LB Finance profits rise

LB Finance Plc recorded a profit of Rs 206 million for 2007/08 up by 15 per cent over last year is after tax profit of Rs 179 million, Chairman Bertram Amarasekere said in their annual report.

The company made a contribution of Rs 215 million in direct taxes to the Government during the financial year under review.

The company paid an interim dividend of 10 per cent for the financial year 2005/06, the first ever dividend paid by the company.

As previously reported the net profit of Rs. 48 million during the first year under the new management was unprecedented and was the highest ever posted in the history of our Company.

We paid an interim dividend of 10% for the financial year 2005/06, the first ever dividend paid by your Company in its history.

“Our post tax profits have grown to a remarkable extent.

With the growth of the Company and the increase of the deposit base your Company has to maintain higher capital ratios to be in line with the latest requirements of the Regulatory Authorities,” Amerasekera said.

In order to sustain the growth of the Company, the Board has recommended a Rights Issue and a Debenture Issue, subject to the relevant regulatory authority approvals, details of which are set out in the Annual Report of the Board.

The Company successfully concluded a Rights Issue of one ordinary share for every two shares in December 2007/ January 2008 at an issue price of Rs. 17 per share which was over subscribed.

The Board of Directors being conscious of the fact that the shareholders should be rewarded as an when possible, have recommended a first and final dividend of Rs. 2.25 per share for the year under review to be approved by the shareholders at the Annual General Meeting.

Despite the uncertainty that prevailed with the worsening of the ethnic conflict followed by the general feeling of despondency with global inflation and high prices of fuel and consumer products, the Sri Lankan economy has remained resilient and has been able to achieve a G.D.P. growth of 6.8% for the year under review.

The service sector, industrial sector and tea exports improved during the year under review. There is a lot of potential for growth in the agricultural sector.

The garment industry also contributed to the economy of the country. The amount of foreign exchange brought in by way of remittances is much larger than the earnings from many exports, as much as over US$ 2,500 million almost 2 1/2 times higher than the earnings from tea.