First Capital posts healthy profits

First Capital Holdings PLC has posted a healthy profit after tax for the financial year 2010/2011 of Rs 990 million compared to Rs 682 million for the previous financial year.

Profits for the quarter ended March 31, 2011 were Rs 81 million an improvement on Rs 41 million for the same period the previous year.

Earnings per share were Rs 10.03 whilst Net Assets Per Share stood at Rs 15.04. "In the last couple of years we have seen exceptional profit growth at First Capital," a company spokesperson said.

"In 2010/11 although conditions were less conducive than those in the previous year in which a highly favourable bond trading environment resulted in exceptional profits by the Group's primary dealer arm, the company was able to sustain its momentum helped by strong performance in all areas."

He said reported profits were boosted by a one-off gain from the sale of an associate company - Kotmale Holdings PLC amounting to Rs 180 million and a decision in the company's favour by the Inland Revenue Board of Review resulting in a tax reversal of Rs 444 million.

He affirmed that First Capital was gearing up for measured and steady growth. First Capital Wealth Fund - a Unit Trust dedicated to investment in fixed income securities was launched and the company was granted a license to function as a Dealer on the Debt Exchange (DEX).