Singer ends 2010 singing best ever with 400% profit growth

Consumer durables giant Singer (Sri Lanka) Plc has achieved its best ever financial results in 2010 with after-tax profit soaring by 400% to Rs. 662 million whilst top line saw a healthy 35% growth to a record Rs. 16 billion.

Consolidated pre-tax profit in 2010 was Rs. 1.16 billion, up by 369% over 2009 whilst after tax profit was Rs. 662.3 million, up from Rs. 133 million (restated) in 2009. Net profit attributable to equity holders amounted to Rs. 661.5 million in comparison to Rs. 133 million in 2009. At Company level pre-tax profit was Rs. 825 million higher compared with Rs. 221.7 million whilst after tax profit grew from Rs. 121 million to Rs. 423 million.

The 2010 bottom line beat the previous best of Rs. 500.3 million achieved in 2004. An 170% increase in other operating income to Rs. 261 million (gain of Rs. 176.5 million on dilution of Singer’s stake in Singer Finance from 100% to 75% following the IPO of the latter) had helped the 2010 performance as well in addition to better management of expenses and reduction in finance cost.

Singer also saw robust growth in its top line with Group revenue topping the Rs. 16 billion mark, up by 35% over 2009. The 2010 performance exceeded Singer’s previous best of Rs. 13.77 billion achieved in 2007.



White goods saw their turnover top the Rs. 5 billion mark, up from Rs. 3.9 billion in 2009 whilst consumer electronics turnover grew from Rs. 2.7 billion to Rs. 3.6 billion. Sewing related products produced the third highest turnover of Rs. 1.9 billion, up from Rs. 1.5 billion. Kitchen related products turnover also crossed the Rs. 1 billion mark in 2010.  White Goods produced Rs. 268.4 million pre-tax profit a sharp rise in comparison to Rs. 70.6 million in 2009 whilst consumer electronics generated a similar result with a pre-tax profit of Rs. 253 million, up from Rs. 61.5 million in 2009.

The full year financial results had been boosted by an impressive final and fourth quarter performance. Group revenue in 4Q grew by 41% to Rs. 4.76 billion whilst pre-tax profit rose by 83% to Rs. 382 million and after tax profit by an equal percentage to Rs. 226 million.

Singer’s Group assets also surpassed the Rs. 12 billion mark in 2010 to finish at Rs. 12.98 billion, up from Rs. 10.8 billion a year earlier. Its retained earnings amounts Rs. 2.57 billion, up from Rs. 1.9 billion whilst total equity was Rs. 3.87 billion, as against Rs. 3 billion in 2009. Noncurrent liabilities rose from Rs. 1.4 billion to Rs. 2.1 billion whilst current liabilities amounted to Rs. 6.68 billion, marginally up from Rs. 6.42 billion in 2009.

Last week Singer Board of Directors approved a final dividend of Rs 3.50 per share amounting to Rs 219.1 million for the year ended 31 December 2010. This dividend will be paid on 21 March 2011, subject to the solvency test certificate being signed by the external auditors KPMG Ford, Rhodes, Thornton & Co.

Singer Sri Lanka goes for one into two share split

Joining the growing number of companies wanting to boost liquidity, Singer Sri Lanka yesterday announced a sub division of shares on the basis of one into two. The decision was made by Singer Board of Directors yesterday.



Its current issued shares are 62.6 million and post sub division it will increase to 125.2 million. The move subject to shareholder approval will not alter the stated capital of the Company which will remain at Rs. 626 million.

Singer’s number of shares in issue saw its last increase in 2006 when a one for 4 bonus was announced. Between 1982 (when it went public) and 2006 Singer had 11 bonus issues and two rights issues increasing the number of shares from 1.39 million to 62.6 million shares.

The share split announcement was made after the market closed. Its share price yesterday closed at Rs. 218.50, down by Rs. 1.40 whilst it peaked to a high of Rs. 220.