Founder shareholder Shanker exits Browns Investments

Founder shareholder Shanker Somasunderam has exited Browns Investments Plc (BIL). Last week he sold 25 million shares and 24.7 million shares at 10 cents each.

As at 30 June 2014, Shanker who also sits on BIL Board held 50 million shares as the sixth largest shareholder. BIL share price closed the June quarter at Rs. 1.60. Its Net Asset per Share is Rs. 3.41 whilst at Group level it is Rs. 5.70. Shareholders of BIL on 4 August approved the Rights Issue of one New Ordinary Share for every one existing Ordinary Share at Rs. 1.25 each. Brown and Company (37%), Century Investments Plc (GREG) (20% stake) and LOLC Investments Ltd (13%) are among major shareholders of BIL.

In first quarter of FY15, bottom line of BIL which has interests in investments, leisure, porcelain, construction and travel was a negative Rs. 22.6 million, as opposed to a positive Rs. 76 million a year earlier. Group post-tax loss was Rs. 166 million, in comparison to a profit of Rs. 34 million. Group revenue was down by 5% to Rs. 226 million. 
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Singer revenue hits Rs. 14b in 1H

Singer (Sri Lanka) notched a 14% increase in Group revenue in the second quarter of the 2014 financial year, compared to the corresponding period of the previous financial year.

This follows an 8% increase in revenue in the first quarter of 2014.

Group revenue crossed the Rs. 14 billion mark at the end of the first half, a 11% increase. Company revenue for the first half climbed by 12% with Singer Finance, a Group subsidiary, reporting a 7% increase in first revenue.

Although revenue has been trending upwards, profits have been affected by the imposition of the deemed VAT. The Group's net profits declined by 18% while Company net profits decreased by 19% primarily due to deemed VAT. Singer Finance recorded a 6% decrease in net profit for the first half.

Sales and administrative expenses increased by 10% due to inflation and an increase in rent and electricity expenses. The Group's net finance costs, however, decreased by 18%, as interest rates and borrowings declined.

Business conditions continued to be challenging, with the prevailing drought conditions and resulting difficulty in collections affecting the industry overall. However, Singer's industry-best systems and culture have allowed it to maintain momentum. For example, the Group has leveraged its state-of-the-art online real-time ERP system and its call centre service, SMS reminders and more traditional collection drives to ensure that the collections process was well managed. 

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