Singer Finance goes for Rs. 645.3 m Rights

Singer Finance (Lanka) Plc is going for a Rs. 645.3 million Rights Issue of 11 shares for 20 held at Rs. 11 each.

Funds raised will be used to expand the branch network and the leasing business, Singer Finance said following the Board decision made yesterday.

The Rights is subject to regulatory and shareholder approval.

 Its current stated capital is Rs. 800 million represented by 106,666,667 shares. Via the Rights 58,666,667 new shares will be issued. Recently Singer Finance opened its 16 branch in Embilipitiya. It is backed by the strength of the Singer (Sri Lanka) Group, one of the country’s most powerful conglomerates. Singer Finance is registered by the Central Bank of Sri Lanka and has a BBB+ Fitch rating.

In the financial year ended on 31 March 2012, Singer Finance’s income increased by 30% from Rs. 970.6 to Rs. 1.26 billion whilst profit rose by 79%, from Rs. 112 million to Rs. 201 million.

For 4Q FY 2011/2012 it recorded a Net Profit of Rs. 46 million, which is a growth of 106% over the same quarter of prior year in the midst of a challenging business environment during the latter part of the fourth Quarter of FY 2011/2012.The company’s income increased by 47% in the fourth quarter from Rs 245.3 million to Rs 360.2 million.

The company’s numbers were buoyed by an increase in the Leasing and Hire Purchase portfolio, which accounted for 61% of revenue for the last quarter and 58% of revenue for the year ended 31st March 2012. Further, the costs in relation to revenue, demonstrated by an operating costs-to-income ratio of 42% - down from 44% for both the last year same quarter, and year on year.