Financial Times

JKH doubles profit, strong growth

John Keells Holdings more than doubled its consolidated net profit last year, in what chairman Vivendra Lintotawela described as one of "exceptional achievement".

JKH's consolidated net profits grew by 143.6 percent to a record Rs. 1.3 billion for the year ended March 31.

"Strong contributions to profit growth were witnessed from virtually all sectors during the past year, while our successful bid for Lanka Marine Services in August 2002, added another feather to our cap," Lintotawela told shareholders in the company's annual report.

Pre-Tax Return on Capital Employed improved to 14.4 percent from 9.2 percent last year, while Return on Equity increased to 14.6 percent from 6.7 percent. Total Shareholder Return, comprising dividends and capital appreciation, was 25 percent for the financial year.

Lintotawela said that despite many conglomerates resorting to "focus strategies", JKH was confident that diversification will remain its formula for generating superior shareholder returns.

"We believe our strength lies in identifying under-performing acquisition targets and converting these into significant value creators.

Our track record proves this. We also recognise that active portfolio management is the key to successful diversification."