Free Lanka Capital Holdings first with 2010/11 interim results

Net profit soars by 515% to Rs. 493 m; Group revenue up 33% to Rs. 6.5 b

Newest public quoted company, Free Lanka Capital Holdings (FLCH) last week not only had its debut but also became the first as the 31 March year ending company to release interim results.

As per provisional results, diversified FLCH had finished 2010/11 financial year with a net profit attributable to equity holders of Rs. 493 million, up by 515% from the previous year. Profit after tax was Rs. 1.2 billion, up by 319 from Rs. 303 million whilst pre-tax profit had risen by 303% to Rs. 1.37 billion in 2010/11.

Group revenue rose by 33% to Rs. 6.5 billion whilst gross profit rose to Rs. 1.3 billion, up 319% from Rs. 329 million in 2009/10.

Pre-tax profit had been boosted by Rs. 222.5 million in other income (up by 36% over the previous year) and Rs. 307.4 million gain on change in fair value of timber stocks, (up by 29% over 2009/10).

In the last quarter Group revenue had risen by 36% to Rs. 1.7 billion whilst after tax profit had grown by 110% to Rs. 349 million and net profit attributable to equity holders amounted to Rs. 102.7 million, up by 189% over the corresponding quarter of 2009/10.

In 2010/11, revenue from tea had grown to Rs. 4.6 billion from Rs. 3.8 billion whilst rubber had seen an increase from Rs. 971 million to Rs. 1.7 billion. Hydro power revenue had risen from Rs. 5.5 million to Rs. 135 million. Tea had returned to profit of Rs. 253 million as against a loss of Rs. 18.7 million, whilst pre-tax profit on rubber had risen from Rs. 310 million to Rs. 998.5 million. Hydro power profits amounted to Rs. 91.4 million, up from Rs. 2.6 million in 2009/10.

FLCH Group assets as at 31 March, 2011 were Rs. 16.1 billion, up from Rs. 13 billion in the previous year. Capital and reserves amounted to Rs. 6.3 billion, up from Rs. 3.6 billion in 2009/10. Total liabilities had risen from Rs. 4.09 billion to Rs. 4.3 billion. Net asset per share was Rs. 4.61 in 2010/11 up from Rs. 3.37 a year earlier.

Following its IPO, the shares of the company began trading in the secondary market opening peaking to a high of Rs. 6 before closing at Rs. 5.50 with 130 million shares changing hands.