ODEL ends FY 2011 in style

• Pre-tax profit up 68% to Rs. 354.2 m; turnover up 37% to Rs. 3.3 b;
• Declares second 25 cents per share dividend in 8 months

ODEL Plc Sri Lanka’s only public quoted fashion retailer, has proposed a final dividend of Rs. 0.25 per share for 2010-11, taking total dividend payout for the eight months since it was listed, to Rs. 72,475,000.

The dividend announcement coincides with the release of the company’s financial statements for the 12 months ended 31 March 2011, a period of noteworthy top and bottom line growth for the fashion and lifestyle brand.

Group Pre-tax profit  recorded a 68% increase to Rs. 354.2 million over 2009-10, on turnover of Rs. 3.3 billion, which was up 37%, ODEL Plc reported in a filing with the Colombo Stock Exchange.

Group Profit after tax grew by 48% to Rs 208.9 million in a year in which the company focused on expansion of its presence and on enhancing shareholder value.

Basic earnings per share of the group for the 12 months grew by 47% to Rs 1.49 from Rs 1.01 cents for the previous year. Net assets per share improved by 41.4% to Rs. 9.63 at company level and by 36% to Rs. 11.2 at Group level. “Expansion justified by the post-conflict resurgence of Sri Lanka’s economy, and a desire to enable a segment of our followers to share in the evolution and growth of the ODEL brand were the principal reasons for going public,” ODEL founder and CEO Otara Gunewardene said.

 “We were greatly encouraged by the investor response and have focused our energies on building shareholder value and continuously improving our shopping experience,” she added.

Since its listing in July 2010, ODEL has opened three new standalone stores at Battaramulla, Kiribathgoda and Kandy, and revamped its store at Lester James Peiris Mawatha (Dickman’s Road), Colombo 5. In the months preceding the listing, the company opened stores in Mt. Lavinia, Moratuwa, Panadura and Maharagama. ODEL currently operates 15 stores in Sri Lanka.

ODEL paid an interim dividend of 25 cents per share in February 2011 in respect of the financial year 2010-11. The ODEL share was offered at Rs. 15 at the company’s IPO of 16.7 million ordinary shares, and commenced trading on the Colombo Stock Exchange on 4 August 2010. The share closed at Rs. 44.50 on 24 May 2011, nearly triple its issue price.

In January this year ODEL was conferred membership of the prestigious Intercontinental Group of Department Stores (IGDS), the largest association of department stores in the world, making it the only IGDS member in Sri Lanka. This membership place ODEL in the company of some of the leading and most prominent department stores in the world including Selfridges, Saks 5th Avenue, Printemps, Parkson, Beco, FEDS, Shopper’s Stop, M&S and Woolworths.