JKH posts PBT of Rs. 3.01 b

John Keels Holdings (JKH) recorded a Profit Before Tax (PBT) to Rs. 3.01 billion. An increase of 27 per cent for the six months ended 30 September 2008 for the six months, ended 30 September 2008.

Chairman Susantha Rathnayake

Chairman Susantha Rathnayake revealed in his message that 46 per cent and 27 per cent above the PBT of Rs. 1.28 billion and Rs. 2.37 billion in the corresponding periods in the previous year, the Profits Attributable to Equity Holders for the quarter, and six months, ended 30 September 2008 of Rs. 1.01 billion and Rs. 1.85 billion respectively, were marginal decreases of 1.5 per cent and 0.2 per cent over the corresponding periods in the previous year because of the one off tax charge suffered by the group as a result of the Supreme Court Judgment relating to Lanka Marine Services (Private) Limited (LMS).

Revenues at Rs. 10.73 billion and Rs. 21.82 billion in the second quarter and the first half of Financial Year 2008/09, were 11 per cent and 20 per cent above the Rs. 9.67 billion and Rs. 18.14 billion recorded in the corresponding periods in the previous year,

At a Company level, the net profits for the quarter, and six months, ended 30 September 2008 were Rs. 2.52 billion and Rs. 2.87 billion respectively, these being increases of 329 per cent compared to Rs. 589 million and 222 per cent compared to Rs. 891 million respectively, over the corresponding periods in the previous year.

Transportation was significantly affected by the costs associated with the judgement relating to LMS. The operating update and financial implications are detailed in note 10 to the financial statements.

The PBT for the quarter was Rs. 545 million, a 34 per cent decrease compared to the Rs. 831 million for the corresponding period last year and for the six months, the PBT was Rs. 1.47 billion, a 11 per cent decrease compared to the Rs. 1.65 billion for the same period last year.

Leisure continued to make losses in the face of negative travel advisories on Sri Lanka resulting in lower than expected tourist arrivals. Furthermore, high input costs particularly in respect of electricity also impacted profitability.

Additionally, despite high local inflation, the SL Rupee has held steady against the US Dollar, thereby causing margins to be significantly reduced.

The Loss for the second quarter was Rs. 223 million compared to a loss of Rs. 66 million for the same period last year, while the loss for the first six months was Rs. 581 million compared to a loss of Rs. 418 million in the corresponding period last year.

Property recorded a second quarter PBT of Rs. 108 million, which was 21 per cent higher than the PBT of Rs. 89 million recorded in the same period last year.