CM Holdings PLC (previously Colonial Motors which was founded 105 years ago) has declared a first and final dividend of six rupees a share for the year ended March 31, 2017, despite an after-tax group loss of Rs. 165 million, up from a loss of Rs. 102 million the previous year.
At company level there was a loss of Rs. 110 million against a profit of Rs. 199 million a year earlier.
The company’s chairman, Mr. A. Rajaratnam has attributed the loss "to lower margins, impairment of long term equity investments and reduced dividend income."
The year saw the group revenue grow 129% to Rs. 4.4 billion, he said.
CM Holdings Group owns a valuable quoted share portfolio with a market value of Rs. 655.7 million against a cost of Rs. 208 million. Of this Rs. 611.1 million (cost Rs. 184.7 million) belongs to the company.
"The investments of your company, apart from those in the subsidiary, are of a long term nature and is vulnerable to price fluctuation in the short term," Rajaratnam has told shareholders in his chairman’s review.
The company is also into the automobile business importing KIA and Mazda vehicles with a Union Place showroom. It also owns valuable Union Place real estate with the chairman saying they had plans to increase revenue streams by maximizing currently available rentable space there.
Rajaratnam said the automobile industry had a challenging year due to government policy on the import of vehicles and duty structures. Changes in the minimum down payment on vehicle leasing further aggravated the problem. The group’s motor segment was hit under these conditions with lower margins and limiting of the marketable range of its vehicles.
However their subsidiary, Colonial Motors (Ceylon) Ltd. had been appointed the authorized importer and distributor of Vespa and Aprilia motorbikes in Sri Lanka adding to its product range. The management believes that the new range will be commercially successful and two showrooms have been opened in Union Place and Peliyagoda for the distribution of these vehicles.
CM Holdings with a stated capital of Rs. 288.39 million had total group assets of Rs. 4.88 billion and liabilities of Rs. 1.16 billion. Available for sale financial assets were Rs. 835.8 million.
Net asset value per share for the company was Rs. 108, down from Rs. 121 the previous year. The share traded at a high of Rs. 104 and a low of Rs. 69 closing at Rs. 74.90 during the year under review against a trading range of Rs. 158 to Rs. 82.60 closing at Rs. 90 a year earlier.
The Colombo Fort Land and Building Company with 63.49% is the controlling shareholder with all other individual holdings below 3%. The Sri Lanka Insurance Corporation’s life fund with 2.58% is the second biggest shareholder.
At company level there was a loss of Rs. 110 million against a profit of Rs. 199 million a year earlier.
The company’s chairman, Mr. A. Rajaratnam has attributed the loss "to lower margins, impairment of long term equity investments and reduced dividend income."
The year saw the group revenue grow 129% to Rs. 4.4 billion, he said.
CM Holdings Group owns a valuable quoted share portfolio with a market value of Rs. 655.7 million against a cost of Rs. 208 million. Of this Rs. 611.1 million (cost Rs. 184.7 million) belongs to the company.
"The investments of your company, apart from those in the subsidiary, are of a long term nature and is vulnerable to price fluctuation in the short term," Rajaratnam has told shareholders in his chairman’s review.
The company is also into the automobile business importing KIA and Mazda vehicles with a Union Place showroom. It also owns valuable Union Place real estate with the chairman saying they had plans to increase revenue streams by maximizing currently available rentable space there.
Rajaratnam said the automobile industry had a challenging year due to government policy on the import of vehicles and duty structures. Changes in the minimum down payment on vehicle leasing further aggravated the problem. The group’s motor segment was hit under these conditions with lower margins and limiting of the marketable range of its vehicles.
However their subsidiary, Colonial Motors (Ceylon) Ltd. had been appointed the authorized importer and distributor of Vespa and Aprilia motorbikes in Sri Lanka adding to its product range. The management believes that the new range will be commercially successful and two showrooms have been opened in Union Place and Peliyagoda for the distribution of these vehicles.
CM Holdings with a stated capital of Rs. 288.39 million had total group assets of Rs. 4.88 billion and liabilities of Rs. 1.16 billion. Available for sale financial assets were Rs. 835.8 million.
Net asset value per share for the company was Rs. 108, down from Rs. 121 the previous year. The share traded at a high of Rs. 104 and a low of Rs. 69 closing at Rs. 74.90 during the year under review against a trading range of Rs. 158 to Rs. 82.60 closing at Rs. 90 a year earlier.
The Colombo Fort Land and Building Company with 63.49% is the controlling shareholder with all other individual holdings below 3%. The Sri Lanka Insurance Corporation’s life fund with 2.58% is the second biggest shareholder.
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