Seylan Merchant Leasing Limited obtains CSE listing

Seylan Merchant Leasing Limited (SMLL), has obtained the approval of the Colombo Stock Exchange (CSE), for the listing of its shares in a move to broadbase its ownership.

The CSE is expected to list the company on its second board by early December, the company said. The Deputy Chairman of SMLL Rohan Senanayake said: "SMLL is securing a listing to enhance its shareholder base by liquidating some of the shareholding currently held by the Ceylinco Consolidated Group. This will give more individuals an opportunity to own a stake in the company."

In its short history of five years SMLL, though unlisted, has positioned itself as a shareholder-friendly company by having two dividend issues and a bonus issue. The company declared a 10 per cent dividend in 2002 and another 10 per cent dividend in 2004. In 2003 the company floated a one-for-four bonus issue.

At present, 90 per cent of SMLL is held by companies in the Ceylinco Consolidated Group with the remaining 10 per cent being held by 140 shareholders.

In financial results for the first half of 2005, SMLL has reported a 106 per cent increase in total lease rentals receivable up from Rs 409.9 million as at December 31, 2004 to Rs 843.8 million as at 30th June 2005. The total assets of the company increased to Rs 957.1 million for the first half of 2005 from Rs 441.9 million as at December last year, representing a growth of 117 per cent or Rs 515.2 million.

In other results, the net income of SMLL recorded a 118 per cent increase from Rs 33.3 million in the first half of 2004 to Rs 72.1 million for the period under review. Net interest income also increased 103 per cent to Rs 36.2 million in the period. The pre-tax profit of the company was up 12 per cent while the post-tax profit of the company grew 14 per cent to Rs 14 million.

Seylan Merchant Leasing Limited was incorporated in July 2000, and commenced operations in August 2000.