Friday, December 10, 2010

Asia Capital from losses to profits

Asia Capital PLC announced the achievement of Rs. 222 million net profits for the year ending March 2010, a complete turnaround for the group of companies compared to a Rs. 379.2 million loss in the year 2009, it said in a statement.

The operations for 2010 showed a decline in cost of sales which resulted in this profit even though the revenue figures have seen a drop compared to the same period in 2009. The share price alone has increased from a low of Rs. 5.5 in April 2009 to around Rs. 47 earlier this week.Asia Capital PLC was faced with a difficult and challenging few years beginning FY2007 up until 2009 due to many changes in the management along with several resignations and new entrants to the Board of Directors. It is at this time that Monohan Nanayakkara took over as Chairman and Managing Director of Asia Capital PLC, when the group was in deep crisis - experiencing year on year increasing losses. Now under a new management with a fresh vision, the group of companies is creating fundamental change, by recalibrating their structure and manufacturing real value, the company said.

"Over the last several decades, it has been the norm of the management of listed companies in Sri Lanka to bemoan the external environment of considerable political and economic adversity," Nanayakkara said. "In contrast I wish to state unequivocally that it was my pleasure to take the helm of this company in the immediate aftermath of the cessation of the war and to have led the company during a turbulent period which was coincidentally also the first period of hope in my entire adult working life. I consider myself amazingly lucky to have had this opportunity and my team and I have been working extraordinarily hard over the last one year to translate this incredible opportunity into outstanding results for all the stakeholders of our company – be it the customers, the employees, the owners or all of the public bodies that we interact with in the ordinary day to day management of our business," he said.

According to the Chairman, the turn-around strategy was not an easy one.

"The Change Management Committee and the Group Management Committee were the two teams appointed to help me implement it," he said. Together they formed a cohesive team. As a result there has been a clear increase of the earnings per share from a negative of Rs. 4.04 in 2009 to a positive of Rs. 1.91 this year.

source - www.island.lk

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