|
|
|
  |
| Sunday, 3 April 2005 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
LOLC group records Rs 472 m profit in nine months The pioneering leasing company of Sri Lanka with a strong track record of business excellence recorded a cumulative profit of Rs 419 million for the nine months up to December 30, 2004 reflecting a 72% increase in net profits compared to the previous financial year. LOLC's business model which deliberately focused on diversification whilst retaining a leading edge in its core business increased group profits up to Rs 472 million, a hike of 77%, when compared with the previous financial year. Growth in business volumes achieved through LOLC's commitment to maintain a high level of customer satisfaction supported a 67% increase in operating profit compared to the 45% growth in operating profit recorded during the first half of the current financial year. These results were achieved despite highly competitive market conditions and a higher level of provisioning for credit losses made by the company purely on a prudential basis. Return on Capital Employed (ROE) increased to 25% at the end of the third quarter compared to the ROE of 17% at the end of the third quarter of the previous financial year. Astute asset and liability management and pragmatic approach cost control measures enabled LOLC achieve a 7% Return on Assets compared to 4%, in the previous year. Total assets of the company grew by 8% to reach Rs 8.7 billion as at December 31, 2004. Shareholders funds amounted to Rs 2.2 billion at the end of the nine months compared to Rs 1.8 billion in the previous year. The market capitalization of the Group increased to 3.8 billion from Rs 2.4 billion in the previous year, resulting in a 58% growth in shareholder wealth. The company paid an interim dividend of Rs 38 million to their ordinary shareholders compared to the interim dividend of 35 million paid during the previous financial year. Continued improvement in LOLC's profitability is expected to result in further benefits to our valued shareholders. Head of Corporate Affairs, Chandana Silva attributed the consistently superior performance of LOLC to the ability of its management teams to react quickly to challenges in the business environment and convert them into commercial success. |
|
| News | Business | Features
| Editorial | Security
| Produced by Lake House |
