|
|
 |
 |
| Sunday, 5 January 2003 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Carson Cumberbatch consolidates performance Carson Cumberbatch and Company Limited reported a notable growth in consolidated turnover and profit before tax in the half yearly review for the six months ended September 30, 2002. This growth was brought about by increases in both business volumes and profitability in its core businesses - brewery, investment holdings and palm oil - based in Sri Lanka and the South East Asian region, while real estate and leisure sectors have not performed up to expectations. Consolidated turnover was Rs. 2 billion and consolidated profit after tax Rs. 327 million while the shareholders' funds including minority interest as at September 30, 2002 was Rs. 6.9 billion. The half yearly results for the current year reflect almost the entire profitability of the last financial year. Plantations The performance of the plantation business was strengthened by the recovery in palm oil prices in global markets. These prices are expected to hold for the next few months, enabling the sector to generate a reasonable return this year. The new plantation project in Indonesia, PT Agro Indomas (PTAI), which currently has over 3,000 hectares of immature area representing 22 per cent of the total planted area, will attain full maturity during the year 2003/04. PTAI recorded a turnover of Rs. 489.77 million during the period under review. Its performance is expected to improve towards the end of the financial year, given the steady world market prices and high cropping period projected towards the latter part of the year. The Group's Malaysian plantations are presently undergoing a planned replanting program to ensure competitiveness and productivity in the long term. breweries A modest growth in sales, together with the cost savings resulting from consolidation of operations at one location, account for the improved performance for the quarter, when compared with the previous year. Nevertheless, low consumer purchasing power and regulatory constraints continued to affect shareholder returns. The brewery sector reported a turnover of Rs. 1.18 billion during the first half of the current financial year, while the profit after tax was Rs. 263 million. The Group's brewery business continues to emphasise the need for speedier implementation of reforms in the regulation of the soft alcohol industry. Investment holdings In the six months under review, the market value of the Guardian Group portfolio grew by 36 per cent while market value as at September 30 stood at Rs. 2.3 billion. The Group posted a consolidated profit after tax of Rs. 128.97 million. The recovery in the local stock market presented more opportunities for this sector to enhance the value of its holdings. The proceeds of the rights issue at the beginning of the year were also utilised to secure the benefits of the revival in the stock market. The sector is actively focusing on diversifying its portfolio into viable long-term infrastructure projects as a future strategy. The real estate business performed satisfactorily while the leisure sector was affected by unattractive market conditions. Carsons says that it is greatly encouraged by the new direction the Sri Lankan economy appears to be taking and the progress of the peace initiatives. It is hoped that the revival in investor confidence and the wide ranging economic reforms that have been initiated will provide a better foundation for businesses to operate in future. Guardian Group The Ceylon Guardian Investment Trust Limited (CGITL) together with its quoted subsidiaries, Ceylon Investment Company Limited (CICL) and Rubber Investment Trust Limited, which make up the Guardian Group, has achieved a consolidated post-tax profit of Rs. 128.97 million, for the six months ended September 30, 2002, an increase of 220 per cent compared with the corresponding period of the previous year. CGITL and CICL are two-long standing investment companies listed on the Colombo Stock Exchange and are managed by Carson Cumberbatch and Company Limited. As at September 30, 2002, the Group's portfolio with a market value of Rs. 2.3 billion, recorded an improvement of 36 per cent against the previous year. The increase in market value can be compared against the increase in the All Share Price Index of 39 per cent during the first half of the year. The enhanced liquidity position as a result of the Group's successful rights issues during the last financial year is now being utilised to benefit from this revival in the market. In the six months under review, the Group's portfolio was enhanced by adding shares at a cost of Rs. 143.74 million. Disposals during this period enabled the Group to acquire other liquid stocks with good performance potential at attractive prices. The improvement in performance is attributed to the recent progress in share market activity which responded to a series of positive events such as progress in the peace process, clear focus on economic and fiscal reforms, revival in foreign direct investment and re-activation of the privatisation process. As at September 30, 2002, the price of a CGITL share stood at Rs. 170. This averages to a gain of Rs. 61,000 since February 2002 for a shareholder of CGITL holding 1000 shares, after having invested in the rights issue. A similar gain of over Rs. 43,000 calculated on the same basis, accrued to a shareholder of CICL who would have held 1,000 shares before its rights issue. The Guardian Group continues to focus on adding to its strategic holdings with a view of gaining long term and to enhance liquidity. It will also consider diversifying its investment activities to include infrastructure projects with stable earnings potential in the long term. The Group also sees prospects for its subsidiary, Guardian Fund Management Limited. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
