Orphanides profit up in H106

Orphanides Pcl (ORF) reported that first half 2006 profit surged by 20% YoY to CYP 1.23 mln yielding an EPS of 1.52 cent. Revenue were recorded higher by 2.6% YoY at CYP 38.1 mln from CYP 37.14 mln a year ago supported by the addition of one supermarket store (ASDA supermarket) in 1H06.

Gross Profit improved reaching CYP 7.2 mln vs. CYP 6.8 mln in 1H05, leading to an increase in gross profit margin by 100bps YoY to 19% underpinned by an improvement in the Company’s pricing policy towards higher yielding products.

Other income, which is indoor advertising and rent income from its shopping malls was unchanged at CYP 1.18 mln.

Operating expenses increased by 8.5% YoY to CYP 6.0 mln mainly due to increased administration expenses, which increased to CYP 2.4 mln while sales & distribution costs were stable at CYP 3.6 mln. However operating profit was improved by 3% YoY at CYP 2.37 mln from CYP 2.31 mln.

A decrease in finance expenses by 13.5% YoY to CYP 988k, had a positive impact on the bottom line figure with net profit reaching CYP 1.23 mln vs. CYP 1.02 mln a year ago in the same period.

Stock of goods jumped end of June to CYP 8.4 mln from CYP 7.8 mln end of 2005, but bank loan fell to CYP 17.96 mln end of June from CYP 18.42 mln end of 2005. ORF also managed to cut down on the total of trade creditors, which fell end of June to CYP 24.76 mln from CYP 27.55 mln end of 2005.