Thursday 18 August 2016

Market conditions hamper Dunamis, First Capital margins

Dunamis Capital PLC Group revenues increased marginally during the 2015/2016 year to Rs.2.9 bn. Revenue erosion in the Financial Services segment was more than off-set by combined revenues of the Real Estate Development and Manufacturing segments.

The Group cost of sales rose to Rs. 2.2 bn in 2015/16 relative to Rs. 1.3 bn in the previous year, attributable mainly to the development activities of the Kelsey Group, Chairperson Manjula Mathews said.

“We reported a consolidated after-tax loss of Rs. 414 mn during 2015/16 in comparison to a profit after tax of Rs. 570 mn in the preceding year.

The bottom line was negatively impacted by the decrease in First Capital Group’s profitability due to adverse market conditions,” Mathews said.

A total of Rs. 123 mn was paid in dividends to shareholders, with Rs. 51 mn paid to shareholders with non-controlling interest.

The First Capital Group recorded a net trading income of Rs. 504 mn reflecting a 67% decrease YoY. Results were severely impacted due to the Fixed Income business comprising mainly primary dealing underperforming in prevailing market conditions.

First Capital Group’s consolidated net profit amounted to Rs. 47 mn reflecting a 95% decrease YoY from Rs. 985 mn in 2014/15 which included a one-off gain of Rs. 233 mn resulting from the deemed disposal of an equity investment.

The sale of 45 residential units of the Templer’s Square development in Mount Lavinia drove the Kelsey Group’s revenues up to Rs. 1 bn in 2015/16 up markedly from Rs.103 mn in 2014/15.

Realised contribution from Templer’s Square for the year amounted to Rs. 128 mn.

In 2015/16 Primo revenues grew to Rs. 395 Mn from Rs. 141 Mn in the previous year.

Revenue growth however has not been sufficient at this early stage to cover fixed costs, resulting in a net loss of Rs. 132 Mn for the year under consideration.
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