Corporate news

Sunshine Holdings post tax profit up 79% to Rs 220.6m in six months

An exceptional performance by its pharmaceuticals business and a steady contribution from plantations in the first half of 2008-09 has generated noteworthy turnover and profit growth for Sunshine Holdings PLC, an emerging Sri Lankan multinational which also has interests in travel and packaging.

In results released to the Colombo Stock Exchange, the Group which includes sector-leading companies Swiss Biogenics Limited (SBL) and Watawala Plantations PLC, reported that profit before tax grew 91 per cent to Rs. 305.4 million in the six months ending September 30. Profit after tax at Rs. 220.6 million reflected a growth of 79 per cent over the corresponding six months of last year, while profit attributed to equity holders of the parent company was up 194 per cent to Rs. 133.4 million.

Turnover for the period reviewed grew 18 per cent to Rs. 3.8 billion, while total assets of the Group increased to Rs. 6 billion as at September 30, 2008, a growth of 17.5 per cent over the preceding six months. Earnings per share more than doubled from Rs. 4.54 for the first half of 2007-08 to Rs. 12.64 for the six months under review, and net assets per share grew 61.59 per cent to Rs. 129.75.

The Sunshine Holdings share price achieved a high of Rs. 172 during this period.

Sunshine Holdings Group Managing Director Vish Govindasamy said, “We are pleased to see that the Group’s profit growth has been stronger than its growth in turnover in the review period.

At a time when the opposite is true for many companies in the prevailing environment of shrinking margins, these results are a reflection of our focus on getting the fundamentals right, and the importance of building and maintaining momentum.”

Suntel sponsors Info Tech Night 2008

Suntel Ltd, the most sought after telecommunications provider was the main sponsor for Info Tech Night 2008; a mega event organised by the Information Technology Professional Association in the Katunayake Export Processing Zone (ITPA-KEPZ), at the Airport Garden Hotel and was the first of its kind to target the IT fraternity.

ITPA-KEPZ is recognised as a professional IT and IS membership organisation to strengthen the role of IT within the FTZ industries and neighbouring companies outside the Katunayake Export Processing Zone.

The main focus of the ITPA is delivering and sharing of resources, information and knowledge.

The Finance Co. posts Rs. 663m net profit in 2007/08

The Finance Company, Sri Lanka’s benchmark company has made steady and measurable growth during the financial year 2007/08. A dividend of 18% was announced at the Annual General Meeting.

In results released, the company recorded a net revenue of Rs. 11,306 million in the financial year 2007/8, whereas in 2006/7, it was Rs. 10,986 Million. The Company made a net profit of Rs.663 million in the reporting period.

The narrowing of margins in financing real estate, increase in cost of borrowings due to upward movements in the Government treasury bill rates have affected the profitability of the Company.

However, the relatively strong position has allowed the Company to move cautiously in line with a strategy, while managing the business in extreme tight conditions.

In this context the Company’s performance has been good.

The deposit base has increased from Rs. 21.8 Billion to Rs. 28.6 Billion, a growth of 30.7%, compared to 27% in the previous year. This amplifies the confidence placed by the public, in the Company. Most finance companies did offer high interest rates to attract deposits.

Eagle records 24% growth in revenue in Q3, 2008

Eagle Insurance PLC recorded a consolidated revenue of Rs. 5,117 million for the third quarter of 2008. This reflects an impressive growth of 24% over the corresponding period in 2007.

The gross written premium income of the Group for the third quarter of 2008 grew by 15% to Rs. 4,371 million over the corresponding period in 2007. Life gross written premiums grew by 14% whilst General Insurance recorded a growth of 16%.

Craig Brackenrig was appointed as the Chairman of the Board of Directors of the Company in place of Bert Paterson who resigned from the Board, on November 10.

This ensures a smooth transition for the leadership of the Board. Craig Brackenrig is Finance Director of Aviva Plc’s Asia Pacific businesses.

He is an Associate Member of the Institute of Chartered Accountants in Australia and holds a Bachelors degree from the Australian National University.

Craig has served as a Director of the Board of the Company since November 2007 and brings to the Board over 20 years of experience in senior positions in the finance industry.

Managing Director, Eagle Insurance PLC, Deepal Sooriyaarachchi said, “The Board of Eagle, values the leadership and direction provided by the outgoing Chairman Bert Paterson and welcomes Craig Brackenrig as the new Chairman of the Company. On the business front, despite the very challenging business environment, we believe that we have produced a satisfactory set of results. Our driving force, as always, is our commitment to deliver value to all our stakeholders”.

Encouraging Deepal Sooriyaarachchi and the Eagle team, the new Chairman Craig Brackenrig said, “It is a great honour to be appointed Chairman of the Company.

The Board believes that these results represent a satisfactory performance for Eagle, particularly when we consider the challenging economic and market conditions faced by the business.

We are committed to our purpose of providing prosperity and peace of mind to our customers.”