Keells Food Products makes come back with Rs 331 m PBT

Keells Food Products PLC has posted a consolidated profit before tax of Rs. 331 million for the financial year 2014/15 compared to a loss of Rs. 12 million in the previous financial year.

On a recurring basis, the PBT of Rs. 331 million is an increase of 161 per cent over the corresponding figure for 2013/14, which excludes the impact of the one off charge of Rs. 139 million associated

with the Voluntary Retirement Scheme (VRS).

The profit attributable to equity holders of the parent was Rs. 261 million, representing a significant increase over the Rs. 0.47 million recorded in 2013/14, whilst the recurring profit attributable to equity holders of the parent was Rs. 261 million, representing an increase of 87 per cent over the previous financial year.

Revenue for the financial year 2014/15 was Rs. 2.62 billion, this being an increase of 15 per cent over the Rs. 2.28 billion recorded in the previous financial year.

The Directors have declared a final dividend of Rs.7 per share for the year ended March 31, 2015 on May 11, 2015 to be paid on May 29, 2015. The Board of Directors have confirmed that the Company satisfies the solvency test in accordance with section 57 of the Companies Act, No.7 of 2007, and has obtained a certificate from the Auditors, prior to approving a final dividend of Rs. 7 per share to be paid on May 29,2015.

The total dividend payout amounts to Rs.178.5 million.
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Asian Alliance Insurance posts Rs 250m PAT

Asian Alliance Insurance achieved a Gross Written Premium (GWP) of Rs. 867 million for Life, a 21% increase compared with the previous year.

The consolidated Group premiums that included General Insurance were recorded at Rs. 1,317 million for the first quarter of the 2015 financial year.

Profit after tax for the period was Rs. 251 million for the company and Group profit was Rs. 200 million.

The company has stepped up the intensity of its operations with a number of industry firsts in its Life business.

Higher non-medical and financial underwriting limits have been provided to top Sales Advisors based on certain parameters whilst non-medical straight forward businesses are underwritten and processed on a straight-through basis, utilising the robustness of the Company’s proprietary IT system.

Self-service Insurance facilities that are linked to kiosks are being rolled out to branches to enable Sales Advisors and even customers to carry out their requirements without depending on any office staff, at their own convenience and on their own time.

The General Insurance business launched a revolution in the motor industry with the most innovative Click2Claim product that delivers the fastest claim settlement in the market, whilst eliminating the hassle and inconvenience that follows a motor accident.

The product is receiving rave reviews and has picked up strongly, enabling considerable operational convenience and cost efficiencies that are at the centre of the new GI strategy that is being executed with a strong focus.

“The growth in the Life insurance business in particular is a strong endorsement that reflects the success of Asian Alliance Insurance PLC’s innovation-driven strategy,” Asian Alliance Insurance Chairman, Ashok Pathirage said this performance is especially noteworthy, considering that this comes during a challenging period – the first financial quarter since the segregation of Life and General insurance segments.

Asian Alliance Insurance Managing Director, Iftikar Ahamed said, “We are confident that this will increasingly reflect in our future financial performance.”
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Orient, Bartleet Finance to merge with Janashakthi

The Boards of Directors of Orient Finance (OFP) and Bartleet Finance (BFP) have decided to amalgamate with Janashakthi.

Both are subsidiary companies of Janashakthi which is a licensed finance company.

An official from Janashakthi said that the board members of OFP and BEF after due consideration have decided that in the best interest of both companies, their shareholders and other stakeholders to amalgamate and continue their activities as a single legal entity. 

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HNB Assurance maintains Q1 growth momentum

HNB Assurance PLC (HNBA) maintained its growth momentum in the first quarter of 2015, despite challenging market conditions.

The company, which recorded above market growth in 2014, achieved a 20% in group turnover recording Rs. 1.37 bn as consolidated premiums, up from Rs. 1.15 bn achieved during the corresponding period of last year.

Premium income of Rs.626 mn. was achieved by HNB Assurance , the parent company conducting the life Insurance business. Life insurance premiums recorded a 10% growth while General Insurance which is carried out by the fully owned subsidiary, HNB General Insurance Ltd, recorded an impressive 29% growth by generating a premium income of Rs. 743 mn.

The consolidated profit after tax for the first quarter of 2015 was Rs. 15.5 m which is lower than Rs. 53.9 m recorded during the corresponding period of last year.

This was mainly due to an increase in claims in the General Insurance business and the current investment climate also affected both lines of business. However, the company is confident profits would improve, since value from the substantial growth achieved in life and general insurance businesses would accrue in future.

The current profit is only attributable to General Insurance and investment income from Shareholder’s funds, with the profits emanating from the surplus of the Life Insurance business being calculated and declared at the end of the year.

Acting CEO, Niranjan Manickam said the strong growth seen in both lines of business is very promising as focused efforts to develop identified areas are beginning to meet expectations.
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Cathay Pacific extends ‘Do it yourself’ policy to SL; ends deal with Finlays

Given the strong and sustained growth in Sri Lanka, Cathay Pacific has decided to shift to self-handling operations in Sri Lanka and the Maldives.

The move will result in the termination of the General Sales Agency (GSA) agreement with Finlays Plc.

The global carrier said internationally it has moved away from GSA arrangements for online ports and the GSAs in Sri Lanka and the Maldives are some of the few remaining online ports in the network.

“Therefore the GSA arrangement between Cathay Pacific Airways and Finlays Colombo Plc will not be renewed and will terminate on 31 December 2015, the end of the current agreement,” a joint statement said.

Cathay Pacific Airways is one of the world’s leading airlines, offering scheduled cargo and passenger services to 174 destinations around the world, including daily return flights to Colombo from its Hong Kong hub. The airline also offers direct services from Colombo to Bangkok and Hong Kong. Finlays has served as a general sales agent for Cathay Pacific for Sri Lanka and the Maldives.

Cathay Pacific Airways launched the first and only direct non-stop service between Colombo and Hong Kong on 27 October 2014.

Passenger performance remained well above target with healthy year-on-year growth in 2014. On the Cargo front, the new direct flights helped increase tonnage and narrowed a revenue gap arising from earlier sub-optimal connection times to Japan and North America. The daily passenger aircraft service continues to be complemented by a bi-weekly freighter from Colombo.

Cathay Pacific Airways was once again named ‘World’s Best Airline’ in the annual Skytrax World Airline Awards in 2014. This is the fourth time Cathay Pacific has received the World’s Best Airline honour - the only airline to achieve such a feat. The carrier also took the title in 2003, 2005 and 2009.

Finlays Colombo Plc, which is the holding company of entities of the Finlays Group, continues with its principal activities which include blending and packaging of tea for export.

Established in Sri Lanka in 1893 when Sir John Muir opened an office in Colombo, the initial business of Finlays was managing tea and rubber plantations. Currently it also does tea warehousing, temperature controlled logistics, wholesale courier and environmental services and pest control businesses as well as insurance broking and marine cargo surveying.
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Commercial Credit’s Rs. 1 b debenture issue oversubscribed

Commercial Credit and Finance PLC’s issue of 10 million rated, subordinated, guaranteed, redeemable five-year debentures at a par value of Rs. 100 each has been oversubscribed on opening day.

Interest on the debentures will be paid at a fixed rate of 10.50% per annum (AER 10.92%) on the principal sum quarterly each year. The Issue opened on Thursday 21 May.

Chief Operating Officer of Commercial Credit and Finance PLC Rajiv Casie Chitty said: “We’re indeed very happy with the performance of this debenture issue and thank the public of Sri Lanka for the overwhelming trust they have placed in Commercial Credit. This debenture issue has parallely given our investors the unique chance to be a part of our continuing efforts to reach out to more people in this country and thereby further enhance the quality of their lives.”

The five-year rated, subordinated, guaranteed, redeemable debentures will be listed on the Colombo Stock Exchange. Bankers to the Issue are Hatton National Bank PLC while the Manager and Registrars to the Issue are First Capital Ltd. and S.S.P. Corporate Services Ltd., respectively. The Trustee to the Issue is Bank of Ceylon. Lanka Rating Agency Ltd has assigned a long term rating of ‘AA’ to these Debentures.
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Hayleys records 32% increase in year end PAT

Hayleys PLC closed its financial year ending March 2014/15 on a high, consolidating the growth momentum generated over past years. In its filing to the Colombo Stock Exchange, the group reported a 32% increase in Profit After Tax (PAT), to close the year with Rs. 4.9 billion.

Sector wise contribution was led by the Hand Protection Sector, showing strong recovery from a challenging period, supported by investments in new production facilities and expansions. The Hand Protection sector will add additional capacity to its recently commissioned household glove factory in the Biyagama Zone and will also see a new industrial glove manufacturing facility commencing operations in the new financial year in keeping with the continued growth. 

The Transportation and Logistics Sector recovered a commendable growth during the year, and continues to increase its benchmark on service delivery and new business innovations.

The Purification Products Sector recorded profit growth despite challenging conditions including elevated raw material prices and a downturn in the gold market. It is noteworthy that the Purification sector is leading a programme, together with the other sectors in the company, to provide clean drinking water to some of the villages that are worst affected by the Chronic Kidney Disease (CKD). To date over 5,000 families have access to clean drinking water through this initiative.

The Textile sector showcased the success of its turnaround programme, posting a profit, a robust growth from the loss recorded in the previous year. The sector has initiated a number of projects that are helping to redefine the business and gain recognition as an industry leader and an innovator.

The Agriculture Sector PBT increased during the financial year, reflecting positive results from a number of new business ventures, including the seaweed cultivation project in the Mannar region, which engages women in the locality to farm and harvest seaweed, providing them with a supplementary income source.

The Plantation Sector recorded lower profits than in previous years due to the decline in global rubber prices, and economic and political turmoil in key markets in the Middle East and Russia. However, the industry is hopeful that prices have bottomed out and steps are being taken to optimise productivity in the plantations.

The Power and Energy Sector maintained its positive contribution to the consolidated results, as did the Leisure and Aviation Sector, where earnings were supported by steady growth at The Kingsbury, which is gaining recognition as a much sought after venue for events and receptions.

Construction Materials recorded a notable increase in profit, whilst the Fibre Sector recorded appreciable growth in earnings during the year, as the results of restructuring are beginning to materialise.

Hayleys Chairman and CEO Mohan Pandithage stated: “Our current management team has exhibited strong leadership in sustaining growth and turning around businesses in the last financial year. The results from the Textiles and Hand Protection among others are particularly noteworthy. We look forward to seeing the teams building on their efforts in the last year and post further growth in the new financial year.”

The Board of Directors of Hayleys PLC comprises Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Dr. Mahesha Ranasoma, Mangala Goonatileke, M. H. Jamaldeen, Lalin Samarawickrama and Ruwan Waidyaratne.
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