Majestic City records Rs. 178m turnover for 2005

CT Land Development Limited, the owning company of Majestic city has increased turnover by 8.93% over the previous year to reach Rs. 178 million for the current year.

This was due to the rental increase effected on January 1, 2005.

At the year-end, more than 96% of available space had been rented out. It is worth nothing that we have consistently achieved an average tenancy of more than 95% of rentable space, Chairman Anthony A. Page said in the company report.

Expenditure recorded a decline from the previous year. (Escalating power and fuel costs forced the Company to re-think its strategy to control power consumption). Strict daily monitoring and power saving measures were implemented. We intend continuing with measures to further economise on power usage and costs.

The Directors have decided to make specific bad debt provisions aggregating Rs. 3.6 million during the year to cover for overdue rental income.

However, the Company will pursue all available options to recover the amounts due.

The growth in revenue together with control on expenditure and reduced finance charges resulted in an increase in profit before taxation (PBT) by Rs. 16.9 million over the previous year.

Income tax increased in line with PBT. The company's profit after tax was Rs. 46.2 million, a growth of 32.10%.

The continuing profitability of operations, controls on borrowing and prudent dividend policy have all contributed to positive cash flows in the past years, which have been used to repay the Company's borrowing.

As at the year's end, the Company is completely debt free for the first time since inception. The interest cost declined from the previous year's Rs. 4.5 million to Rs. 1.6 million in the current year.

At the balance sheet date, the Company had placed Rs. 10 million in Government Securities, Page said.