Lanka Tiles records Rs. 313m profit

Lanka Tiles turnover increased by 21.6% to Rs. 2,501 million whilst the gross profit showed a healthy increase of 20.6% to Rs. 726 million.

The Group succeeded in maintaining a gross profit margin of 29.0% in spite of sharp rises in energy costs during the year that accounted for more than 35% of the total cost.

Chairman, Anthony A. Page said in the annual report said he was pleased to record that the Group’s after-tax net profit of Rs. 313 million attributable to shareholders is a 14.7% increase on last year. The Group had continuously invested over the years to increase production capacity which now stands at 9500 sqmt per day.

“We have committed a further Rs. 151 million during the year under review to modernise and upgrade plant and machinery in order to further improve the quality and designs of our range of products.

This year too the Group will be investing significantly to upgrade its technological know-how and manufacturing capacity,” he said.

The Group also invested Rs. 60 million to purchase a land in Biyagama to build a modern distribution centre and a showroom.

This investment was made considering the difficulties faced in running the existing leased warehouse located in Rajagiriya. Construction of the warehouse will commence in August 2008 and the building operational by June 2009.

The Group paid a dividend of 25% in October 2007 out of the profits made in 2006/07 which was approved by the shareholders at the last Annual General Meeting.

A further interim dividend of 15% was paid in February 2008 out of the profits made during the year.