Central Industries PLC, the Central Finance subsidiary manufacturing and distributing PVC pipes and fittings as well as electrical switches, sockets and accessories, has posted its best ever result in the year ended March 31, 2015 with a group profit after tax of Rs. 130.3 mn., up from Rs. 75.6 mn. a year earlier. At company level the after tax profit grew to Rs. 129.1 mn. from Rs. 74 mn.
The company has profited by the rapid growth of the construction industry during the year with the National Water Supply and Drainage Board, the largest buyer of the company’s products, increasing expenditure by 25%.
Central Industries chairman, G S N Peiris, has told shareholders in the annual report that the world market prices of PVC resin, the main raw material used by Central Industries, had dipped rapidly during the last quarter of the year.
They had seized this opportunity by stocking up on this material utilizing short term borrowing facilities available to them on favourable terms as well as storage capacity at their new production facility at Elhena, Yakkala.
Given the performance, the directors have recommended a first and final dividend of Rs. 4.50 per share out of the year’s profits, up from Rs. 3 per share paid the previous year.
Peiris reported that they had made several supplies of polyethylene pipes to the National Water Supply and Drainage Board (NWSDB) which has over the past several years been increasingly utilizing these pipes for selected applications. The company has in turn developed capability to meet this requirement.
While they have improved revenue significantly from supplies to the NWSDB during the year under review, there are long delays in obtaining payments for these supplies as the release of funds by the Treasury for several of these large projects have been delayed, he said.
"Several private sector contractors who have undertaken government projects on turnkey basis too have reported experiencing delays in obtaining payment for work done. These contractors who have purchased pipes and fittings from the company have requested further time for settlement and the company has in several instances permitted delayed settlement," Peiris said.
He said that all necessary precautions are taken in such instances to ensure that such forbearance does not increase the risk of default.
Central Industries has a stated capital of Rs. 121.3 mn., a revaluation reserve of Rs. 183.3 mn., a capital redemption reserve, of Rs. 35.8 mn., a general reserve of Rs. 65 mn. and retained earnings of Rs. 707.6 mn. in its books. Total assets ran at Rs. 1.53 bn. and total liabilities at Rs. 418.9 mn.
Central Finance with 44.1% is the largest shareholder of Central Industries with associate companies, CF Insurance Brokers (5.7%) and some of its directors also within the top twenty shareholders enabling the controlling interest.
The Central Industries share traded at a high of Rs. 99 and a low of Rs. 56.50 during the year under review closing the year at Rs. 84.90. Net assets per share as at balance sheet date were Rs. 112.61.
The directors of the company are Messrs G S N Peiris (Chairman) A N P Wickremasuriya (CEO), E H Wijanaike, R E Rambukwelle, A K Gunaratne, C S W de Costa, N J Abeysekere, L R de Lanerolle and Mrs. I S Jayasinghe.
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The company has profited by the rapid growth of the construction industry during the year with the National Water Supply and Drainage Board, the largest buyer of the company’s products, increasing expenditure by 25%.
Central Industries chairman, G S N Peiris, has told shareholders in the annual report that the world market prices of PVC resin, the main raw material used by Central Industries, had dipped rapidly during the last quarter of the year.
They had seized this opportunity by stocking up on this material utilizing short term borrowing facilities available to them on favourable terms as well as storage capacity at their new production facility at Elhena, Yakkala.
Given the performance, the directors have recommended a first and final dividend of Rs. 4.50 per share out of the year’s profits, up from Rs. 3 per share paid the previous year.
Peiris reported that they had made several supplies of polyethylene pipes to the National Water Supply and Drainage Board (NWSDB) which has over the past several years been increasingly utilizing these pipes for selected applications. The company has in turn developed capability to meet this requirement.
While they have improved revenue significantly from supplies to the NWSDB during the year under review, there are long delays in obtaining payments for these supplies as the release of funds by the Treasury for several of these large projects have been delayed, he said.
"Several private sector contractors who have undertaken government projects on turnkey basis too have reported experiencing delays in obtaining payment for work done. These contractors who have purchased pipes and fittings from the company have requested further time for settlement and the company has in several instances permitted delayed settlement," Peiris said.
He said that all necessary precautions are taken in such instances to ensure that such forbearance does not increase the risk of default.
Central Industries has a stated capital of Rs. 121.3 mn., a revaluation reserve of Rs. 183.3 mn., a capital redemption reserve, of Rs. 35.8 mn., a general reserve of Rs. 65 mn. and retained earnings of Rs. 707.6 mn. in its books. Total assets ran at Rs. 1.53 bn. and total liabilities at Rs. 418.9 mn.
Central Finance with 44.1% is the largest shareholder of Central Industries with associate companies, CF Insurance Brokers (5.7%) and some of its directors also within the top twenty shareholders enabling the controlling interest.
The Central Industries share traded at a high of Rs. 99 and a low of Rs. 56.50 during the year under review closing the year at Rs. 84.90. Net assets per share as at balance sheet date were Rs. 112.61.
The directors of the company are Messrs G S N Peiris (Chairman) A N P Wickremasuriya (CEO), E H Wijanaike, R E Rambukwelle, A K Gunaratne, C S W de Costa, N J Abeysekere, L R de Lanerolle and Mrs. I S Jayasinghe.
www.island,lk
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