Sunday, September 11, 2011

KIA booms, Colonial’s sit on Rs. 2.1 bn. share portfolio

Colonial Motors PLC, an old established company founded nearly a century ago, has reported "an exceptional year" ended March 31, 2011 for its wholly owned subsidiary, KIA Motors (Lanka) Limited which had a turnover of Rs.1.17 billion and achieved a net profit before-tax of Rs.245 million.

The company’s Chairman, Mr. A. Rajaratnam, has told shareholders in the annual report that the automobile industry has seen a sharp increase in turnover and profit in the year ended under review "entirely due to the duty of vehicles being reduced by the authorities to an acceptable level."

colonial’s turnover was up to Rs.278 million during the year from Rs.189 million the previous year with the pre-tax profit up to Rs.28.9 million from Rs.19.9 million a year earlier.

The year under review saw the company appointing additional spare parts dealers to cover the entire island and their spares business for Tata, Leyland and Land Rover having grown.

Colonial Motors continued to import and distribute Land Rover spares and is the leading ex-stock supplier of spares for this make of vehicle to the market, Rajaratnam said.

He also reported that the year had seen the company increasing its holding in Guardian Asset Management Limited to 93.75%. This company manages the share portfolio belonging to both Colonial Motors PLC and Union Investments (Pvt) Limited, Rajaratnam said.

The Colonial Motors group share portfolio of listed shares costing Rs.223.9 million as at March 31, 2011 had a market value of Rs.2.1 billion as at this date.

At company level, the share portfolio of listed shares had a cost of Rs.70.6 million and a market value of Rs.502 million as at March 31, 2011.

Colonial Motors has a stated capital of Rs.91.3 million and reserves of Rs.1.27 billion in its books. Its total group assets ran at over Rs.2 billion and total liabilities at Rs.623.3 million.

At company level total assets were Rs.1.26 billion and total liabilities Rs.250 million.

Net assets per share for the group had grown to Rs.153 from Rs.135 the previous year while for the company was down to Rs.112 from Rs.116 a year earlier.

The Colombo Fort Land and Building Company with 52.09% is the controlling shareholder followed by Dr. T. Senthilverl (19.05).

The directors of the company are Messrs. A. Rajaratnam (Chairman), R.M.M.J. Ratnayake (MD), S.D.R. Arudpragasam, J.M. Swaminathan, A.M. de S. Jayaratne and S. Rajaratnam.

source- www.sundayisland.lk

Visit Colombo Stock Exchange -  For1Q 2011 Results of COLO (as at 30/06/2011)

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