Emerging as one of country’s strongest conglomerates
Lanka Orix Leasing Company PLC (LOLC), now emerging as one of the country’s leading conglomerates, has posted a group profit after-tax of Rs.7.89 billion in the nine months ended December 31, 2011, up 31% from Rs.6 billion posted a year earlier.
Analysts said that this compared with a profit of Rs.6.25 billion posted by JKH, widely regarded as the country’s strongest conglomerate. However, there’s a negative goodwill figure of over Rs. 3.6 billion in LOLC’s nine-month income statement with no similar item in the JKH profit and loss account.
LOLC in which the owners include the Orix Corporation of Japan which owns 30% is controlled by the Nanayakkara family of vehicle importers with Mr. R.M. Nanayakkara and his wife and children owning over 50%.
Mr. Ishara Nanayakkara is Deputy Chairman of LOLC in which the EPF, Sri Lanka Insurance Corporation and the ETF are also among the top 20 shareholders.
LOLC whose core business is leasing has been diversifying into many other areas of business in recent years including leisure, banking with a substantial stake in the Seylan Bank and other businesses.
The company has a stated capital of Rs.475.2 million, reserves of slightly over Rs.2 billion and retained earnings of over Rs.15.1 billion in its books according to the latest published financials covering the period up to December 31, 2011.
Total group assets run at Rs.147.7 billion and total liabilities at Rs.104.5 billion.
The financials reported that Browns Investments PLC had acquired a 100% shareholder of Excel Global Holdings (Pvt) Limited in July last year for Rs.887 million. With this acquisition the group gained controlling interest of Millennium Development (Pvt) Limited (MDL) which is a wholly owned subsidiary of Excel Global Holdings.
MDL has leasehold rights to 897 perches of land presently known as Excel World in the Darley Road area of Colombo with a remaining lease period of 32 years and provision to extend for another 40 years. A chartered valuer had placed the leasehold value of this property at Rs.4.2 billion.
Last December, the group acquired a 99.9% interest of Dikwella Resorts (Pvt) Limited, a resort located in the south coast at a price of Rs.1.01 billion. This previously Italian-owned property is reputed to be the finest beachfront location along the south coast.
The Dikwella acquisition followed taking control of the Confifi properties on Beruwela’s `golden mile’.
Also in December, the group had increased its holdings in Taprobane Capital Limited from 40% to 100% at a consideration of Rs.134 million.
Subsequently to balance sheet date the group had through Browns Investments acquired 51% of Ajax Engineers Limited, a company in business of aluminium fabrication, for a consideration of Rs.100 million.
According to LOLC’s latest financials the company’s share had traded at a high of Rs.97.60 and a low of Rs.74.50 during the quarter ended December 31, 2011.
The company’s directors are Mrs. R.L. Nanayakkara (Chairperson), Mr. Ishara Nanayakkara (Deputy Chairman), Messrs. M.D.D. Pieris, R.A. Fernando, Mrs. K.U. Amarasinghe, R.M. Nanayakkara, Kapila Jayawardea (MD/Group CEO), K. Okimoto and H. Ichida.
source - www.sundayisland.lk
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