Sunshine Holdings PLC (SUN) has stepped into the tourism industry, setting up two boutique bungalows in the hill country, the latest financials of the company outline.
“The company has increasingly focused on the leisure sector with the setting up of two ‘Mandira’ boutique bungalows in the upcountry with more to follow in the months ahead” Chairman Rienzie Wijetilleke points out in the company’s interim results review.
Wijetilleke further notes that Group subsidiary Sunshine Travels & Tours Ltd has entered into a Joint Venture agreement with Nadathur Far East Pte Ltd’s affiliate Silver Needle Hospitality in Singapore to develop and manage several new hotels in Sri Lanka. “This Joint Venture is expected to invest approximately US $ 50 million in a phased manner to develop, acquire and manage hotel assets in different parts of the country” he notes adding that the increased tourist arrivals as well as innovative marketing have led to higher than anticipated occupancy during the period.
Wijetilleke stresses that Sunshine Holdings (SUN) plans to expand to a sizeable business in the group along with the overall improvement in tourist arrivals.
He further goes onto explain that the company’s foray in to Hydropower through Sunshine Energy Ltd has commenced construction of the first project, a 1.7 Megawatt unit in Waltrim estate, Lindula.
“We anticipate project completion by December 2011” he notes adding that two other projects have been finalized and work will begin soon. This ensures that we achieve our target of 10MW by 2013. Wijetilleke in his review stresses that the new wage for plantation workers which is Rs.515 per day is an increase of 27.10% from the previous agreement and it has resulted in eroding earnings and profits in the for the plantation sector. “Gross profit for the period decreased to Rs.415 million compared to Rs.489 million from the same period last year due to the significant increase in wages to all employees in the plantations sector,” he notes.
He further notes that the company is confident that the plantation sector would turn around with the implementation of productivity improvement techniques and better margins through better prices in the coming quarters, bearing in mind the plantation business is cyclical by nature.
(JA)
source - www.dailymirror.lk
No comments:
Post a Comment