United Motors records best ever 1st quarter results

CORPORATE RESULT: United Motors continued to excel in its financial performance achieving its best ever first quarter results.

In the three months ended June 30, 2006 the company recorded a turnover of Rs. 877.7 million which was an increase of 75.7 % over the turnover of the corresponding period of last year.

Profit after tax of Rs. 91.9 million also reflected an improvement of 66.2 % over the profit in the same period last year.

The consolidated results improved further over last year. Whilst group turnover increased by over 50%, group profit after tax and minority interest was Rs. 110.2 million compared to Rs. 68.2 million achieved in the first quarter of last year, an increase of 61.5 %. Earnings per Share of the Group improved by 65.9 % over last year.

Whilst a dividend of 20% was paid to shareholders in July 2006, the company also issued Bonus Shares of one for every seven shares held.

This resulted in an increase of 14.3 % of the shares held by each shareholder prior to this date.

The parent Company United Motors Lanka Ltd (UMLL) contributed 83% towards the Group profitability.

UMLL, the sole distributor for Brand New Mitsubishi vehicles has maintained consistent growth in passenger vehicles and has also shown a significant increase in market share in the truck market.

Last year the Mitsubishi Fuso Canter Trucks captured 55% of the market and this trend continued during the first six months of this year.