Friday, May 31, 2013

Access Engineering profits up 37pct

*  Rs. 2.8bn invested on capacity building in two years
Access Engineering PLC reported a net profit of Rs. 2.38 billion for the year ended March 31, 2013, up 37.12 percent from Rs. 1.72 billion a year earlier, financial results filed with Colombo Stock Exchange showed.

Turnover grew 90 percent at group level to Rs. 13.9 billion. At company level, turnover amounted to Rs. 11.45 billion, up 64 percent from a year ago.

"This is the second consecutive year that the company was able to almost double its turnover in view of the growth taking place in infrastructure development and the construction industry in the country," the company said in a statement.

The year ending March 31, 2013 was the first full year of operation after Access Engineering PLC made its debut on the Colombo Stock Exchange after a successful IPO in March 2012.

At the company level turnover is drawn from multidisciplinary value engineering activities such as roads and highways, bridges and flyovers, water and wastewater, ports and aviation, piling, building construction and production income.

At group level, the company’s subsidiary Sathosa Motors PLC has contributed Rs. 2.3 billion to the top line. The company’s fully owned subsidiary, Access Realties (Pvt) Ltd also contributed to the top line with a turnover of Rs.170 million.

Stemming from the top line growth, the company’s pre-tax profit of Rs.2.67 billion and Rs.2.3 billion witnessed a growth of 32 percent and 33 percent at group and company level in the year under review.

During the year the company invested approximately Rs.1.2 billion in property, plant and equipment. Taken together with the financial year 2011/2012, the company has made an investment over Rs.2.8 billion in capacity building within a period of 24 months.

At present, Access Engineering owns one of the most technically advanced and up-to-date fleet of heavy construction equipment and machinery in the country. These investments also includes the acquisition and setting up of quarries, crusher plants, concrete batching plants, asphalt plants and state-of-the-art piling equipment, through which the company has successfully consolidated its multidisciplinary activities and supply chain. These backward integration measures have enabled the company to deliver its projects to clients well ahead of the scheduled completion dates and will be a catalyst in meeting the anticipated growth rates of the forthcoming years, the company said.

The company’s liquidity profile is excellent at both company and group level. Operating activities of the company have generated a net cash inflow of Rs. 1.6 billion with the net cash outflow from investing activities amounting to Rs.1.62 billion mainly due to the capacity building initiatives undertaken by the company.

The total asset base of the group stood at Rs.16.64 billion. Equity attributable to equity holders of the parent was Rs. 12.47 billion which translates into a net asset per share of Rs.12.47. The earnings per share of the group is Rs. 2.38. The company declared an interim dividend of Rs.0.25 per share for the year 2012/2013 which was paid on 28th February 2013.

Access Engineering increased its ownership in its subsidiary Sathosa Motors PLC up to 84.4 percent during the period under review. Sathosa Motors PLC is the authorized dealer for the world-renowned Isuzu brand of motor vehicles in Sri Lanka. Since its acquisition in February 2012, Sathosa Motors PLC has contributed to both the top and bottom line of the company. With effect from 01-04-2013, Sathosa Motors has also entered into a Joint Venture and set up SML Frontier Automotive (Pvt.) Ltd. and acquired the dealership for Land Rover UK.

The Board of Directors of AEL comprises of Sumal Perera (Chairman), Christopher Joshua (Managing Director), Rohana Fernando (COO), Shevantha Mendis, Dharshana Munasinghe, Gration Fernando, Ranjan Gomez, Prof. Malik Ranasinghe, Niroshan Gunarathna & Alexis Lovell.
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