Aitken Spence Group records Rs.1.1 b profits
Aitken Spence has once again lived up to its reputation of being a
steady performer, despite the natural disaster during the financial year
2004/05. Surpassing Rs. 10 billion in revenues, a 10% growth over the
previous year, the premier blue chip conglomerate stands resilient
amidst hindrances.
The diversified Aitken Spence generated a net profit attributable to
share holders of Rs. 1.1 billion after taking a beating from the waves
of destruction, a 12% drop over last year, but still managed to record a
PBT of Rs. 1.73 billion, a year on year dip of only 8%.
However the Group continues to create a positive value addition. The
Group generated an EVA of Rs. 951.4 million while recording an EPS of
Rs.41.32 with a PER of 9.22 compared to the diversified sector PER of
17.7 as well as a 60% dividend payment during the year under review.
The company remains one of the highest generators of shareholder
value with a total shareholder return of 46.5% for 2004/05.
The period under review proved to be an excellent one for the Group's
Cargo Logistics sector, which recorded a 17% increase in revenue and a
15% increase in profits from operations. The Group's Integrated
Logistics division and Freight Forwarding division recorded 20% and 15%
increases in profits from operations respectively.
The former has forged forth to place itself in the enviable position
of becoming the owner of the largest fleet of fuel transportation
bowsers in Sri Lanka.
During the year Spence sailed into new with its investment in three
cargo vessels through a consortium, which included Ceyline Group.
It is noteworthy that one of these vessels is the largest ship owned
by a Sri Lankan Company, and the company has invested in 2 more vessels
this year.
The performance of the Tourism Sector declined with the devastating
effects of the tsunami. Sri Lanka recorded 434,250 tourist arrivals for
the nine months ended December 2004.
This was a 14% increase over the same period last year. However, the
Group once again outperformed the industry by recording a 26% year on
year increase in tourist arrivals for the first nine months of 2004/05,
but witnessed a 70% decline in arrivals during the last quarter as a
result of the tsunami.
The revenue of the tourism sector declined 7% over last year and the
profits from operations declined 49% mainly due to the dismal
performance during the post tsunami period.
Despite this, the tourism sector recorded a 21% contribution towards
the Group's overall profitability. The tsunami impact on the Maldives
was relatively less than in Sri Lanka, with the Maldivian sector
contributing 83% of the sectors profit from operations.
Triton Hotel, which is Sri Lanka's first five star beach resort
immediately advanced its refurbishment, while Neptune Hotel resumed
operations shortly after the tsunami.
A 25% stake of the Group's destination management arm was acquired by
TUI AG of Germany, one of the largest tour operators in the world,
bringing in a wealth of global knowledge and synergies to the Group.
The capital gain from the sale of shares was accrued to the Group in
the 2nd quarter. The strategic investments sector profits from
operations grew by 32% during the year, with all divisions in the sector
recording good performances. |