United Motors records Rs 405.2m profit, best ever

PROFITS: United Motors Lanka Limited (UMLL) reported the best results in its history for the financial year ended March 31, 2007, achieving its highest ever turnover and profit and recording its highest sales in brand new Mitsubishi vehicles.

“The parent company, UMLL, excelled in its core business of selling brand new Mitsubishi vehicles and providing after sales service to Mitsubishi vehicle owners.

The company reported a turnover of Rs. 4,119.5 Million in 2006/07 which was an increase of 55.7% from the pervious year whilst Profit Before Tax (PBT) of Rs. 638.2 million and Profit After Tax (PAT) of Rs. 405.2 million reflected an increase of 78.9% and 63.8% respectively from the previous year’s results.

The company increased its sales of Mitsubishi passenger and dual purpose vehicles with the demand for the brand on the increase. The new Montero 2007 model was launched in March. In late 2006 the new L200 Double Cab (both 2 wheel and 4 wheel models) and also the “Sportero” were launched.

UMLL’s consolidated turnover and profits were also the highest achieved so far. Whilst Group turnover of Rs. 6.7 billion had grown by 43% from the previous year, Group PAT of Rs. 428.8 million reveals an increase of 46.7%.

The Chairman, in his report to the shareholders has pointed out that the Group Earnings Per Share rose from Rs. 8.59 in 2005/06 to Rs. 12.44 in 2006/07 and return on Group Shareholder’s Funds increased from 17% in 2005/06 to 20.7% in 2006/07 Group Net Assets Per Share which stood at Rs. 63.28 at Balance Sheet date reflected a growth of 18.7% whilst Shareholders’ Funds as per the Consolidated Balance Sheet grew from Rs. 1,697.3 million at March 31, 2006 to Rs. 2,023.3 million as at March 31, 2007.

During the year UMLL invested in freehold land amounting to Rs. 135.8 million. The company plans to develop this land which is situated at a prime location in Vauxhall Street, Colombo 2, by constructing a commercial building that can generate rental income to further augment the business portfolio of UMLL.

In 2006 UMLL was adjudged sector winner at the annual competition for the Best Corporate Report and Accounts conducted by the Institute of Chartered Accountants of Sri Lanka.