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| Sunday, 7 May 2006 |
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Udapussallawa Plantations incurs Rs. 14.3 m loss in 2005 Udapussallawa Plantations Ltd (UPL) for the year ended 2005 incurred a loss before interest and tax of Rs 14.3 million ($143,000) compared to a profit of Rs 41.9 million in 2004, chairman N. K. H. Ratwatte has informed shareholders. During the same period UPL's turnover increased from Rs 889 million to Rs 930 million, an increase of 4.6 percent. The increase in the turnover on account of the improved volume of tea and other commodities was offset by the frequent changes to the fiscal policies of the government. It being, the exemption of tea from VAT and the introduction of the Economic Service Charge in addition to the 30 percent wage increase granted in 2004 which adversely affected the company's profitability and cash flow. This resulted in a loss of Rs 80.6 million after interest and tax, compared to a loss of Rs 10 million in 2004. Overall, UP's production increased by 5.7 percent whilst the tea prices increased only marginally as there was no significant improvement of the market conditions for the tea produced in the Udapussallawa zone and a drop in the prices of CTC teas during the year, Ratwatte said. UPL's income statement for 2005 shows revenue at Rs 930.31 million, 2004 - Rs 889.33 million. Cost of sales Rs 916.89 million compared to Rs 812.78 for 2004. Gross profit Rs 13.43 million and Rs 76.56 million in 2004. Other operating income Rs 31.69 million compared to Rs 21.29 million for 2004. Administrative expenses Rs 59.46 million and Rs 55.92 million in 2004. Loss from operating activities Rs 14.34 million against a profit of Rs 41.93 million in 2004. Finance cost Rs 73.12 million against Rs 61.64 million in 2004. Amortisation of negative goods remains at Rs 13.01 million. Loss from ordinary activities before taxation Rs 74.44 million while the loss was Rs 6.68 million for 2004. Taxation Rs 6.19 million (2005) and Rs 3.52 million in 2004. The loss for the year was Rs 80.63 million and Rs 10.21 for 2004. Earnings per share basis - Rs (4.16) and Rs (0.53) in 2004. The principal activities of the company are the cultivation, manufacture and sale of tea, rubber and coconut and other minor crops. No major change in these activities took place during the year, the directors report said. No dividend has been recommended. Instead, this year, shareholders will be hosted at Concordia Estate, Nuwara Eliya. EL |
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