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Singer Sri Lanka Limited recorded an all-time-high net revenue of Rs. 5.052 billion for the year ended December 31, 2002, an increase of 12.6% over the previous year which the company claims as the highest ever achievement in its corporate history.

Releasing its annual results Chairman of the company Hemaka Amarasuriya said that the achievement was important to pass the psychologically demanding barrier of Rs. 5 billion and join the 'club' of top revenue earners.

Amarasuriya attributed the expansion to all channels of distribution and successful multi-branding strategy as the forerunners to the company's current growth rate.

Consumer electronic strategy and kitchen related product markets had expanded during the previous year and the company has enhanced its percentage share of these businesses. The agro product category too played a dominant role in growth along with the revival of the harvest economy in the rural hinterland.

Financing of operations has been gradually restricted over the years. With the falling of interest rates more opportunities have opened the company to move away from short-term borrowings to a stable long term debenture outstanding at Rs. 700 million at close with a credit rating of 'SL A' from Fitch Rating.

This has stabilised cost of financing operations, which no longer increase in tandem with revenue, and is a steadying influence on the company's overall business structure, Amarasuriya said.

Profit growth in 2002 was sharp and the reasons are two-fold, a much-improved operating performance of Singer's core business and the vastly improved results of the company's financial service associates, First Capital Limited and Commercial Leasing Company Limited.

According to the annual report these are some of the activities that led the company to experience its highest ever revenue growth of Rs.566 million in any one year. Expenses in a growth phase and fixed expenses were controlled well below the inflation rate of 9.6% and grew at a dissimilar rate of 5.7%.

Advertising and promotion cost increased as a future investment and was 4.5% of the net revenue. The headcount was reduced from 755 to 725 and several con-productive jobs shelved. Overall, the cost structure is managed with a great sense of responsibility and augurs well for the future as the company re-shapes for a major growth phase.

Singer is aiming at a revenue growth of 15% in 2003 which is a tough task while profits are estimated to grow steadily.

The economy is expected to grow between four and five percent this year that will keep consumer markets ticking.

Singer sells through 228 outlets and 475 independent dealers and is represented in every township at present. The program of expansion is perpetual, portraying Singer as closer to the door of its large consumer base and provides customer care service, in the business sector, supported by the vast resources on an all encompassing service network to post sales service. Outlets are 'one stop shops' providing consumer finance to over 160,000 customers at year close and to many more in the past, Amarasuriya said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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