Asia Capital makes Rs 222 m profit
Asia Capital has achieved Rs 222 million net profits for the year
ending March 2010. This is a complete turnaround for the group of
companies compared to a Rs. 379.2 million loss in the year 2009.
|
Monohan Nanayakkara |
The operations for 2010 showed a decline in cost of sales which
resulted in this profit even though revenue figures have seen a drop
compared to the same period in 2009.
The share price alone has increased from a low of Rs 5.5 in April
2009 to around Rs 47 at the time of writing.
Asia Capital was faced with a difficult and challenging few years
beginning FY2007 up until 2009 due to many changes in the management
along with several resignations and new entrants to the Director Board.
Asia Capital Chairman and Managing Director Monohan Nanayakkara said
the turn around strategy was not an easy one. “The Change Management
Committee and the Group Management Committee were the two teams
appointed to help me implement it,” he adds, whose job is to identify
and exploit synergies among the three major elements of their core
business; namely Stockbroking and Investment Banking, Insurance, and
Credit and Deposit Mobilization. Together they formed a cohesive team to
maximize value to the group shareholders, whilst minimizing the conflict
of interest amongst the majority and minority shareholders and between
divisions.
As a result there has been a clear increase of the earnings per share
from a negative of Rs 4.04 in 2009 to a positive of Rs 1.91 this year.
“We see ourselves continuing to generate cash and make investments in
the medium term,” Nanayakkara said. stating that they plan to strengthen
their ownership control over their core holdings in the first instance
and brand and expand the ‘Asia’ franchise to exploit the synergistic
business opportunities in financial services within the core holdings.
On future plans for the group he said they hope to exploit their
positioning in the financial services industry to the non-core areas
where they will continue to invest in companies that have either
fundamentally good management or those that require attention, both
financially and managementwise. |
