The Laugfs Gas Group, which this week reported a revenue of Rs. 5.32 billion for the nine months to December 31, 2010 which is a 32% increase over the corresponding 2009 period, says it will soon start construction of a 100-room hotel in Chillaw shortly utilising the proceeds of the Initial Public Offering (IPO).
Laugfs Chairman W. K. H. Wegapitiya, in a quarterly report to shareholders, said the development of land base LP Gas storage capacity at Mabima complex is also progressing and another 250mt capacity storage tank had been completed. The construction of the next storage tank of a similar capacity just commenced recently.
He said the company’s IPO drew an unprecedented response from the public oversubscribing the issue 22 times through well over 60,000 applications which is a ‘demonstration of utmost trust and confidence on the company with an investment of Rs: 2.5 billion’.
During the 9-month period, post tax profit of the group was Rs. 750.3 million, up sharply by 96% increase over the same period last year.
The financial position of the group as reflected in the Balance Sheet as at 31st December 2010 appears to be very strong with a total asset base of Rs.8.6 billion as against Rs.4.5 billion recorded at the same date last year, the chairman’s report said.
The group’s current assets now stand 1.8 times over its current liabilities, a reflection of a very healthy liquidity position.
Laugfs Gas Ltd contributed to the group revenue with Rs. 4.87 billion for the period whilst earning a post tax profit of Rs. 638.27 million which is a 61% increase over the same period last year.
The cylinders sold in all pack sizes ranging from 2kg – 37.5kg increased substantially over both corresponding period last year and against the forecast. “The company performed well against the forecasts made for the period under review and the full impact is to be reflected in the immediate future against the forecast with the promotional campaigns the company is undertaking on a continuous basis,” Mr Wegapitiya said.
Revenue of Laugfs Eco Sri (Pvt) Ltd increased during the period to Rs. 405.3 million, up 118% from the previous year. The company tested a record number of 859,409 vehicles for emissions during the current period as against 441,962 during the corresponding period last year.
The other directors of the group are U.K.T.N. De Silva, H.A. Ariyaratne, C.L.de Alwis, P.K. Kumarasinghe and T.K. Bandaranayake.