Wednesday, May 26, 2010

First Capital Holdings reports record profit of Rs 660.7 mn

First Capital Holdings PLC (FCH) has reported that profit after tax grew 245 per cent to Rs 660.7 million in the 12 months ending 31st March 2010 in figures released to the Colombo Stock Exchange.

Profit attributable to equity holders of the parent company at Rs 587.7 million reflected a growth of 344 per cent. Turnover of the Group was up 18 per cent to Rs 2,761.6 million.

Much of this growth, attributed to investments in government securities, came in the first three quarters of the year. Profit for the final quarter (January – March 2010) was Rs 103 million before a deduction of Rs 62.9 million on account of withholding tax on inter-company dividends.

Earnings per Share increased to Rs 17.41 for the year from Rs 3.92 for the preceding year. Group Net Assets per Share stood at Rs 15.85 as at 31st March 2010, up from Rs 13.44 a year earlier. The Group declared a dividend of Rs 15 per share at the end of the third quarter, resulting in a dividend payout of Rs 506.25 million.

Earlier this month, the company received approval from its shareholders to proceed with a sub-division of its shares by splitting every existing share into three shares.

The company’s share price has risen from Rs 4.90 on April 1 2009 to Rs 58.00 earlier this month. "The sub-division is aimed at increasing the liquidity and marketability of the share particularly for smaller shareholders," a company spokesman explained.

Commenting on the Group’s performance, he added: "First Capital has had an excellent year primarily due to a favourable bond market which resulted in exceptional profits by the Group’s primary dealer arm. In the year ahead, the Group proposes to extend the range of its corporate finance activities and products with special focus on debt capital markets. With prospects of higher economic growth and greater liquidity, strong opportunities exist for market development as well as for wider participation in structured products."

"Opportunities have also been identified in the provision of professional investment management services, and the Group will exercise its strong resource base to serve customers in this area."

The First Capital Group, whose origins date back 27 years, obtained its Primary Dealership license in 1992. First Capital Treasuries (FCT) is a Central Bank appointed primary dealer with a mandate to create a market for government treasury bills, government treasury bonds and repurchase agreements, with investors seeking risk-free investment opportunities.

First Capital Markets (FCM) specializes in structuring and placing of short term and long term debt issues for corporate entities. The company is also an SEC approved Margin Provider for listed equity and provides loan facilities to investors in the share market enabling them to capitalize on both short term and long term equity market opportunities.

First Capital Asset Management (FCAM) is a SEC approved fund manager specializing in managing wealth for high net worth individuals as well as for trusts, provident funds and companies.

First Capital’s Board of Directors comprises Manjula Mathews, Dinesh Schaffter, Nihara Rodrigo and Jude Fernando.

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