Aitken Spence pre-tax profit increases 11% to Rs. 1.9 billion

Aitken Spence and Co, posted its review for the financial year 2005/2006, declaring a revenue of Rs. 13.6 billion, a growth of 35% over the previous year, profit before tax of Rs. 1.9 billion, an 11% growth from last year's Rs. 1.7 billion and a net attributable profit of Rs. 1.2 billion.

The company further posted a positive Economic Value Added of Rs. 964.7 million and Earnings Per Share stood at Rs. 44.76 with a return on equity of 15%.

Further, even while experiencing difficult economic hurdles in the year under review, Aitken Spence and Co. Board recommended a final dividend of 35%, marking a total dividend of 65% for the year, a distribution of 8% more than the dividend paid last year.

Aitken Spence and Co. further consolidated their leadership in Sri Lanka's tourism industry, with Chairman D. H. S. Jayawardene firmly supporting the development of a strategic destination marketing campaign by the government, funds for which are in place and for which private sector collaboration is essential.

Deputy Chairman and MD Brito outlined the need for government support of the still largely unexploited tourism potential of Sri Lanka, saying "A robust open skies policy is absolutely critical to the growth of the Sri Lankan aviation industry to take advantage of European carriers into the country". In the tourism sector the Maldives operations recovered strongly after the tsunami setback to record a satisfactory growth.

The Group invested Rs. 400 million in the Water Villas at Meedhuparu, a cluster of 20 luxury water bungalows catering to the up-market tourist. In Sri Lanka the Group invested Rs. 1.8 billion in refurbishing and re-positioning its two flagship hotels Kandalama and Heritance (formerly Triton).

Aitken Spence and Co, for its part, continues to expand its tourism reach, exploring new opportunities in the region, forming strategic alliances with international partners and re-branding their premier hotels under the new name "Heritance".