Tangerine Beach Hotels PLC, the second seafront property built by entrepreneur George Ondaatjie, has modestly improved performance in the year ended March 31, 2017 boosting revenue 6% to Rs. 631.3 million and after tax profit 2% to Rs. 105.7 million with the owning company maintaining the 50 cents per share dividend level of the previous year, the company’s annual report reveals.
Ondaatjie built Tangerine on the Kalutara coast over three decades ago, naming the hotel after his three children (Gerard, Angeline and Travice), after the phenomenal success of his Nilaveli Beach Hotel near Trincomalee. He thereafter built Royal Palms Beach Hotel PLC, in a site adjoining Tangerine, on land acquired at the time the original property was purchased.
The successful hotelier and finance company (Mercantile Finance and Investment PLC) founder, now retired also controls Nuwara Eliya Hotels PLC, owners of the Grand Hotel. His group recently added a city property, unquoted Fairlawn Hotel in Wellawatte.
Writing the chairman’s message on behalf of her father, Ms. Angeline Ondaatjie reported that the year had seen the tourism industry facing increasing challenges on multiple fronts due to negative global and domestic factors.
"The tourism arrivals to Sri Lanka from China, India and the Middle East dominated the statistics as the traditional European influx decreased due to their burdens with economic/political and terrorism issues," she noted.
"The negative impact thus turned in lower volumes and deprived the industry of much needed revenue."
However, Tangerine had been able to record an "impressive" operating profit of Rs. 80 million and a net profit of Rs. 105.6 million. She expressed confidence in the long term prospects of Tangerine saying they were working closely with a number of local travel agents and foreign tour operators seeking contracts.
"We are expecting robust international arrivals growth in Sri Lanka in the coming years," she said. "The growth is a result of the government’s strategy to diversify our source markets while at the same time continuing to develop our traditional European market."
Tangerine Beach has a strong balance sheet with total assets of Rs. 3.34 billion, against total liabilities of Rs. 238.46 million on a stated capital of Rs. 244.8 million. The company carries over a billion rupees in retained earnings and a revaluation reserve of Rs. 1.8 billion in its books.
Earnings per share for the year under review were up to Rs. 5.28 from Rs. 5.19 the previous year while net assets per share grew to Rs. 155.14 from Rs. 150.35. The Tangerine share traded at a high of Rs. 74 and a low of Rs. 50.10 during the year closing at Rs. 59.50. This compared with a trading range of Rs. 50 to Rs. 90 closing Rs. 66.70 a year earlier.
Nilaveli Beach Hotels and Mercantile Investments and Finance, two Ondaatjie companies with 26.68% and 19.5% respectively, top the shareholders list with the Ondaatjie family members also holding large personal stakes. The EPF (8.15%) is the biggest unrelated shareholder.
The directors of the company are: Deshabandu George Ondaatjie (Chairman and Jt. MD), Ms. AM Ondaatjie (Jt. MD), GG Ondaatjie, TJ Ondaatjie, Ms. CA Ondaatjie, Ms. SD de Silva (deceased 4.3.17), NHV Perera, LH Jayasinghe and PHR Casie Chitty.
Ondaatjie built Tangerine on the Kalutara coast over three decades ago, naming the hotel after his three children (Gerard, Angeline and Travice), after the phenomenal success of his Nilaveli Beach Hotel near Trincomalee. He thereafter built Royal Palms Beach Hotel PLC, in a site adjoining Tangerine, on land acquired at the time the original property was purchased.
The successful hotelier and finance company (Mercantile Finance and Investment PLC) founder, now retired also controls Nuwara Eliya Hotels PLC, owners of the Grand Hotel. His group recently added a city property, unquoted Fairlawn Hotel in Wellawatte.
Writing the chairman’s message on behalf of her father, Ms. Angeline Ondaatjie reported that the year had seen the tourism industry facing increasing challenges on multiple fronts due to negative global and domestic factors.
"The tourism arrivals to Sri Lanka from China, India and the Middle East dominated the statistics as the traditional European influx decreased due to their burdens with economic/political and terrorism issues," she noted.
"The negative impact thus turned in lower volumes and deprived the industry of much needed revenue."
However, Tangerine had been able to record an "impressive" operating profit of Rs. 80 million and a net profit of Rs. 105.6 million. She expressed confidence in the long term prospects of Tangerine saying they were working closely with a number of local travel agents and foreign tour operators seeking contracts.
"We are expecting robust international arrivals growth in Sri Lanka in the coming years," she said. "The growth is a result of the government’s strategy to diversify our source markets while at the same time continuing to develop our traditional European market."
Tangerine Beach has a strong balance sheet with total assets of Rs. 3.34 billion, against total liabilities of Rs. 238.46 million on a stated capital of Rs. 244.8 million. The company carries over a billion rupees in retained earnings and a revaluation reserve of Rs. 1.8 billion in its books.
Earnings per share for the year under review were up to Rs. 5.28 from Rs. 5.19 the previous year while net assets per share grew to Rs. 155.14 from Rs. 150.35. The Tangerine share traded at a high of Rs. 74 and a low of Rs. 50.10 during the year closing at Rs. 59.50. This compared with a trading range of Rs. 50 to Rs. 90 closing Rs. 66.70 a year earlier.
Nilaveli Beach Hotels and Mercantile Investments and Finance, two Ondaatjie companies with 26.68% and 19.5% respectively, top the shareholders list with the Ondaatjie family members also holding large personal stakes. The EPF (8.15%) is the biggest unrelated shareholder.
The directors of the company are: Deshabandu George Ondaatjie (Chairman and Jt. MD), Ms. AM Ondaatjie (Jt. MD), GG Ondaatjie, TJ Ondaatjie, Ms. CA Ondaatjie, Ms. SD de Silva (deceased 4.3.17), NHV Perera, LH Jayasinghe and PHR Casie Chitty.
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