Dinal quits ACME as Chairman; ex-Singer Chief Hemaka takes over

Thursday, 9 April 2015 01:01 - - {{hitsCtrl.values.hits}}

Longstanding Dinal Peiris has resigned as the Chairman and Executive Director of ACME Printing and Packaging Plc, with senior business leader and Director Hemaka Amarasuriya taking over. Dinal quits... The company said Peiris resigned with effect from 2 April but gave no reasons for the move. He holds a 1.8% stake in the company. Despite the resignation, Peiris will continue to be Managing Director at ACME parent Lanka Aluminium Industries Plc, where he joined as General Manager in December 1989, was appointed to the Board in 1990 and thereafter operated as Managing Director in May 1999. He was appointed to the ACME Board in April 2001 and as Chairman on 1 July 2009. He is an engineer by profession with a B.S.c Eng. (Hons) from City University, England and an MBA from London Business School. For the three months ended 31 December 2014, ACME reported a Rs. 155.5 million loss as against a loss of Rs. 17.6 million a year earlier. The substantial loss incurred during the quarter was attributed mainly to a one-off VRS payment paid to retrench excess employees and a low production and sales due to the unsettled conditions that prevailed at the Piliyandala factory during this period. Revenues were down 25% to Rs. 221 million. Gross loss was Rs. 21.5 million, as against a profit of Rs. 40.5 million in the third quarter of FY14. Administrative expenses rose by 323% to Rs. 102 million and included Rs. 77 million paid for a Voluntary Retirement Scheme to retrench 85 employees. Loss from operations amounted to Rs. 128 million as against a profit of Rs. 14 million. In the nine months ended 31 December 2014, revenue was flat at Rs. 834 million and loss from operations amounted to Rs. 110.6 million as against a profit of Rs. 36 million. Net loss was Rs. 194 million, up from Rs. 62 million in the nine months of FY14. New Executive Chairman Hemaka Amarasuriya is fresh from his retirement from Singer Sri Lanka, where he had an illustrious career spanning over 30 years. He joined the ACME Board in August 2011 as an Independent Non Executive Director. Now he holds slightly over 100,000 shares in the company. Singapore-based Colvis Company Ltd. holds a 27% stake in ACME in addition to related party Lanka Aluminium Industries holding 4.46%. Colvis didn’t subscribe to the last Rights Issue via which the company raised Rs. 307 million (25.6 million shares at Rs. 12 each). Richardson Holdings owns 19.4%, a stake it acquired during the rights issue of late last year. UAE’s Mak Holdings Group holds a 10% stake. It acquired an original 15% stake in June last year.