Access Engineering ups 1Q profit by 14% to Rs. 637 m

Access Engineering PLC has yet again demonstrated solid performance in the first quarter of FY16 as per interim results released.

At the Group level turnover for the quarter was recorded at Rs.4.21b, a growth of 25% over the previous year on account of consolidation of Access Projects Ltd. The latter was acquired by AEL in September 2014. After tax profit was recorded at Rs. 637m, a growth of 14% over the corresponding period of last year.

At Company level turnover was Rs. 2.88 billion, up 3% over the corresponding period of last year.  Construction activities have contributed approximately 93% to the Company’s top line while the balance 7% is from the production of construction related material. 

After tax profit for the first quarter ended on 30 June 2015 was Rs. 493 million stemming from a healthy gross margin of approximately 21%.The Company was able to maintain its overheads at consistent levels compared with the corresponding period as a result of the productivity improvement measures undertaken during the period.  During the first quarter the Company’s 100% owned subsidiary Access Realties Ltd. generated a profit of Rs. 37 million to the bottom line while its 84% owned subsidiary Sathosa Motors PLC generated a profit of Rs. 86 million. The recently-acquired Access Projects Ltd. contributedRs. 20 million to the bottom line. Contribution from its 30% Associate undertaking, ZMPC Lanka Company Ltd. amounted to approximately Rs.3 million. The latest addition under its umbrella during the quarter was Horizon Holdings Ltd. (50%) and Horizon Holdings Ventures Ltd. (100%), both acquired with a view to expand real-estate operations.  The total asset base of the group stood at Rs.23.71billion.Equity attributable to owners of the Companyof Rs. 16.6billion at the group level translates into a net asset per share of Rs.16.6.The Company continued to maintain its zero-debt level during the period with Rs.250 million distributed among its shareholders as dividends.