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| Tuesday, 21 September 2004 |
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Connaissance Holding posts Rs. 66.9 million net profit Connaissance Holding Ltd. recorded a Rs. 66.9 million net profit after tax for the financial year ended April 1, 2004. The growth in profits corresponds to an increase of 108% over the last year. The earnings per share has also improved showcasing Rs. 2.52 over Rs. 1.67 last year. The company also announced a bonus share issue on the premise of one share for every ten held.
Commenting on the annual performance, Chairman of Connaissance Holding Ltd. C. J. Wickramasinghe said that the financial figures show a remarkable performance recording a net profit of Rs. 66.9 million for the group which is an increase of 108% over last year. Average hotel occupancy levels were 70% and 60% for Culture Club and Le Kandyan and building upon future potential, we augmented our valued partnership with the banks working on advantageous negotiations for us to move further forward. We did not adhere to the common wait and see attitude that seemed to prevail within the last quarter of the year but rather took up upon ourselves to use our ingenuity and our renowned out of the box bold thinking to launch into two projects this year. The Reef and The Fortress, the former being the refurbishment of Hotel Reefcomber and the latter being one of the most courageous decisions taken by anyone within the industry, demolishing the existing hotel completely and building a brand new one. We are also in the planning stages of the start up of a four star hotel project in Wadduwa," Wickramasinghe said. "With Sri Lanka's infrastructure only able to cope with a maximum of 650,000 tourists (even though critics may beg to differ from my estimation), the country needs an urgent fillip in infrastructure investment, a vital factor if we are to compete regionally with the bigger markets of India, the Philippines, Malaysia and China for a share of the tourist pie. It is also imperative that decision-makers review any policies that may affect investment decisions especially the area of interest rates since Sri Lanka, though investor friendly can be deemed among the countries with high energy and labour costs, facets that must be factored in if we are to attract investors into this much needed industry?" he said. Signs for the coming year however are positive. We believe stridently that Sri Lanka has the potential to become a formidable force in global tourism. However it is a conviction that must come from within. Competing in the service industry is not difficult but what is difficult is to compete effectively and stand out enough to entice visitors with products that are unique and distinctive. We as a country do have these unique and distinctive products and the inherent service qualities as can be seen with what we have nurtured and developed within the Connaissance Group. We aim to now hone these advantages further and hope that the coming year will prove conducive to our growth plans, bringing you better returns," he said. "In the past Sri Lanka has been dependent on traditional markets like Europe but circumstances have shown that this dependence in the current light can be a negative factor. SriLankan Airlines for instance is on to good strategic direction, promoting Sri Lanka in breakthrough markets such as India and China which is dubbed a sleeping dragon. I feel there is phenomenal potential in these markets, readymade inbound markets which are need to concentrate on fully moving away from our traditional markets. We need to find the solution for seasonality breaks and the secret lies in exploring this region to combat that problem. Our macro strategy has to work on the 3S concept, security, scenery and serenity rather than the all inclusive sun, sea and sand perception which every single tourist destination is spouting today. Niche tourism is the key and for Sri Lanka niche products are not difficult to find. It is just as matter of creativity, innovation and thinking out of the box." he said. Managing Director of Connaissance S. Senaratne said that they have recorded a growth of 108% over last year with an overall profit before tax of Rs. 43.6 million. Earnings Per Share have also improved showcasing Rs. 2.52 over Rs. 1.67 last year in this backdrop it gave up immense pleasure to announce a bonus share issue on the premise of one share for every ten held the first such benefit we have given you our valued shareholders in some years. "While Sri Lanka enjoys the reputation as a premier holiday destination in Europe our partnerships with some of the biggest tour operators in France, Spain and Czechoslovakia saw Europe notched up 60% of our inbound traffic numbers. Our arrivals showed a 30% increase from the previous year far surpassing budgeted levels. Continuing on the promotional aspect we also decided to begin a major marketing exercise on the emerging regional markets in South Asia and South East Asia which we feel holds immense potential for inbound tourism. With a large increase in daily flights to and from India due to the commencement of two private regional airlines and the Open Skies Policy adopted by Sri Lanka tourism from India has grown in leaps and bounds and with the Asia Cup being held this year we hope to use this as a springboard to augment our plans. Our hotels enjoyed a good year though global tourism was still recovering from 9/11 and Sri Lanka is yet to return to a stable platform of peace and stability," Senaratne said. |
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