Ceylinco Securities turnover tops Rs. 3.5b

Ceylinco Securities & Financial Services Limited (CSFSL) has registered an impressive performance for the financial year 2004/2005.

It has recorded a turnover of Rs. 3.53 billion and a net profit of Rs. 136.2 million during this period.

This reflects a 19% growth in turnover and a healthy 30% growth in net profit compared to the previous year.

Total assets have increased by 29% to reach Rs. 7.65 billion from Rs. 5.94 billion in the previous year. Net Assets Per Share has risen to Rs. 31.02 from Rs. 26.79 while Earning Per Share has increased to Rs. 4.98 from Rs. 3.56.

CSFSL Group has achieved this significant performance after adopting very stringent provisioning policies. This was done in order to strengthen the balance sheet during the year and has provided Rs. 61.9 million on account of bad debt provisioning and falling value of shares, the company said.

The main factors attributable for this performance are the income generated from fund based activities such as property development and diversification to the different avenues of lucrative business. Aided by the low interest rate regime, favourable economic and investment conditions and demand by the expatriates for the property market, property development has become one of the main income generating businesses in the country.

Having correctly identified this, CSFSL has ventured into property development with tremendous success. This has enabled the Group to enhance the bottomline. Furthermore, taking advantage of emerging opportunities in the foliage export market, it has diversified into growing and exporting foliage products with the assistance of biotechnology. CSFSL has acquired three foliage companies and has already become one of the major exporters of foliage products.