Aitken Spence: Rs 488m 1Q PBT

Aitken Spence PLC released its first quarter financial results to the Colombo Stock Exchange yesterday, reporting Rs 488mn as pre-tax profit, a decline of 19.4 percent while revenue fell by 20 percent to Rs 5.06 bn over the previous year.

The diversified conglomerate attributed the decline as mainly due to the drop in earnings from its Maldivian resorts and the plantations sector, which resulted in profits-after-tax being reduced by 22.3 percent and profit attributable to shareholders amounting to Rs 293.8.

With a chain of seven resorts Aitken Spence is the largest international resort operator in the Maldives. The islands attract high-end tourists mainly from Western Europe.

"A sharp drop in tourist arrivals to the Maldives due to the global recession had a negative effect on the tourism sector earnings in the first quarter. With aggressive promotions in alternative markets, especially in East Asia, we hope to further diversify our markets in the future," said Deputy Chairman and Managing Director of Aitken Spence PLC. J. M. S. Brito.

During the quarter under review Aitken Spence Hotels announced that its first property, Neptune Hotel will be transformed into a 60 room wellness resort under its Heritance brand umbrella.

"We are vigorously looking at opportunities in all sectors to partner in the development of the North and the East provinces. Concerted destination marketing and infrastructure development in targeted tourism hotspots would give reasons for the industry to be bullish about Sri Lanka's tourism prospects, in spite the recession curbing global travel," said Brito.