Resilient performance by Aitken Spence

Aitken Spence PLC reported its annual financial results for 2014/15 to the Colombo Stock Exchange on Monday, reporting a profit before tax of Rs 5.7 billion and profit after tax of Rs. 4.9 billion, a growth of 4.9 per cent and 6.6 per cent respectively. The diversified Group's annual revenue rosea marginal 0.7 percent to Rs. 35.3 billion whilst earnings per share declined by 2.5 per cent to Rs. 8.82 for the financial year.

"Although this year has been a difficult year in terms of performance, it must be noted that while riding the wave of external challenges, we have turned inwards to strengthen ourselves to reap the opportunities of the future. We are thus optimistic about the future growth of the Company", said Aitken Spence PLC's Chairman D. H. S. Jayawardena.

"Aitken Spence has recorded another year of resilient performance. Diversification held the Group in good stead in 2014/15, to grow amidst challenging global economic conditions and intense competition", said Deputy Chairman and Managing Director, Aitken Spence, J. M. S. Brito.

The revenue of the tourism sector for the financial year grew by 5.1 percent to Rs. 17.8 billion whilst recording a profit before tax of Rs. 4.2 billion and a profit after tax of Rs. 3.7 billion, a decline of 2.2 percent and 1.2 per cent respectively, for the year. The decline in tourism sector bottom line was mainly due to the decline in profits from hotels in Sri Lanka and overseas which was primarily attributable to the adverse impacts of the global political and economic climate.

"The coming year will be an exciting one for the sector, as we add Heritance Negombo to our portfolio and also expand capacity at The Sands, Kalutara by 91 rooms. Construction of the RIU Hotel in Ahungalla is well on target and we are excited by the possibilities offered by our partnership with RIU, and its parent company TUI" added J M S Brito.

Annual revenue for the Maritime Logistics sector increased by 3.9 percent to Rs. 7.7 billion while profits before tax increased by 4.3 percent to Rs. 735 million and profit after tax increased by 8.1 percent to Rs. 614 million.

The Maritime and Logistic sector experienced weaker performances from the freight forwarding and the logistics segments whilst overseas investments performed well. Strategic Investments sector's profits surged during the year, with profit before tax swelling by 207 percent and profit after tax rising by 341 percent to Rs. 613 million and Rs. 509 million.However, the sector reported a year-on-year decrease of 6.4 percent in revenue to Rs. 15.2 billion mainly due to the reduction in revenue from the power segment.

The sector's printing and garments segments have reported exceptional performances. The Plantations segment reported outstanding results driven by an efficient diversification initiative.