Cypriot services firm Logicom Public Ltd issued a profit warning on the Cyprus Stock Exchange (CSE) this week, notifying investors that its financial performance for the first half of the year is expected to deteriorate compared to the same period in 2024.

The company stated that turnover is anticipated to decline, while operating profit from its ordinary and existing operations is forecast to decrease significantly.

This drop in profitability is attributed primarily to the fall in turnover and a concurrent increase in administrative expenses.

The company explained that the increase in administrative costs stems from the expansion of its product range in the distribution sector.

Despite these pressures, Logicom said that it expects profitability excluding the results of the associated company Demetra Holdings Plc to increase significantly.

The company clarified that this improvement is mainly driven by a sharp reduction in net finance costs.

However, Logicom mentioned that no reliable estimate can currently be given regarding final profit after tax.

The company said this is due to the unavailability of necessary information concerning the expected results of Demetra Holdings Plc.

“When the necessary information is available, the company will make the appropriate announcements” Logicom stated.