CSFSL profits soar 65.06% to Rs. 194.6 m

Ceylinco Securities and Financial Services Ltd. (CSFSL) has recorded a profit after tax of Rs. 194.6 million in the financial year 2005/06, a growth of 65.06% compared to the last financial year. The operating profit increased by 43.9% to Rs. 280.181 million while the Pre Tax Profit grew to Rs. 225.465 million, an increase of 68%, compared to the previous year.

Prudent long-term investments that were strategically aimed at increasing returns for shareholders resulted in the Total asset Base of the company expanding by 7.67% to Rs. 7.9 billion. The CSFSL Group produced its finest performance ever, despite the downturn in the investment-banking sector. The main factors attributable for this performance are the income generated from the fund-based activities and diversification to different avenues of lucrative businesses.

Lacklustre capital market operations and stock market conditions have redirected the course of corporate strategy of CSFSL. Having identified this, the management has correctly diversified into leasing and real estate and moved into various other areas with success. This has enabled CSFSL to move forward despite the downturn in the investment-banking climate.

CSFSL has grown from strength to strength and has diversified its activities into financial sector, property development and real estate, stock brokering, money brokering and foliage exports.

During the year under review, performances of all the subsidiaries of CSFSL are in line with expectations. Furthermore it has successfully penetrated to the rural sector by setting up branches in Kurunegala, Kandy, Dambulla, Anuradhapura, Panadura, Negombo, Matara, Trincomalee, Ratnapura and Galle.