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| Friday, 14 November 2003 |
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Aitken Spence Group posts record results in first half 2003/4 The recently released results of Aitken Spence & Co. Ltd. for the six months ended September 30, 2003 showed that Group Turnover grew by 27% to Rs. 3.7 billion, Profit before Tax grew by 184% to Rs. 587 million and Profit Attributable to Shareholders increased by 240% to Rs. 437 million. Earnings per share for the six months period was Rs. 16.26 (basic) and Rs. 16.20 (diluted). The growth in operating profits was mainly driven by the tourism and infrastructure sectors. The latter which relates to the power generation activity recorded a four-fold increase in contribution to Group profit before tax with both 20 MW plants in operation during the period. The power sector is expected to be a steady contributor to Group earnings in the future and the company recently teamed up with Caterpillar Power Ventures of USA to install a 100 MW power plant in Embilipitiya. The Group's tourism sector comprises the inbound and outbound travels activities and their chain of top-class hotels in Sri Lanka and the Maldives. The inbound travels division also contributed significantly to Group profits outperforming the industry in terms of a significant increase in the number of tourist arrivals handled compared to the increase in arrivals at National level. Strong performance from the local hotel sector particularly Kandalama hotel, the Group's flagship hotel, which registered above average occupancies due to the stable political environment during the period and the continuation of the peace process. Although the Maldives hotels did not perform as expected due to the adverse impact of SARS in the first quarter, the company is confident that they will be able to recoup any shortfall and record a significant profit growth in the full year's results. The cargo logistics sector also fared well with a profit growth of 19% during the period with the main contribution from the freight forwarding division due to the favourable economic conditions and increased external trade. The manufacturing sector also recorded an increase in contribution to Group profits mainly due to the turnaround in the garment manufacturing division, which recorded losses in the previous year. The results also include a profit of Rs. 166 million from the disposal of the company's stake in Union Assurance Ltd., during the first quarter. Aitken Spence with Distilleries Company was recently selected by Forbes Global as the only two Sri Lankan companies among 200 best performing companies outside the US with turnovers under a billion dollars. |
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