Friday 30 May 2014

Kelsey reports Rs. 149 m Group net profits

Kelsey Developments PLC, a leader in housing development, reported profit after tax of Rs. 148.6 million for financial year 2013/2014. This was a significant improvement against the loss of Rs. 55.5 million incurred in the previous financial year. The increase in profit was primarily due to a one-off capital gain of Rs. 177.3 million from the sale of a property, the company said in a filling with Colombo Stock Exchange.

Consolidated turnover declined by 59% from the previous year to Rs. 95.6 million which is directly attributable to the low level of activity during the year under review. However, in the last quarter of the year, a six acre property in Mount Lavinia was acquired for development as an exclusive gated community housing project. This project, Templer’s Square valued at Rs. 2 billion will be the largest development in the company’s history.


Kelsey Developments PLC also significantly reduced its finance expenses to Rs. 10.4 million, a substantial reduction from Rs. 45.4 million incurred in the previous financial year. The company also effectively managed all operating expenses and reduced administrative costs by 2%.

At present, the company’s latest project Templer’s Square, launched by its operating subsidiary Kelsey Homes, has exceeded sales expectations with over 40 of the 100 units reserved within 60 days of the project’s launch. With such strong demand, the company expects that the remaining units will be sold before the end of March 2015. Commenting on the future outlook for the company, Kelsey Developments PLC Managing Director Dinesh Schaffter stated: “In the next financial year, we expect the demand for housing to increase considerably, given the reduced lending rate environment prevalent. The company has identified further properties to launch projects in the forthcoming financial year and expects to maintain profitability over the next few years. As a consistent provider of quality housing for over thirty years the company will continue to provide value for money to all aspiring home owners.”
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