Friday, May 31, 2013

Spence ends FY13 with mixed fortunes

◾ Post-tax profit dips by 4% to Rs. 4.25 b

◾Profit operations up 14% to Rs. 5.5 b

◾Group revenue up 20% to Rs. 37 b
Blue chip conglomerate Aitken Spence Plc yesterday reported a profit from operations of Rs. 5.5 billion, an increase of 14.4% in FY13 over the previous year excluding the reported capital gains (of around Rs. 630 million) on the sale of the shares of Colombo International Container Terminals Ltd. (CICT).

The profit before tax is at Rs. 5 b for the year with a growth of 8.9% as compared with Rs. 4.59 b in the previous year, excluding capital gains on the sale of the shares of CICT.

 Post-tax profit was down marginally by 4% to Rs. 4.25 billion whilst net profit attributable to equity holders of parent was down to Rs. 3.26 billion, from Rs. 3.48 billion in FY12.

 The diversified Group’s annual revenue rose by 20% to Rs. 37.1 b whilst earnings per share declined by 6.3% to Rs. 8.05 for the financial year.

 The revenue for the fourth quarter of 2012/2013 was recorded at Rs. 9.38 b, a negative growth of 3.3% compared to the fourth quarter of 2011/2012.

 The profit before tax for the fourth quarter posted a negative growth of 4.13 % at Rs. 1.85 b when compared with 2011/2012 figures which excludes capital gains on the sale of the shares of CICT.
 The revenue of the tourism sector for the financial year grew 24.9% to Rs. 14 b and profit before tax surged 31.4% to Rs. 3.4 b. Annual revenue for the Cargo Logistics increased 1.4% to Rs. 5.7 b whilst profits after tax for the sector declined by 33.7% to Rs. 556 m.

 The Services sector reported growth in revenue of 11.4% and profit after tax of 1.5% to Rs. 537 m and Rs 162 m respectively for the financial year. The Strategic Investments sector (inclusive of revenue of equity accounted investees) reported an increase in revenue of 22.8% to Rs. 17.9 b, while profit after tax dropped by 46.4% to Rs. 837 m for the financial year.

“The company has had a year of mixed fortunes with challenges and pressures that have tested our strength and our ability to adapt, combined with fresh opportunities and prospects that excite us about the road ahead,” Aitken Spence Chairman D.H.S. Jayawardena said.

  “We are proud to say that we have not approached our shareholders for funds in 15 years. This is particularly noteworthy considering that our dividend record has improved significantly during this period and will continue to grow in line with our earnings record,” he said.

“The Sri Lankan tourism sector has performed reasonably well but was affected somewhat with the country attracting a higher number of lower-end or budget tourists who do not regularly patronise star class establishments,” he added.

 Deputy Chairman and Managing Director J.M.S. Brito said: “The Group was once again able to achieve a commendable performance for the year 2012/13 despite the macro-economic and global challenges we encountered. Our diversity and innate capabilities provided us with the ability to respond strategically and with agility to changing conditions whilst staying on course with the greater vision of Aitken Spence.”

 “In terms of expansion, we will continue to explore new avenues of business as well as new markets both in Sri Lanka and overseas, where we may utilise our proven capabilities in management to build sustainable new businesses,” he added.

 Aitken Spence is among Sri Lanka’s leading and most respected corporate entities with operations in South Asia, the Middle East and Africa. It is an industry leader in hotels, travel, maritime services, logistics, power generation and printing, with a significant presence in plantations, financial services, insurance, information technology and apparel. Aitken Spence was recognised as Sri Lanka’s Best Corporate Citizen for 2012 by the Ceylon Chamber of Commerce.

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