United Motors Lanka goes for share split

UNITED Motors Lanka Plc, (UML) announced a sub division of each existing issued and fully paid ordinary  shares into two ordinary  shares  subject to approval by shareholders at an EGM. Consequent to the  subdivision of  shares the current issued shares  of  the Company  will   increase from 33,633,542 shares to 67,267,084 shares.

The United Motors Group of Companies represents a full range of commercial and passenger vehicles mainly from Mitsubishi Motor Company Japan and other brands from Malaysia, China and India. The latest addition to their product portfolio is the TVS Three Wheeler from India. The group and has already commenced the local assembly of the Zotye Nomad SUV vehicle at its state-of-the-art plant at Orugodawatte.

United Motors Lanka Plc has posted a Profit Before Tax (PBT) of Rs. 46.78 million for the first quarter of 2010/11 which is an increase of 175 % over the loss of Rs. 61.90 million reported in the corresponding period of the previous year. Further the Group PBT has increased by 180% from a loss of Rs. 126.83 million for the first quarter ended 30 June 2009 to a pretax profit of Rs.101.79 million for the same period in the current year. For the year that ended 31 March 2009/10 the company made a profit after tax of Rs. 121 million and the group reported a consolidated profit of Rs.146 million.

With the reduction of import duties and taxes from June 2010, the Company’s and its Subsidiary’s vehicle sales have increased significantly.