Aitken Spence sees challenging 3Q 2015/16
View(s):Aitken Spence PLC posting its interim results for the quarter ended 31 December 2015 has said that its profit-before-tax fell by 25.3 per cent to Rs. 1.1 billion while profit attributable to equity holders decreased by 26.7 per cent to Rs. 637 million. The company’s income for the quarter also fell by 14.6 per cent to Rs. 6.7 billion. The diversified group’s nine-month results showed profit-before-tax decreasing by 28.3 per cent to Rs. 2.6 billion and profit attributable to shareholders falling by 35.4 per cent to Rs. 1.4 billion while revenue dropped by 28.2 per cent to Rs. 18.6 billion, a company media release said.
“The revenue loss from the cessation of the power purchase agreement of Ace Power Embilipitiya in April 2015 had a significant effect on the results. Other Operating Income for the 9 months to 31st December 2014 included insurance income of Rs 351 million for the fire damage at a resort in Maldives during 2013/14.” “Diminished returns from the Maldives due to external factors and consolidation of hotel investments in Sri Lanka, negatively affected the returns from the tourism sector,” Rajan Brito, Deputy Chairman and Managing Director of Aitken Spence PLC was quoted as saying.
The group’s hotel arm recently completed a 100-room extension to its beach property in Kalutara, which is now a 200-room upgraded resort. In addition, the company is currently overseeing two large hotel projects in Negombo and Ahungalla. Aitken Spence operates a wide portfolio of hotels and resorts in Sri Lanka, Maldives, India and Oman. Its travel arm, the largest in Sri Lanka, is a joint venture with TUI Travel. It also acts as GSA for major airlines in Sri Lanka and the Maldives.
“We are pleased to report increase in profits from companies in the port management, ship agency and airline sub sectors contributed towards the profits of the Maritime & Logistics Sector.” Mr. Brito has said, Subsequent to the balance sheet date, Aitken Spence PLC after obtaining all relevant approvals purchased a 20 per cent shareholding in Fiji Ports Corporation Ltd. The company which was previously wholly owned by the Fiji Government owns and manages all ports in Fiji.