Record profit after tax of Rs. 942 m for Laugfs Gas

Laugfs Gas PLC and its subsidiaries having recorded a profit after tax of Rs. 942 million as per the un-audited financial statements for the year ended March 31, 2012, announced a payment of first and final dividend of Rs. 1.50 per share for both ordinary voting and non- voting shares held. Chairman Laugfs Gas PLC W K H Wegapitiya described the announcement as a repeat performance and fulfillment of its promise made to its shareholders to “Share the Golden Harvest” at its historic Initial Public Offering in December 2012.

Wegapitiya indicated the improved performance considered creditable in the backdrop of the local and global business environment, especially in the circumstances of significant upward movement of prices in crude oil markets during the year and also the negative impact made on the bottom lines of Laugfs Gas PLC due to the depreciation of Sri Lanka rupee. Laugfs Gas PLC now depends to the extent of around 75-80% on import of LP Gas from overseas destinations, thus the depreciation of Sri Lankan Rupee against US dollar continued to be an issue to be addressed and the company is exploring all the possible avenues to mitigate its effects through stringent cost control on all other operational activities and to increase in productivity of all resources deployed.

The statement of financial position of the group reveals a robust position with a total net asset value of Rs. 6.4 billion and it is a growth of Rs. 345 million over previous year and net current asset situation had always been healthy and this is a reflection of prudent working capital management undertaken by the company. Laugfs Eco Sri (Pvt) Ltd the group’s operating subsidiary out of the three of them, posted very impressive results for the year with a revenue of Rs. 780 million as against Rs. 566.3 million the previous year. The company was able to achieve this feat with increased testing centres scattered over the country except in the Northern province. It has now been revealed from the tests carried out by the authorities concerned that the air quality had improved significantly after the programme for vehicle emission testing was implemented.

The group's subsidiary in the hospitality and leisure sector, Laugfs Leisure Ltd made few giant strides during the current year with rapid progress made of its first 88 roomed hotel in Karukapone, Chillaw and also with acquisition of prime properties at Kalutara in South Western Tourism Zone and also picturesque Passikudah in the East Coast.

The property development undertaken at Maya Avenue expected to be completed by end of the current financial year and it shall be ready for occupation by that time.

Despite whatever volatility in the external environment in all these years, the growth path of the company had never gone out of track and the some momentum will be kept in the future too Wegapitiya added.