JKH posts Rs 10.63 b PBT for 2011

The John Keells Holdings has posted an outstanding performance for 2011

The Group’s profit before tax (PBT) was Rs 10.63 billion, a 63 percent increase over the PBT of 2009 and 10 and the profit attributable to equity holders at Rs 8.25 billion was an increase of 59 per cent over the previous year. It is encouraging to note that our investment strategies in the past few years are contributing towards our endeavours to better balance our portfolio of businesses.

The recurring PBT was Rs 8.83 billion, a 58 per cent increase over that recorded in 2009 and 2010. Summarised below are the key financial highlights of our operating performance during the year.

The strength of our balance sheet is demonstrated, amongst others, by a debt to equity of 21.8 per cent, a net cash to equity of 6.2 per cent, a debt to total assets of 13.3 per cent and an interest cover of 14.4 times (previous year 5.8 times).

“Further, we believe that the present asset turnover can be significantly improved as increasing market demand emanating from a rapidly growing economy, makes our current capacities work more efficiently both in terms of asset utilisation as well as productivity,” JKH Holdings Chairman Susantha Ratnayake told shareholders.

The Transportation group has remained the main contributor to the Group’s after tax profits. Revenues at Rs 13.43 billion and PAT at Rs 2.78 billion were 22 per cent and 31 per cent of the Group’s total revenue and PAT respectively.

Whilst the port operations performed to expectations, the PAT growth of 22 percent over the previous year was mainly due to improved performances by all the strategic business units driven by the growth in the economy.

Increased flight frequencies and the advent of new airlines contributed to the performance of the Airline segment in the subject year. This will also enable future growth in both passenger and cargo volumes.

Profitability in the bunkering business grew on the back of efficiencies achieved in operations and fuel purchasing, whilst shipping, air express and logistics segments benefited from the pick up in trade volumes arising out of increased economic activity. As the anticipated growth in infrastructure projects materialises and economic activity gathers further momentum, the outlook for the Transportation group is positive.