Touchwood records profit of Rs. 613 m proposes dividend for this year

COMPANY RESULT: Touchwood Investments Ltd (TIL), which commenced operations seven years ago in 1999 has recorded a turnover of Rs. 1,015 million for the financial year 2005/06 and a profit after tax of Rs. 613 million increase in turnover is 84.7% and increase in profit is 277% in comparison to the previous financial year.

TIL, proposes to declare a final dividend of 10% making the total dividend of 15% for the financial year 2005/06. An interim dividend of 5% was paid earlier.

TIL's principal line of business is private forestry plantations which helps to stop the destruction of rainforests while generating income for our clients. TIL manages over 1,000 acres of private forestry plantations on behalf of over 14,000 clients in Sri Lanka. TIL has come a long way since 1999 as a member of the Touchwood Group which has operations in Thailand, Hong Kong, Australia, Dubai, Malaysia and South Korea.

TIL's Chirman, Roscoe Maloney said they maintain the position as the leader in the country in managed private forestry. "The company has achieved budgeted sales, tree growth rates and profits as per the business plan of the company.

Among future plans TIL is looking at expanding into banking, timber flooring from renewable resource and processed forest products.

CEO of TIL Asitha Koralage in the Annual Report says, over a two-year period the revenue and profit increased by 337% and 1,806% respectively while total assets have increased from Rs. 850.8 million to Rs. 1,700 million.

Earnings per share are Rs. 68.84 and net asset value per share is Rs. 96.82. TIL obtained ISO 9001 and 14,000 certification for its plantations during the period under review. The company introduced new products. Sandalwood and exotic Agarwood in addition to the well established and maturing stocks of Mahogany and Vanilla.

TIL established its first branch office in Kandy and expects to expand further. TIL's plantations and assets have been re-valued by an independent plantation evaluator and a Chartered Valuer. Accounting policies used by the company are as per the Sri Lanka Accounting and Audit Standards and International Accounting Standards 41 - Agriculture.