Odel reports Sales of Rs 4.6 billion in 2013-14

Odel PLC has posted sales of Rs 4.6 billion for 2013-14, a marginal 1.5 per cent growth over 2012-13.

Filing its income statements with the CSE, Sri Lanka’s premier fashion and lifestyle retailer reported operating profit of Rs 332 million for the 12 months ending 31st March 2014, an increase of 7.6 percent, with Other Income of Rs 225 million, principally from the investment of proceeds of the company’s December 2012 Rights Issue.

The Group said finance costs reduced by 25 per cent to Rs 120 million, enabling profit before tax of Rs 216.8 million, which was down 6 per cent over the previous year.

Net profit for the year was Rs 192.5 million, an improvement of 22 per cent.

In the year reviewed, the company opened three new stores -- a ‘Luv SL’ store at Negombo, an Odel store at K-Zone Ja-Ela and the largest ‘Luv SL’ store in the country inside the Galle Fort. The company also refurbished and upgraded its Nugegoda store and re-designed and re-launched its store at the Bandaranaike International Airport (BIA).

http://www.cse.lk/cmt/upload_report_file/960_1401445968175.pdf

Sri Lanka bourse slips to over 3-wk low on large-caps

May 30 (Reuters) - Sri Lankan stocks fell on Friday to a their lowest in more than three weeks led by large-cap shares, despite buying by foreign investors whose outlook on the risky assets remained positive due to lower interest rates.

The main stock index ended 0.64 percent, or 40.31 points, weaker at 6,263.46, it lowest close since May 7, and slipping from its highest close since May 20 hit on Thursday.

The bourse saw a net foreign inflow of 229.8 million rupees ($1.76 million) worth of shares on Friday, extending the year-to-date net foreign inflow to 2.5 billion rupees.

The day's turnover was at 1.08 billion rupees, as against this year's daily average of 1.01 billion rupees.

Stockbrokers expect the market to gain in the near future due to lower interest rates after the central bank kept key rates at multi-year lows on Tuesday for the fourth straight month, as expected.

Shares of Carson Cumberbatch fell 5.22 percent to 379.10 rupees a share, while Ceylon Tobacco Company PLC fell 0.59 percent to 1058.70 rupees.

($1 = 130.4000 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka stocks close down 0.6-pct

May 30, 2014 (LBO) - Sri Lanka's stocks closed down 0.64 percent on Friday with diversified, food and tobacco stocks losing ground despite net foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 40.31 points lower at 6,263.46 down 0.64 percent. The S&P SL20 closed 32.08 points lower at 3,454.61, down 0.92 percent.

Turnover was 1.08 billion rupees, up from 810.92 million rupees a day earlier with 91 stocks closed positive against 130 negative.

Cargills Ceylon closed 2.50 rupees lower at 142.50 rupees with four off-market transactions of 182.58 million rupees changing hands at the same price per share contributing 17 percent of the daily turnover.

The Finance Company closed 40 cents higher at 7.50 rupees and Entrust Securities closed 2.30 rupees higher at 22.70 rupees, attracting most number of trades during the day.

Foreign investors bought 760.16 million rupees worth shares while selling 530.39 million rupees worth shares.

Carson Cumberbatch closed 20.90 rupees lower at 379.10 rupees and Nestle Lanka closed 45.00 rupees lower at 1,910.00 rupees, contributing most to the index drop.

Bukit Darah closed 23.40 rupees lower at 662.90 rupees.

Lion Brewery Ceylon closed 18.00 rupees lower at 431.00 rupees and Ceylon Tobacco Company closed 6.30 rupees lower at 1,058.70 rupees.

CT Holdings closed 9.40 rupees lower at 130.60 rupees and John Keells Holdings closed flat at 234.00 rupees.

JKH’s W0022 warrants closed 1.40 rupees higher at 62.40 rupees and its W0023 warrants closed 3.70 rupees higher at 70.70 rupees.

John Keells Hotels closed 50 cents higher at 15.50 rupees and Asian Hotels and Properties closed 70 cents higher at 73.10 rupees.

Oil palm firms Selinsing closed 68.50 rupees higher at 1,668.50 rupees and Shalimar (Malay) closed 94.30 rupees higher at 1,695.30 rupees.

Commercial Leasing and Finance closed 10 cents higher at 4.00 rupees.

John Keells Hotels PBT increases by 48% to Rs. 1.89 Billion

MBSL income increases by 26% in 2013

Income growth of the Merchant Bank of Sri Lanka (MBSL) rose 26% in the year ending December 31, 2013 from Rs.1.87 billion to Rs.2.36 billion.

The significant growth during the year was attributed to an aggressive expansion drive initiated by MBSL over 2012/2013 and the dedication of its staff towards achieving predetermined goals said Mr. Shah, chairman of MBSL.

The expansion plan yielded highly positive results with 16 new customer touch points becoming profitable immediately.

A press release said : ‘Our objective was to reach a larger segment of society and widen our presence across the country. Although 30 branches & customer touch points may seem small in number, this initiative has successfully enhanced MBSL brand recognition and raised brand awareness across the country. In 2013, these 16 customer touch points generated an income of Rs. 334 million, which is 15% of the total income of the Company and made a net contribution of Rs. 12 million, giving plenty of hopes for a brighter future. 

Such a contribution by newly established customer touch points is a remarkable feat" he said in his communiqué in their annual report.

‘The overall company profits decreased from Rs.201 million to Rs.117 million in the face of challenging times for the leasing industry. The policy rate reduction was encouraging to a company like MBSL that does not have access to customer deposits. However, the growth opportunity presented by the lower interest rates was largely negated, due to the persistent downturn of the leasing market.

‘Earnings per Share (EPS) dropped from Rs.1.49 to Rs.0.87.

‘The asset growth 12% of the MBSL from Rs.11.89 billion to Rs.13.27 billion was encouraging as was the 7% growth in the loan portfolio from Rs.9.3 billion to Rs.9.91 billion.

‘Meanwhile, the income of the group increased from Rs.3.96 billion to Rs.4.28 billion and the net operating income of the group slightly dropped from Rs.1.76 billion to Rs.1.53 billion. Stock market trading was not very positive for the year due to the continuing downturn of the market. MBSL also incurred a substantial loss from its associate stock broking company Lanka Securities (Pvt.) Ltd. in addition to its own trading losses.

‘In line with this national financial sector consolidation plan, MBSL has commenced a process to merge MCSL Financial Services Ltd and MBSL Savings Bank Ltd, with MBSL said T. Mutugala, CEO of MBSL. Having taken over Ceylinco Savings Bank Ltd, which is now called MBSL Savings Bank Ltd, MBSL could not affect a total recovery of the said bank due to their inability to capitalize adequately and unforeseen eventualities experienced in the midst of downturn of its stability.
www.island.lk

Softlogic and Centara open Centara Ceysands Resort and Spa

Softlogic Holdings PLC together with Centara Hotels & Resorts of Thailand announced the grand opening of Centara Ceysands Resort & Spa Sri Lanka. The official opening ceremony was presided over by President Mahinda Rajapaksa yesterday.

The resort is located on the Bentota Peninsula, situated between the Bentota River and the Indian Ocean. The resort’s arrival lounge is situated at Aluthgama, on the inland side of the river, with guests travelling across the water by barge, a journey that takes two minutes.

“The opening of this beautiful new resort, set in one of Sri Lanka’s most outstanding tourism destinations, is a proud moment for us,” said Thirayuth Chirathivat, Chief Executive Officer of Centara Hotels & Resorts. “We view Sri Lanka as being of great potential for us, and the island is part of our strategy for developing our market in the Indian Ocean region.”

Speaking at the opening of the resort Softlogic Holdings PLC Chairman and Managing Director Ashok Pathirage said: “We are very excited about the opening of Centara Ceysands Resort & Spa as the resort is located in one of the best and most popular locations in Sri Lanka and also as this marks our first entrance into the hotel industry. We are very confident about the success of this venture as we have partnered with Centara Hotels and Resorts and are positive that they will exceed our expectations. Overall we are very hopeful about the prospects of this industry and we hope to open our second property the Movenpick City Hotel in the 4th quarter of 2015.”

The resort has 165 rooms and suites, including family residences, with all accommodation facilities featuring views across the river, or across the beach and the ocean.

Restaurant facilities will include Café Bem, serving Sri Lankan and international cuisines along with buffets; 360 Seafood, which specialises in locally sourced seafood; and Ceylon Club, which will have a gourmet selection of Ceylon teas.

Spa Cenvaree will offer traditional Sri Lankan and Indian treatments along with its range of signature Thai therapies, and will also feature a fitness centre, an oceanfront swimming pool with Jacuzzi and a children’s pool, in addition to a water sports centre and a Kids’ Club with separate zones for youngsters and teens.

The resort’s versatile events space can accommodate a wide-ranging number of functions including meetings, incentives groups, weddings and outdoor receptions, all supported by state-of-the-art audiovisual equipment and other facilities available at the business centre.

Centara Hotels & Resorts Sri Lanka Area General Manager Alexandre Glauser stated that the hotel is ready with a full complement of staff to welcome its first guests. “Centara Ceysands Resort & Spa is an outstanding property that will have both a romantic appeal for couples and lots of leisure attractions for families. For guests, the scene is set with the charming ride across the river on board our ferry and no matter which room or suite they are staying, the view for guests will be stunning.”

Centara Hotels & Resorts is Thailand’s leading operator of hotels, with 46 deluxe and first-class properties covering all major tourist destinations in the Kingdom. A further 21 resorts in Maldives, Vietnam, Shanghai, Bali, Sri Lanka, Mauritius, Ethiopia, Qatar, Laos and Oman brings the present total to 67 properties.

Brands and properties within Centara ensure that specific categories such as couples, families, individuals, and meetings and incentives groups will all find a hotel or resort that is appropriate to their needs. Centara also operates 29 branches of Spa Cenvaree, one of Thailand’s most luxurious and innovative spa brands, together with seven branches of the value brand Cense by Spa Cenvaree, which provides core spa services for busy travellers.

Softlogic Holdings PLC, rated as one of Sri Lanka’s most dynamic and aggressive conglomerates, commenced operations in 1991 as a software developer with just 12 employees and has now expanded its footprint, holding leading positions in domestic growth oriented sectors such as ICT, Healthcare, Retail, Financial Services, Automobiles and Leisure.

The Group now provides employment to over 6,500 individuals generating a turnover of more than $ 200 m. The Group’s representations and strategic alliances with reputed global institutions and large multinational corporations confirm its unparalleled local stature.
www.ft.lk

NDB Capital Holdings off to an impressive start

Subsequent to achieving the best financial year of its history in 2013, NDB Capital Holdings PLC (NCAP) started the year by recording an impressive consolidated quarterly income of Rs. 361 million, which translated to a consolidated PAT of Rs. 248 million.

At Company level, the quarterly Income and PAT stood at Rs. 197 million and Rs. 182 million respectively. The performance reiterates the leadership position the NCAP Group holds in the country’s investment banking space and lays the foundation for another record breaking year.

Revenue and Net Profits of the Company during 2014Q1 has seen a drop compared to the same period the prior year.

The reason for this apparent dip in performance is due to NCAP Group recording an extraordinary profit during the first quarter of 2013 owing to income from investing approximately Rs. 6.7 billion in cash it received via the divestment of both direct and indirect stakes held in Aviva NDB Insurance PLC. However, this cash was returned to the shareholders towards the end of 2013Q1 and was not available for the Company for investments beyond that period.

Adjusting for this one-off gain, the consolidated income and PAT of NCAP for 2014Q1 saw an increase of 40% and 53% respectively over the same quarter 2013.

This remarkable performance was mainly fuelled by efficient asset allocation, successful investment strategies and increased fee income from its group companies NDB Investment Bank Ltd., NDB Securities Ltd. and NDB Wealth Management Ltd. The Group annualised ROE too increased to 16% for the first quarter of 2014 from 10.9% (adjusted) in Q1 2013.

Chairman Ashok Pathirage, while commending the impressive performance of the NCAP Group, said: “Two companies of the Group – NDB Investment Bank and NDB Wealth Management – reaffirmed their leadership positions in their particular lines of business by being recognised as the ‘Best Investment Bank in Sri Lanka 2014’ and ‘Best Asset Management Company in Sri Lanka 2014’ respectively by the prestigious Global Banking and Finance Review Awards.”

He added: “I’m delighted to note that NCAP Group CEO Vajira Kulatilaka has been recognised as the ‘Best Investment Banking CEO in Sri Lanka 2014’ by Global Banking and Finance Review magazine for the contribution he has made to steer the investment banking cluster to great heights.”

Kulatilaka stated: “As evidenced by the first quarter performance, NCAP Group is well on track to record another great year in spite of the subdued activity in the country’s capital markets experienced thus far during the year.”

He added: “With our private equity initiative gaining momentum and some potential investors publicly announcing their interest to infuse capital to the fund, NCAP Group can soon successfully venture into and cater to another important segment of the country’s economy.”

NCAP is a subsidiary of National Development Bank PLC.
www.ft.lk

Kelsey reports Rs. 149 m Group net profits

Kelsey Developments PLC, a leader in housing development, reported profit after tax of Rs. 148.6 million for financial year 2013/2014. This was a significant improvement against the loss of Rs. 55.5 million incurred in the previous financial year. The increase in profit was primarily due to a one-off capital gain of Rs. 177.3 million from the sale of a property, the company said in a filling with Colombo Stock Exchange.

Consolidated turnover declined by 59% from the previous year to Rs. 95.6 million which is directly attributable to the low level of activity during the year under review. However, in the last quarter of the year, a six acre property in Mount Lavinia was acquired for development as an exclusive gated community housing project. This project, Templer’s Square valued at Rs. 2 billion will be the largest development in the company’s history.

Kelsey Developments PLC also significantly reduced its finance expenses to Rs. 10.4 million, a substantial reduction from Rs. 45.4 million incurred in the previous financial year. The company also effectively managed all operating expenses and reduced administrative costs by 2%.

At present, the company’s latest project Templer’s Square, launched by its operating subsidiary Kelsey Homes, has exceeded sales expectations with over 40 of the 100 units reserved within 60 days of the project’s launch. With such strong demand, the company expects that the remaining units will be sold before the end of March 2015. Commenting on the future outlook for the company, Kelsey Developments PLC Managing Director Dinesh Schaffter stated: “In the next financial year, we expect the demand for housing to increase considerably, given the reduced lending rate environment prevalent. The company has identified further properties to launch projects in the forthcoming financial year and expects to maintain profitability over the next few years. As a consistent provider of quality housing for over thirty years the company will continue to provide value for money to all aspiring home owners.”
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