LAUGFS Gas records Rs. 1.14 b profit in FY12

LAUGFS Gas PLC said yesterday the Company and its subsidiaries have once again performed strongly.

This was despite a gloomy environment created for its energy sector operations with escalating global LP gas prices coupled with depreciation of the Sri Lanka Rupee against the US Dollar, as Central Bank adopted policy of non-intervention in the foreign currency market.

The Group consists of three subsidiaries operating in the spheres of Vehicle Emission Testing, Leisure and Property Development.

According to a statement issued by the Company, LAUGFS Gas PLC and its subsidiaries, according to the un-audited financial statements for the year ended 31 March 2012 has posted a record turnover of Rs. 9.17 billion which is a 30% increase over the corresponding period.

The Group recorded Rs. 1.14 billion profit before tax which is a growth of 10% over last year. As far as the financial position is concerned as at 31 March 2012, the group net asset value grew by 5.7% over last year to Rs. 6.4 billion. The Group maintained healthy liquidity situation during the period under review and the net generation of cash from operating activities were Rs. 960.8 million whereas it Rs. 868.8 million last year.

LAUGFS Gas PLC as the parent company also performed well under difficult circumstances of escalating global LP Gas prices and currency depreciation, making the cost of imports surging, recorded a revenue growth of 29%.

LAUGFS Eco Sri Ltd. engaged with vehicle emission testing services has extended its operations to all provinces in the country excluding north since the announcement of the Government, making the vehicle emission testing mandatory for the whole country for the purpose of annual renewal of licenses for the relevant classes of motor vehicles. LAUGFS Eco Sri Ltd. recorded impressive results with a revenue increase of 37.9% for the year under review.

The Group has identified the engagement with operations of Leisure segment as a business priority in the post conflict environment and it is in the process of seizure of every opportunity available in this sector.

LAUGFS Leisure Ltd., the Leisure segment arm within the group, acquired a 15 acre block of land at Waskaduwa, Kalutara during the period, in the south-western coast of the island having pristine beach frontage and that was only land available for development in this critical location.

The company plans for a unique five star hotel in this location which would be considered as one of a kind in the country. This will be the second in the chain of hotels under LAUGFS Leisure Ltd., which will be operational in the season 2013/14.

The first hotel in the chain is being constructed at Karukapone, Chilaw and its progress is on target and also expected to be commercially operational by the latter part of the financial year 2012/13.

The hotel once constructed will be distinctly different, located at most picturesque site wedged between the beach of the west coast and a lagoon and architectural designs of this 88 roomed hotel is a unique deviation from the traditions. The property development undertaken by LAUGFS Property Developers Ltd. is also progressing rapidly at Maya Avenue Colombo 6, and hopeful of making it operational by around second quarter of the next financial year.

LAUGFS Gas PLC and its subsidiaries has a remarkable resilience to bounce back for extra-ordinary performances against all adversaries and its very optimistic about the general outlook of the external environment both local and overseas and looking forward to harness the full potential of its operations in the short term, in the segments of energy downstream, vehicle emission testing, leisure and property development.