Aitken Spence reports robust growth in 3Q

Saturday, 8 February 2014 04:12 - - {{hitsCtrl.values.hits}}

Leading conglomerate Aitken Spence PLC recorded a strong performance in the third quarter, interim results to the Colombo Stock Exchange (CSE) released on Friday revealed. The blue-chip’s financial results for the three months ended 31 December 2013 saw Profit Before Tax surging by 47% to Rs. 1.58 billion and Profit After Tax surged by 53% to Rs.1.38 billion, while profit attributable to shareholders rose by 54% to Rs. 1.1 billion. The diversified group’s nine-month results revealed profit-before-tax rising by 10% to Rs. 3.5 billion and profit-after-tax increasing by almost 10% to Rs. 2.9 billion, while profit attributable to shareholders was up by 11.2% to Rs. 2.3 billion, while earnings per share increased by 11.2% to Rs. 5.68 billion.

Aitken Spence has operations in South Asia, the Middle East, Africa and the Pacific. Listed in the CSE since 1983, it has major interests in hotels, travel, maritime services, logistics and power generation. The group also has a significant presence in plantations, printing, financial services, insurance, information technology and garments. Profit before tax from the tourism sector surged by 26.2% to Rs. 2.3 billion while revenue rose by 10% to Rs. 10.3 billion, for the nine months. The company recorded strong growth from its resorts and inbound travel business in Sri Lanka. Aitken Spence operates a wide portfolio of hotels and resorts in Sri Lanka, Maldives, India and Oman. Its travel arm, the largest in Sri Lanka, is a joint venture with TUI Travel. During the period Aitken Spence Hotel Holdings PLC., a subsidiary company entered into a shareholders’ agreement with RIU Hotels of Spain to build a 500-room luxury resort in Ahungalla, costing approximately $ 100 million. Cargo logistics sector, which includes its international maritime services arm, recorded Rs. 545 million as profits-before-tax, an increase of 29% over the previous year, while revenue was up by 16.8% to Rs. 5.1 billion. Aitken Spence is Sri Lanka’s largest logistics services provider and has port management services in Africa and the Pacific. During the period under review Aitken Spence acquired 51% shares in Ports Terminal Ltd., through a public-private partnership and took over the managerial and operational responsibilities at the Fiji Ports Corporation. Strategic investments sector showed drop of 38% in profits-before-tax and 34% in revenue, to Rs. 489 million and Rs. 9 billion respectively, for the period under review. Whilst the printing and garments businesses performed well, the power business has shrunk as its plants in Horana and Matara were not operational, following the cessation of the power purchase agreement entered into with the Ceylon Electricity Board. Subsequent to the balance sheet date, the 24 MW thermal power plant owned by Ace Power Generation Horana Ltd., was disposed. The Group’s services sector saw profits-before-tax growing by 18.5% to Rs. 154 million and revenue rising by 19% to Rs. 458 million. The services sector includes financial services, insurance, elevator agency and technology businesses.