JKHL group revenue soars 27% to Rs. 29.93 billion

John Keells Holdings Ltd (JKHL), encompassing one of Sri Lanka's most diversified conglomerates, recorded a group revenue of Rs. 29.93 billion for the year ended March 2006 up 27 percent over 2004/05.

For the financial year in review, group pre tax profits increased by 37 percent to Rs. 4.31 billion; profits attributed to the group increased by 34 percent to Rs. 3.05 billion; pre tax return on capital employed increased from 13.7 percent to 15.9 percent; earnings per share increased by 33 percent to Rs. 7.54, chairman, Susantha Ratnayake has told shareholders.

Transportation was the single largest contributor to the group's profit after tax with Rs. 2.21 billion, being 63 percent of the group total.

Leisure made a gradual recovery following the tsunami, closing the year with a PAT of Rs. 619 million, despite a Rs. 170 million repositioning cost and special incentives offered to stimulate the leisure industry, Ratnayake said.

The property industry group contributed Rs. 832 million to the group PAT. The 195 apartments at "The Monarch" has been sold and construction is scheduled. Another condominium, "The Emperor" in Crescat City has received "overwhelming pre-bookings and the formal sale of apartments is expected to commence this month.

The F&B contribution to the group PAT was Rs. 191 million despite having to suffer heavy taxation because of advertising and marketing expense add-backs. Ceylon Cold Stores profits were four times that of the previous year. Financial services contributed to a PAT of Rs. 250 million, by good performances from Union Assurance Ltd (UAL) and Nations Trust Bank and John Keells Stockbrokers Ltd.

IT contributed a PAT of Rs. 83 million.

In September 2005 the group sold its 51 percent stake in Keells Management Services, the holding company of Namunukula Plantations. With this divestment, the group exited from the ownership of plantations and now owns only tea smallholder factories and broking and warehousing businesses under John Keells Ltd and ceases to report plantation as a separate segment.

JKH will hold its 27th AGM on June 30, and a dividend of 10 percent will be recommended by the board. An extraordinary meeting will follow, proposing to shareholders a bonus issue of 57,163,177 fully paid ordinary shares of Rs. 10 each to the holder of ordinary shares in the company as at end of trading on June 13.

The offer will be made in the proportion of one new ordinary share for every seven existing ordinary shares held by capitalising Rs. 571,631,770 standing to the credit of the share premium account in the books of the company as at April 30.

These new shares upon allotment will rank pari passu in all respects with the existing issued ordinary shares of the company subject to approval of the shareholders, and in any dividend declared after the date of issue. The new share will not be entitled to the 10 percent final dividend for the year ended March 31, 2006 which is to be declared at the AGM.