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| Sunday, 24 April 2005 |
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Business |  |
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Mercantile
Leasing pre-tax profit up 36% to Rs. 114.5 million
Mercantile Leasing Ltd(MLL) has recorded a pre-tax profit of Rs 114.5 million, an increase of 36% compared to Rs 84 million recorded in 2003. The post tax profit declined marginally to Rs 82 million compared to Rs 83 million recorded last year due to the recent amendments to the tax legislature that necessitated providing corporate taxation as well as the Economic Service Charge. Total shareholder funds in the company grew by 13.8% from Rs 409 million last year to Rs 465 million this year. Earnings per share increased by 9.2% to Rs. 3.78 from Rs. 3.46 in 2003. The share price too increased from Rs. 23 to Rs. 26 with the highest market price of Rs. 35 recorded during the year. The company's market capitalization increased by 10.6% from Rs. 579 million last year to Rs. 530 million in 2003. MLL has announced a 20% first and final dividend for 2004 as against the 10% dividend paid in 2003, said Chairman of MLL V. Lintotawela. Explaining his plans for the future, he said " our plans include expanding our product range to include unique "bundled" products and services that would offer customers of our financial sector entities an unparalleled deal. He said that leasing as a means of financing capital assets could be increasingly threatened by the growing popularity of hire purchase due to inequities in the revenue tax structure, primarily associated in the incidence of the VAT. This anomaly needs to be addressed without delay for the future progress of the leasing industry. Lintotawela said that a line of credit is being negotiated with an international agency on concessionary terms to participate in the challenging task of rebuilding the country's infrastructure, lives, homes and livelihoods of the thousands battered by the tsunami. In July last year John Keells Holdings Ltd acquired a controlling stake of 50.3% of MLL and increased its stake to 75.36% after the mandatory offer. The board of directors of the company are V. Lintotawela Chairman, and directors Susantha Ratnayake, Ajit Gunewardene, Ronnie Peiris, Nimal Jayawardena, Eastman Narangoda and Asoka Sirimane, Managing Director CEO. |
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