United Motors Lanka property value increases on revaluation

The Board of Directors of United Motors Lanka PLC approved a report dated 22 May 2015 on the lands and owned and occupied by the company.

The properties on which the report has mentioned are the ones at Hyde Park Corner, Colombo 02, Majeed Place, Orugodawatte, Vauxhall Street, Colombo 02, Maligawa Road, Ratmalana and Kandy Road, Navatkuli, Jaffna.

Following this revaluation the value of the owner occupied lands increased to Rs. 3,879,590,350 and adopted by the Board as fair value of owner occupied properties and hence the surplus of Rs. 1,733,106,312 has been transferred to then revaluation account as at 31 March 2015.
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Sri Lanka's John Keells Holdings net up 12-pct on capital gains

COLOMBO (EconomyNext) – Profits at Sri Lanka's John Keells Holdings, which has interests in ports, tourism, financial services and consumer goods rose 12 percent to from a year earlier to 5.2 billion rupees in the March 2015 quarter helped by capital gains from the sale of stock in an insurer, interim accounts showed.

The group reported earnings of 5.24 rupees for the quarter. In the year to March the firm reported earnings of 14.44 rupees on total profits of 14.3 billion rupees which grew 22 percent.

The firm had not provided for any tax from retrospective tax 25 percent extra income tax slapped by the new administration.

Revenues barely grew 1 percent to 22.6 billion rupees and cost of sales was also flat at 15.9 billion rupees allowing gross profits to be flat at 6.7 billion rupees.

Administration expenses fell to 1.9 billion rupees from 2.3 billion rupees and other operating income rose 37 percent to 1.8 billion rupees.

Early in 2015, JKH sold a part of its general insurance unit at a capital gain.

Net finance income also fell 9 percent to 1.32 billion rupees.

Sri Lankan shares down on profit-taking, foreign outflows

May 26 Sri Lankan shares fell on Tuesday due to foreign outflows and as investors took profits in stocks that had rallied since the central bank's policy rate cut, stockbrokers said.

However, investors awaited clarity on the political front and the timing of a parliamentary election as concerns over stability weighed on sentiment.

The main stock index ended down 0.32 percent at 7,261.78, the lowest close since May 18.

"Investors are eagerly waiting for the announcement on the election and hope for a stable government," a stockbroker said on condition of anonymity.

Political uncertainty due to Prime Minister Ranil Wickremesinghe-led government not having a majority has been a drag on the market, though the trend reversed after the central bank cut key monetary policy rates to record lows on April 15.

The index has gained 5.3 percent since the rate cut.

Analysts say a new stable government after the election coupled with strong economic measures would boost confidence.

Foreign investors sold a net 370.7 million rupees worth of shares on Tuesday. But the bourse has seen net foreign inflows of 5.57 billion rupees in equities so far this year.

Turnover was 1.18 billion rupees ($8.8 million), just above this year's daily average of about 1.13 billion rupees.

Carson Cumberbatch Plc lost 6.7 percent, while Ceylinco Insurance Plc fell 6.2 percent.

Shares of market heavyweight John Keells Holdings, which posted a 12 percent growth in its March quarter net profit, closed 0.1 percent up.

Keells announced a share split of seven subdivided into eight, the company said in a statement, boosting liquidity in the market.

Analysts expect banking and financial shares to gain due to rising private sector credit growth, which grew 13.9 percent on-year in March from 12.6 percent in February.

($1 = 133.9000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Prateek Chatterjee)

Gold struggles near $1,200

Gold was trading close to its lowest level in over a week on Monday after Federal Reserve Chair Janet Yellen indicated the U.S. central bank was likely to raise interest rates this year and as the dollar strengthened to its highest in a month.

Spot gold was little changed at $1,205.06 an ounce by 0637 GMT, close to $1,201.20, the metal's lowest since May 13 reached in the previous session.

Yellen was clearer than ever on Friday that the

central bank was poised to raise interest rates this year, as the U.S. economy was set to bounce back from an early-year slump and headwinds at home and abroad waned.

“Yellen's comments and the positive impact it has had on the dollar is not helping gold,” said a trader in Singapore.

Reuters
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Sunshine Holdings achieves above average growth in key segments

Sunshine Holdings posted a consolidated revenue of Rs. 16.3 billion in FY15, an improvement of 11.1% year-on-year (YoY).

Key business segments, particularly Healthcare and Agribusiness, grew above industry averages despite challenging conditions.

“Despite the challenging conditions in many of our key segments, we were successful in increasing revenue growth above industry averages; this healthy financial performance underscores Sunshine Holdings’ solid fundamentals,” Sunshine Holdings Group Managing Director, Vish Govindasamy said.

“The company’s visionary strategic initiatives are continuing to pay dividends in boosting long-term growth - such as the diversification into palm oil - and we remain optimistic about future prospects, despite potential future challenges.”

There was growth across the board; fast moving consumer goods (FMCG), healthcare and agribusiness revenues grew at 20.4%, 10.2% and 9.6% respectively YoY; group profit after tax (PAT), however, was affected partially by goodwill written off (Rs. 62 million) and declined by 10.4% to Rs. 1,047 million for the financial year ended March 31, 2015. Net asset value per share of the company increased to Rs. 39.23, compared to Rs. 36.23 at the beginning of the year (FY14), Profit to equity holders (PATMI) was down 21.1% YoY to Rs. 542 million at group level.

The EBIT (earnings before interest and tax) margin experienced a marginal contraction, to 8.7% in FY15 from 10.9% in FY14; improved margins in the FMCG segment were offset by a contraction of margins in the Agribusiness and Healthcare sectors because of unfavourable market conditions.

Healthcare, which accounted for 37.2% of the group’s turnover for the period, posted strong revenue growth at 10.2% YoY to Rs. 6.1 billion; however, stagnation in overall market growth, according to IMS data adversely impacted the pharma segment (which accounted for 67.3% of Healthcare revenue in FY15).

Despite difficult market conditions, revenue from pharma grew 9.7% YoY to Rs. 4.1 billion while Surgical, Retail, Diagnostics and Wellness sub-sectors expanded 18.1%, 14.9%, 9.7% and 3.5% YoY.
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PM calls for full report on past deals of CB

By Chamodi Gunwardana

Prime Minister Ranil Wickremesinghe has called for a full report on all past transactions of the Central Bank immediately.

The directive was given to the Central Bank Governor Arjuna Mahendran and the Monetary Board. The detailed report has to be submitted to the Ministry of Policy Planning and Economic Affairs under whose purview the Central Bank now functions.

The Ministry will thereafter hand over that report to the Committee on Public Enterprises (COPE) as well as the special committee appointed to probe capital market and relevant institutions headed by Harsha Sosa for further analysis.
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Aitken Spence PAT up 6.6% to Rs. 4.9 b in FY 15

Blue chip conglomerate Aitken Spence PLC yesterday announced its profit after tax in the financial year ended on 31 March 2015 has increased by 6.6% to Rs. 4.9 billion.

Profit before tax amounted to Rs. 5.7 billion a growth of 4.9% over the previous year. The diversified Group’s annual revenue rose a marginal 0.7 percent to Rs. 35.3 billion whilst earnings per share declined by 2.5% to Rs. 8.82 for the financial year.

“Although this year has been a difficult year in terms of performance, it must be noted that while riding the wave of external challenges, we have turned inwards to strengthen ourselves to reap the opportunities of the future. We are thus optimistic about the future growth of the Company,” said Aitken Spence PLC’s Chairman Deshamanya D.H.S. Jayawardena.

“Aitken Spence has recorded another year of resilient performance. Diversification held the Group in good stead in 2014/15, to grow amidst challenging global economic conditions and intense competition,” Aitken Spence Deputy Chairman and Managing Director J.M.S. Brito said.

The revenue of the tourism sector for the financial year grew by 5.1% to Rs. 17.8 billion whilst recording a profit before tax of Rs. 4.2 billion and a profit after tax of Rs. 3.7 billion, a decline of 2.2% and 1.2% respectively, for the year.

The decline in tourism sector bottom line was mainly due to the decline in profits from hotels in Sri Lanka and overseas which was primarily attributable to the adverse impacts of the global political and economic climate. The company owns and manages a chain of hotels in Sri Lanka, Maldives, Oman and India.

The Group’s destination management segment performed remarkably well. Aitken Spence Travels is Sri Lanka’s largest destination management company which during 2014/15, became the first and only company to handle 100,000 tourists to the country within a financial year.

“The coming year will be an exciting one for the sector, as we add Heritance Negombo to our portfolio and also expand capacity at The Sands, Kalutara by 91 rooms. Construction of the RIU Hotel in Ahungalla is well on target and we are excited by the possibilities offered by our partnership with RIU, and its parent company TUI,” added Brito.

Annual revenue for the Maritime Logistics sector increased by 3.9% to Rs. 7.7 billion whilst profits before tax increased by 4.3% to Rs. 735 million and profit after tax increased by 8.1% to Rs. 614 million. The Maritime and Logistic sector experienced weaker performances from the freight forwarding and the logistics segments whilst overseas investments performed well.

Strategic Investments sector’s profits surged during the year, with profit before tax swelling by 207% and profit after tax rising by 341% to Rs. 613 million and Rs. 509 million respectively. However, the sector reported a year-on-year decrease of 6.4% in revenue to Rs. 15.2 billion mainly due to the reduction in revenue from the power segment. The sector’s printing and garments segments have reported exceptional performances.

The Company expanded the garment sector’s production capacity by up to 40% during the period under review, by commissioning a new environment-friendly production facility in Koggala. The plant was built in four months and will create 750 jobs once in full operation.

The Plantations segment reported outstanding results driven by an efficient diversification initiative. The Power generation segment also showed an increase in profits compared to the previous year due to the sale of two idling power plants which resulted in a lower cost of maintenance.

Services sector reported a revenue of Rs. 1.1 billion for the financial year which was a growth of 15.1%. The sector’s profit before tax stood at Rs 132 million, a decline of 38% compared to the previous year. Profit after tax reported a drop of 52% to Rs. 83 million.

Except for insurance, elevators and property businesses, the other segments within the sector recorded disappointing performances. The relatively nascent information technology segment accounted for a significant share of the losses in this sector. The company has addressed the poor performance by restructuring the company, which is expected to lead to a better performance in the next financial year.

With a history spanning 150 years, Aitken Spence PLC is among Sri Lanka’s leading and most respected corporate entities with operations in South Asia, the Middle East, Africa and South Pacific. Listed in the Colombo Stock Exchange since 1983, it is an industry leader in hotels, travel, maritime services, logistics, power generation and printing, with a significant presence in plantations, apparel, financial services, insurance and information technology.
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Access Engineering posts solid performance in FY15

Access Engineering PLC released its unaudited results for the financial year 2014/15 to the Colombo Stock Exchange on 22 May.

Accordingly, turnover at the Company level for the year ended 31 March 2015 was recorded at Rs. 11.2 b with an after tax profit attributable to shareholders of Rs. 1.8 b.

Top line for the fourth quarter of 2014/15 FY was recorded at Rs. 2.5 b with a corresponding profit of Rs. 316 m. During the quarter under review the Company further expanded its operations overseas with the opening of its East Africa Branch Office.

At the Group level, turnover for the year was recorded at Rs. 16.4 b with an after tax profit of Rs. 2.5 b. During the year under review the Company’s 100%-owned subsidiaries Access Realties Ltd. and Access Projects Ltd. have contributed approximately Rs. 312 m and Rs. 156 m respectively to the bottom line.

The Company’s 84%-owned subsidiary Sathosa Motors PLC has contributed Rs. 278 m to the bottom line while the contribution from its 30% Associate undertaking, ZMPC Lanka Ltd., amounted to approximately Rs. 12 m.

The total asset base of the Group stood at Rs. 22.67 b with approximately Rs. 2.9 b held in short-term deposits and cash. Equity attributable to owners of the Company of Rs. 16.3 b at the Group level translates into a net asset per share of Rs. 16.3, a growth of approximately 10% since 31 March 2014. During the year the Company also invested approximately Rs. 714 m in building its capacity.

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 Dinesh Weerakkody.
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JKH goes for share subdivision

Premier blue chip John Keells Holdings (JKH) yesterday announced a subdivision of the Ordinary shares in the proportion of eight for every seven shares held.

In a filing to the CSE after the market closed, JKH said that its Board of Directors resolved to recommend to shareholders to increase the number of shares in issue through a subdivision of seven shares into eight.

On this basis the 997,486,491 shares in issue will be increased to 1,139,984,561.

The subdivision will result in an adjustment in the number of warrants accruing to the holders of 2015 Warrants and 2016 Warrants and their respective purchase prices will be adjusted to take into account the subdivision so that the respective warrant holders receive a revised number of shares which he or she would have owned or have been entitled to receive after the division, had such a warrant been exercised prior to the subdivision.

The 43,995,994 2015 Warrants in issue will be adjusted so that after the subdivision 50,281,136 2015 Warrants will be in issue and the existing purchase price of Rs. 185 be adjusted to Rs. 161.87.

The 43,995,994 2016 Warrants in issue will be adjusted so that after the subdivision 50,281,136 2016 Warrants will be in issue and the existing purchase price of Rs. 195 be adjusted to Rs. 170.62.

The moves are subject to shareholder approval at an EGM. 
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