26% Rev­enue In­crease In Vi­sion In­vest­ments Lim­ited

Fiji Sun - - Sunbiz - MON­ICA AGUILAR SUVA Feed­back: mon­ica.aguilar@fi­jisun.com.fj

This fi­nan­cial year has been a re­mark­able success for di­ver­si­fied lo­cal group, Vi­sion In­vest­ments Lim­ited.

As the com­pany’s fi­nan­cial year has come to an end, Vi­sion In­vest­ments Lim­ited di­rec­tor and chief ex­ec­u­tive of­fi­cer PL Mu­nas­inghe proudly an­nounced that the com­pany had recorded a total rev­enue of $170.3mil­lion. This is a 26% in­crease com­pared to the pre­vi­ous year which had a record of $134.7mil­lion.

The com­pany’s earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­za­tion stands at $26.8 mil­lion, a 19% in­crease com­pared to the pre­vi­ous year with a record of $22.5 mil­lion. The an­nounce­ment was shared amongst its share­hold­ers yes­ter­day at the com­pany’s an­nual gen­eral meet­ing at Courts Sam­ab­ula Mega Store.

Its profit be­fore tax in­creased by 28% with a total of $20.5 mil­lion. Ac­cord­ing to Mr Mu­nas­inghe these op­er­at­ing out­comes ex­ceeded the prospec­tive div­i­dends dis­cussed in the In­for­ma­tion Mem­o­ran­dum is­sued in con­nec­tion with the list­ing of the com­pany on the South Pa­cific Stock Ex­change.

As a re­sult of the com­pany’s tremen­dous progress, its earn­ings per share in­creased by 20% which is an in­crease from 15 cents per share to 18 cents per share. Mr Mu­nas­inghe said the com­pany’s div­i­dends per share cur­rently stands at 9.75 cents.

This is 54% of the com­pany’s Net Earn­ings that has been dis­trib­uted to its share­hold­ers.

As per the com­pany’s bal­ance sheet, the com­pany’s total as­sets is val­ued at $141.7 mil­lion.

The com­pany’s share­hold­ers eq­uity stands at $75.6 mil­lion which is 53% of the total as­sets.

The com­pany’s debt to eq­uity ra­tio is 0.9:1.

He added the bal­ance sheet proves that the com­pany has the ca­pac­ity to take up debt to in­vest in new busi­ness op­por­tu­ni­ties.

Share Price in the South Pa­cific Stock Ex­change:

Ac­cord­ing to Mr Mu­nas­inghe, the com­pany had per­formed ex­tremely well. The com­pany’s share price stood at $2.46 on the 20th of Septem­ber but in­creased on Mon­day to $2.48.

Over the 19 months since the com­pany was listed un­der SPSE, the com­pany’s share price ap­pre­ci­ated to 41% or 26% on a per an­num ba­sis.

He added the com­pany has about 300 share­hold­ers.

Fi­nan­cial State­ments of PNG Op­er­a­tions

The cur­rent year fi­nan­cials had in­cluded, for the first time, the fi­nan­cial records of the com­pany’s sub­sidiary-Vi­sion Home cen­tres Lim­ited op­er­at­ing in Pa­pua New Guinea.

As part of the com­pany’s plans to ex­pand across the re­gion, VIL had started set­ting up its op­er­a­tions in PNG on March 2016. It there­fore com­menced trad­ing in Fe­bru­ary 2017 which is one and a half months be­fore the year ended.

The PNG op­er­a­tion made a loss of $1.1 mil­lion due to the pro­longed set up pe­riod and sub­dued trad­ing, ac­cord­ing to Mr Mu­nas­inghe.

De­spite that, he said the share­hold­ers must look at the long term view as PNG is a large market.

“We must be well placed to take ad­van­tage of the PNG econ­omy re­bounds,” he added.

Mov­ing For­ward

“We are con­fi­dent in de­liv­er­ing an­other strong per­for­mance this year,” he said. The com­pany has been pour­ing in a lot of fo­cus in its PNG sub­sidiary and aims to sta­balise its op­er­a­tion so it could start mak­ing con­tri­bu­tions to the group’s com­pany results.

“We are al­ways look­ing for op­por­tu­ni­ties in the market to in­vest,” he said.

The com­pany chose to ex­pand in PNG be­cause it be­lieved that the pop­u­la­tion presents a sig­nif­i­cant op­por­tu­nity al­though the econ­omy has been fac­ing many chal­lenges re­cently.

The com­pany’s success was greatly at­trib­uted to the man­age­ment and pro­vid­ing the cus­tomers the best ex­pe­ri­ence that is bet­ter than any other com­pany in the market.

“It is a very easy state­ment to make but it is quite dif­fi­cult to achieve be­cause there is a whole chain of events that we need to per­fect to be able to de­liver that cus­tom ex­pe­ri­ence,” he said. The Com­pany com­prises of Courts, Vi­sion Mo­tors, Ma­hogany In­dus­tries (Fiji) and Vi­sion Fi­nance.

Photo: Courts

Vi­sion In­vest­ments Lim­ited Di­rec­tors at the an­nual gen­eral meet­ing on the 26th of Septem­ber 2017 at Courts Mega Store in Sam­ab­ula.

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