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Logicom sales up, profits down

Networking and components distributor Logicom has turned in a full-year profit of $7.8m for 2008

Networking and components distributor Logicom has turned in a full-year profit of $7.8m for 2008 after revealing its annual results last week. The figure represents a 23% drop on the net profit booked by the company the year before.

Directors at the Cyprus-listed outfit, which plans to hold its AGM at the beginning of June, have proposed that almost 49% of the profit is paid out to shareholders at a dividend of $0.05 cents per share.

Although Logicom saw its bottom line shrink on a year-on-year basis, the distributor managed to grow its revenues by 17%. Total 2008 sales for all its group operations reached $528m compared with $450m the 12 months previous.

It is thought that around $240m — or 45% of sales — came from the Middle East, where Logicom boasts full-scale operations in the UAE, Lebanon, Jordan and Saudi Arabia.

The consolidated balance sheet posted by Logicom last week reveals the company had a share capital equity of $32m at the end of 2008 — $1.5m higher than the year before. Its total long-term liabilities, meanwhile, include bank overdrafts worth $74m and short-term loans of $26m.

Logicom holds contracts with more than 30 IT vendors for various territories across the Middle East and Central and Eastern Europe, including Intel, Microsoft, Cisco, Kingston and Lenovo.