Blue Diamonds shines with 100% rise in 2Q turnover

Blue Diamonds Jewellery Worldwide’s turnover increased by 65% to Rs. 43 million in the six months ending September 2011.

Turnover in the 2nd Quarter ending September 2011 grew 100% to Rs. 25 million while profits in the six months rose 561% to Rs. 46 million.  The latter is due to credit not payable of Rs. 43 million being written back.

In the second quarter the Board of Directors has decided to write back the total outstanding balance of Rs. 19,376,991 payable to Ceylinco Investment Company Limited as a non existing liability as an amount received as marketing support during previous years.

In the first quarter, the company paid Rs. 15 million as full and final settlement of an original Rs. 10 million credit facility obtained from a Finance company which had bloated to an outstanding facility with accrued interest of Rs. 38.8 million as at 31 March 2011. The company recognised non payable accrued interests as a gain in the quarter.

Gross profit grew 60% to Rs. 14 million in the six months ending September 2011 as the cost of sales increased 67% to Rs. 29 million.

Other income declined 89% to Rs. 4 million while selling and distribution expenses increased 86% to Rs. 3.6 million and administration expenses rose 6% to Rs. 13 million.

Earnings per share for the six months was 18 cents and the net asset value per share was 44 cents. The company’s shares closed on Friday at Rs. 10.10, up by 70 cents from Thursday.

“We have strengthened our presence in Hong Kong, India and USA to reduce our dependency on the Middle East,” Blue Diamonds Managing Director W.G.B.M. Ranaweera said in his Financial Year 2010/11 annual review in August.

Barring any unforeseen circumstances the company is heading into a profitable level in the near future, he added.