companies, the analysts expect an improvement in their economic sizes in the next two years. This improvement will be more visible in the bank profits. According to the analysts, the Bank of Cyprus will generate net profits of £39.8 million in 2004 (2003: losses of £28.8%) and £54.6% in 2005. The Popular Bank is expected to raise its profits from £9.5 million in 2003 to £21.2 million in 2004 and £34.3 million in 2005. The Hellenic Bank is expected to increase its profits from £2.7 million in 2004 to £9.2 million in 2005 (2003: losses of £14.4 million). Although analysts have followed similar methodology, estimates vary. This reflects the uncertainty on the final profits of the companies – e.g. Bank of Cyprus £36 million - £46 million and Hellenic Bank £1.4 million - £4.1 million.

Other companies are also expected to show significant profits. The profits of Vasiliko, for example, are expected to reach £5.2 million (2003: 3.4million) and Orphanides £2.6 million (2003: £1.7 million). Louis will be able to quadruple its profits to £8.3 million and Muskita will increase its profits from £4.5 million to £5 million in 2004.

As for the dividend policy of the 11 companies, CLR, Egnatia and Sharelink see the payment of a dividend after three years. The Bank of Cyprus is expected to pay a dividend of 5 cents in 2005 (final 2004 and interim dividend in 2005) and 6.7 cents in 2006. The Popular Bank will possibly pay a dividend of 4 cents in 2005 and 5.9 cents in 2006 and the Hellenic Bank is not expected to pay a dividend in the next two years.

Zorpas will pay a dividend of 8.3 cents in 2005 and 10 cents in 2006, Vasiliko will pay a dividend of 4.2 cents in 2005 and 5.5 cents in 2006, while Muskita will pay a dividend of 3.8 cents in 2005 and 4.7 cents in 2006. Louis is expected to grant a dividend in 2005, whereas Orphanides will pay a dividend for 2005 for the first time after its listing in the CSE. Logicom, Lanitis and Tsokkos will gradually increase their dividend.