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| Thursday, 1 July 2004 |
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TSFL posts Rs. 93.2 million pre-tax profit in 2003/4 by Theja Vidyarupa, Akuressa Group correspondent Tea Smallholder Factories Limited (TSFL) has completed 10 years after privatisation and recorded substantial growth while increasing the shareholder value. The annual report released to the shareholders on June 5, 2004 tracks the 10-year performance of the company. The profit before tax in the financial year ended 2003/2004 is Rs. 93.2 million, up from Rs. 40.5 million the previous year. An analysis of the 10-year performance shows that the company has recorded profits continuously from Rs. 130 million to Rs. 11.5 million (recorded in 1995) being the first year results after privatisation. On April 12, 1994 a consortium of investors led by John Keells Holdings Limited, Central Finance Company Limited and National Development Bank of Sri Lanka, who successfully tendered for the shares on offer, purchased 51% of the shares, 39% were subsequently issued to the registered smallholders and the public. The remaining 10% was gifted to the employees. The chairman's review attributes the commendable achievement of the company in 2003/2004 to the superior quality of the product that has commanded premium prices at the Colombo auctions. The increase in the smallholder base to 14,411 has contributed to an increase in production. The smallholders have been paid attractive green leaf rates throughout the year. Well defined extension services have contributed to the enhancement of the supplier base. The smallholders during the year have been paid Rs. 780.8 million for green leaf which has recorded an increase of 4.7% compared to the previous year. The strength of the company has been the ability to meet its obligations to the smallholder continuously, whatever the tea market conditions in Colombo were. The financial strength of the company as recorded in the annual report has held in good stead to wade through times of difficulties. TSFL which has nine tea factories Neluwa-Medagama, Halwitigala, Hingalgoda, Kurupanawa, Pasgoda, New Panawenna, Randola, Broadlands and Karawita in the various districts commands a premium in terms of prices at the Colombo auctions compared to all other institutions. The ability of the company to be ranked as No. 01 on tea prices in the low grown sector, has benefited the smallholders. All these achievements of delivering satisfaction to the tea smallholders while increasing per capita wealth of the shareholders was possible due to the committed team of management with expertise in various fields of business. Tea smallholder factories limited is a 'benchmark company' in the tea industry, because the main beneficiaries are those who supply green leaf to their factories. |
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