Business Times

Asia Capital says joins prestigious Rs 1 billion profit per-year club

Asia Capital PLC on Friday said it has joined the billion rupee profit per-year club in terms of the un-audited accounts for the 12 months ending March 31, 2011 by recording an Rs.1 billion net profit after all expenses for the Asia Capital Group.

“This is an increase of over 350% compared to the audited results of 2010. Approximately 30% of that profit has been from gains from the sale of investments through Asia Capital PLC, principally from the sale of Capital Reach when that company was purchased by Asia Capital PLC in 2008 and disposed in 2010, together with some gains from short term investments in the secondary market. These profits are indicative of the true wealth of the investment company,” the company said.

Manohan Nanayakkara, Chairman of Asia Capital PLC said in his review that, “for example at the current market valuation, Asia Capital’s 54% stake of Asian Alliance Insurance is worth more than US$50 million, representing over 56% of the market capitalisation of Asia Capital.

Several other majority holdings of Asia Capital, specially Asia Asset Finance and Asia Leisure when added together, surpass US$90 million the market capitalisation of ACAP at its current price.” He said from time to time when “we feel that the markets are buoyant and the valuations are not un-attractive, we shall dispose some of our investments to realise capital gains. This will continue to be one of the principal activities of Asia Capital to create shareholder value.”

Stock broking and investments accounted for 29% of the group profits last year. Deposit mobilisation and credit accounted for 10%. Insurance accounted for 34%. The return on net assets (RONA) of Asia Capital is at 50% which is very respectable and quite high compared to its peer companies, the company said.

Earnings per share for the group for the year is at approximately Rs.10 and this more than justifies the current market value at Rs.90 for ACAP which is a PE of only 9. “I am confident that even that company is well positioned for the future, particularly due to the new segments that we are entering into,” the chairman said.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Sharp increase in frequencies to India
Expolanka ‘chosen few’ won’t sell; will take longer term view
Seylan to finalise Rs 600 mln VRS tomorrow
Many respond to Commods Exchange offer
Govt. agrees to give pension for life
Six Senses group plans IPO
Comment - Of private placements and share pricing
Call to create a knowledge economy
Etisalat open for acquisitions in related businesses
BPO boom to get a push with Firstsource Solutions
Merchant Credit, Ceylease merger won’t see staff retrenchment
“Need to recognize, researchers and investors with decent wages”
Sri Lankans may carry ‘clean air’ just like bottled water
Feb 2011 exports, imports up 36% and 27%, remittances up 26%
Aging population: Younger Sri Lankans have to earn more to look after elders
Insurance industry law sees amendments through; shows 19.6% growth in 2010
Authentic Borah food at special Borah trade show
Datacard USA recognizes DMS for outstanding achievements
German help for IDPs resettled in Mullaitivu, Kilinochchi
Not the time to expand oil palm
Sri Lankan export trade exhibition for foreign buyers in 2012
Greenwich introduces Sage ERP ACCPAC V6
Pears refurbishes paediatric wards at Jaffna Hospital
Applying for a job is serious business say top CEOs
JusticeWeeramantry to speak at Global Compact Network Ceylon event
CEB to test its employee through a balanced score card
Coca Cola celebrates its 125th anniversary of ‘spreading happiness’
Innovative city in Sooriyawewa
Singapore Airlines to promote Sri Lanka tourism
Seylan Bank Rights issue to raise Rs. 4.6 bln
Letter
Trinco rice mill industry gets a boost
Asia Capital says joins prestigious Rs 1 billion profit per-year club
Better share prices this week as debate on Expolanka mounts
‘Six Sigma’ powerful to improve quality-US expert says
Samsung enhances intelligent technology at home
Singapore firm to manage new Sunshine group hotels
‘Ceylon Tea’ gets seal for tea of origin

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution