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| Sunday, 5 June 2005 |
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Business |  |
| News Business Features Editorial
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CSFSL net profit up 30% to Rs. 136.2 million Ceylinco Securities and Financial Services Limited (CSFSL) has registered an impressive performance for the financial year 2004/2005 with a turnover of Rs. 3.53 billion and a net profit of Rs. 136.2 million during this period. This reflects a 19% growth in turnover and a healthy 30% growth in net profit compared to the previous year. Total assets have increased by 29% to reach Rs. 7.65 Billion from Rs. 5.94 Billion in the previous year. Net Assets Per Share rose to Rs. 31.02 from Rs. 26.79 while Earnings Per Share increased to Rs. 4.98 from Rs. 3.56. A spokesman for the company said the CSFSL Group has achieved this significant performance after adopting very stringent provisioning policies. This was done to strengthen the balance sheet during the year and has provided Rs. 61.9 million on account of bad debt provisioning and falling value of shares, he said. The main factors attributable for this performance are the income generated from fund based activities such as property development and diversification to the different avenues of lucrative businesses. Aided by the low interest rate regime, favourable economic and investment conditions and demand by the expatriates for the property market, property development has become one of the main income generating businesses in the country. Having correctly identified this, CSFSL has ventured into property development in a big way with tremendous success. This has enabled the Group to enhance the bottomline significantly. Taking advantage of emerging opportunities in the foliage export market, it has diversified into growing and exporting foliage products with the assistance of biotechnology. CSFSL has acquired three foliage companies and has already become one of the major exporters of foliage products. In addition, fee based income also improved significantly during the year under review. To penetrate the rural sector, it has set up branches islandwide. Branches have been set up in Kurunagala, Kandy, Matara, Ratnapura, Negombo, Panadura, Dambulla, Trincomalee and Anuradhapura which have helped increase the fund based activities significantly. To obtain long-term funds for investment purposes, it will involve in debenture issues continuously. On the back of promising business outlook, diversification into
profitable areas, strong organisational capabilities, CSFSL is well
positioned to further improve performance in the future, the spokesman said. |
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