Sumal recaps watershed year for Access Engineering

Access Engineering Plc Chairman Sumal Perera has described the financial year ended on 31 March 2012 as a “watershed” for the Company.

The Company a post-war listed entity, saw its revenue for FY12 enjoy a 100% and 98% growth over the previous year at Group and Company level to mark Rs. 7.3 billion and Rs. 7 billion respectively. Profits attributable to the equity holders of the parent were Rs.1.7 billion and Rs.1.4 billion respectively at the Group and Company level. This turns out to an 80% and 53% growth over the previous year.

The total asset base of the Group and the Company witnessed an exemplary growth to end the year at Rs.14.2 billion and Rs.13.1 billion respectively. Here are excerpts of Sumal Perera’s comments in the Chairman’s Review of Access Engineering Plc’s 2011/12 Annual Report:

When I look back on the year that was, I see one where opportunities came to fruition and strengths as a people, were honed; I also observe that we became a nation that truly believed in a country that could produce results, despite the world undergoing unprecedented challenges, while the country in itself ensured that the trajectory it had planned could be met with pragmatism and visionary foresight. We all became ingénues in an arena where hope became the catalyst and delivery of that hope resulted in the consummation of building a nation that would be conjoined with strong economic and social bonds.

To us at Access Engineering, this year has been a watershed.

While the nation charted its path for the future, building on that platform of ‘Hope Delivered,’ we opened a brand new chapter in our corporate annals. The historic IPO transformed us from a home grown entrepreneurial venture to assuredly place us as a leader, spearhead and pioneer in the larger corporate sphere of the country.

I’m most excited as I write this message as this has been a year that has truly been a landmark in our history of just a decade, both quantitatively and qualitatively. Our maiden IPO on the Colombo Stock Exchange for 20 million Ordinary Voting Shares was oversubscribed in record time, which signalled that our reputation within not only the industry sectors we operate in but in an overall corporate context, is undoubtedly held in high esteem.

It also proved that the plans and projects we had embarked upon, the initiatives for expansion, the knowledge culture and the professionalism we displayed were a positive influence in the investor mindset. It also brought into play the facets of governance, ethics, principles, transparency and accountability, which form the nucleus of a sustainable business concern, aiming to showcase consistent results on a platform of excellence. To us at Access Engineering, this was more than a successful IPO; it was an exceedingly proud moment for us because this proved that we are held in high repute by our peers and stakeholders.

We continued our good growth performance as can be seen in our exemplary figures for the year ending 31 March 2012.

Revenue for the year recorded a mammoth 100% and 98% growth over the previous year at Group and Company level to mark Rs. 7.3 billion and Rs. 7 billion respectively. Profits attributable to the equity holders of the parent were Rs. 1.7 billion and Rs. 1.4 billion respectively at the Group and Company level. This turns out to an 80% and 53% growth over the previous year. The total asset base of the Group and the Company witnessed an exemplary growth to end the year at Rs.14.2 billion and Rs.13.1 billion respectively.

A notable growth during the year came from the Company’s stated capital which saw a growth of 200% over the previous year which was the result of the successful private placement and the subsequent IPO. Your company is cash rich with cash and cash equivalents of Rs. 1.6 billion and Rs. 1.1 billion at the Group and Company level. This is also reflected in the healthy current asset ratio of 2.5 times and 2.7 times at the Group and Company level.

Having always retained a reputation as a company that delivered on our promise all the time, every time, we continued this premise this year as well. We have carved a niche for ourselves as a dynamic and progressive entity that leads the civil engineering sector in Sri Lanka, having imbued innovative value engineering solutions from the A to Z of construction, spanning design, procurement, construction and commissioning of multidisciplinary engineering projects. Our partnerships with world renowned construction companies have seen us secure many civil engineering projects islandwide since our inception in 2001.

In synopsis, Access Engineering’s completed engineering feats encompass the Hambantota and Batticaloa Water Supply Projects, North East Bridge Rehabilitation, Greater Colombo Flood Control Project – Phase II, Southern Highway Project, Kukuleganga Hydro Power Project, Hikkaduwa Fishery Harbour, Kelaniya, Nugegoda and Dehiwala Flyovers, Unnachchai Tank Bund Project and Colombo Sewerage Rehabilitation among others, some of which have involved partnerships with international contractors and strategic joint ventures.

Our subsidiary, Access Realties (Pvt) Limited, the catalyst for the iconic Access Tower, will soon begin construction on Access Tower 2, yet another state of the art office complex. During February 2012, we acquired Sathosa Motors PLC (SML) which we believe has significant potential to contribute to the growth of our company and we hope to benefit from the envisaged synergies in the coming years. The SML portfolio includes the importation and sale of Isuzu commercial vehicles which was ranked 76 among the 100 leading brands in Sri Lanka for the year 2012.

We continue to etch indelible marks in the construction and engineering sectors, true to our vision of being ‘The Foremost Business Enterprise in Value Engineering’, constantly upping benchmarks in standards and quality excellence. The commitment to ‘Green Engineering’ concepts is also well founded not only through the fact that we are accredited by ISO for practicing environmentally friendly standards and quality initiatives, but also for being a signatory to the UN Global Compact, the first construction company in Sri Lanka to be so.

Therefore, these ensure that Access Engineering continues to remain at the zenith of our disciplines and core competencies, as evidenced by the accolades we have accrued.

We gained a listing among the Top 20 of Sri Lanka’s Most Respected Entities by premier business magazine LMD this year, while being conferred numerous awards at the ICTAD Awards and the National Business Excellence Awards as well.

At the former, we were accorded three National Awards for Construction Performance for the Nugegoda and Sangupiddy Flyovers and the bridge across Maoya on the Pannala-Maningamuwa-Mellawagedara Road. At the NBE Awards, Access Engineering collected three awards and a record for being conferred the Gold award for the second consecutive year as the Best Knowledge Integrator. Our governance tenets were also recognised when Sting Consultants together with LMD awarded us Gold Status within the Corporate Accountability Index.

Our strong team of over 3,000 employees, helmed by a management that is one of the best in the industry, has surely given us the confidence to lead and fearlessly tread into newer areas and avenues. Your dynamism and tireless pursuit of excellence will always remain our greatest asset.

We have firmly established ourselves as a partner to the country’s progress, given the interventions we already have in both the economic and social spheres. We see amazing potential in the thrust areas which will see the construction sector posit even more growth this year, as we remain a crucial player in infrastructure, due to the vast expertise, capability, knowledge and competencies we possess, in addition to proven experience in handling myriad diverse projects.

We will continue to aggressively seek growth opportunities in the short to medium term in our proven capabilities which include road and bridge construction, ports and related work, water management and civil engineering works. Another key driver we see potential in is the property development market, emerging due to rapid urbanisation and lifestyle change.