16/11/2007 10:52
The net profits of Logicom in the first nine months of 2007 recorded an increase of 19.2%. The after-tax profit reached £3.1 million against £2.6 million in the first nine months of 2006, while the readjusted EPS surged 19.3% to 5.1 cents against 4.3 cents last year.
Its turnover increased by 30.2% (or £32.4 million) to £139.6 million from £107.2 million. This increase is attributable to the sale of the subsidiaries in Greece, the United Arabic Emirates, Italy and Turkey. The turnover of the distribution sector showed an increase of 28.7%. The sectors of software solutions IT solutions also recorded a similar increase.
The profit from operations increased by £603.345 that corresponds to 19.9%. The term “operations” includes all activities of the Group.
The gross margin of profit fell from 7.8% in the first nine months of 2006 to 6.9% in the corresponding period of 2007. This drop is mostly linked to the increased sales of the distribution sector, where the margin of profit is lower than the other sectors.
Expenses
The increase in administrative expenses by £636,737 (11.8%) is attributable to the expansion of the Group’s activities and infrastructure and the subsequent increase in number of employees.
The increase in net finance cost of £12,355 (4.7%) is linked to the variation of the exchange rate of the dollar verses the Cyprus pound and the euro, which affected positively the Group’s results and stands at £1,090,287 against £661,565 in 2006. The cost of bank overdrafts also surged to £1,367,198 (2006: £926,121).
Prospects
The Company believes that its nine-month results are satisfactory. According to its announcement, it pursues a further increase in the turnover, taking advantage of the economies of scales and improving the yields and the profitability, offering safe bases for the Group’s prospects.
The Company did not refer to the full-year results but stressed that the results for the last quarter of 2007 will show improvement compared to the corresponding results of 2006.
Its turnover increased by 30.2% (or £32.4 million) to £139.6 million from £107.2 million. This increase is attributable to the sale of the subsidiaries in Greece, the United Arabic Emirates, Italy and Turkey. The turnover of the distribution sector showed an increase of 28.7%. The sectors of software solutions IT solutions also recorded a similar increase.
The profit from operations increased by £603.345 that corresponds to 19.9%. The term “operations” includes all activities of the Group.
The gross margin of profit fell from 7.8% in the first nine months of 2006 to 6.9% in the corresponding period of 2007. This drop is mostly linked to the increased sales of the distribution sector, where the margin of profit is lower than the other sectors.
Expenses
The increase in administrative expenses by £636,737 (11.8%) is attributable to the expansion of the Group’s activities and infrastructure and the subsequent increase in number of employees.
The increase in net finance cost of £12,355 (4.7%) is linked to the variation of the exchange rate of the dollar verses the Cyprus pound and the euro, which affected positively the Group’s results and stands at £1,090,287 against £661,565 in 2006. The cost of bank overdrafts also surged to £1,367,198 (2006: £926,121).
Prospects
The Company believes that its nine-month results are satisfactory. According to its announcement, it pursues a further increase in the turnover, taking advantage of the economies of scales and improving the yields and the profitability, offering safe bases for the Group’s prospects.
The Company did not refer to the full-year results but stressed that the results for the last quarter of 2007 will show improvement compared to the corresponding results of 2006.
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