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Three Acre Farms Ltd (TAFL's) group turnover rose by 24.4 percent to Rs 675.5 million for 2005, chairman Cheng Chih Kwong Primus has informed shareholders.

Breeder farms operations returned to profitability. However, the profitability of the company was affected by the continued loss incurred by the commercial farms. Compared to 2004, overall group losses were reduced by 87.5 percent from Rs 200.7 million in 2004 to Rs 25.5 million ($251,000), Primus said.

"We are pleased that the restructuring efforts have yielded substantial improvements and laid a good foundation from which the company will continue our efforts in the coming year," Primus said.

The directors said that the loss for the year ended December 31,2005 after reducing all expenses, providing for depreciations of property, plant and equipment, amortisation of intangible assets and for all known liabilities amount to Rs 23.48 million (2004, Rs 211.63 million).

With taxation of Rs 1.60 million (2004 Rs 10.88 million), loss after taxation was Rs 25.09 million (2004 Rs 200.74 million). This was added to the LOB brought forward relating to previous years of Rs 383.27 million (2004 Rs 182.52 million). Leaving accumulated losses to be carried forward to the next year of Rs 408.36 million (2004 383.27 million).

The company was listed on the Colombo Stock exchange on March 20, 1995 and is quoted in the food and beverage sector.

The holding company, Ceylon Grain Elevators Ltd held 57.21 percent of the issued share capital of TAFL at the balance sheet date. TAFL was capitalised at Rs. 235.45 million (that is 23.545 million paid up ordinary shares at Rs. 10 par value with a market price of Rs. 10 per share or about $2.30 million on December 31, 2005. TAFL shares traded at Rs 12.75 on April 21.

The 44th AGM of the company will be held on May 26, at Rock House Colombo 15. No dividend has been recommended. Primus said that there has been strong demand and firm prices for commercial day old chicks during the year.

Operational highlights include significant improvement in output and efficiency achieved; day old chick volume up by 44 percent. Turnover from a gross loss of Rs 60.8 million to a gross profit of Rs 64 million; losses in commercial broiler farms slashed by 43 percent; restructuring plans on schedule.

EL

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