|
|
 |
 |
 |
| Thursday, 3 June 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
JKHL posts Rs 1.9 b net profit for 2003/04 One of Sri Lanka's premier diversified blue chip John Keells Holdings Ltd (JKHL) has recorded remarkable performances for 2003/4 financial year registering an operating profit of Rs. 3.45 billion and a net profit of Rs. 1.9 billion. The Group's Revenue for the year increased by 25% to Rs. 20.9 billion while consolidated attributable net profit grew by 46% to Rs. 1.9 billion in spite of incurring Rs. 767 million as Voluntary Retirement Costs (VRS). The company attributes sound footings on micro and macro fundamentals and innovative and productive business modalities adopted by the company as key factors toward this growth. Chairman of Keells Holdings Ltd, V. Lintotawela in his review on annual performances describing it as record earnings said that JKH's consolidated profits grew by 46% to Rs. 1.9 billion in spite of incurring Rs. 767 million as Voluntary Retirement Costs (VRS). Although turnover increased by 25% to Rs. 20.9 billion, the Operating Profit before exceptional items grew by 60% to Rs. 3.45 billion, reflecting increased operating efficiencies. Return on Equity and Return on Capital Employed, pre exceptional items, for the year, were 16.1% and 16.3% as compared to the 14.3% and 14.5% the previous year. Lintotawela said that heavy investments in the Transportation sector were vindicated by the Sector yet again being the single largest contributor to Group Profits. Despite aggressive competitor pressures, an excellent performance from South Asia Gateway Terminals (Pvt) Limited (SAGT) and a full year's contribution from Lanka Marine Services (LMS), ensured success. "The completion of the Port Project in September 2003 enabled SAGT to also declare its first dividend. Good performances from the Sri Lanka based Resort Hotels, the Maldivian Hotels and the Destination Management Companies, coupled with reasonable contributions from the City Hotels saw the Leisure Sector contributing close to 35% of the profits attributable to the Group. JKH's acquisition of a 84% stake of Asian Hotels and Properties Limited, the owning Company of the Colombo Plaza and Crescat and the largest Shareholder of Trans Asia, in September 2003, was the biggest ever single transaction, as of date, on the Colombo Stock Exchange", he said. Outlining the future vision of the Group, he said that 'strategic focus is on areas of our comparative advantage. The leveraging of Group Sourcing, which has, to date, contracted approximately Rs. 215 million worth of annual savings, the pursuit of Operating Efficiencies, the establishment and the consolidation of the HR Structures and Processes and the development and enrichment of our Group Employees are our current focus". "We believe that the planned installation of a standard enterprise-wide business system and the adoption of Shared Services will bring about important synergies and operating benefits in the diverse businesses we operate. These endeavours have resulted in our Employees being motivated and empowered with no fear of the untried and the unknown", he said. "Cost-effectiveness in the running of our companies, mainstreaming of efficient business processes and the strengthening of Corporate Governance and accountability are the areas that have our unwavering commitment. We are confident that the year ahead holds every prospect of further success; a success that could be further facilitated by the creation of an enabling political and economic environment", he said. SP |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
