Finco ups stake in Renuka Hotels to 10%

Monday, 16 January 2023 03:08 - - {{hitsCtrl.values.hits}}

Finco Holdings Ltd. has increased its stake in Renuka Hotels PLC to 10% as of last week.

In a disclosure to the CSE, Finco Director Priyanjith Weerasooriya said that it holds 4.045 million shares or 10.04% stake in Renuka Hotels.

As at 30 September 2022, Finco held 6.13% stake in Renuka Hotel control of which is held by leisure sector veteran and senior business leader Ravi Thambiayah and family. Renuka Hotels owns 69% stake in Renuka City Hotels PLC as well.

Renuka Hotels share closed Friday at Rs. 69.90 up by Rs. 3.40 or 5%. Net assets per share was Rs. 92.37 as at 30.9.2022. In November Renuka Hotels saw 1.14 million of its shares traded for Rs. 79 million between a high of Rs. 72 and a low of Rs. 61.10 before closing at Rs. 65.10 down by 5.38%. In October only 190,331 shares traded and closed at Rs. 68.80, down by 9%. December 304,636 of its shares traded and closed at Rs. 66.10.

Diversified Finco Group has interests in the leisure sector consisting of several mid and upmarket boutique hotels and resorts under Uga Escapes Ltd. Other interests include trading, manufacturing consultancy, services and IT.

Thanks to other income of Rs. 506 million, Renuka Hotels in the 2Q of FY23, achieved a Rs. 455 million pre-tax profit as against Rs. 32 million a year ago. Pre-tax profit in 1H was Rs. 558.4 million, up from Rs. 101 million. In FY22, pre-tax profit was Rs. 186.7 million. Renuka Hotels revenue rose by 307% to Rs. 27.4 million in 2Q and by 302% to Rs. 57.5 million in 1H. Group pre-tax profit grew by 485% to Rs. 667.4 million in 2Q and by 866% to Rs. 2.4 billion in 1H.