By Deepal V. Perera
Laugfs Gas Limited yesterday announced that group's turnover for the past six months increased by 34% to Rs.422.9 million which is an increase of 46% over last year of 288.9 million.
Chairman Laugfs Group W.K. H. Wegapitiya in a statement said that in terms of volume the LP Gas Cylinder sales have increased by 37% and in terms of gas usage increased by 22% over the forecasts made for the period under review.
He said that the unaudited accounts balance sheet as 30 September showed an increase in Net Asset value to Rs.3.26 billion which was an increase of 15% over last year's final accounts. "During the year, Retained earnings grew by an impressive 50% whilst trade and other receivables decreased by 17% as a result of prudent credit and cash flow management practice adopted," he said. He also said that the parent Laugfs Gas Limited and also the Laugfs ECO Sri Limited, a fully owned subsidiary contributed significantly to the growth earned for the group.
As for Laugfs Gas, the aggressive promotional campaign commenced in the month of September contributed largely to the growth of profits earned for the group The most dramatic growth revenue within the group with a record of significant 231.5% increase derived from Laugfs Eco Sri Limited and contributory factor was that the government decision to make the econ test of relevant vehicles mandatory all over the country except the Northern and Eastern Provinces. It is expected however that the scheme will be operational island wide including these two provinces as well as in the near future," he said.
Commenting on its finance cost reduction for the past six months the Chairman of the Laugfs Group said that the finance cost had reduced to Rs.68.8 million which is an almost 30% reduction from the corresponding period last year. This was made possible through prudent working and fixed capital management by the treasury division of the group and finance costs are expected to reduce further in the ensuing months. However the reduction in finance cost did not meet with the expectation indicated in our forecast since the IPO was delayed due to unavoidable circumstances and the proceeds were not available to the entire high cost borrowings" he said
"We are optimistic about the general outlook of the company and the investment climate in the aftermath of the three decade long conflict and the prevailing political stability of the country. In the back drop of this Laugfs Limited and its subsidiaries are expected to improve performance in the months to come" Wegapitiya said.
source - www.dailymirror.lk
No comments:
Post a Comment