Sri Lanka stocks close up 0.4-pct

Aug 11, 2014 (LBO) - Sri Lanka's stocks closed 0.36 percent higher with the turnover crossing one billion rupee mark amid net foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 24.69 points higher at 6,942.92, up 0.36percent. The S&P SL20 closed 16.67 points higher at 3,818.54, up 0.44 percent.

Turnover was 1.15 billion rupees, down from 1.58 billion rupees last Friday with 115 stocks closed positive against 79 negative.

Hayleys closed 1.30 rupees lower at 309.70 rupees with an off-market transaction of 45.00 million rupees changing hands at 300.00 rupees per share contributing 4 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented only 12 percent of the turnover.

John Keells Holdings closed 30 cents higher at 239.50 rupees with market transactions of 86.93 million rupees contributing 8 percent of the turnover.

First Capital Holdings closed 3.20 rupees higher at 29.40 rupees and Orient Finance closed 20 cents higher at 14.80 rupees, attracting most number of trades during the day.

Foreign investors bought 182.33 million rupees worth shares while selling 91.36 million rupees worth shares.

CT Holdings closed 11.40 rupees higher at 159.90 rupees and Dialog Axiata closed 20 cents higher at 11.00 rupees, contributing most to the index gain.

National Development Bank closed 9.00 rupees higher at 229.00 rupees and Commercial Leasing and Finance closed 20 cents lower at 4.40 rupees.

The Securities and Exchange Commission on Monday directed the CSE to cancel the sale of PC Pharma’s 31 percent stake by Adam Investments with immediate effect.

The CSE has also imposed a trading halt on PCH Holdings pending further clarification on the disclosure made by them on last Friday.

Janashakthi to acquire Bartleet Finance to merge with Orient Finance

Janashakthi Ltd. has entered into an agreement to acquire 86.79% of Bartleet Finance Plc (BFP) and plans to amalgamate the latter with Orient Finance Plc.
The move is in compliance with the financial sector consolidation program of the Central Bank.

The planned acquisition is subject Janashakthi obtaining all relevant statutory and regulatory approval and Janashakthi Ltd. carrying out due diligence of BFP and being satisfied with the financials submitted.

Orient Finance Plc said the Central Bank by its letter of 7 August 2014 has approved in principle the planned acquisition by Janashakthi Ltd., the ultimate parent of Orient Finance Plc, on behalf of OFP and the subsequent amalgamation of BFP with OFP. Janashakthi Ltd. also holds a 67.85% stake in Janashakthi Insurance Plc.

Net asset per share was Rs. 81.81 as at 31.3.2014 up from Rs. 76.43 in FY13. BFP’s highest share price in the FY14 was Rs. 98.15 and lowest was Rs. 83.78 before closing at Rs. 98.15, up from Rs. 79.75 in the previous year.

Bartleet Group, whose origins date back to 1904 and became a 100% Sri Lankan-owned entity under Mallory Wijesinghe in 1958, holds a 86.79% stake in BFP via Bartleet Trans Capital Ltd.

Bartleet Group financial services sector business also includes a 50% stake in stock-broking firm Bartleet Religare Securities Ltd. and Bartleet Asset Management Ltd., as well as a 100% stake in Strategic Insurance Brokers Ltd. and 19.5% in Life Insurance Corporation (Lanka) Ltd.

Apart from Bartleet Trans Capital, there are a host of individual shareholders and a few institutional shareholders in BFP.

As at 31 March 2014, BFP, which has 17 branches, had assets worth Rs. 7.8 billion including Rs. 5.6 billion in loans and advances to customers. Liabilities amounted to Rs. 7.2 billion inclusive of Rs. 6.46 billion as due to customers.

Shareholders’ Funds were Rs. 626 million including stated capital of Rs. 306 million.
In FY14, income amounted to Rs. 1.5 billion whilst net operating income was Rs. 435 million.

Pre-tax profit was Rs. 36.4 million, down from Rs. 63 million in FY13.

On the other hand, Orient Finance posted a Rs. 1 billion total income and posted a net profit of Rs. 75.5 million, though down from Rs. 169 million in FY13. Its deposit base was Rs. 1.47 billion as at end FY14. Its net asset per share was Rs. 7.43, up from Rs. 6.94 in FY13.

Orient Capital Ltd. holds a 65% stake in Orient Finance whilst First Capital Holdings owns a 20% stake. In the first quarter of FY15, Orient Finance saw income grow by 20% to Rs. 299 million and net profit by 91% to Rs. 18.6 million.

Assets grew by 8% to Rs. 5.3 billion and liabilities by 9% to Rs. 4.4 billion inclusive of Rs. 2.05 billion in customer deposits. It had retained earnings of Rs. 319.6 million. Net asset per share was Rs. 7.60 as at 30 June 2014.
www.ft.lk

Access Engineering 1Q results demonstrate sustainability

Access Engineering PLC has announced that top line recorded a growth of 10.5% and 6.9% respectively at Company and Group level. Earnings attributable to equity at Company and Group level were Rs. 503 million and Rs. 545 million respectively.

At Group level, 84%-owned subsidiary Sathosa Motors PLC and fully-owned subsidiary Access Realties Ltd. have contributed Rs. 44 million and Rs. 36 million respectively to the bottom line.

The Company’s 30% owned Associate ZPMC Lanka Company Ltd., which commenced operations in September 2013, contributed Rs. 2 million to the bottom line in the quarter.

The total asset base of the group stood at Rs. 20,353 million. Equity attributable to owners of the Company of Rs. 15,458 million at the Group level translates into a net asset per share of Rs. 15.46, a growth of 4% since 31 March 2014. The Earnings per Share for the quarter were Rs. 0.54 and Rs. 0.50 at the Group and Company levels respectively. 

Liquidity position of the Company has improved by 12% and 19% respectively at Company and Group level.

The Board of Directors of AEL comprises Sumal Perera (Chairman), Christopher Joshua (Managing Director), Rohana Fernando (COO), Shevantha Mendis, Dharshana Munasinghe, Ranjan Gomez, Dilhan Perera, Professor Malik Ranasinghe, Niroshan Gunarathna and Alexis Lovell.
www.ft.lk

TKS Group successfully completes merger

The TKS Group yesterday announced that it had completed the integration of two of its finance sector holdings, TKS Finance Ltd., and Asian Finance Ltd.

The merger was initiated with the approval of the Boards of Directors and shareholders of both companies and the Central Bank of Sri Lanka (CBSL) in June this year. This is one of the first mergers to have been completed under the CBSL’s ongoing push for consolidation to reinforce the country’s financial sector.

TKS Finance Limited Senior Director Dr. S.H.A.M. Abeyratne said, “We are delighted to note that our core team has moved swiftly and wrapped up this merger exercise in record time. With the data migration duly completed on 1 August 2014, all Asian Finance Limited branches will begin to operate as TKS Finance Limited.”

With this move the Board of Directors of the company is now in the process of implementing a new business model to offer better financial services to customers while delivering greater value to shareholders.

Rasika Kaluarachchi will be heading the operations of the merged entity, TKS Finance Limited as its CEO. With its head office at 245 Dharmapala Mawatha, Colombo 07 and a wide network of 11 branches spanning Colombo, Ratnapura, Matara, Negombo, Nugegoda, Kandy, Kiribathgoda, Kurunegala, Galle, Ambalangoda, and Trincomalee; TKS Finance Limited is geared to extend greater levels of service to its customers around the island.

The TKS group is striving to make the company the most accomplished and successful finance company in Sri Lanka. TKS will continue to function as a trustee of people’s funds and protector of their financial capital by serving them as an honourable corporate entity.
www.ft.lk

Record 1Q for Sunshine with Rs. 326m profit

Sunshine Holdings PLC (CSE: SUN) reported PATof LKR 326m for thequarter ending 30 June 2014 (1QFY15), up 161.0% YoY compared to LKR125m in the same quarter last year. Reported top line stood at LKR4.0bn in 1QFY15, compared to LKR 3.5bn in 1QFY14, up 14.7% YoY. EPS was LKR1. 03 for 1 QFY 15, up 110.5% YoY.

EBIT margin saw a significant improvement in 1QFY 15, up to 10.9% against 6.0% in the same quarter last year. The growth in both revenue and profitability mainly stems from the group’s Agri sector, especially due to the improvement in its tea plantations. Profit to equity holders (PATMI)is up111.3% YoY to LKR 138m in 1QFY 15, and PAT grew 161.0% YoY. Majority of the growth in PAT is on account of the strong performance of the Agri sector which has a limited impact at the PATMI level due to low effective holding. But Vish Govindasamy, Group Managing Director of SUN, emphasized that the Healthcare sector is still the largest contributor to PAT in 1QFY15 with LKR74m, which represents 53.9% of total PATMI.

This represents 35.5% of total group revenue. Growth in Healthcare revenue is similar to what was seen during FY14, and the healthcare sector in Sri Lanka (Pharma), which only grew 2.1% YoY for FY14,as reported by IMS.

PAT for the quarter amounted to LKR231m in 1QFY15, against LKR 11m in the same quarter last year. The growth in PAT, which is close to 20x is attributed to the profitability of the tea segment which benefited from favorable weather conditions, and buoyant market prices for its teas. It should be noted that 1QFY 14 was an exceptionally poor quarter for WATA due to the impact of heavy rains and floods, in a wage impact year.
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