Aitken Spence records strong performance

With 24% growth in profits for 9 months:

Blue chip conglomerate Aitken Spence PLC reported its interim results to the Colombo Stock Exchange on Monday, showing Rs 3.02 billion as pre-tax profit and Rs 1.95 billion as profit attributable to shareholders for the nine months ended December 31, 2011, an increase of 24 percent and 20 percent respectively over the previous year. For the third quarter, the company recorded a growth of 53 percent in pre-tax profit and a growth of 41 percent in profit attributable to shareholders to Rs. 1.34 billion and Rs. 819 million respectively.

The diversified group’s nine-month revenue rose by 15 percent to Rs. 21.02 billion while the revenue for the third quarter rose by 30 percent to Rs. 8.06 billion. Earnings per share increased by 20 percent to Rs. 4.81 for nine-month period while it rose by 41 percent to 2.02 during the third quarter.

“Our travels, Maldivian resorts, and maritime services sectors contributed considerably to the bottom line. The Group’s port related operation in the African Continent which completed five years of business continued to contribute strongly towards the performance of the Group while the apparel sector successfully surmounted the removal of GSP and having secured strong relationships with customers performed well during the year. The printing sector too performed well and with its continuous commitment to quality invested in a new state of the art six colour printing press and an eco-friend factory in Mawaramandiya which will be in operation soon,” said Aitken Spence PLC Deputy Chairman and Managing Director J M S Brito.

The Company’s travel arm, the largest inbound operator in the country, which recorded a robust performance during the period under review, is a joint venture with TUI Travel PLC, the world’s largest integrated tourism group. Aitken Spence is amongst five largest resort operators in the Maldives with an internationally-acclaimed chain of resorts under the brand Adaaran. The Group is Sri Lanka’s largest logistics service provider covering the whole gamut of logistics related services including container operations, freight forwarding, maritime services and express. During the period under review Aitken Spence increased its stake in Colombo International Nautical and Engineering College (Private) Ltd., (CINEC) and now has a significant holding in the country’s largest private sector higher education campus. The Company expects to extend the synergies derived from this affiliation to expand the educational programmes offered by CINEC into other industries that the Group operates in.

Subsequent to the balance sheet date the Company having secured the contract to develop the Colombo South Terminal being the sole bidder in consortium with China Merchants Holdings (International) Company Limited (CMHI), finalised the formalities to sell it’s 30% shareholding in Colombo International Container Terminals Limited (CICT) the project company to CMHI. This sale would realize a capital gain of approximately Rs 630 million to the Group during the year 2011/2012 which will be reflected in the fourth quarter.

Aitken Spence in its continuous drive to enhance shareholder value ventured overseas in areas where the group had strong management and operational capabilities. The Group’s power sector successfully bid for and were selected to develop two thermal power plants in Bangladesh on a BOO basis.

“With almost 50 functional environmental management systems benchmarked under ISO 14001 across the Group, Aitken Spence is committed manage its impact on the environment systematically. We are pleased to have announced several achievements during the last quarter which will add to our many international and country firsts, in championing sustainable business,” said Brito.