Monday 13 August 2018

Sri Lanka’s Jetwing Symphony losses marginally down in June quarter

ECONOMYNEXT- Sri Lanka's Jetwing Symphony Plc, a hotel owneer and operator, reported net losses of 155.3 million rupees for the June quarter, down 3 percent from a year earlier with revenues and gross profits picking up.

According to interim financials submitted to the Colombo Stock Exchange, Jetwing posted a loss of 31 cents per share. Jetwing shares closed at 12.10 rupees on Friday, down 20 cents.

Gross profits grew 14.8 percent to 241.6 million rupees from a year earlier, with revenue growing 12 percent to 298.7 million rupees and cost of sales growing 2 percent to 57 million rupees.

Finance costs grew 5 percent to 106 million rupees from a year earlier while foreign exchange losses increased 108 percent to 17.7 million rupees.

Retained losses reached up to 1 billion rupees during the quarter for Jetwing, which is operating five hotels opened over the past 5 years.

Final approvals for the sixth, Jetwing Kandy, a 26 room hotel which was to be constructed in two stages, has been delayed, the company said.

“The initial plan was to complete 17 rooms at an estimated cost Rs 500 million and the rest to be developed at a later date.”

“Due to the delay in final approvals, the board of Jetwing Symphony PLC has now decided to construct the 26 rooms in one stage as per the Master Plan at an estimated cost of Rs 753 million.”

Jetwing said that the total cost for the project remains unchanged.

It said that the equity contribution has been increased to 380 million rupees in addition to the revaluation reserve. Another 350 million rupees will come from debt.

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