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| Sunday, 22 May 2005 |
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Business |  |
| News Business Features Editorial
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Hayleys pre-tax profit up 37% to Rs 1.9 billion Hayleys Ltd., the Sri Lankan multinational bluechip, has reported healthy growth in turnover, pre and post tax profits for the year ended March 31, 2005, despite losses attributed to exchange rate movements in the final quarter, costs incurred on tsunami relief and costs of restructuring. According to the Group's financial results presented to the Colombo Stock Exchange this week, pre-tax profit grew 37 per cent to Rs 1.9 billion on a turnover of Rs 19.4 billion, which reflected a growth of 25 per cent. Profit after tax grew 33 per cent to Rs 1.4 billion. These results were achieved despite an adverse impact of more than Rs 300 million on turnover and profitability mostly in the final quarter of the year. The post-tsunami appreciation of the Rupee against the Dollar by 7 per cent cost the Group Rs 200 million, donations and pledges toward tsunami relief cost another Rs 45 million, while Voluntary Retirement Schemes related to restructuring in two sectors of business cost Rs 56 million. Profit after tax attributable to the Group, considered the ultimate bottom line, grew 17.4 per cent to Rs 774 million. In keeping with the principle that profit retention beyond that needed to sustain the real value of equity has to be minimal, the Group has proposed a final dividend of 17.5 per cent, bringing total dividends for the year to 35 per cent. The dividend payout for the year is Rs 262.5 million, an increase of 50 per cent over the previous year. The Group also floated a rights issue of one share for 10 held in the second half of 2004 and declared a bonus issue of four shares for every 11 in early 2005. Shareholder funds as at March 31, 2005 had grown 11.7 per cent to Rs 7.9 billion. Reviewing the results for the year, Hayleys Chairman Rajan Yatawara said
he is optimistic of achieving at least a 50 per cent improvement in Group
profits in the current financial year, given a stable security situation in
the country and an exchange rate that is competitive with regional
currencies. |
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