Corporate

Hayleys 3Q profits drop to Rs. 571 m

An intensification in the thrid quarter of 2008-09 of the impact of the global economic downturn on some of its businesses has taken a significant bite out of the nine month profits of Hayleys PLC, the manufacturing and export focused Sri Lankan multinational conglomerate.

Despite a 14 per cent growth in turnover to Rs. 24.8 billion by the end of the third quarter of the year the diversified blue chip’s profit before tax for the nine months ending 31st December 2008 declined 17 per cent to Rs. 1.1 billion, while post tax profit from continuing operations dropped 34 per cent to Rs. 647 million.

According to results released to the Colombo Stock Exchange this week, profit after tax and losses from discontinued operations (principally consumer durables) for the period reviewed was down 17 per cent to Rs. 571 million.

Losses from discontinued operations were Rs. 76 million against Rs. 299 million last year. There will be no carry-over of losses from Consumer Durables beyond the financial year ending 31st March 2009. Profit attributable to equity holders of the company declined 16 per cent to Rs. 184 million.

Commenting on these results, Hayleys Chairman and Chief Executive N. G. Wickremeratne said: “The impact of the international economic downturn, which gathered momentum during the (third) quarter, affected several of the Group’s businesses. The Group’s Global Markets and Manufacturing businesses began to be faced with softening demand and customer pressure for lower prices.”

Excellent Growth at HNB Assurance

HNB Assurance PLC has reported a 25% growth in its turnover and a 33% growth in its profit after tax according to the financial results for the year ended 31st December 2008. The Company which is rapidly emerging as the fastest growing insurer in the country achieved a combined turnover of Rs. 1.84 billion during 2008. General Insurance contributed a Gross Written Premium (GWP) of Rs. 924.7 million while Life Insurance contributed a GWP of Rs. 914.2 million. The growth rates achieved from general and life insurance stood at 31% and 19% respectively.

While achieving a commendable rate of growth in its turnover, the Company also ensured that its profitability is also sustained by achieving a profit after tax of Rs. 164.5 million. General Insurance business accounted for Rs. 64.5 million of this profit while Rs. 100 million originated from the Life Insurance business as a transfer of surplus. The company has also allocated adequate funds to offer handsome bonus declarations to its life policyholders up to a maximum of Rs. 40 per Rs. 1,000 sum assured.

Union Assurance reports impressive results in 2008

Union Assurance (UA) ended 2008 on a high note, reporting year on year growth in turnover as well as profitability. General and life insurance premiums increased by 14 per cent, from Rs. 5 billion in 2007 to Rs. 5.7 billion in 2008. Consolidated profit after tax increased by 35 per cent from Rs. 254 million in 2007 to Rs 342 million in 2008. The increase in consolidated profit before tax was 40 per cent. Both life and general insurance segments performed well during the year. General insurance gross written premium increased by 13 per cent, from Rs. 2.8 billion in 2007 to Rs. 3.2 billion in 2008. Profit from this line increased by 42 per cent, from Rs. 110 million in 2007 to Rs. 157 million in 2008, mainly due to increased investment income.

Aitken Spence continues its steady progress

Aitken Spence PLC released its third quarter financial results to the Colombo Stock Exchange today, reporting Rs. 2.1 billion as pre-tax profit and Rs. 1.3 billion as profit attributable to the shareholders for the nine months ended December 31, 2008, which is an increase of 11.5 per cent and 15.1 per cent respectively, over the previous year.

Group turnover has increased by 21.4 per cent to Rs. 23.5 billion, up from Rs. 19.4 billion last year. Earnings per share increased 15.1 per cent from Rs. 40.63 to Rs. 46.78.

Rediffusion - Y&R appoints

Rohit Misra as President

Rohit Misra has been appointed President, Rediffusion - Y&R. His responsibilities will include leading the creative agency nationally in India as well as its Sri Lankan operations. He will be based out of Mumbai.

The elevation of Mahesh Chauhan to Group CEO had left the position of agency head vacant, and Rohit, who is currently the CEO for the Sri Lanka operations for Rediffusion - Y&R is a perfect fit. As CEO of Rediffusion - Y&R, Sri Lanka, Rohit successfully revamped and recharged the agency there. He also led it to partner the hugely acclaimed launch of Airtel into the Sri Lankan market. Speaking on the appointment, Mahesh Chauhan, Group CEO, Rediffusion - Y&R, “Rediffusion-Y&R Group today is in a very special place.

The past couple of years have truly been a turning point. In the organization’s new matrix structure, we have been on the lookout for someone dynamic to take our endeavours forward at the creative agency and help it grow bigger and better than ever. In Rohit we now have a fantastic leader, who is a true champion of the beliefs and values of Rediffusion. I wish him great success in his new role.”

Standard Chartered announces board change

Standard Chartered PLC (“Standard Chartered” or the “Group”) announces that Mervyn Davies has stepped down from the Board with immediate effect as a result of his appointment as Minister for Trade Promotion and Investment in the UK Government.

The Board has appointed its Deputy Chairman and Senior Independent Director, John Peace as Acting Non-Executive Chairman. Rudy Markham has been appointed Acting Senior Independent Director. The Board has asked the Nomination Committee to lead the process for the appointment of a Non-Executive Chairman. Mervyn joined the Group in 1993 and has been on the Board of Standard Chartered PLC since 1997. He was Group Chief Executive of Standard Chartered PLC from November 2001 until November 2006, when he was appointed Non-Executive Chairman.

John Peace was appointed as Deputy Chairman and Senior Independent Director of the Board in August 2007. He is also Chairman of Experian plc and Burberry Group plc.

Hayleys AIG new MD

Chris Tragakis

Hayleys AIG Insurance Company Ltd, one of Sri Lanka’s leading International Insurance Companies, announced the appointment of its Managing Director, Chris Tragakis.

Chris joined AIG in 1991 and brings with him a wealth of experience in various functions within the company which include Agency Director for American Life Insurance Company (ALICO), Kenya; AIG’s Resident Representative in Vietnam; General Manager for AIG Insurance Service in Japan and General Manager for American International Assurance (AIA) Life Insurance business in Vietnam.