Central Finance turnover exceeds Rs. 9.49 b

CENTRAL Finance Ltd. Group net turnover has increased significantly from Rs. 9 billion to Rs. 9.49 billion and for the first time Group profit before tax exceeded Rs. 1 billion in 2005 from Rs. 905 million in the previous year.

The main contributors were Central Finance Company Limited which showed an increase in profits before tax from Rs. 776 million to Rs. 867 million and Central Industries Limited from Rs. 48 million to Rs. 105 million.

Other significant contributors were Kandy Private Hospitals Limited and Mark Marine Services (Pvt) Limited, Chairman C. Wijenaike said in its annual report.

Changes in tax legislation impacted on the profits in leasing business and although Central Finance Company's operating profits before tax was higher than last year at Rs. 867 million, profits after tax dropped to Rs. 707 million.

CF's ordinary share capital was increased to Rs. 203 million from Rs. 121.8 million consequent to the bonus issue of 2 new shares for every 3 held and the dividend pay-out has been increased to Rs. 57.855 million as compared to Rs. 48.72 million in 2004.

"Whilst our core business originations have been sustained at Rs. 5.5 billion in the year under review, we effectively continue to focus on improving our credit quality and operating efficiency," he said.

Despite the increase in business, a significant feature worth noting is that the ratio of non-performing loans to advances has reduced from 11.18% in 2004 to 7.99% in 2005.

It is important to note that the provision for loan losses has improved to a very sound 97.31% of Non Performing Loans as against 92% a year ago.