Laugfs Group revenue crosses Rs 10 bn mark in FY 2012-13

Laugfs Gas PLC and its subsidiaries in a Stock Exchange filing of the un-audited financial statements for the 4th quarter ended March 31, 2013 had indicated, record performance with Group revenue for the year under review crossing Rs10 billion mark to reach Rs10.6 billion.

Chairman W. K. H. Wegapitiya	Managing Director Tilak De Silva

It is a landmark for the Group of companies in its comparatively short history of business operations. It has achieved this feat, despite the many unprecedented changes that has taken place, over one and a half decades of its existence, in virtually all aspects of the business environment that it was operating in. The Group was able to withstand the turbulent times and preserved core of the business, by staying focused on the fundamentals of the operation, while being willing to change everything else necessary to win and retain customers. The Profit Before Tax of the Group recorded Rs.1.3 billion, which is a remarkable growth of 29% over the previous financial year. The Group Total Comprehensive Income for the year, Net of Tax recorded a commendable Rs1 billion as against Rs. 597 million last year, which is a creditable improvement. The Total Group Assets increased by 3% to a position of Rs 10.6 billion.

The Property, Plant and Equipment alone increased to Rs 6.5 billion, Net of Depreciation is an increase of 18% over previous year. The productive investments made in this manner would accrue benefits to the shareholders in the ensuing years in the form of better returns having comparatively shorter gestation periods and early pay backs. The group retained earnings increased by 16% to Rs.3.5 billion, while Net Assets increased by 8% to Rs.6.5 billion.

The Net Asset Value Per Share has increased to Rs.16.76 from Rs.15.58 last year. The Earnings Per Share (EPS) increased by 28% from Rs 2.14 to Rs 2.74 per share. The Group is determined to keep this momentum uninterrupted to maximize the value of the shareholders’ investments in the future as well.

As far as the core business activity of the Group, the downstream operations of LP Gas is concerned, once again recorded highest ever revenue of Rs 9.7 billion, and it was an increase of 16% over the preceding year.

The Gross Profit margin, however, reduced to 11% from the previous year’s 14%, mainly due to escalation of world market prices of LP Gas and also it was due to the impact of upward movement of foreign exchange rates prevailed during the greater part of the financial year under review. The company’s EBITDA surged to Rs1.6 billion, which is an increase of 62% over last year and a creditable achievement in the wake of uncertainties and slowdown of economic activities that were faced with.

The Profit Before Tax of the company from continuing operations was Rs1.4 billion, an increase of 72% over the previous year. The most striking and commendable achievement on the core business activity is that we have more than doubled the Total Comprehensive Income Net of Tax to Rs.1.2 billion during the year under review from Rs. 411 million recorded last year. The company’s total liabilities reduced by 4%, during the year to Rs 3.9 billion. The company’s retained earnings had a notable surge of 27% from Rs 2.3 billion last year to Rs.3 billion in the current year.

The array of achievements described both for the Group and for the company in its core business activity, converged to underscore the strength of a financially healthy organization that always meets its growth targets and maintains uninterrupted momentum, despite uncertain external environment forces that usually prevails. Despite all these impressive achievement we believe the Laugfs Gas’s best and most exiting days remain ahead.