Thursday 13 November 2014

Dunamis Capital recorded consolidated profits after tax of Rs. 878 Mn for the first six months of 2014/15

The Group recorded consolidated profits after tax of Rs. 878 Mn for the first six months of 2014/15 compared to an after tax loss of Rs. 0.2 Mn in the corresponding period of the previous year.

Profits of the financial services unit, First Capital Holdings PLC were Rs. 868 Mn compared to Rs. 95 Mn in the previous year. The unit’s primary dealer arm remained the key contributor to profits with the continued decline in secondary market interest rates coupled with favourable macro-economic factors creating ideal trading opportunities which yielded exceptional returns.

Kelsey Developments PLC, the property development arm of the group showed improved performance and reported consolidated profits after tax of Rs. 22 Mn for the period. This compared favourably with profits of Rs. 164 Mn in the corresponding period of the previous year in which a one-off capital gain of Rs. 177 Mn had been realised. The Riverfront project in Kaduwela launched in May 2014, was a substantial contributor towards profits.

The group’s most recent venture Premier Synthetic Leather Manufacturers (Pvt) Limited reported operating losses of Rs. 44 Mn for the first six months of 2014/15. Since commencing commercial operations in June 2014 the unit has made steady progress in its sales efforts and we expect the company to be a strong contributor to group profits in the coming years.

At company level profits of Rs. 339 Mn were reported for the six months compared to Rs. 86 Mn in the comparable period of the previous year. The Company’s equity portfolio contributed a significant Rs. 129 Mn to profits and a share buy-back of a subsidiary resulted in a one-off gain of Rs 153 Mn.

Finance expense increased to Rs. 131 Mn compared to Rs. 47 Mn in the previous year. The increase can be attributed to the cost of funding of a property in Nuwara Eliya which is under acquisition order, the investment made in Premier Synthetic Leather Manufacturers (Pvt) Ltd and the funding of the equity portfolio.

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