Friday, 30 August 2013 03:07
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Colonial Motors Plc has decided to phase out its motor vehicle-related business activities and focus on being a property holding and investment company, as CM Holdings Plc.
The Board has resolved that pending this move, the company will limit motor vehicle business to meeting pre-existing obligations. After that the Colonial Motors will cease to undertake any new business in relation to repairing, and servicing of motor vehicles and the importation and sale of vehicle spare parts.
However, KIA Motors (Lanka) Ltd., which will remain a subsidiary of Colonial Motors, will continue to import and market the KIA range of vehicles.
Colonial Board has approved in principle the transfer of Carplan Ltd., currently a subsidiary of the Company to KIA Motors (Lanka) Ltd. to be its subsidiary and also to be a principal dealer of KIA motor vehicles.
The modalities of implementing these matters will be determined in due course subject to necessary approvals if any being obtained.
To obtain shareholder approval for these changes, Colonial Motors will hold an EGM on 27 September soon after the AGM also fixed on the same date.
The Colombo Fort Land and Buildings Plc holds a 65% stake in Colonial Motors Plc.
In the FY13, Colonial Motors recorded a Group profit of Rs. 269 million, up by 14% over the previous year. However, net profit attributable to equity holders amounted to Rs. 26 million, down from Rs. 387 million.
In 1Q FY14, net profit was down by 14% to Rs. 44.3 million whilst net profit attributable to equity holders amounted to Rs. 56.5 million as against a loss of Rs. 111 million in 1Q of the last financial year.
