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CTC: Increased profits and dividend

29/11/2013 11:52
CTC of Shacolas Group announced increased profits and approval of dividend in its nine-month results 2013, despite the lower turnover.

“The Board of Directors and the management of the Group would like to express their satisfaction for the .measures taken by the Government of Cyprus to revive the economy such as the liberation of the working hours of shops as well as the open skies policy that implemented with the Russian Federation”.

Net Profit aftertax for the nine months of2013 reached €11.023.000, compared to a profit of €1.873.000 in 2012. Despite the reduction of the profitability in some companies of the Group, the successful completion of (the sale of the participation of Amaracos Holding (CTC+PG) Ltd, a subsidiary of the Group, in MTN Cyprus Ltd (being 50%), to MTN Group South Africa has resulted in a significant profit for the period amounting to €15.713.222.

In addition, the Group turnover has also been negatively by the decision to terminate the loss making operations of Domex Trading Company Ltd, a subsidiary of Ermes Department Stores Plc as well as the termination of operations of the Debenhams Avenue store.

The turnover of the Group for the nine months amounted to €265.079.000, compared to €301.728.000 in 2012, a reduction of €36.649.000 or 12.1%. The decrease is emanating mainly from the retail and vehicles sectors which are affected the most from the continuing economic crisis, especially after the events of last March.

The depreciation charge of the Group for the period rose to €7.340.000, compared to €8.077.000 in 2012. The depreciation does not constitute a cash outflow, it added.

In addition, in the nine months results of the Group non-recurring expenses of €3.468.000 are included which emanate from the impairment of fixed and other assets in the terminated operations as well as losses that have occurred due to the restructuring of the Cyprus banking sector being €265.000 in Marfin Laiki Bank and €l,lm in Bank of Cyprus that have been converted to shares, the announcement said.

According to the announcement, it is further important to note that the proactive and timely actions of the Group for reducing its expenses have already returned substantial results with a reduction of its operating expenditure by €10.2m or 16% in relation to the same period of last year

“Excluding any possible revaluations in property values the results for the whole of the year are expected to be substantially improved from last year”, the announcement concluded.