JKH group pre-tax profit up 51% to Rs. 1.1 billion in 1Q, 2007/08

John Keells Holdings (JKH) group achieved a profit attributable to equity holders of Rs. 821 million, a 67 per cent increase over the corresponding period in the previous year.

The group recorded revenues of Rs. 8.5 billion and a profit before tax (PBT) of Rs. 1.1 billion in the first quarter of FY 2007-08, a growth of 13 per cent and 51 per cent over the corresponding period in the previous year.

This substantial increase in profits is primarily attributable to the performance of the Transportation industry group and the strengthening of the balance sheet through the rights issue held earlier this year.

At a company level, the net profit for the quarter was Rs. 302 million, an increase of 7 per cent over the corresponding period in the previous year.

The Transportation industry group maintained its steady performance during the quarter, recording a 36 per cent increase in PBT over the corresponding period in 2006. A consortium lead by JKH is one of five bidders for the proposed South Container Terminal expansion at the Colombo port.

The Leisure industry group recorded a loss of Rs. 351 million in the first quarter primarily due to the prevailing environment in Sri Lanka, the closing of Ellaidhoo Island Resort for refurbishment and the pre-opening operating costs of Cinnamon Island, Alidhoo.

JKH is hopeful that tourist arrivals to Sri Lanka will improve in the remainder of the year with the lifting of advisories against travel to Sri Lanka by some embassies.