Hotel management-rich Aitken Spence sees profits rise

The Aitken Spence PLC group, which has successfully expanded its hotel management expertise to India and West Asia, saw profits (before taxes) rise by 11.5% to Rs 2.1 billion in the nine months to 31 December 2008, the company announced recently.

“We have been able to sustain our steady progress mainly due to our excellent management team who have stayed focused and maintained momentum despite the challenges posed by the world economic meltdown,” said J.M. S. Brito, Deputy Chairman and Managing Director of Aitken Spence PLC, in a statement.

Profits attributable to the shareholders for the nine months reviewed was Rs 1.3 billion, up from 15.1% from the previous year. No post-tax profit figures were given in the statement. It said group turnover rose by 21.4% to Rs 23.5 billion, up from Rs 19.4 billion last year. Earnings per share increased 15.1% from Rs 40.63 to Rs 46.78.

Mr Brito said internationally, Aitken Spence has continued its overseas track record in superior management by obtaining the management of more hotels, inbound travel companies, port efficiency enhancement and port management services, HR and IT projects in Southeast Asia, the Middle East and Africa ‘by leveraging on our own brand value’.

“In power generation we are expecting future growth in renewable energy and in overseas expansion opportunities,” he added. The Group’s plantation companies were affected by the declining global commodity prices which had an adverse effect especially in the third quarter. During the period under review, the Group’s operations in the inward remittance market saw volumes grow by 25% mainly from the Middle East and Europe.

Adverse travel advisories and results of the global recession have substantially affected tourism operations in Sri Lanka. “Given improved levels of stability, especially in the North and the East, we are keen to look at business opportunities that would contribute to the economic revival of the provinces,” added Mr Brito. During the period under review, the Group disposed a company which operated a resort in the Maldives.